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I've got about 6 collection agencies calling me everyday. I have ignored them for over a year and I just got a letter from an attorney saying that they are going to sue me.
I want to settle me debts but I don't have the money which is why I got into this problem in the first place.
I want to pay payments but I'm told they don't accept that.
I'm afraid to call them because everything I've read says not to.
What would you suggest? I don't want to get sued.
I must also say that I don't own a house or a car so I don't really have any assets that they could sue me for, although I did get a new job so could they garnish my wages?
Please help
You need to call them and tell them your situation, if they sue they will win and you will be garnished. You need to get a second job and deal with this. Your abviously young and imature, getting on a strict budget and paying this debt off quickly will teach you responsability for your future financial dealings.
It is possible (not meaning probable) that an open line of communication can get you a monthly payment scheduled. If you are in TX, NC, or SC (possibly one other state), your wages are safe. If not, after obtaining a judgment you can be garnished per your state's laws. Be sure to demand validation from this collector, and if you've received a summons, provide your answer within the specified time frame. Is the debt within SOL (when was last payment, and what state are you in?)
If you cannot work something out, bankruptcy may be an option.
Well the problem is I currently don't have the money to setup payments. So when I call them I would be saying, Hi... I know I owe you money but I can't pay you. Goodbye. That would just piss them off and make them hound me even harder. It's so frustrating. Obviously I don't have the money if I got sent to collections in the first place. They want you to pay this lump some that I can't even come close to affording.
Then file bankruptcy.
You have six collection accounts... were they with the same creditor to start? With the same collection agency now? Are the balances even worth them proceeding with litigation?
Many creditors will lie, cheat and do whatever they need to get you to make a payment. Many times the "Attorney" letters you get threatening to sue are nothing more then an attorney who has decided to freelance in his spare time as a collector and use his "at law" title to scare people into paying.
Not saying this is the case for you, but give some more information (who the creditors were, who the collection accounts are with currently, and approximate balances) for a better idea.
Six collection accounts? Can it be for the same creditor? I dont think so. Hi creditshot please provide Michael with your details. I am sure he can help you out.
If you really do not have the capacity to pay off the best way is to file for bankruptcy. As I can see from your post, you are not even in a situation to pay for a settlement, so better think about filing a BK. However as Mnstar said do not forget to reply on time if a summon is served. If not replied the judgment will go against you.
All this is definitely not to scare you but to keep you informed that even a little mistake can cost you a fortune.
I'm confused as to why there isn't already judgements against him. If the debt amount is substantial enough for them to pursue legal action, there should already have been a default judgement placed on him by the original creditor.
Creditors and collection agencies are businesses, as such they're all about how much money they can make and how quickly they can make it. If your balances aren't substantial, it's not worth the time, money and risk they'll take by bringing you to court. In which case you might be able to spare your credit report a bankruptcy, hold off for a couple more months and find some sort of alternative way to pay them back.
Collection agencies generally will offer a 40-50% settlement even with a consumer, to them it's a large sum of profit. If they've bought the paper from the creditor, it's usually around 10-15% of the original balance. If they're just collecting on their behalf, the lender is planning on never seeing that money so they are happy to take whatever they can get their hands on.
I CAN HELP YOU!
I WOULD LIKE YOU TO RIGHT ME ON THIS E-MAIL :email addy removed for your safety--Morningstar,and than i will tell you what to do,
Lidia