28 Feb

Creditor just called

Well, I just got a call from a creditor. We have not paid any of our creditors since we initially filed for bankruptcy in August.

We recently decided to try and do the pro rata plan where we send a certain percentage based on our disposable income. Just mailed off the payments on 12/06. Not very much but it’s a start. Hoping to hold off re-filing for bankruptcy if possible.

So the creditor called and said they were representing the creditor and needed to resolve our “case”. They were speaking to my DH at first as he’s the main one on the account. I get on the phone and they are asking for my annual income and stuff and I just tell them that look, my total debt is XX and you represent 11% of that debt and my disposable income this pay period is $231.52 so you get 11% of YY which is $25.47. They kept trying to say that what was my income and what was my husband’s income and then they tried to make it sound like I was sending the whole amount to them. I again said look, my total debt is XX and so on.

They then said that they would hate to garnish my husband’s whole paychecks as they know that would be a financial burden to us. I said that doesn’t happen immediately and they said we will take steps and it will happen in 90 days.

I then said okay, I’ll just make a note that you called and give my attorney a call tomorrow to let him know you called to see how I was doing. She said we’ve only called you once. I said yes, you’ve called me once today and I’ve noted that. Goodbye. End of call.

And then less than 5 minutes later another rep calls. I explain to him that we’ve already received a call tonight and thank you and we’ve sent you $25.47 that you should be receiving shortly and have a great night. End of 2nd call.

So what do y’all think about that? I admit, I was nervous talking to them but worst case scenario I would have to file bankruptcy again. We are just trying to avoid it and get back on track.

13 Feb

This is a common tactic of the collection agencies

They say that your payments is not accepted and demand more. It is acceptable, but by doing you so you have bound yourself and admitted the debt is yours.

They will cash your check, have no fear of that. Just keep on doing what you ar doing and eventually you will have paid off the debt. Just keep close accounting and documentation.

The best way is to see if you can a lump sum settlement with them. You could probably get 30-40 cents on the dollar by doing this and just get this monkey off your back…now.

If you just continue sending payments it will be until hell freezes over when you finally pay off the debt. Better to cut your loses and start afresh.

Dave Ramsey’s method is good, as one poster mentioned, but it sounds like you don’t have the extra income to afford this type of program. However, if you could swing it then it might be beneficial for you to do so.