Debt Collector Refuses Payments

[PatrickM]

I may have finally reached the point to say I need to file Bankruptcy. I have about 13,000 in total credit card debt.
That include 8,000 for two accounts that I have sporadically made payment on. Well I get a letter from this crowd they are tired of my BS so that are demanding a settlement of close to 3600 on a 4k debt I owe them. The letter says they will be forwarding to an attorney in my area at the end of the month. I called them and offered 200 per month but they just keep saying 3600 or nothing. If this goes to an attorney will they be open to a settlement if I could raise that money by the time they actually file a lawsuit? If so would it be an inflated amount. I hesitate to file since I have come a long way in paying off my debts which once were 30,000. Any one have any suggestions. Once again I thank you all for any help you can offer.

[keepmine]

Don't file over $13K. Worse case you get sued, you get your wages garnished. I'd keep trying to negoiate.
It's time to raise your income. Start looking for a better job or, a pt job.

[PatrickM]

Thanks for the reply, I make ok money and I have the ability to make better and larger payments. I could make a 2 thousand dollar payment on the 4000 they want but they will not take it. They want the 4k, do you think there will be an opportunity to settle or negotiate a payment arrangement with the lawyer?

[keepmine]

You never know unless you try. Lawsuits are an expensive way to collect. They'll lijely be willing to deal.

[PatrickM]

Please Listen up, the following is why this is such a great forum.
I have come here a few times with a troubled mind seeking some help. I have found it many times,there are some great people here. I guess I am a grand procrastinator and I get neurotic over dealing with these collection agencies. I feel like I am responsible for the debt and obligated to pay and the people calling me should have all the right to be so rude. Well as I said above this collector really was threatening me that they would be adding all sorts of attorney fees and charges to the account.
Keepmine you really gave me a nice prospective with your reply, so when they called me again I was surprised. I really expected to get served with a summons for a lawsuit.
But with this new prospective I had really changed my tone I came at this lady with both guns blazing. I let her know that I would include in my answer to the summons their threats to add attorney fees and I would be filing a complaint with the FTC. I also said they would be getting less than the amount I am willing to pay per month in a wage garnishment amount. Silence, more silence "hello" I asked, "yes I am still here, please hold",she said.
"ok sir I apologize for this mis-communication, we would really like to see this settled", she said.
End result they settled for over 1600 dollars less than their "final offer before lawsuit", 4 $500 dollar payments over 4 months. I hope this story is a means to comfort and empower someone else in any similar predicaments. Thanks again Keepmine

[BKOnce]

Agree, best solution = Calm, Cool, & Relaxed.

[BassBoy]

What great news!!!!!

Way cool PatrickM! I'm happy to hear that you were able to get the advice you needed, resolve this issue and possibly avoid BK.

BEST OF LUCK TO YOU!

[wayne-o]

way to go patrick...make sure you get it in writing or it didnt happen

[keepmine]

way to go patrick...make sure you get it in writing or it didnt happen

Wayne makes a great point. Get a written agreement before you send a dime.

[chpxiii]

Patrick, like everyone else said, congrats and get it in writing before you make a payment.

One thing you may not be aware of, and I'm not trying to put a damper on your excitement, but please note that forgiven debts over $600 you will be charged income tax on. i.e. At the end of the year, they will send you a 1099 with the amount of the debt that you did not pay. The IRS will consider that income and you will have to pay taxes on that.

Regardless, congratulations! Not many people are successful in negotiating with their creditors.