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  • treehugger1
    replied
    There is not a great deal you can do about "original" creditors in most states. You can deal with collection agencies more effectively as the you have a great deal of federal and state laws on your side. However, many state have laws regulating creditors in the same manner that the federal debt collection laws regulate collectors. In terms of calls at work, that is a tough one. In my state (Oregon) a creditor cannot call you at work "more than once per week." But, its your word against theirs. BTW, I have not filed for BK 13 yet, and am hoping to avoid it, but there is a great deal of satisfaction knowing you have the ultimate weapon should things turn bad. Hopefully, the creditor who called will not harrass you again. If you told them you are not going to pay, then they will either send the debt to a collection agency (not such a bad thing if you are planning on filing BK), or they will begin their own legal proceedings if the debt is local and small claims. On the other hand, it is not illegal to tell someone you intend to make payments if your financial situation improves. "Intent" is not a promise. I think all of us originally intended to "pay as agreed." But, stuff happens. Don't worry about the 341 meeting and creditors or collection agencies. You have no obligation to speak to either. Visit a few BK attorneys and tell them of your plight. You might learn some info that will help you stall for the time you need.

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  • CindyLou
    replied
    You are peachy fine!! You have no obligation to even speak to creditors!!

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  • desperation
    replied
    Need your advice treehugger1

    What if question for you then treehugger1

    I had a creditor call me at work for the second time (about 5 months ago) that blindsided me (after the 1st time I told them never to call me at work) and he asked me if I had any intention of paying my bill. My boss was standing right behind me at the time so I just said "No". Creditor then procedes to ask me "no...well why not". I was so stressed, and just wanting to get this jerk off my phone so that I could deal with the issues my boss had... I just told him..."look...I can't discuss this with you right now...call me at home"...then the creditor rep just blurted well you owe blah da blah da dadda, and call us back at this number..

    Can this bite me on the butt when I go to my 341 meeting?

    Thanks in advance for any and all advice!

    Leave a comment:


  • treehugger1
    replied
    For more insight, read the "stickies" posted above. CPO has posted some great threads related to dealing with the aftermath when one stops or can't pay bills. When you stop paying, you are essentially firing the first shot across the bow. It will not go unanswered.

    Leave a comment:


  • treehugger1
    replied
    I've posted a lot of my opinions related to your question at various places in this forum. I'll repeat a few for you.

    The first question you should ask yourself is how much of a stomach do you have for dealing with potential collectors and collection activities? If your feathers are not easily ruffled, then there are only a few actions others can take against you. While these are few, they can have heavy implications.

    Are you judgment proof? Do you own assests? Do you know your state exemptions against actions that might be taken through a judgment? In many states the exemptions for judgments are similar to those for bankruptcy. This won't stop liens against future sale of real property, but exemptions can stop forced sales of real property. Be familiar with your state laws. Google "your state name" followed by exemptions or judgment exemptions, etc.

    If your state is a wage garnishment state, be prepared for any local creditors and/or collectors to go after the non-exempt portion of your wages. In my state the limit is 25% after taxes. I can live quite fine on 75% of my takehome.

    Learn the small claims amounts for your state. Small claims actions move quickly. Debts above the small claims threshold generally require the action of a suit. A lawsuit can take time to move through the courts. I would be careful about fighting the tide against a debt you know you owe. While you can temporarily stall creditors/collectors in a court case, if you owe the money, eventually you will not win. It is not a good thing to get too many judgments backed up against you. My plan has been to work with folks who have judgments against me (currently two). One will be paid off, and a notice sent to the courthouse that the judgment has been satisfied, next month. I'm negotiating with a collection company on the other judgment. I'm quasi-judgment proof. The only "assets" I have are my wages. Garnishment can be a "pain" for creditors/collectors in my state, if a large amount of debt is involved. In Oregon, a writ of wage garnishment only lasts for 90 days and then needs to be renewed. Big creditors don't want the hassle of renewing or running the risk of "waiting in line" behind a current writ, only to have their writ expire LOL.

    The big problem is fees and interest can grow quickly. This is not a problem if you know you will be declaring BK in the future. Judgments can be a problem if they lead to a lien against real property or autos. This can create a 'secured' debt.

    Some folks advocate not talking with any of your creditors. I preferred to speak with all of mine. I just refuse to make any promises I can't keep. Debt collectors are a different beast. ALWAYS go through the motions of requiring a collector to validate/verify the debt they are claiming.

    I've never told a creditor "I won't pay them." I have told my creditors I can't afford to pay them what they want on a monthly basis, including their freaking interest. Most major creditors finally caved in and I have new payment programs at reduced interest with five-year pay-off plans and interest down ot 1.75% - 2.00%. All this could collapse if I get a wage garnishment against me for an extended period of time. But, there is very little anyone can do to me for something that is beyond my control, so I'd just go back to square one.

    Sorry about the long response here. But, when it comes down to it, if you have very few assets, there is not much that folks can do other than sue you. Even then, sueing you and collecting on a debt are two very different actions. A lawsuit simply gives the creditor/collector other avenues of trying to get any money/assets you might have.

    Protect your cash assets. Bank accounts can be "garnished." Is your paycheck direct deposit? If so, then you should move to a paper check. Collectors and creditors can be ruthless when it coems to ignoring the laws. You don't wan tto wake up some morning and discover your account is empty. While such actions require a court order and are illegal without a court action, there are plenty of folks who are willing to ignore laws. While you might eventually sue and get your money back, it doesn't help you in the present.

    Local creditors and collectors can act quickly.

    In terms of your credit, kiss it goodbye if you quit paying your debts. My scores fell from the 790 range to 480 in a few months. I don't care.

    Another thing to consider is your employment. For instance, I make very good money in a very stable job. In my circumstance I let my monthly debt payments out-pace my monthly income. I'm not ready to go down the chapter 13 path at this time, but knowing that in a worst case scenario BK 13was available, empowered me.

    In conclusion, while it may not be a crime to not pay your debts, there are consequences for not paying. Know what the consequences are in your state. Sit down and list all your debt and creditors. Take your best guess at the risk involved in not paying each of them. Those you deem the most risky (local, how quickly they can act, etc), you might want to attempt to work with.

    Have a plan of action. Eventually, you will need to address "not paying." If you know that BK is in your future, no big deal. If you can adjust your lifestyle to accomodate wage garnishment, no big deal. If you have assets, you have a problem.

    Probably more info than you wanted. But, it comes down to, "How much can you stomach?"

    Leave a comment:


  • wayne-o
    replied
    some creditors dont do anything some (american express, discover) are very aggressive and will sue.

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  • duckxtales
    started a topic debt collection

    debt collection

    Maybe I missed it, but I don't think I've seen this question answered: What happens if you don't pay? Besides your credit rating becoming terrible. Is it just phone calls forever?

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