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defaulted due to medical illness.. now what?

Date: Tue, 04/19/2005 - 22:26

Submitted by nkshirsagar
on Tue, 04/19/2005 - 22:26

Posts: 11 Credits: [Donate]

Total Replies: 7

defaulted due to medical illness.. now what?


Hello everyone,

I would really appreciate some advise. Here's my story.

I was an international student studying in Boston in 2002. In August 2002 I had about 6000 dollars debt shared between 3 credit cards (2000 on amex blue, 3000 on sony citibank and 1000 on a third one which i forget)

I meant to pay this debt off as soon as I began to work in the USA

But I had to fly back to my country of residence to take care of a spine illness which took 2 years to get better, in which time I was always in hospitals and was kinda fighting for my life, so I didnt really think much about the credit debts.

When I finally contacted the bank from here, they said that they have handed it over to a collection agency, after which I gave up trying to
contact anyone.

Now what do I do? Just let it be?

Or keep trying to figure out how much the amount is and if possible pay it from here? I can't afford it of course.. since I didnt even have a job the past few years. But what are the consequences of just sitting tight, especially since I am not in the USA for a few years more at least. The last time I made a payment on the cards must have been about 2 years ago.

Advise needed! my question is.. is it gathering interest as we speak or is it an amount that I can take care of when i return to the usa, be it many years from now and will it have not substantially changed from what it was when i defaulted?

I do not plan to return to the USA for the next 3 years ... given that its been 2 years already since I stopped payments, is there any time period after which this debt becomes forgiven? I read about the statute of limitations for Massachussets and its 6 years for open loans.. (credit cards come under that?)

Another question.. isnt there any way I can negotiate of reduce this debt under any laws which exempt people who are medically ill for a long period of time ?

I posted this in the debt settlement forum too and have received many kind replies and good advise, more would always be welcome!

Thanks,
N.


Hi nkshirsagar,

Welcome to the debt consolidation care forums.

Quote:

Now what do I do? Just let it be?


Since you said that you cannot afford to pay your debts now, it is ideal to wait and find what happens next. You are in your own country at the moment and don't plan to return to the U.S.in the next 3 years, which makes the deal in your favor completely. In all probability you do not carried forward your debts to another country. Since your debts are in U.S.you need not worry much.

Moreover, with the SOL being 6 years in Massachusetts, you will be legally free within the next couple of years. From your letter I can guess that at least 3 years have passed and the fourth one is on the spree.

Quote:
I meant to pay this debt off as soon as I began to work in the USA


It is at least good to know that your intention was not to run away from your debts but to pay it back.

:D:D So it is all good news at your end. Take it easy.

Hope you share your experiences and insights with the other members of the forum and remain here as an active participant.

Cheers,
Jason


lrhall41

Submitted by Jason on Wed, 04/20/2005 - 00:06

( Posts: 2430 | Credits: )


many thanks for your reply..

do you think it is still piling up due to interest or is it a fixed amount now? If so and if it is managable.. something less than 8000 dollars, i could pay it off from here and ease my financial worries about future repurcussions.. if it is a great amount and getting bigger and bigger, i would prefer to just let it go and face the consequences as and when i would be in the usa ..

it has been about 2 years since i made the last payment on any of the cards.. so this is the third year in progress..

Thanks again for your reply.. some other folks on the debt settlement list told me that i should take care of it because if they have handed it over to a collection agency, the amount would be piling up interest at a fearful rate..


lrhall41

Submitted by nkshirsagar on Wed, 04/20/2005 - 00:13

( Posts: 11 | Credits: )


Hi nkshirsagar

Quote:

some other folks on the debt settlement list told me that i should take care of it because if they have handed it over to a collection agency, the amount would be piling up interest at a fearful rate..


It is true that the interest will be piling up higher and you will be having a very tough time later when you return to USA and pay it at that time. Keep your fingers crossed as you are not returning to the US in the next couple of years.

Roxette


lrhall41

Submitted by roxette on Wed, 04/20/2005 - 09:39

( Posts: 4009 | Credits: )


so what do you suggest? just let it go and forget about it? i will not be coming to the usa for a few years that is true.. but what if i come after 10 years, will it be gone or will i have to pay it then, watever it is. ?


lrhall41

Submitted by nkshirsagar on Wed, 04/20/2005 - 20:52

( Posts: 11 | Credits: )


Hi nkshirsagar

Quote:

so what do you suggest? just let it go and forget about it? i will not be coming to the usa for a few years that is true.. but what if i come after 10 years, will it be gone or will i have to pay it then, watever it is. ?


In my view, there is a least chance of this debt getting wiped off. Prepare yourself mentally that you will have to pay this debt along with the interest when you return to the US. But since you are not returning to US in the next couple of years and on the other hand, you can't afford to pay your debts now, so why worry much. Take it easy and let the time say everything.

Till then, enjoy your life but with a control over your own self. Plan wisely and live happily.

Regards
Roxette


lrhall41

Submitted by roxette on Thu, 04/21/2005 - 11:13

( Posts: 4009 | Credits: )


Hi,

a friend of mine contacted one of the accounts and was told by the manager there, that they would settle for a sum that's less than half of the debt.

What does this mean? Will I be free of the problem if I pay this sum?


lrhall41

Submitted by nkshirsagar on Wed, 06/01/2005 - 03:17

( Posts: 11 | Credits: )


Hi nkshirsagar

Welcome back. Your friend was told about the debt settlement6 program by the office manager.

debt settlement is a negotiated settlement of your unsecured debts where your debt gets reduced. Since it is a bankruptcy prevention program, it adversely affects your credit rating if the debts are current and there is no history of late payment.

If the outstanding debts are huge and there is no way left to pay them off and declare bankruptcy, debt settlement will be the best move.

The disadvantages of debt settlement are as follows:

  • The credit report is affected negatively as it will be reflected for the next 7 - 10 years. In most emergency cases only, people opt for debt settlement and bankruptcy.

  • Creditors probably harass you through out the process of negotiation and may even sue you or garnish your wages. Some debt settlement companies will only accept you, if you have $10,000 or more in credit.


    Please let us know if it needs to be clarified further.

    Regards
    Roxette


    • lrhall41

    Submitted by roxette on Wed, 06/01/2005 - 11:42

    ( Posts: 4009 | Credits: )