Best time to negotiate with Collection Agencies

[smkrishna]

Please help me. I am desperate to know the best time to negotiate with Collection agencies for HELOC charge off ($30k) by Chase.

Can I start negotiating after receiving the summons? will it be too late?

I have already received Letter 2 months back from CA's that says "Validity of this debt will be confirmed if I don't respond in 30 days." I didn't respond anything back.

Can somebody post me what I need to do now to negotiate? I found from other posts that the best offer will be 50 to 60% normally with Collection Agencies.

Give me your opinions please.

[DYLAN150]

HELOC: Does Chase have a lien against the property?

[smkrishna]

This house is investment home in FL. It's already foreclosed in end of January. So, primary loan is already gone with foreclosure. My concern is about HELOC that I took from this house. It was already given to CA's and they are behind me by calling. But, now, the call frequency has been lately decreasing and that concerns me about when to start negotiating as I dont want to go with BK option.

[AngelinaCatHub]

Please help me. I am desperate to know the best time to negotiate with Collection agencies for HELOC charge off ($30k) by Chase. If you intend to bk, no time is right to negotiate.

Can I start negotiating after receiving the summons? will it be too late? It's too late.

I have already received Letter 2 months back from CA's that says "Validity of this debt will be confirmed if I don't respond in 30 days." I didn't respond anything back. You best respond to the summons, or you will have a Judgment against you. Then it is really too late.

Can somebody post me what I need to do now to negotiate? I found from other posts that the best offer will be 50 to 60% normally with Collection Agencies. Collection agency's are crooks to begin with. What are you meaning to deal with them?

Give me your opinions please.

My opinion is get yourself a good bk lawyer, even if you are not wishing to bk. If you have waited too long, then it is too late.

without more info, I nor others do not know your intent, or circumstances. 'Hub

[anykey]

dont they have to pay the 1st?

[smkrishna]

Thanks AngelinaCatHub. I really appreciate your help. I have an appointment with a BK attorney on Monday. But, I would like to give a try by calling GC for the first time and see what they are ready to negotiate..I hope just calling GC services will not create any problem for me.
Correct me if I am wrong.

[AngelinaCat]

Perhaps 'Hub was not strong enough in his cautions to you. If you have a Summons document in your hand right now, it is ALREADY too late. You need to talk with that attorney.

Calling the GC services might get you and interesting converstion and various promises, but as I said, if you have a Court Summons, the matter has ALREADY been filed with the court, and you need to answer that. Again, talk with the attorney.

[smkrishna]

Perhaps 'Hub was not strong enough in his cautions to you. If you have a Summons document in your hand right now, it is ALREADY too late. You need to talk with that attorney.

Calling the GC services might get you and interesting converstion and various promises, but as I said, if you have a Court Summons, the matter has ALREADY been filed with the court, and you need to answer that. Again, talk with the attorney.

OK. Thanks AngelinaCat for your suggestion. As I have not been issued Summons yet, I am thinking about the ways to extend my time to quickly make my decision with BK attorney.

Just calling GC services to negotiate will delay their intention of going to Court?

And I didnt understand the exact meaning of "Calling the GC services might get you ".... Sorry for all silly questions. But, I would appreciate any help you guys offer.

[flyinbroke]

No, they are already going to court if there is a summons. Negotiation game over. You do need to answer this summons, because if you do not, and don't show, they get a default judgment which is an automatic win for them.

AngCat was being somewhat sarcastic with her "calling GC Services..." line. What she means is that it will get you nowhere because a summons=going to court.

If you are filing, you need to get a lawyer ASAP and you need to answer the summons NOW!

[smkrishna]

I do not have summons with me. I just received a letter 2 months back from CA saying that I need to pay the amount. Is this letter I received from CA summons? I expected that Summons is a document that says case is filed against me. Please clarify me on this.

At the back of the letter, it states that
"Unless you, within 30 days after your receipt of GC Services' initial written notice to you concerning this debt, dispute the validity of the debt or any portion thereof, the debt will be assumed to be valid by GC Services. If you notify GC Services in writing within the above described 30 day period that the debt, or any portion thereof, is disputed, GC Services will obtain verification of the debt or a copy of a judgment against you and a copy of such verification or judgment will be mailed to you by GC Services. Upon your written request within the above described 30 day period, GC Services will provide you with the name and address of the original creditor, if different from the current creditor"

[flyinbroke]

That sounds like a CA letter, with its typical threat on it....actually I think this has to be on collection letters. You can send a debt validation letter, but are supposed to send within 30 days...if you got the letter two months ago, it is probably too late to send a DV letter.

If you are filing BK, why would you want to negotiate with them?

[smkrishna]

Thanks flyinbroke for your prompt reply.

I am trying to avoid BK as my wife has balance in her bank account and I sent money to home country just 2 months before from my account and I dont know what genuine reason I can say (like layoff, etc.etc.)to justify BK in court. I have been still paying my credit cards as I have taken 0% Balance Transfer for life 3 years before. If I have to file BK, then I need to stop paying these credit cards which will open a can of worms with those CC companies. I only have problem with 2 mortgages and HELOC of investments homes. Can I show the court that I am paying credit cards and so, I dont have any money to pay 3 loans?

If BK is not possible with my above scenario, then what best offer I can get with GC Collection Services? 50% of $30k?? Let me know your opinion.

[flyinbroke]

You don't need an excuse or reason to file...if your outgoing bills are greater than incoming money, that is reason enough. And talking to an attorney does not obligate you to hire them or file, but they can give a better picure of your financials.

Not sure about settlements...not one creditor has offered to settle and I am at about 90-120 days of no pay on a couple of accounts. I just don't answer their calls and only received four letters total. No offers to settle, just a lot of collectors threats.

Can't help you there...but if you are paying cards and not mortgage, this sounds like a potential BK case to me.

[smkrishna]

Thanks again flyinbroke. I never got such a quick response in any of forum like this. I really thank again for your time.

As you said, most people advise not to deal with CA's as they are tough to handle for normal people.

I am going to talk to a BK attorney on Monday afternoon and am planning to give my financials and ask all the questions that I have in my mind that will give me some solution.

I will update this thread with attorney's reply. This forum is god-sent for people who are confused/broke/don't now what to do with CA/BK/etc... Thanks guys...Let us help each other out during this tough economic situation.

[keptdigging]

You're absolutely doing the right thing, seeing a lawyer. And let me chime in with the rest: talk to the attorney before you even think about contacting the collection agency.

That said, I suspect she/he will tell you that it is never too late to negotiate... until they're paid in full. I've seen stories of creditors who have indeed settled between summons and judgment. And since having a judgment is not the same as collecting the judgment, they still might settle. It's just business to them... how much cash can they get.

Note that even if you don't want to file BK, the fact that you can is one of the many things that might motivate a creditor to settle. But paying your other bills makes them take that threat less seriously and suspect you can pay them too. Welcome to the rabbit hole.