Repaying Debt:How much is enough each month?

[PatrickM]

Hi everyone, I just wanted to start off to say what a nice group of people we have here. I don't come here enough. There are so many helpful and nice people offering advice and sometimes a shoulder to lean on.
I have been making payments on several accounts in collection, one in particular was for the amount of 11,000, I had been in a debt management program for one and a half years but there was some confusion with how the payments were being applied and the original creditor sold the debt claiming I defaulted. I dropped the debt management company and dealt directly with the new owners of my account. That was over 18 months ago my account balance stands around 6000 (no interest)I have been paying 270 per month via auto deduction payments.
I also have started paying some other accounts the same way. Here is the problem I called to ask if I could lower my 270 to 200 thinking I might be able to satisfy one other collector every month. They said if I was to do that they would expect the full amount originally due immediately and the 700 hundred dollar deduction they gave me would be tacked on. My problem with that is I think the payments I made through the debt management company were not credited properly. I know the DM company forwarded the money and I sent the reciepts to the new owner but they said that is an issue between me and the old owner. I asked them how the amount of 11,000 was determined, they said that what they bought it for. My question is, is it too late to get the debt validated? If so with whom? Though I am not considering that a great option.
Will they really expect me to pay the full amount immediately if I lower the payment to 200 on my own. I understand I have to pay this debt and the other debts I have, my problem is the pace I am expected to pay this money back is stretching my budget really thin and I don't have any room for any surprise expenses. What can one be expected to pay back monthly on a debt? I guess the amount would dictate what the collector would want.
Anyone have any examples of their repayment amounts or experience with finding a number that works for you and the collector? As always thanks for any help. God Bless.

[BassBoy]

Since you have made payments to this debt, then you are "saying" you agreed with the validity of this debt. On the other hand, what do you want to validate? The original amount or the current balance owed?

[PatrickM]

The amount when sold to them since I had been making payments for about 14 months prior to the default and the limit on the card was $9,000. I just think some of the payments made through the debt management company were never applied in the time between the sale of the debt and my stoping the payments with the debt management company.
I realize that is just a shot in the dark I am really more concerned with creating a repayment schedule that will help me pay off the debt but not cause me to walk to work or eat ALPO.

[GoingDown]

You're dealing with debt collectors and junk debt buyers, and you can't expect them to deal with you in a fair and honest manner. As soon as you stop paying them, or really for any reason at all, they can file a lawsuit against you to try to get the full balance plus interest, late fees, over the limit charges, etc.

You're only real hope is to file for bankruptcy protection. It sounds like you would be a good candidate for chapter 13. It would be similar to what you are doing now, except your payments would be administered by the bankruptcy court and you would have the authority and power of the bankruptcy court to make the creditors deal with you in a more fair manner. If I was in your situation, I would get a lawyer who is experienced in chapter 13 bankruptcy to represent my interests.

[HHM]

I concur with "GoingDown", since you appear to have some money to pay off creditors, a chapter 13 would make more sense, as it puts YOU in control of the repayment plan, not your creditors. You may want to atleast visit an attorney in your area to see what your options are.

Also, you should pull your credit report, the old company may have listed the final balance when they closed the account. That may give you some idea of how much was actually transfered to the junk debt buyer.

Finally, you could try calling the old company to see if they can look up the last balance. Again, that will give you a starting point to further investigate how your DM's payment were applied.

The debt purchaser is not going to be of any help, so don't waste your time butting your head up against that wall. Also, debt buyers are loathe to sue because that means they will probably have to come out of pocket for litigation expenses.

Finally, regarding validation...if you have been paying on it for 18 months, you may have lost the right to validate under the FDCPA. But before you go down that road, do a little of your own investigation to put your ducks in a row before you attempt another confrontation with the debt buyer.