Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
GettingBackOnMyFeet

0 Contributions
0 People Helped
What happens after a credit card debt has been written off by the creditor?
I had to let my BoA and Chase cards go when I lost my job. I'm getting back on my feet and was told today by my bank I should pay off the debt or I may not be able to get a mortgage or I may get a judgement against me and have my wages garnished. How true is this? What really happens when the banks have "written off" your credit card debt and you just get debt collector calls? If it helps, I owed BoA around $7k and Chase around $8k.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7367 Contributions
3809 People Helped

Usually, it goes to a collection agency who would call and/or write to you in an attempt to collect on the debt.  If they do not, keep track of the timing from the last date you made a payment and do an online search to find out the statute of limitations for debts.  My state is 6 years, many others are 4, some as high as 10. 

If you are still "within statute" you might contact the banks (they may have closed your files) and explain your history and that you want to get the debt paid in full.  Depending on how quickly you might be able to do it, you might be able to get an agreement from the banks to delete the negatives from your credit reports for payment in full of the debt.  If you get a verbal agreement on the phone, note the party's name and send a written proposal to be signed by the party and a copy to be sent back to you.  That is to make sure you have everything "in writing" which holds up in court much better than only verbal agreements if there is ever a question.

Hope this helps.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.