Credit Cards

Ducky_Fresh

Ducky_Fresh

Treasure Hunter
OK - help me understand something.

What happens if you have good credit and a credit card limit of $20,000. You max it out and do cash advances, then stop paying and walk away. I don't care, move to another country, go off grid, or move to a "cash and carry" lifestyle.

What happens?

From what I could read, you just go to collections, then another collections, then maybe you can settle or something for pennies on the dollar. Of course, you tank your credit and get a bunch of nasty notices.

I guess it begs the question, could it be worth it? What if you could cash out $100,000 and you won't be buying a house or anything of significance.

I'm too much of a sheep to do it, but I do get curious.. :)
 
byke

byke

Well-known member
If you bought one big item that is maybe recoverable and if you own a home, or have some other assets, I think they'd make a pretty hard push. If you just bought a bunch of groceries and paid bills and had no real assets, they'd make a moderate attempt, but would eventually give up, imo. Basically, I think it depends on what you buy with the money and what you own.
 
SFSV650

SFSV650

The Slowest Sprotbike™
(1) If you bought anything with the cards, or even with the cash, they could attempt to reposess everything.
(2) They could get a civil judgement against you which would allow them to seize assets, physical or in a bank, to cover the amount owed (which would be pretty much whatever they decide it is, with fees and interest)
(3) If you literally pulled out $100k in cash advances, took a flight out of the country, and intended to stay away, they could probably get a fraud conviction in absentia, and the next time you set foot in a country with an extradition arrangement you'd be hauled back to the US for sentencing.
 
Ducky_Fresh

Ducky_Fresh

Treasure Hunter
Agreed. If you bought a car they would simply repo it. An expensive watch or something, probably more difficult to recover.

I'd assume they do some kind of analysis on whether it makes sense to pursue in court, plus they seem to write off a lot to smaller collections outfits. They sell them the debt. Of course, they would they do the analysis of whether it makes sense to come after it, or not.

Ooh, extradition! Sounds fancy. Also very expensive I'd expect? I guess the moral of that option is: Don't leave the country, just abuse it and stay. :)
 
Yakoo752

Yakoo752

USN
Ducky_Fresh said:
Ooh, extradition! Sounds fancy. Also very expensive I'd expect? I guess the moral of that option is: Don't leave the country, just abuse it and stay. :)
Click to expand...

debt is civil

there is no extradition risk

I guess the game would be to offshore any liquid assets, file for bankruptcy. Leave and return with said assets 8 years later. You open the door for fraud but :dunno
 
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JakesKTM

JakesKTM

Well-known member
I did this out of necessity in 2009 when I lost my job. Went all the way to federal court as a self litigant and prevailed. It will consume all your time and energy if you want to beat the debt. If nothing else you will learn firsthand the underbelly world of consumer debt collections and how slimy those attorneys are. PM me if you are serious.
 
JakesKTM

JakesKTM

Well-known member
budman said:
Fixed.

Thief is a thief is a thief.
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Not everyone who defaults does so with willful intent to defraud. Some people have unexpected life events put them behind the 8 ball.

Corporations do this shit all the time and banks? Dont get me started - the biggest thieves of all.
 
Yakoo752

Yakoo752

USN
JakesKTM said:
Not everyone who defaults does so with willful intent to defraud. Some people have unexpected life events put them behind the 8 ball.

Corporations do this shit all the time and banks? Dont get me started - the biggest thieves of all.
Click to expand...

kinda this

consumer debtors are the least of the concern but capitalism!

It's so much easier to point the finger at Bob's shitty spending habits, the availability of cheap money, and personal fiscal responsibility but look the other way when Toys R Us closes paying out big bucks to their executives, skirting their debtors, and now rebuilding as an online only brand... (I would call the later fraud but you do you #capitalism)
 
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byke

byke

Well-known member
I've always thought it'd be pretty sweet to sell the house, cash out retirement without paying taxes and load up on debt and burn out. It's a solid "fuck you".
 
LakeMerrit

LakeMerrit

*Merritt
JakesKTM said:
Not everyone who defaults does so with willful intent to defraud. Some people have unexpected life events put them behind the 8 ball.

Corporations do this shit all the time and banks? Dont get me started - the biggest thieves of all.
Click to expand...

If you want to do it the corporate or rich person way, create a new LLC for each asset, and when one goes tits up, your everything else isn't affected.
 
Ducky_Fresh

Ducky_Fresh

Treasure Hunter
byke said:
I've always thought it'd be pretty sweet to sell the house, cash out retirement without paying taxes and load up on debt and burn out. It's a solid "fuck you".
Click to expand...

This is more in line with it. I'm thinking this deserve a movie script..
 
JesasaurusRex

JesasaurusRex

Deleted User
JakesKTM said:
I did this out of necessity in 2009 when I lost my job. Went all the way to federal court as a self litigant and prevailed. It will consume all your time and energy if you want to beat the debt. If nothing else you will learn firsthand the underbelly world of consumer debt collections and how slimy those attorneys are. PM me if you are serious.
Click to expand...
Dang dude, pretty sure your story deserves its own thread.
 
HappyHighwayman

HappyHighwayman

Warning: Do Not Engage
Hey what happens if I steal someone's money from a bank or convenience store and then just leave the country? What happens?
 
byke

byke

Well-known member
Like with a gun? That might be a problem, depending on where you go and how you got there.
 
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