So the CC and CA will NOT work with me

[CC_n_CA_Hater]

I got a letter from the CA, called them while ago from a pay phone and told them Im 6 months away from getting my degree and if they will just work with me, let me graduate and get a good paying job, then I could start paying back the debt. I'm jobless right now, have been for almost two months. I was hoping to get a good paying job but now will just have to settle for something small I guess, 7 or 8 an hour.

So the CA tells me the entire amount is due, $23,000. Ya, like I'm a magician and can just pull it out of a hat. So basically, there will be no payment option according to her. The CA said the minimum good faith payment they would take right now is $6000. I told them I don't want to file bankruptcy but I know some of my options and will do it if I have to. I'm trying to avoid it though. I really am. She got quiet and started typing stuff when I said that. She had been going through my monthly inventory trying to account all that I have going out and what I need to have coming in, constantly interrupting me. I felt like I was getting grilled by a debt counselor. I have a place with just a little equity and she was trying to get me to tap into it. $8000 in equity is no reason to give up a darn good interest rate for all of my debt, which is about $52,000 since all of the late fees and penalties are piling up. It was about $47,000 about 4 months ago. The other 3 accounts will probably be coming after me soon also. So not enough equity in my place anyway.

Why can't they just try to work with me? I will have my degree in 6 months, should be able to find a good paying job and can start paying them back. I would be making enough money to pay off all of the debt within 3 to 5 years. But they won't work with me since I broke the "contract" of 90 days delinquent. Its like they want to force me into BK! Thats just ridiculous. So they will probably try to sue me, put a lien on my place and then what? They will still not be getting anything and be out more money due to legal costs. That will just make me mad enough to say the heck with them and never pay them a dime. All I have is my place and a vehicle worth about $1200.

Am I right? Will they sue me and put a lien on my place? If they did that, and I just let the place go in foreclosure, what would their options be then? The mortgage company owns the loan and will probably be able to sell it for whats owed, but what will happen to the liens?

[StaciMM]

First and foremost-stay off the phone. Any communication should be in writing. If they do take legal action, you would receive paperwork before it reached the point of a judgement. If you think your finances will improve in 6 months, then there is no need to file BK now. If they should proceed w/ legal action-you can act then. In the meantime, research about BK, in particular to get an understanding of the process.

[AAAArt]

Totally agree with Staci re: the phone. In fact, if they are calling you (I know you said that you called them from a pay phone) you can order them to "cease and desist" from contacting you in any manner than by mail. This is specific legal language, so be sure that you use this 3 words.
Secondly, collection agencies will never deal with you in any helpful way. You need to talk to the credit card people and the hogher up you can get, the better off you will be.
Also, it is very unlikely that you will be able to pay them off in 3-5 years after graduation. This might have been doable, except for the "tricks" that they have and will be playing with your accts. For one, as you mentioned, late fees and penalties will keep building up, then because of these, they will prob. raise all of your int. rates up to 30%. It cycles into a no-win situation. The cc companies seem determined to cut off their noses to spite their faces.
I would seriously consider Bk now before you graduate. With your income producing potential and a chance at a fresh start, you will be able to rebuild your credit to anywhere from good to excellent in 2-3 years. If you try to stay with these debts and pay them off, you will have a very heavy millstone hanging around your neck for at least 10-15 years.
As to what they'll do about your debt if you don't file, that is anybody's guess. At the least they will keep harrassing you and selling it from CA to CA. This hounding will really eat at your self esteem and cripple you in your start of a new life after college.
Normally, I would suggest Bk as a last resort, however, in your case, it seems to me like it might be wise. Also, I think learning how to live withoout cc's by not having any for a year or a very small one, will do you a world of good. I do not know your situation and am not meaning to be critical, but you have a lot of credit card debt for someone just finishing college. My guess is that like many of us, you have not learned good lessons of discipline in spending only for what you need and not or what you want. Bk and living on a cash only basis for at least a year will do a world of good for your spending habits. (At least it has for many of us!) Best wishes, Art

[CC_n_CA_Hater]

Thanks for the replies. Just to clarify, yes the debt is big, but its the result of spending over years (Im in my 30's) and some of it was on medical bills and used for school and general living expenses. Some of it was for stuff I could have done without, and some of it was money withdrawals to keep up with the credit card payments because I didn't want to be late....until they were finally maxed out and then I just gave up. I thought my job situation would be better than it is right now and planned to be able to make the payments. But theres no way I can get a job right now in my area to pay them what they want.

I thought about trying to sell some things and when I do get a job, work overtime and just save as much as I can over the next year or so and try to settle with them. A 5 year chapter 13 plan will put me in that position anyway. I could qualify for a chapter 7 but risk losing my place since theres about $10,000 equity in it. But then again, if I have to do that, then I'm content with it to wipe out $50,000 in CC debt.


I've read a lot the past few days on BK's and debt negotiation. The next time I talk to them, I will tell them theres no way in hell I will let them talk down to me or pressure me. This is all I'm going to say after that:

"I know you are buying or have bought this debt for pennies on the dollar. So heres the deal. Either you will work with me or you won't! I will settle for half of the entire amount of my debt with 0% interest, with monthly payments that I can afford and after the agreed amount is paid off, the credit reporting will be termed "DEBT PAID IN FULL" not "Debt paid upon settlement". "You will send this agreement in writing for my attorney and I to look over and if it looks legit, I will agree to it and you will get at least half of what I owe over the next 3-5 maybe even 6 or 7 years. OR you can shoot yourself in the foot, force me into BK with very little assets in which I have no problem doing so if pushed to that point! I have no need for credit right now or maybe ever again. I don't care what my credit score is and I couldn't care less what you or your managers think of me! Its very simple. Sue me, and I will file. Work with me, and you will get at least half."

It may take having this conversation over and over for a while, but eventually they will settle or I'll file and they might be able to split about $5000 in assets. My mind isn't made up on the amount yet. I might just do 30% or 40% its according to how they talk to me. The ball will be in their court and I won't budge.

[GoingDown]

Thanks for the replies. Just to clarify, yes the debt is big, but its the result of spending over years (Im in my 30's) and some of it was on medical bills and used for school and general living expenses. Some of it was for stuff I could have done without, and some of it was money withdrawals to keep up with the credit card payments because I didn't want to be late....until they were finally maxed out and then I just gave up. I thought my job situation would be better than it is right now and planned to be able to make the payments. But theres no way I can get a job right now in my area to pay them what they want.

I thought about trying to sell some things and when I do get a job, work overtime and just save as much as I can over the next year or so and try to settle with them. A 5 year chapter 13 plan will put me in that position anyway. I could qualify for a chapter 7 but risk losing my place since theres about $10,000 equity in it. But then again, if I have to do that, then I'm content with it to wipe out $50,000 in CC debt.


I've read a lot the past few days on BK's and debt negotiation. The next time I talk to them, I will tell them theres no way in hell I will let them talk down to me or pressure me. This is all I'm going to say after that:

"I know you are buying or have bought this debt for pennies on the dollar. So heres the deal. Either you will work with me or you won't! I will settle for half of the entire amount of my debt with 0% interest, with monthly payments that I can afford and after the agreed amount is paid off, the credit reporting will be termed "DEBT PAID IN FULL" not "Debt paid upon settlement". "You will send this agreement in writing for my attorney and I to look over and if it looks legit, I will agree to it and you will get at least half of what I owe over the next 3-5 maybe even 6 or 7 years. OR you can shoot yourself in the foot, force me into BK with very little assets in which I have no problem doing so if pushed to that point! I have no need for credit right now or maybe ever again. I don't care what my credit score is and I couldn't care less what you or your managers think of me! Its very simple. Sue me, and I will file. Work with me, and you will get at least half."

It may take having this conversation over and over for a while, but eventually they will settle or I'll file and they might be able to split about $5000 in assets. My mind isn't made up on the amount yet. I might just do 30% or 40% its according to how they talk to me. The ball will be in their court and I won't budge.

My advice, for what it is worth, is to go see a bankruptcy attorney in your area and ask their advice about your situation. They usually have a free consultation, so you have nothing to lose, and maybe a lot to gain, at least in terms of information. It sounds to me like your credit card debts are a bit too recent to qualify for discharge, and you may need to put some time in between them and the date that you file for BK. And please keep in mind, that just because you graduate, it doesn't necessarily mean that you will instantly find a high paying job. I went to college, and I'm still doing the same kinds of jobs that I did when I was back in high school.

And they're right-- never ever speak on the phone to debt collector. It can't possibly do you any good. Their only goal is to get some money out of you any way they can.

The part about demanding the CA to put everything in writing before you agree to a settlement offer or repayment plan is a very good idea. They probably will not agree to it, but then at least you will know what their true intentions are about that situation. I made the mistake of trying to settle one of my debts with a CA for 2/3 of the balance and they cashed my check and then within a few months, they started trying to collect the remaining 1/3 of the debt plus late fees and interest charges. I didn't have any agreement in writing with them, so they were able to take my money and then just ignore what they agreed to do during our telephone conversation. Another thing to remember is that any time you pay any amount (full or partial payments) to either your CA or CC, it merely extends the amount of time for both the statute of limitations for debt collection and the amount of time the negative information regarding that account can stay on your credit report. So, if you can't afford to pay it off in full or get them (the original creditor and the CA) to agree in writing to a settlement offer, then it is useless to pay them anything. You are just merely prolonging the amount of time they can come after you for the money.

So, probably the best thing to do is simpy stop paying them, stop communicating with them, send them a "Cease and Desist" order to stop calling you on the telephone at both your home and at any future employer's office, and go see a bankruptcy attorney for more advice.

[AAAArt]

Agree w/ above advice. Also, there is no reason you have to lose your home in chap 7 because you have $10,000 equity. There are exemptions you can use for some or all of it and the trustee is usually willing to sell assets back to you on monthly payments. See an atty. Best wishes, Art

[StaciMM]

Repeat after me:

I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone.

The next time I talk to them, I will tell them theres no way in hell I will let them talk down to me or pressure me. This is all I'm going to say after that:

"I know you are buying or have bought this debt for pennies on the dollar. So heres the deal. Either you will work with me or you won't! I will settle for half of the entire amount of my debt with 0% interest, with monthly payments that I can afford and after the agreed amount is paid off, the credit reporting will be termed "DEBT PAID IN FULL" not "Debt paid upon settlement". "You will send this agreement in writing for my attorney and I to look over and if it looks legit, I will agree to it and you will get at least half of what I owe over the next 3-5 maybe even 6 or 7 years. OR you can shoot yourself in the foot, force me into BK with very little assets in which I have no problem doing so if pushed to that point! I have no need for credit right now or maybe ever again. I don't care what my credit score is and I couldn't care less what you or your managers think of me! Its very simple. Sue me, and I will file. Work with me, and you will get at least half."

It may take having this conversation over and over for a while, but eventually they will settle or I'll file and they might be able to split about $5000 in assets. My mind isn't made up on the amount yet. I might just do 30% or 40% its according to how they talk to me. The ball will be in their court and I won't budge.

[Minnymouth]

NOTE:

stay off the phone - creditors will not negoiate with you in your "interest"..... Will end up costing you more in the long run.... Believe us, WE KNOW!!!

If you "have" to claim bankruptcy - then so be it!! See an attorney, protect your equity in your home with exemptions and get a fresh start for 2006.....

If creditors call after you file - give them attorney name and case # - ONLY.....

[CC_n_CA_Hater]

Repeat after me:

I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone. I will not talk to the collection agencies. I'll only communicate by mail. I must stay off the phone.

So you're saying I should tell them I'll only communicate by mail?.....hrrmmm.....

I'll make sure everything is in writing from now on. I do have to talk to each one at least once though so I can test them to see how obnoxious and mean they will be....makes me feel better about myself when I screw them with filing BK

[sunshine08]

Let me save you a little headache - Not the same circumstances but here it is in a nutshell.
# 1 - ONLY CONVERSE WITH THEM BY MAIL!!!!!!!!
# 2 - See # 1
# 3 - IF you settle for pennies on the dollar, You will have to pay taxes on the amount written off. Again, IF they agree to it. By my own experience they will offer a 1 time deal and want that amount THEN!!!
# 4 - "THREATENING" to file, doesn't phase them again, (especially now with the changes in the bankruptcy laws)You are only wasting your time, patience, and the breath it takes you to say it.
# 5 - We went the debt consolidation route - which is an option, The one we got, well, we won't go there. THEY aren't as good as they sound. They want the first payment up front, before they do anything. They won't get very specific either when it come time to put up or shut up. SOME of the ccc will lower interest rate etc. but usually not in half or less. The larger lenders, Chase, MBNA, forget it. They tell you you can do it in 3 - 5 years depending on how much you owe. BUT THEY WILL NOT PUT IT IN WRITING!!!! THE LENGTH OF TIME IT ACTUALLY TAKES TO PAY IT OFF!!
# 6 - See steps #1, 2, & 3. (have I said that before??? there is a reason)
# 7 - Do your research, find a couple GOOD attorneys, go to the free consult with them. Weigh your options. Register with Pacer and check out some of their cases. Make up your mind and bite the bullet. Waiting will only cause you sleepness nights, anxiety, etc. you don't need. Besides the 60 days club needs new members.
# 8 - See steps # 1-3.

[CC_n_CA_Hater]

Well, no more negotiating with the CC or CA, I just want to file now. You guys convinced me

I'm just going to start a new thread since things have changed and I have some new questions.

[GoingDown]

LOL, it says banned under my old name

Why did they ban you?