What happens if I default on a personal loan?

[Anonymous No.13480694]

Theoretically, lets say I have the resources to take out an unsecured personal loan, say the max of $50,000-$100,000 in the USA, and use that money to buy crypto, and then quit my job and move back in with my parents, then just stop paying completely. I would obviously go into default, ruin my credit and get harassed by collectors, but what else is there?

I quit my job so they can't garnish my wages, so my main question is - how long, if ever, until they leave me alone & drop my debt, and is it possible that I go to jail? I have a dual citizenship and can go chill in the other country if anything.

This is all hypothetical, just trying to figure out how debts work for the future in case of any schemes

[Anonymous No.13480731]

I owe 20k on an unsecured loan from 5 years ago. I told debt collectors to provide proof of debt and that I owed nothing, and any further calls would be harassment as they are causing me to have an unstable mental state. They arent allowed to call afterwards and if they do you have them calling after you told them they are affecting your mental health and work life. They havent called me in years and in 2 years the 20 000 will be wiped from my collections. Never admit to owing anything, you have so many rights they don't want you to know about. Even if you pay something in collections it doesnt do anything for your credit scores

[Anonymous No.13480766]

>>13480731
whad you blow the $20k on?
>>13480694
idk if applicable in Murica, but, you'd also better have a cover story where the $100k (or whatever) plausibly disappeared. There is a border between not being able to pay it back, and never having had any intention of doing so, the latter being straight fraud

[Anonymous No.13480770]

>>13480731
So the goal is to get my shit to collections? Have you worked at all in these 5 years? Do you have any more info about the 7 year rule? What can I and can't I do in the 7 years until my shit gets erased and I don't get bothered anymore?

[Anonymous No.13480787]

>>13480766
I was thinking if one were to do something like this, you can escape the fraud accusation by pretending to be a pajeet scammer on twitter, sending him (yourself) all of your crypto and then saying you got duped or something. Obviously something a bit more intricate, but its incredibly difficult to prove these types of things as crypto is still in an incredibly infantile stage.

[Anonymous No.13480801]

>>13480766
>>13480731
Another question is, how severely do they garnish your pay? What if I were to quit my high paying job and get a part time minimum wage job that only gives me enough to survive (food & rent) - they couldn't really garnish me then because I would become homeless - I could take that to a court, right?

[Anonymous No.13480807]

I am a Yuropoor and ran up £15,000 credit card debt in U.K. when I lived there as a student. I moved back home and never looked back and didn't pay anything. Fuck those cucks.

[Anonymous No.13480823]

>>13480766
I was engaged at the time and was a naive horny 21 year old with a 26 year old BPD meme queen. I payed for EVERYTHING. Rent. Utilities. Laundry. Food. Never fucking tell your partner or friends your finances.

[Anonymous No.13480842]

>>13480770
I have not worked on the books at all. I am currently in the process of getting disability for agoraphobia which I told my psychiatrist started manifesting when debt collectors kept calling. I said I was afraid to even look at my phone and couldn't even work without being harassed. My psychiatrist signed a form saying I am unable to work and agrees I should be on disability.

[Anonymous No.13480844]

>>13480770
>Do you have any more info about the 7 year rule?
this will be state specific. Same as wage garnishment. Whatever you do if you commit to this NEVER pay even one cent; it restarts the clock on the time debt can be collected.

[Anonymous No.13480850]

>>13480844
Also this. Do not pay a fucking cent or the entire clock gets reset.

[Anonymous No.13480866]

>>13480850
Also, paying it would be admitting that you acknowledge you owe them money.

[Anonymous No.13480886]

>>13480694
>What else is there?

Getting the 'look' from ma and pa every time you come down for dinner that they have to provide for you.

[Anonymous No.13480975]

>>13480694
>>13480731
>>13480770
>>13480844
So when you borrow money and stop paying it back it "goes to collections"

For the first 120 days your loan is considered delinquent. After 120 days it becomes "charged off". The more delinquent the loan is, the more damage to your credit score, and the damage peaks when it charges off, at which point it becomes a "derogatory mark" on your credit report for the next seven years or until you pay it off / settle with the company.

You can expect the company to call you a lot more during those first 120 days, before the loan is charged off, than after.

After 120 days pass and the loan charges off, the company has a few options to choose from. They can keep calling you and asking you to make payments. They can send you a letter offering to wipe out your debt if you pay them a settlement of, say, 60% of what you owe. They can sell your debt to a third-party debt collector, who will then call you and try to collect the debt. Or they can go to court and get a judgement against you and garnish your wages.

The bigger the loan amount, the more likely it becomes that they go with the legal route. $10k and above virtually guarantees they'll go to court and try to garnish your wages.

If you stop working for 7 years and tell every debt collector who calls you that they do not have permission to call you, then in theory you can ride out the next seven years and they can't do anything about it.

After 7 years the debt is written off. However, written-off debt is taxed as income, so you will get a tax form in the mail when the debt is written off, and you will have to pay income taxes on the money you borrowed and never paid back. So for example if you charge off on a $10k loan and your income tax is 30% then you'll owe $3k to the government, seven years after you charged off on the loan.

One more thing -- you mentioned getting a personal loan for $50-100k. I do not know of any lender who will give you that much money.

[Anonymous No.13481036]

>>13480975
In conclusion I think it's a terrible idea.

Even if you work at McDonald's for $10/hour, that's $20k per year. Therefore the opportunity cost of not working for 7 years is $140k at a minimum. You will not be able to borrow $140k so I don't see a situation where you come out richer than you would be if you just keep wagecucking.

Also, having a shitty credit score for seven years means you can't get a job, can't get an apartment, can't borrow money in an emergency, etc. etc.

And as I mentioned you will eventually have to pay income tax on all of the money you never paid back. So you would also need to set aside 1/4~1/3 of the money for seven years, just to be sure you don't end up in jail for tax evasion.

[Anonymous No.13481100]

>>13480842
This is fucking hilarious, are you in the USA? Are you memeing about all of this or are you seriously aspie? I really respect your neetbux hasidic jew tier hustle

[Anonymous No.13481132]

>>13480975
>>13481036
Very interesting, thank you for that. I guess factoring in that income tax loophole as well as the opportunity cost it does seem silly. What if a person pulled this trick in say, 2015, invested in Bitcoin and alts, cashed out on time, and then got in touch with the debt collectors in early 2018 and said "okay, peasants, I'll pay back your debt in full and any interest owed" - would everything go back to normal? Would your credit score recover?

[Anonymous No.13481160]

>>13481100
Im in the USA, Im diagnosed with aspergers too its pretty funny. Im not jewish. I was illegally evicted by jews who never gave an eviction notice/had a sheriff sale of my previous home when I had no money. A month later I got a settlement fund from my father working at ground zero and ending up with lung cancer from all the toxic shit in the air there. So now I have 200k that is not taxable, Im slowly funneling the funds into bitcoin day by day and it just looks like I am loading my cash card on my bank statement. I told them I lost my bank card and have been transferring funds to my cashapp card for living expenses

[Anonymous No.13481228]

>>13481160
that's pretty based. I heard they were fucking the 9/11 responders out of their share of the payout because the government has no money. Did your dad have an option to get a one-time payout instead of over-time?

[Anonymous No.13481270]

>>13481228
We could have gone for payouts over time but were offered $200,000 at once which we took because we were living in a hotel (paid for by veterans because my dad is also a veteran), we signed a lease for $1100 a month rent for a year utilities included 3 bed 2 bath. Applied for tenant aid and got approved, so only going to be paying a fraction of that. He still has a $1 million life insurance and has terminal cancer. Leaving everything to me which is nice, but I'd rather have my dad alive..thats not an option though

[Anonymous No.13481297]

>>13481270
Oof, yeah that's a rough one lad, gotta say big ups to your old man, he helped a lot of people in his life with his service. You in the tri-state I assume? I'm in NYC myself. Just progressively trying to wiggle my way out of wagecucking, trying to see what I can accomplish with this countries generous money hand outs coupled with the crypto boom.

[Anonymous No.13481342]

>>13481297
Im right next to NYC but I live in New Jersey, Hudson county. ~45 to 1 hour public transport to NYC

They worked him to death man. He is on oxygen tanks and shit..a few weeks ago he pressed the emergency button and I came over and his blood pressure was super high and not enough oxygen was getting to his brain. The paramedics said any later and he would have died/I saved his life. I hate seeing him go from what I saw as an immortal oak tree to a feeble decaying tree.

[Anonymous No.13481353]

>>13481132
I believe paying in full would fully restore your credit score. Paying a settlement (e.g. 60% of what you owe) will partially, not fully, restore your credit score.

[Anonymous No.13481357]

>>13480731
ABSOLUTELY BASED
thank you for the tip anon

[Anonymous No.13481377]

>>13481160
>Im diagnosed with aspergers
we can tell

[Anonymous No.13481385]

>>13481342
Hopefully a nice part of Hudson, I know some parts over there like Bayonne are a total post-industrial aesthetic nightmare. I guess all I can hope for is that he goes peacefully and in a way that doesn't prolong his pain. I'm sorry you have to go through that, but I'm happy he left you something for when he's gone.

[Anonymous No.13481387]

Ah geez dude, 350? I can't do 350, they got me on these pills dood I can't afford anything

[Anonymous No.13481390]

>>13481353
If it isn't in collections yet, yes paying it would help your credit score. Paying anything in collections does nothing for your credit score. They already report that the debt has gone to collections and that can't be erased.

[Anonymous No.13481399]

>>13481385
LMFAO you just guessed where I live, gg

[Anonymous No.13481429]

>>13481399
Hahaha, I have a few friends in Staten Island as well as in NJ so I pass through there a lot. I don't go into the actual residential neighborhoods so I can't say for sure but when I drive past there it feels like I'm driving through a town that has just ended a literal war

[Anonymous No.13481445]

>>13481429
Yep..they are illegally evicting a ton of people and a bunch of expensive condos are starting to build up. Half of the town looks like the ghetto while the other half looks normal, its so fucking weird.

[Anonymous No.13481458]

>>13481445
I'd say that's a typical description of just about any place in the tri-state. I live in Brooklyn in a literal ghetto and there are like fancy European condos standing literally inbetween project housing buildings. What are ya gonna do.

[Anonymous No.13482474]

>>13481270
Anon just wanna say you and your dad are based, and I’m sorry that is rough. I hope you make it.

The lung cancer thing makes me mad if >>13481228 is right, that the government’s too broke to pay the 9/11 responders. What would you say is the #1 lesson you/your dad would take away from that?

[Anonymous No.13482488]

[Anonymous No.13482651]

>>13482474
>What would you say is the #1 lesson you/your dad would take away from that?

I say, always take a lump sum over a prolonged payout whenever the choice is offered.