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Are there consequences from not paying credit after 7 years?

Are there consequences from not paying credit after 7 years? Topic: Write letter job interest card
July 23, 2019 / By Abihail
Question: Hello, I had some emergencies back in college and could not pay for them if I had not taken out some credit cards, I have had a situation occur where I have not been able to have a job for over a year now. I asked all of my creditors to default my interest and payment amount but they would not even though I was unemployed!!! I've been so upset with all of this and now as this time has passed, all the creditors have sent my accounts to collections who call daily. I'm a simple person, won't be buying a house or new car in the next 7-10 years. I'm so upset the credit agencies haven't worked with me about my situation I'm considering letting these accounts just stagnate and not pay any of them. After the 7 years pass, then write them a letter of "cease contact". What, if any, consequences would or could come out of this? Anyone have experience from doing this themselves?
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Best Answers: Are there consequences from not paying credit after 7 years?

Sullivan Sullivan | 1 day ago
The main problem to this is that until the Statute of Limitations runs out they can still file a suit against you. The Statue of Limitations is not the same as the Credit Reporting Period. For Credit Card debt it is anywhere from 2-6 years. If they file a suit against you during this time, a judgment will then be listed on your credit report. Then again depending on your state, the judgment will then be on it for an additional 7 years or until the Statute for the Judgment runs out which may be as much as 10-20 years. Once they have a judgement if your state allows it they can Garnish your wages, or attach any bank accounts you may have. Now, if you are outside of the SOL and have no desire to clean up your credit they can really do nothing to you but ask you to pay the bill. To stop this you would have to send them a Cease and Desist Letter to have them stop.
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Sullivan Originally Answered: Consequences of claiming the "Black Tax Credit" or "Slave Reparation Credit"?
Internal Revenue Bulletin: 2004-12 March 22, 2004 Rev. Rul. 2004-33 CIVIL AND CRIMINAL PENALTIES The Service will disallow credits or refunds based on a reparations tax credit and will seek to recover any refund erroneously made to a taxpayer based on a reparations tax credit. In addition to liability for tax due plus statutory interest, individuals who claim tax benefits on their returns based on this and other frivolous arguments face substantial civil and criminal penalties. Potentially applicable civil penalties include: (1) the section 6662 accuracy-related penalty, which is equal to 20 percent of the amount of taxes the taxpayer should have paid; (2) the section 6663 penalty for civil fraud, which is equal to 75 percent of the amount of taxes the taxpayer should have paid; (3) a $500 penalty under section 6702 for filing a frivolous return; and (4) a penalty of up to $25,000 under section 6673 if the taxpayer makes frivolous arguments in the United States Tax Court. Taxpayers relying on this scheme also may face criminal prosecution for: (1) attempting to evade or defeat tax under section 7201 for which the penalty is a fine of up to $100,000 and imprisonment for up to 5 years; or (2) making false statements on a return under section 7206 for which the penalty is a fine of up to $100,000 and imprisonment for up to 3 years. Persons who promote this scheme and those who assist taxpayers in claiming tax benefits based on this scheme also may face penalties. Potential penalties include: (1) a $250 penalty for each return prepared by an income tax return preparer who knew or should have known that the taxpayer’s argument was frivolous (or $1,000 for each return where the return preparer’s actions were willful, intentional or reckless); (2) a $1,000 penalty under section 6701 for aiding and abetting the understatement of tax; and (3) criminal prosecution under section 7206 for which the penalty is a fine of up to $100,000 and imprisonment for up to 3 years for assisting or advising about the preparation of a false return or other document under the internal revenue laws. Promoters and others who assist taxpayers in engaging in these schemes also may be enjoined from doing so under section 7408.
Sullivan Originally Answered: Consequences of claiming the "Black Tax Credit" or "Slave Reparation Credit"?
IT's tax fraud, pure and simple. If someone claims it and the IRS accidentally processes it, they will be asked to pay it back with interest and penalties. Even just asking for it can get you slapped with a $5000 penalty for filing a "frivolous return." And no, the penalty does not mean you get to keep the money. The promoter of this scam can be charged criminally and go to jail for it.
Sullivan Originally Answered: Consequences of claiming the "Black Tax Credit" or "Slave Reparation Credit"?
Your family member is full to the brim with bull stools. Can't use the more common 4-letter colloquialism. I can't be any more blunt that this: He's a LIAR. End of discussion. There is no such credit. Anyone trying to claim it will be facing a minimum $5,000 penalty for filing a frivolous return. He didn't receive the non-existent credit since there is no way to claim that which does not exist.

Parker Parker
You should do some research on your state's statute of limitations as mentioned above. Depending on which state, its laws, its SOL period, and how much you owe, it may well be very unlikely that anyone would sue you. The states vary. If possible, you may wish to move to a state with brief statute of limitations or extra-good consumer laws. Texas is good. You never know what lies down the road, so 3 or 4 years from now you may wish you had good credit. But if you want to take the step you're contemplating, be sure to be well informed and figure out the tricks of the game. And if you decide to quit paying, just remember that certain things can restart the SOL clock, such as sending in a payment in an effort to clear up your debt.
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Parker Originally Answered: How does one get their credit score updated quickly after paying off credit cards?
You can only get them to remove inaccurate information, and then you must wait. A letter from you will only be attached to your record. You may be correct, but the best you can do it to pay off now, and then when you know when your FICA is updated, then get the record of it and apply. This is like pushing on a string. You won't get anywhere. The credit bureaus are not equipped to respond to each and every phone call, except in the case of fraud or stolen credit or stolen ATM cards.
Parker Originally Answered: How does one get their credit score updated quickly after paying off credit cards?
Unfortunately it will take time to reflect in your bureau since there are three main bureaus asides from your FICO score. TransUnion, Experian, and Equifax. You can attempt to contact them or get a free credit report to ensure it reflects all your payments. But the scores for all these bureaus are based on a very intricate algorithm that no one truly understands. It will take time for it to reflect your good behavior. Other things that help your credit score are to reduce your debt to income ratio, ensure you're at a lower utilization level than your historical maximum, don't open or close any accounts since age of trade line counts. You can always try 0% balance transfer to take some load off your student loans if the refi rates aren't optimal. God luck.

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