OT: How to interpret credit report?

I have a credit report on a debtor who apparently filed bankruptcy (chapter

7) and therefore I never get paid. The credit report lists 7 different credit cards which were said to be included in the bankruptcy and therefore discharged (worthless). But what I can't figure out is what the unpaid balance was on the credit cards when the debt was discharged. I guess it's none of my business. The listing just says the balance is currently zero and the high balance was such and such and the card limit was some other number. Is there any way to find out how much someone stole by declaring bankruptcy? I think I'll print the thing out and go to my bank and ask for an explanation.
Reply to
billbowden
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I think you had it right. It's none of your business.

OTOH, such things are probably public record. You might start with the courts.

Reply to
krw

Heh, defaulting on 7 credit cards? Damn son that's gonna leave a mark...

Anyway probably not, it's unsecured debt that was likely sold to a collections agency; the original creditor wrote it off their books ages ago and giving out information on the particulars of a purchased debt by collections agencies to third parties is a violation of the FDCPA.

I think the only way there might be a public record of the particulars is if the collections agency took the deadbeat to court over one of the debts prior to the bankruptcy, but unless we're talking about defaulting on Amex Black card-level balances it basically never happens.

One time a collections agency contacted me in an attempt to collect on the unsecured debt of a deceased relative. It's OK to tell them to piss off.

Reply to
bitrex

Who cares? They defaulted on friggin' 7 credit cards; clearly a God-tier deadbeat any way you slice it. I don't see how knowing whether they defaulted on 100k of debt or only 70 would make me feel better.

Reply to
bitrex

THAT would be very interesting! Please let us know what you discover.

Reply to
Robert Baer

Well, in all fairness, each credit card was listed by status for each month for 3 or four years and all the ratings were either unknown or OK. So, I don't see any extremely negative reports and I give the guy the benefit of the doubt. He just got in over his head and thought he could make ends meet. Personally, I have never had a credit card and just pay cash. I figure if you don't have the money today, you won't have it tomorrow, so don't buy things you can't afford. Credit cards are like drugs where you get addicted and can't give them up. .

Reply to
billbowden

You can hurt yourself with most tools, if you don't know how to use them.

Reply to
krw

I have one credit card and I use it rather carrying cash. All my charges on the card are paid each month. There are no fees and no interest for me. I have not needed to carry any cash for the last 6 years or so.

Reply to
John S

This is not about how much,it is about the mechanism employed.

Reply to
Robert Baer

Well i have virtually no choice, starve or go into debit.

Reply to
Robert Baer

exactly

Reply to
M Philbrook

Have to point out that those in fact are two distinct choices.

--sp

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Best regards,  
Spehro Pefhany
Reply to
Spehro Pefhany

In my opinion it is better to debit than to go into debt, which is not to be confused with using a credit card. Mikek

Reply to
amdx

And I don't know how to use credit cards. Never had one. But, what I think is going on is credit cards are being used to invest in the stock market. I don't know how that is done but maybe it is possible to borrow money on your credit card to use anyway you want? Can you just walk into a bank and ask for 10K to be charged to your credit card? Or, if you have a brokerage account, can you just charge the purchase of stocks using the credit card?

Reply to
billbowden

Silly, but your choice.

Just what is your evidence for this hallucination? No, you can't use a credit card to purchase stocks. Who is going to pay the merchant's fee? You can take a cash advance on a credit card but usually a lot less than the available limit, and at a ridiculous interest rate. It may happen but it's certainly not at all common. Some may chose to invest rather than paying down a mortgage (a simple choice) or borrow against a home to invest (dumb) but credit cards? No way.

Reply to
krw

I'm not sure what you mean by "mechanism." The mechanism is Chapter 7. It's unsecured debt, the creditors say "pay us" and you say "sorry don't have the money" and provide your proof of income statements, bank account statements, etc. to the bankruptcy trustee to present to the court in support of your case. If the court agrees then that's it. Can't bleed a stone.

Reply to
bitrex

lol use a credit card to invest in stocks; have you seen the APR on credit card cash advances? Would make Bernie Madoffs returns look like slow performers. And nah Charles Schwab ain't gonna let you put 50 grand in junk bonds on the Visa.

Supposedly it used to be possible, way back when, to gather up several credit cards that offered "zero APR cash advances" for 6 months to a year, run them all up to the limit, deposit the money in a high-yield savings account, and if you somehow managed to stick six figures in there you might end up with a couple "free" grand in your pocket after everything was said and done. But that was ages ago and "high yield" savings accounts paying 3 or 4% interest rates are a thing of the past for the average person.

If it's any consolation getting defrauded by a credit card scam artist is something that happens to just about every small business employee or owner at one point or another. Time to write it off as a loss on your taxes if you can and "Charge It To Tha Game":

Reply to
bitrex

A possible, but probably unlikely scenario, is that someone might use cash advances to "invest" in _extremely_ high risk -> high return futures, like maybe Bitcoin or some other ridiculously volatile cryptocurrency.

I'm going to guess it was strippers and booze, though, which is much more pedestrian and plausible.

Reply to
bitrex

Even people that ought to know how to use them like highly numerate professionals can come unstuck if something untoward happens to them that prevents them from earning and the cards are close to maxed out.

I know at least one maths genius that had this problem. If you don't have any savings at all you are walking on a tightrope with no net.

I can't see anyone sane borrowing cash against a credit card to invest in stocks or shares. They charge far too high an interest rate so it makes no sense at all. How odd - I find myself agreeing with krw!

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Regards, 
Martin Brown
Reply to
Martin Brown

Yup. They're not playing the above-board stock market with cash advances, at least. Maybe paying off loan sharks but who would break your kneecaps first is a tossup.

Relax though guys, it's just the usual oxycodone/eight balls

Reply to
bitrex

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