Consequences of not ever paying back CC debt

marfsmal said:

Very interesting Jim. So even for debt of 7k a debt collection agency can take a judgement against you and seize your assets? Wow.

Click to expand...

Well a debt collection agency has more motivation than a bank to collect as that is the only way they make money. Lets take the 7K example, if they buy that of the bank for say 2K, then if they fail to collect they have lost real money... and if this happens too often they'll go out of business hence the big motivation factor.

But of course having said that it all depends on what the bank decides to do in the individual case. But it is important to remember that just because a bank says it has written the debt off that does not mean that the debt has died, it just means they have taken it off their books. They could still decide to pass it on to a collection agency.

Jim.

marfsmal said:

Again see Jim2007's post for an example of a very helpful post. Maybe he's a bit less insecure in himself and doesn't need to lecture like others do.

Click to expand...

Thanks! But in a past life I spent about 5 years working in the insolvency department of one of large accounting firms, so I've seem more that my share of people in financial difficulty...

In many case I put financial difficulties down to a failing in the education system (and not just Ireland). We don't educate people in how to manage their money and yet it is as fundamental a skill as reading or writing!

Jim

I think there are other threads here and elsewhere about debt collection agencies, basically it's all a ball of smoke they have no specific powers over and above the ordinary punter. In fact if you tell them to go away and they don't they are almost commiting an offence.

The lender however still has all the powers to bring you to court and get their money. Agian I believe "selling on" debt is very rare in Ireland despite the language the agencies use which gives the impression this has happened when it hasn't

http://www.askaboutmoney.com/showthread.php?t=146970

Thankfully the 8k I have on credit cards was incurred because of travelling and a career change\study in the main.. it's debt I've both built up and continued to roll over for 6 years and which I am now eradicating altogether.

I would be down to 3k -3.5k now only that my car broke down and due to where I live and other reasons I had to buy a new one. I opted to invest in an 03 and spend 3.8k rather than a 1k car which could have broken down at any time and left me back to square one. So while it cost me I will keep it until at least 2016 or as long as possible so it was a long term investment. It's also one that is easy on petrol, low on tax etc. so I don't regret it. The loan for it will be paid off in 2 months and that monthly amount I had to pay on the car loan will be going straight to my credit card debt thereafter.

I guess not all credit card debt is equal. I didn't spend it on clothes, fancy meals, and cappucinos, etc. I travelled and saw some of the world, and sustained a change in career and am almost qualified for my chosen field where there are job opportunities. So there is a reason my debt level has stayed at that 8k figure, but in 12 months good luck to it

Definitely agree with you Jim, and thanks to mrderp re. info about the 'debt school', it's a great idea. Would be useful to all categories of borrowers, from the bottom up. Eddie Hobbs was the only person who really made people think about personal finance in this country to any extent.

Greta said:

There is no jail for a civil matter like non-payment of debt!

Click to expand...

In general, this is true - but there have been some cases where people have gone to jail. There was one famous case of a guy down wesht who was evicted and later jailed following proceedings by Irish Nationwide and Michael Fingleton. There was one lady on Eddie Hobbs TV 'Show me the money' series who's credit union had started commital proceedings against her.

Commital proceedings can only be progressed when a person has failed to comply with the terms of an Installment Order set by the Court. In effect the failure is a breach of a "Court Order" and the financial institution could progress for a committal order on foot of this breach. In practise they are now extremely rare and can be easily avoided by either talking to the Institution or going back to the Court to plead inability to pay.

im actually speaking from exp.... had a cc debt couldnt pay att he time, loads of letters threatening to this and that... nothing came of it, its a bad debt, 6k..... i'm suprised at some folks on here that i thought were knowledgable when it came to money matters there's always right off's and bad debt....

Car Finance - Half Way Rule

a.....

legend said:

im actually speaking from exp.... had a cc debt couldnt pay att he time, loads of letters threatening to this and that... nothing came of it, its a bad debt, 6k..... i'm suprised at some folks on here that i thought were knowledgable when it came to money matters there's always right off's and bad debt....

Click to expand...

A bank will only write off bad debt if there is no mark. You must have had no assets no income etc and that's why they wrote it off. Pointless pursing someone who has nothing. I know of people who've had debt written off, but it's only in the case where there is nothing to be gained in pursing that person.