In Debt: Do you take calls from the credit card bill collectors?

[Three Wolves In Snow]

Originally Posted by Job Hunter

I am broke and living on unemployment insurance benefits while desperately looking for a job. I am behind 3-4 payments on many of my credit cards and the phone started ringing and ringing and ringing. I assume the calls are from the credit card companies themselves because I am told they don't send it to a bill collector until six months is up. I never answered the phone if the CALLER ID did not have a familiar name or number. But my nerves were shot because I would be sitting home peacefully and the phone would ring with an unknown number at the worst times. Finally I got something from the telephone company that allowed me to block all calls except from a list of approved numbers, family and friends. Every other call gets a recorded message that says I am not taking calls right now. I thought of just forwarding all calls to a voice mail but with call forwarding it will ring on the phone one time, just enough to rattle me, before forwarding the call.

Now close to bankruptcy, I am having second thoughts, maybe I should have answered the phone when the credit card companies called right from the start and told them I had no money to send them. Would that have ended the calls? Can they be reasoned with? I owe about $45K on six different credit cards.

Unfortunately, no, they cannot be reasoned with. Not by yourself. The fact is now, because you are over 90 days delinquent, no matter what, that is going to show on your credit for the next 7 years + 180 days from the time you first came delinquent. Pay them, and it starts from that day. You're looking at some rough years ahead. Also keep in mind, if you DO talk to them, they can "start" your delinquent date from that time. Yes, you have rights...but they do, as well. If you know you can't pay them, it really IS pointless to try to reason with them on your own. That doesn't work that well and those Consumer Credit counseling agencies can do a much better job for you. Yes, they do charge a fee but it's not that much and in the end, you typically come out better.

Best bet is one of two things:

Consumer Credit Counseling - these are the ones who can work for you to try to "reason" with the CC companies. Keep in mind, however, not all companies are willing to work with you, AT! ALL! (Sears is one.)

File Bankruptcy. There are different types of bankruptcy to file so I suggest you speak with someone about your options and pick which one is best for you not only now, but in the future.

Bankruptcy will also last longer on your credit record but, you have a better option to get credit later on because they know you can't do it again for some time.

[berdee]

Originally Posted by Hemlock140

I am not in collections but work with people that are, and any chance for help depends on you calling them and asking.

You could stop paying the phone bill, and then not have to take their calls. Then when that happens they sell it to a collection agency who will hire lawyers to take it to court and get a judgement against you. The court will order any assets to be sold/given to the creditors, any accounts, life insurance cash value, home, cars, anything else of value, and can even garnish some of your income whether working or collecting unemployment. They will also start calling relatives with the same last name in the area to leave messages for them to call you.

That's what you get for listening to those collector coworkers of yours, nothing but lies and misinformation. For regular debts, credit cards, utility bills, repo deficiency, etc., etc., most of what you listed is exempt (unemployment wages for example) or could be exempt through the states homestead exemption laws (cars, homes, personal and biz property, etc.) and some states do not allow wage garnishment. While they may be able to force sell a home, that is outside of the exemption laws, odds are they won't do it since it's not financially feasible for them to do so. To force sell a home, that is not exempt under the states homestead exemption laws, they would first have to actually pay off the mortgage(s) and any other liens that are on it. And if the home is a joint with someone who is not named in the judgment they would have to give that person fair market value for their half of the home. Also any amount of the house that is covered under the exemption laws then they cannot keep that part of the money. Then, after paying out a bundle of their own money, they would have to auction the house off and it would probably bring in a fire sale price .. they'd never recoup their investment in forcing the sale of the home. Much easier to just put a lien on it. Many other things, cars, personal items, etc., could probably fall under the homestead exemption laws.

While they like to use those empty threats to try to collect, in reality if they do end up with a judgment against someone they may levy any non exempt funds from the judgment debtors bank account or garnish non exempt wages, if the judge allows it (the judge may not allow it if the judgment debtor is very low income). They may place a lien on property but that costs them and not only would they have to continue to pay to keep the lien active they may also not see anything out of it if the judgment debtor never sells.

You tried to give an example of what a collector can do, which was a fail, instead you listed perfect reasons why people should never speak to a collector in person or by phone. Instead it should be done in writing and by mail.

[berdee]

Originally Posted by Three Wolves In Snow

Unfortunately, no, they cannot be reasoned with. Not by yourself.

Plenty of people have been successful in getting either a hardship agreement or a settlement agreement on their own without using places like CCC, even with Citi (who Sears is with).

The fact is now, because you are over 90 days delinquent, no matter what, that is going to show on your credit for the next 7 years + 180 days from the time you first came delinquent.

Late pays are reported for 7 years from the date of the late pay, not 7 years + 180 days. Also, if the late pays are in a string (back to back months) then the string of lates will drop off 7 years from the date of the first late pay. If a person brings the account current and then becomes late again, the reporting for the new late(s) will begin on the date of the new late pay.

Pay them, and it starts from that day.

What is "it"? Re-aging on a credit report is illegal, if that is what "it" was supposed to mean.

Also keep in mind, if you DO talk to them, they can "start" your delinquent date from that time.

No they cannot. They cannot re-set the collecting SOL based on a verbal conversation, any agreement (or payment) would have to be in writing and signed by the debtor to re-set the collecting SOL. That is IF the state allows the SOL to be reset, some do not allow it once an account is charged off. They cannot re-age on a credit report, period.

Yes, you have rights...but they do, as well. If know you can't pay them, it really IS pointless to try to reason with them on your own. That doesn't work that well and those Consumer Credit counseling agencies can do a much better job for you. Yes, they do charge a fee but it's not that much and in the end, you typically come out better.

If the OP can't pay at all then what good would it do to spend money on CCC? If the OP can't pay then CCC can't do a thing for them.

Best bet is one of two things:

Consumer Credit Counseling - these are the ones who can work for you to try to "reason" with the CC companies. Keep in mind, however, not all companies are willing to work with you, AT! ALL! (Sears is one.)

File Bankruptcy. There are different types of bankruptcy to file so I suggest you speak with someone about your options and pick which one is best for you not only now, but in the future.

Bankruptcy will also last longer on your credit record but, you have a better option to get credit later on because they know you can't do it again for some time.

If the only income the OP has is from unemployment then it's highly doubtful that the creditors will work with him on a hardship plan. They may agree to a settlement, and the OP can probably handle that without having to spend even more money to use CCC or the like.