Cash: $ 85.80
Joined: 04 Apr 2010
If they can find where you work or where you do banking, they'll typically sue you to garnish wages and seize bank accounts. They may also try to lien personal property. If they can't find a job, bank, or property (money trail), then they typically wont spend the money to sue (pointless). The statute of limitations (for suits) is typically 2 to 5 years...
Bankruptcy typically writes down your debts (principal) to something affordable. You might be able to do this on your own, without bankruptcy, by telling them what you can afford and ask them to reduce principal to that amount.
Example: 3% monthly bill on 5K credit card is $150 monthly bill. Affordable?
The reduction in principal is normally taxable income, but you can try to avoid this by "disputing that portion" as abusive and improper, which would then mean that it's not taxable. If you can get that agreed in writing, then you can avoid the 1099 taxable income form from them at the end of the year.
A, B, or C?
I'd go for C [dispute the balance (as abusive/predatory), and ask for affordable reduction]; and pay only if/when they agree that it's disputed (not taxable 1099 income).
I hope it all works out for you.