Collection agency won't settle?

[nothing]

My husband and I are in a very bad financial situation. We are not planning to file bankruptcy (which I wish we could) because my dad has offered to pay off my debt if I can get settlement amounts that are within his means to pay. I have gotten most of my accounts down to about 50-65% and have settled some of them. There is one, however, that I didn't take care of in time. They called and talked to my husband, and offered HIM a settlement amount on MY account, but he didn't give me the details and they didn't call back, so I didn't follow through with it (stupid, I know). That was several weeks ago, and now the account has gone to another collection agency (PBC?). The collection agency refuses to honor the settlement that was offered previously. They will not come down below 75%, and I simply can't pay that much. They are trying to get me to pay the original settlement amount, which was 50%, and then make monthly payments until the remaining 25% is paid off. We are not able to pay our mortgage, car payment, and power bill, so there's no way I can commit to another monthly payment. That's why we're in this position in the first place. I have read a lot of threads here, but I'm not really sure what I should do in this situation, and would REALLY appreciate any advice. My brain is like mush, I am in a constant state of anxiety, and have considered suicide more than a few times because of my financial problems, but I am trying to get things taken care of so that my 2 little girls don't have to live with that. I just don't know what to do. Thanks in advance for any advice.

[ForumReader]

My husband and I are in a very bad financial situation. We are not planning to file bankruptcy (which I wish we could) because my dad has offered to pay off my debt if I can get settlement amounts that are within his means to pay. I have gotten most of my accounts down to about 50-65% and have settled some of them. There is one, however, that I didn't take care of in time. They called and talked to my husband, and offered HIM a settlement amount on MY account, but he didn't give me the details and they didn't call back, so I didn't follow through with it (stupid, I know). That was several weeks ago, and now the account has gone to another collection agency (PBC?). The collection agency refuses to honor the settlement that was offered previously. They will not come down below 75%, and I simply can't pay that much. They are trying to get me to pay the original settlement amount, which was 50%, and then make monthly payments until the remaining 25% is paid off. We are not able to pay our mortgage, car payment, and power bill, so there's no way I can commit to another monthly payment. That's why we're in this position in the first place. I have read a lot of threads here, but I'm not really sure what I should do in this situation, and would REALLY appreciate any advice. My brain is like mush, I am in a constant state of anxiety, and have considered suicide more than a few times because of my financial problems, but I am trying to get things taken care of so that my 2 little girls don't have to live with that. I just don't know what to do. Thanks in advance for any advice.

First off, I know this is hard, but take deep breaths and talk to your husband and your dad over everything what the best way to do about settling your debt even if it includes possibly filing for BK in the near future. Another first off and more importantly, do not try to hurt yourself, your little girls need you. Again, take a deep breath, talking and planning things out through a support system helps. As for the collection agency, perhaps some of the collections gurus from this forum may chime in to give you advice on what to do with this collection agency. Good luck!

[Jackdog]

You are far too important in this world to of even thought of suicide over debt. I know how you feel though. Before I looked into BK I would go to bed at night just kinda hoping not to wake up. Now after everything I've read I can't believe I ever wished that.

Why can't you file BK? You are currently not paying the bills (mortgage power and such) you should in order to pay debt. That is not good.

[jwmc1]

You really need to remember that they can't eat you. You are not going to be harnmed by these people, screw em!

Who is the original creditor? Remember that they may just be playing you tough. Call them and tell them that you can come up with 25%, and don't tell them for where. When you say that you are borrowing the money they may think you can get even more.

That said, you need to decide how to put this to an end. In my opinion you need to consult with a few attorneys about bankruptcy and then make a decision about what will work best for you. Can you file for chapter 7? Seems to me a fresh start under chapter 7 is better than settling a bunch of debt with someone else's money.

I too have felt like you, I have felt like there was no hope. You need to remember, they cannot do anything to you aside from try and collect the money. Until it goes to an attorney they can't do much except threaten and call constantly.

Push through this and learn from it...be as firm and tough as they are.

[AngelinaCatHub]

Dear Ms. "nothing":

That is a weak "nick" as we are all "SOMETHING". You are on the Bankruptcy Forum. Need I say more? None of us ever anticipated or planned to go bk. NONE OF US. Those who may have are crooks anyway. Circumstances cause these reasons to bk. I can honestly say, I've been here, learned enough here, to be credibly sure that you are a REAL candidate for BK.

IMPORTANT: Suicide is a very permanent solution to a temporary problem and above all is only "SELF SERVING. A ridiculous statement and thought. It is selfish and would not hurt you as much as who you leave behind.

Your Father should NOT be involved. Cut him slack as eventually you will bk and then his efforts will be in vain.

If that CA is too stupid to deal with, stop paying him and tell him so. Send him a Cease and Desist letter. You, by law, will never hear from him again. If the original creditor was serious and did not sell off this debt, you would have been sued. Don't you see the wisdom in this? Don't you see the guidance you can get here?

It is time to make a "BUSINESS DECISION". Your credit rating is sh*t and does not matter. Get your emotions down and once filed, you will feel a relief you have never experienced. It is called "A New Start".

Do this, I implore you. Do not throw good money after bad. In this current economy and government, you are a mere statistic and many more will come after you.

Please consider my words. PLEASE do so. 'Hub

[shark66]

You've received some priceless advice from 'Hub. I couldn't have put any of that as well as he has.

A few years back, when our financial ship started sinking, I took a call (one of the very last collection calls I ever picked up) from AMEX with the agent foaming at the mouth demanding payment on my wife's long-past-due $15K or so account.

" How much do you want to settle for?" I asked

" There can be no settlement. We'll sue".

" Be my guest" I said " In that case she files for Ch. 7 a month from now and you will get $*^t" and I hung up.

They haven't sued, but indeed settled for somewhere in the $8K region. Had I known then what I know now, I would've probably taken it down even further, but I simply choke it as lesson learned nowadays.

You do sound like a Ch. 7 waiting to happen. Talk to your husband and your father, see a couple of attorneys, devise a strategy and stop wasting money on paying debt that will not go away.

There are other things in life, especially considering the fact that you have children, that your father's generosity could be better applied to. Please do not feed the leeches.

My $0.02 only...

Good luck.

[keptdigging]

Breathe.
Let 'em sue.
Seriously.
It is all a negotiation to them. Even suing is just a tactic.
They are looking to get as much money as possible. Your job is to convince them you have nothing, then miraculously have convinced your Dad to give you 10 or 20%.

And you absolutely need to investigate bankruptcy. They can sue, you can file. You win.

The biggest thing I've had to learn is that my credit score is not my value as a human being. How I treat other humans and my child is. Be a good parent. Be strong for your kids. That's what matters.

I have cousins whose father killed himself. There is no worse thing a parent can do. What your kids need is for you to be there. Think back to when you were a kid. Yes it was nice if there was money around. But day to day in a kid's life... not really that important. Kids only think they need things! They really need people.

Be strong for them and you'll come out of this a better person than you went in.

[frogger]

Everything in collections is a tactic. Nothing more, nothing less. A tactic to get the most money out of you that is possible.

The longer you go without paying, the less your account is worth to an agency, never forget that.

An account that is 30 days late is worth about 85 cents on the dollar.

An account that is 12 months late is worth (at most) 12 cents on the dollar.

Time is on your side when it comes to collections and settling.

[AngelinaCatHub]

What your kids need is for you to be there. Think back to when you were a kid. Yes it was nice if there was money around. But day to day in a kid's life... not really that important. Kids only think they need things! They really need people.

Be strong for them and you'll come out of this a better person than you went in.

This is what our society has lead us to believe. The accumulation of "things" is utmost important. I was raised in the early 50's and remember my Mother taking care of us (brother and I) with her 40's war style hair wrapped in a bandanna like "Rosie the Riveter". Nothing was so good to have her there, and her dressing us in our "snow suits" (as in the Christmas Story movie, so accurate of the 50's). We were poor, but better off than the neighborhood street. All the houses floor plan the same. Post-war Levitt type. Three types of houses all different on exterior only. Then Mom wished to go to work to catch up with a Joneses. We missed her and when we (actually three blocks) walked home from school, we had to go over to the neighbors house for baby sitting by her. Not our Mom, and we hated it. They showered us with wonderful Christmases, but those toys were either broke or we were bored with them by Christmas evening.

We lost a lot of parent time that my brother and I both agree would have been better than the first swimming pool my dad had to have. The first in the township. Two cars, everyone had one old beater, one guy kept a 39 ford for 10 years. That would make the care 20 years old. He sold it and got another old car while Dad and Mom went into debt. Then Mom HAD to work to pay debt. No credit cards then except Sears. Everything we had was Sears, Kenmore, Craftsmen. Finally we moved, sold the house and then they started debt over.

I suggest to the OP that she puts this seriously to her spouse that they vote for a new start. Learn to put her time towards her immediate family. Leave Dad's money alone and allow him to put it towards his grandchild's college fund. Get rid of the stress by making that all important "business decision" and file. The only money I would accept (and it would be exempt) is a loan from Dad for a bk lawyer.

We who know, fought this fight ourselves, remember the immediate relief when the bk lawyer said "Your case number is 10-1234-bk". No suits, no calls, forgiveness of previous poor spending, and FREEDOM.

Ninety days to practice frugality, coupon clipping, savings plans, HSA accounts, and release of pain that the children no doubt can see in Mommy's face. At my age I can still recall things when I was only three years old. I have a wonderful long term memory and I can remember observing the change in my parents once they started lusting after "things". They became pre-occupied with 'stuff' and less occupied with us. Then we saw conversations about bills and Dad and Mom had words with each other that they did not have previously to debt.

I am concerned about Ms. 'nothing' and I pray she and her spouse consider the bk option as the consensus here is in agreement that with only the information she supplied with her single post, she truly is a prime candidate for relief in the form of bk.

Only my opinion. 'Hub

[pcn]

I, like many here, have kids too. My concern for their well being is what helped force me to take charge and really evaluate what we were doing and how it affected them, and would affect them for a long time. See a lawyer. See several. There is one out there who will take a personal stake in your case. If your father is willing to spend his money to help you settle your debt, just think what that money could do for your kids future, rather than going down the toilet. If someone offered you money right now and gave you the choice to put it in a college fund for your kids, or to burn it right in front of you, what would you do? Your kids will not benefit from settling with these creditors. Just the opposite. Trust me, this is advice from someone who completely blew his kids future trying to avoid the obvious. It sounds like you have not gone too far yet. Stop now and see an atty.

[keepmine]

Your best course of action is to keep family out of this.
Thank your dad for his help and tell him you're going to file bk and could he prehaps use his resources to help you out post bk where it'll do the most good.