Bankruptcy for $12900? I wouldn't do that, and bankruptcy trustees will tell you that the balance is too small and recommend a debt settlement or consumer proposal.

Don't lose sleep over the possibility of them suing you. They won't. Here is why:

Creditors will avoid the court system if they know you fall into one or more categories:

- No employment
- Pay child support
- No assets (i.e. property)
- On social assistance
- Physically disabled to work
- Over 70 years of age
- Already have judgments against you
- Too many creditors seeking payments

Because you have more than 1, they won't bother. Before seeking court action, they do a verification of employment with your employer. Well, you have none. They will also do a name search to see if you own any property. Again, you have none. There is no point in taking you to court because of all of the above. Paying court fees and attorney fees to sue someone who has nothing? Does not sound like a good business plan.

I would just state to TD that due to your health, you are unable to work and unable to make payment. TD will eventually pass on the debt to a collection agency. From there, you can now negotiate a settlement. In your case, a person with no assets, no job, nada, you're a good candidate to go as low as 15 cents to the dollar. It won't happen overnight. You must wait for it to pass on to a collection agency because TD will be a hard ass when it comes to negotiating. Once a collection agency owns the debt, the true negotiating power is in your hands.

Based on all the info you have provided even if they did decide to sue you are essentially judgment proof at the present time so it really would be bad business for them to throw good money after bad.

You have no wages to garnish, no property to attach a lien to, no assets to seize...again judgment proof at least for now until your circumstances improve.

O.C.

Thanks for the reply.I am going to try and work something out with TDCT again just so they cannot say I am not trying to pay my debt.
It looks like I may be unable to work for 9 months to a year if they need to operate on my back as with Xmas coming it will be at least four months or more before I can have surgery.Then there is the recovery time and what ever time it takes to find a job afterwards.
A friend suggest that when I call them again to make it very clear I am unable to work due to health problems and even threaten I may have to file for bankruptcy.He figures they will work with me then.
If I do have to default I guess I can only hope the fact I have no assets and am unemployed they will decide taking me to court is not worth it.Also if I do default it is my understanding once two years passes I will no longer be able to be dragged into court as long as I do not make a payment or acknowledge the debt in writing.
Granted no matter what I guess my credit rating is going to take a hit but right now that is the least of my worries.

Wayne R

Hi Wayne,

It's hard to give you a straight answer to your question, so here's my experience:

Like yourself, I ran into some medical problems in 2002 which led me to have a tumor taking out of my head in 2003. I defaulted on ~100k in debt, of which which 15k was on a TDCT cc, 10k on a TDCT LOC and 1.5k on an overdraft. In the end, I wasn't sued. Not sure if this is because they didn't know where I was living at the time (they only had my PO box - mailing address), or, if they just figured it'd be more of a headache to pursue these accounts?

I will admit that they sent a team of collections companies after me to try and recover these debts, so if you default on your debt, do expect them to do the same. After the statute of limitations period is up, you can send them a cease and desist letter and demand that they communicate with you only via mail. That's what I did, and also stated if they didn't like it they should pursue legal avenues.

O.C.

I losy my job almost over 2 years ago.I have also had back problems which I am seing a doctor for.I was managing to pay the minumum payment of my Visa card every month with my girfriends help once and awhile but she is now have financial problems and I will not be able to make the minimum payment anymore.I have been for the most part self employed doing odd jobs ( low paying ) and my bad back has made it hard to work at times.I have tried talking to TD Visa but they were not willing to work with me.
So in short I owe $12900, have no job, no assets besides my clothes, a notebook computer and a few other personal items.I do not own any property, no house or car and have no money in the bank.I live with my girlfriend at this time.All the furnishings in the apartment belong to her.
I do not want to default on my Visa card but after many sleepless nights I see no way out.My health problems also may mean I may not be able to work again whish at my age ( 47 ) is not a good thing.What are my option? If I default will they sue me? Is it possible because I have no income or assets they will not sue me giving me time to get back on my feet at which time I may be able to fix my debt problems.

Wayne R

Wayne R