Worth Sending Hardship Letter To All Creditors?

[ryan]

I'm months behind on all CC's now and house with 2 mortgages is in FC.
Also in collection with HOA .

I'm wondering if its a good idea to send all CC's and HOA a certified mail letter describing the state of my financial situation? It would be accurate, but disclose no acct numbers or ways for them to verify, etc. (other than that which credit bureaus are already reporting)

Purpose would be to perhaps delay any lawsuits by CC's until I'm able to do BK7 this summer. At least one CC seems to be seriously threatening so I'm just looking for a short term idea to help.

..if memory serves I thought a member of this board also did something similar?

[frogger]

Collectors care about one thing. Money.

Nothing else matters. Either pay, make arrangements with them to pay, bk, or be prepared to deal with the collectors on a daily basis.

[StartingOver08]

The letter will not help you delay actions by the CA's. They are not going to use the information in your letter to give you a break. They might use the information in your letter against you (affirmation of debt, etc). They will continue doing what CA's do.

Do what you need to do to solve your total financial situation. Stick to your plans and you will prevail. Don't let the side arguments (CA's) detract from your overall goal.

BTW, for short term strategies, look at this arbitration strategy that has successfully derailed lawsuits http://debt-consolidation-credit-rep...ysprune=&f=199

[AngelinaCatHub]

The bankers, creditors, do not have your heart in mind. All you may do is tip them off and have them put you to the front of the list for actions. You are among many others and many, many, more to come. In other words, a number.

As above said, get yourself a 'game plan' assuming you have no debt, and start practicing right now, your "new start". Then it WILL work. Get onto a budget and make it work. If you cannot make it work now, you will not make it work after your discharge. Ignore the calls, they too will go away. 'Hub

[ryan]

OK, I understand....I see I'm still not understanding the mindset of the creditors.
...so I have a lot to learn to get thru this.

[OhioFiler]

OK, I understand....I see I'm still not understanding the mindset of the creditors.
...so I have a lot to learn to get thru this.

What's to understand yet? This isn't a personal issue for them nor should it be for you. It's business. They don't care what your situation is and you shouldn't care about them. The person trying to collect from you is trying to make money. Nothing more or less. They are not judging you. They are trying to convince you to pay them. Whatever method they use: coercion, empathy, sympathy, threat, etc., doesn't matter. They are all intended to collect cash from you.

[LimpDisc]

I'm wondering if its a good idea to send all CC's and HOA a certified mail letter describing the state of my financial situation?

Your time would be better spent by watching paint dry.

[DebtHater]

OK, I understand....I see I'm still not understanding the mindset of the creditors.
...so I have a lot to learn to get thru this.

The mind set of creditors is simple. A debtor entered into a contract for a loan (whether it be a credit card or mortgage). The debtor broke the terms of the loan. Now the creditor is out to get their money.

They (creditors) have no heart. They have no soul. There aim is to get you to pay back what they are owed. The rep's are not paid to be sympathetic to the debtors problems. They are paid to get the debtor to pay up.

Bottom line... it's all business. Unfortunately more often than not they take it too far.

Keeping this in mind, when they do call, don't take anything they say personal as this is what they want you to do. Do not give them any information. Keep the conversation as short as possible.

[kornellred]

hey ryan - your creditors are not people (unless an individual loaned you money). Creditors are organizations that follow protocol. In rare instances, there may be some sort of leniency provision in loan agreements, but such provision is bound to be rigid and precisely defined. Beyond certain circumstances, no excuses for non-payment are acceptable. Attempts by creditors to secure repayment are strictly rote mechanical actions which are inevitable in most cases.

Do not bother to explain yourself to your creditors - the only people who will take note are those who can do nothing.

[Blueboy]

Here's what I experienced when the calls started for me.

I had AMEX call and I thought that if I explained that I had a Liver Transplant and complete loss of income but that I was improving, therefore I should be able to start making payments in a few months. The lady on the other end said "that certainly is an unfortunate thing to happen to you Mr. Debtor, but honestly we couldn't care less about your excuses, we want our money and if you can make a payment soon we may turn you over to collections." Discover was much more ugly, they actually called me a liar.

Simply put you will be wasting your time thinking they care about your circumstances.

[ryan]

What's to understand yet? This isn't a personal issue for them nor should it be for you.

That is exactly what I have to understand, the non-personal nature of it.

In my work in the past I had to get to know strangers pretty quickly and understand and empathize with their problems in a counseling setting....I've been trained to do that and naively think in those terms about even business relationships such as these.

So, I am saving up money to get an attorney fast, so I can turn these calls over to him.

[DeadManCrawling]

Collectors are trained to the OPPOSITE of what you trained for.

They are trained to NOT care about people, and to see only numbers. Numbers they must collect, no matter what. Their very existence depends on it.

They will use ANY method possible, including, more often that they should, illegal methods.

If they perceive that you are a compassionate and considerate individual, then they may APPEAR to be the same. But only to get you to send them money,

They are soulless and mindless cash collection machines. The blood that pumps in their veins comes directly from the wallets and bank accounts of people like you and me.

There are people out there who think they can reason with collectors, and explain their circumstances, and maybe find compromise. They are wrong.

If you were naked on the Serengeti in Kenya and confronted by a ravenous lion, would you stop to reason with it, to try to explain why it shouldn't consider you dinner?

This is the same thing.

[tigergem]

I'm wondering if its a good idea to send all CC's and HOA a certified mail letter describing the state of my financial situation?

No. No no no no and NO.

(I used to work in collections by the way.)

[flyinbroke]

Think of the movie Goodfellas....and the character of Morrie, the wig guy. COllectors are trained on the same script...

[censored] him! I want my money.
I want my money.
I've had it up to here.
[censored] him! I want my money!

Unfortunately, unlike Morrie, we can't strangle them with piano wire.

[tigergem]

It's not that bad! lol! At least it wasn't where I worked. But I guess they aren't all the same.