Is there any law that says you can’t cash out all your lines of credit+cards and then save the cash in a box?
Right now I have $150K of available credit through a variety of sources. My good credit score is about to be trashed because I can’t afford my mortgage reset after 5 years and there is negative equity in my home so I can’t refinance. Since my credit score will be destroyed can I cash out the $150K since the damage is already done? How long will it take for the debt to be discharged from my record? If I keep the cash in a box and don’t declare bankruptcy to say that I don’t have the cash, what is the worst that can happen to me?
January 23rd, 2009 at 12:59 pm
i think is just a joke
January 25th, 2009 at 10:04 pm
If you cash out all your credit card, and you will owe the credit card company the money and the interest rate will be very high. eventully, you will get bankrupted if you don’t pay them back….. very stupid idea.
Then it seems your house will be foreclose (not a good thing, because you will lost everything you paid), you need to contact mortage company to see if you can “short-sell” it (means you can sell the price less than what you owe to the bank), then you can cleared out on the mortgage debt.
For you, best way to negoiate with bank and get out the house….
I
January 27th, 2009 at 2:09 pm
No, there is not a law that will prevent you from doing that, I used to work for B of A, WAMU, and Wells Fargo, and our clients would max out their lines of credit, when ever they default on the loan, they are just sent to collections. If the loan was on a home, then they take lien on the home. I would be cautios though. When you present your case to the Judge it will look obvious that all that credit was taken out at once in a certain period of time, and your case may be declined for obvious negligence. I suggest you start taking small amounts at a time. Pay off your car, that way you can show the judge you did pay some of your debt off, and know you will have one less monthly payment to make.