Telling lies to creditors -- did I just dig myself in deeper?

[cityish]

Mostly I've been avoiding the phone calls. I don't answer them, don't return messages.

But this afternoon one of my creditors called and I found myself telling outright lies. They weren't satisfied with my explanation that I'm two months late because of medical bills and a foreclosure (which is true) so like an idiot I kept piling it on.

I told them I don't have any income coming in right now (lie) and I'm having trouble keeping food on the table for my child (outright baldfaced lie, I don't even have a kid. I was just hoping they would note that in their little file because the state I live in doesn't allow wage garnishment for a "head of household" who's responsible for a child.)


After we got off the phone I had visions of me being hauled into court about a year from now and them playing a tape recording of that call before the judge. And me getting slammed with penalties for lying.

Am I being paranoid?

I can't pay the bills I owe so should I just not talk to my creditors at all from here on out?

Tonight I also told a Countrywide person that I acknowledged I was behind on my payments and acknowledged the debt was mine. Then I went online and read somewhere, that in some states the statute of limitations starts all over again if you acknowledge the debt.

Yikes... if anyone has advice on this question I'd appreciate it. Is it better to take the calls from the creditors and just keep repeating "I can't pay, can't afford it, have medical bills" or is it better to just ignore the calls?

[AngelinaCat]

Yes, you are being paranoid and worrying too much. But that said, don't ever make any type of affirmative noises on the telephone, most are recorded, and they can dub even negative remarks and make them sound affirmative.

But I also think you are worrying too much. Don't worry about lying to the creditor callers; they are more than willing to do that to you.

If you have already retained an attorney, all you have to do is give the caller the attorney's contact info, and say 'good-by'. If they try to keep you on the phone, jus hang up.

If you don't already have one, get a telephone that has caller ID and the canned message, "Hello, we are unable to take your call right now..."

Good luck.

[cityish]

OK thanks, AngelinaCat.

I am wondering if I should just change my cell phone number altogether. Between my mortage lender, HELOC lender, and multiple credit cards in default my phone is ringing off the hook at least a dozen times a day.

[ThreadsSnapping]

If they can't get a hold of you they will start calling relatives and neighbors trying to find you and talk to you. Get an answering machine and make sure it clearly states your full name so they know they have the correct number for you. Good luck.

TS

[treehugger1]

I sometimes tell them that I am currently in over my head (have more going out than coming in), but if things change I'll contact them. Other than that, I don't share anything about my personal or financial situation. Since my credit is already trashed, I have even been known to tell them to check my credit report and they will "understand." LOL

Be honest with yourself. If you can't afford to pay them anything, then tell them so.

PAY YOURSELF FIRST (advice from an attorney I met with 2 years ago.) This includes living expenses, reasonable entertainment, auto payments you want to keep, rent, mortgage, insurance, care of children or other family members, etc.

I have now adopted the following policy related to finances. Since the most anyone can get from a judgment is 25% of my disposable earnigns and this even exceeds the amount one should be paying on unsecured debt, I only budget for 25%. If I eventually get that garnishment, then my work is easier. The 25% is already taken care of.

What constitutes a "lie?" Simply tell them you cannot afford a payment at this time. A reason is not necessary. Or, don't even bother to answer the phone

[cityish]

Thank you, ThreadSnapping, I never thought of making sure the voice mail greeting says my full name. And I ***definitely*** do not want them contacting relatives.

TreeHugger, I love your advice. I will keep it simple from now on. Like you said: "I cannot afford a payment at this time." Also too I love what your attorney said about paying yourself first. Wow.. I have been feeling guilty for doing just that the past month or so.

How often should I answer calls from creditors? I have eight in all ... should I take one call from each of them once a week? Once every two weeks? Once a month? .... and ignore the rest of course....

[AngelinaCat]

Once we filed, we ignored them--there shouldn't have been any calls anyway because of the Automatic Stay. However, god-daughter got herself into a credit jam--she was staying with us for a while and using our phone--so we ended up getting HER calls. We still ignored them.

[AngelinaCatHub]

[treehugger1]

I would agree. If you "believe" BK is in your future, then I don't know that it hurts to share with creditors that you are"considering all options" including bankruptcy. But, the number one thing you can do in my opinion, is to be humble and simply state you cannot pay at "this" time. There is no reason to share any other personal or financial info with them. Whether they move to other actions is not within your control. If you cannot afford to pay your debt and still survive, then your finances will eventually show you the path.

If you are one (such as I was) who has always paid your bills on time, this is a tough decision. I have been there. It is a truly humbling experience.

[landofpoor]

Why even speak to them if you cant pay? I am in same boat and so far I took jrscott advice and have message machine that states they have reached me and they never leave a message. Guess time will tell what there next step will be.But least I wont be tripping myself up saying something I shouldnt.Besides they dont wanna hear how I cant pay em.

[magyar123]

Lying to creditors over the phone is one thing, lying in court is a no no.

[GoingDown]

Mostly I've been avoiding the phone calls. I don't answer them, don't return messages.

But this afternoon one of my creditors called and I found myself telling outright lies. They weren't satisfied with my explanation that I'm two months late because of medical bills and a foreclosure (which is true) so like an idiot I kept piling it on.

I told them I don't have any income coming in right now (lie) and I'm having trouble keeping food on the table for my child (outright baldfaced lie, I don't even have a kid. I was just hoping they would note that in their little file because the state I live in doesn't allow wage garnishment for a "head of household" who's responsible for a child.)


After we got off the phone I had visions of me being hauled into court about a year from now and them playing a tape recording of that call before the judge. And me getting slammed with penalties for lying.

Am I being paranoid?

I can't pay the bills I owe so should I just not talk to my creditors at all from here on out?

Tonight I also told a Countrywide person that I acknowledged I was behind on my payments and acknowledged the debt was mine. Then I went online and read somewhere, that in some states the statute of limitations starts all over again if you acknowledge the debt.

Yikes... if anyone has advice on this question I'd appreciate it. Is it better to take the calls from the creditors and just keep repeating "I can't pay, can't afford it, have medical bills" or is it better to just ignore the calls?

Paranoid? Yes. That tape will never be heard by anyone at all.

They call to get information about assets, wages, bank accounts, etc.

They don't have the resources and the manpower to date and catalogue everything a debtor says when they have millions of defaulting debtors to call on the phone.

And lying to a debt collector is NOT a crime, and can NOT be used against you. You were not under oath.

When debt collectors call me, I answer the phone, they say "May I speak to GoingDown?"

I say, "I'm GoingDown"

Then they start their collection spiel.

I put it on speakerphone and turn on my tape recorder.

And then I make animal noises and farting noises and sometimes speak in broken Spanish with a gringo accent, and sometimes I play my guitar and sing to them. Sometimes I get an old paper towel roll and in booming voice pretend to be God speaking to them. Sometimes I do my best impression of a ghost and pretend to be the ghost of GoingDown.

You should hear their responses. It's quite hilarious! I'm amazed at how long they stay on the phone. Later on I play the tape back for my friends and we have a good laugh at them.

[GreenInkOnPaper]

BigBoy said:"I really wish I could understand what the fear is."

I'm not so sure it's fear - more likely it's guilt. Most of us are honest people who probably thought we would NEVER have to deal with collectors...Most of WOULD be happy to pay our debts. Most of us don't usually lie. That's what makes us uncomfortable. That's my opinion, anyway.

[Cali]

I hope you don't go on like this in the 341. A simple answer of I can't pay at this time would have been enough.

[GoingDown]

I hope you don't go on like this in the 341. A simple answer of I can't pay at this time would have been enough.

I'm not going to cuss and swear at the 341.

The creditors won't show up at the 341, so there will be no one to swear at.