I have a past due debt and Collector called me (collector is calling from a law firm), they want to set up a payment plan with me, but the amount they are asking per month is too much. I told them the amount I can afford to pay per month and they said it’s too low. They are asking for atleast $100 but I can only afford $30 per month due to other outstanding bills. I am only making enough to pay some bills and I have been getting a pay day loan every pay day just to get by. My hours at work have been cut and I can’t afford a baby sitter for my 1 yr old so I can’t work full time. Well, the collector said that if we can’t agree on a payment then they will have to resort to something else. Can’t remember what he said but from what I understand is that some legal action will take place. I don’t understand why they can’t just accept what I can give them. He’s also asking for a lump sum but i can’t give him a lump sum more than $50 right now, my car is broken i have to find a way to get that fixed too! Can someone give me advice, I want to pay this debt off, I know I owe it, but cannot give them more than $30 per month, I have a baby to feed, can’t even afford rent! I’m really broke I don’t know what to do I don’t want to get sued, can they sue me if they refuse to accept my offer?
I checked the law firms website, looks pretty legit, his name is Marvin S. C. Dang, got his resume and everything…didn’t speak to him but someone else that works there. They specialize in this stuff…does this mean anything? Do They have any control or should I go thru a debt settlement company? I check the statues of limitation in my state and it has not expired yet.
Debt Collection Help?
February 25th, 2010 by admin Leave a reply »
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Your best bet right now is probably Legal Aid. They provide free lawyers to people who can’t afford them. You need a lawyer to help you understand all the issues and know what to do, even if there is never any lawsuit.
First, Legal Aide does not help with simple cases of debt collection.
What type of debt is this?…is it for a charged-off credit card? How old is the debt?
Tips for Dealing with Debt Collectors
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- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be paid in full upon receipt of this amount from you. Keep the letter in a safe place. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.
- By themselves, debt collectors have absolutely no legal power over you., they cannot garnish your wages or freeze checking accounts…only a court can authorize this and they’d have to go through the court system to do this.
- The debt collectors #1 goal is to scare/bully you into giving them your checking account/bank routing numbers to do direct debits from your bank account. DO NOT give them this info. This is like giving the keys to your front door to a burglar. Once they have your checking account #’s they can attempt to withdraw any amount from your checking account at any time.
- If they threaten you with a lawsuit/legal action, then ask for their attorney’s full name and license number in the state bar association. Call your state bar association to confirm this info. If they refuse to give this info to you, then the legal threat is probably a bluff.
- Debt collectors love to create a false sense of urgency…If they’ve waited months/years for your payment, they can wait one or two weeks for any payment or settlement agreement from you. Any “deadline” like 5PM to get any payment to them is bogus.
Cat Dad is good. If it is credit card debt get help form a relief group. I paid mine off at 25% of total in 3 yrs. Don”t talk to the collectors calling they attack you. Good luck
Here is what you need to do
1) check to see if this debt is beyond your states statute of limitations to seek legal action. If it is “time barred” they can not sue you in court, if they try, then your defense would be the fact that the SOL has expired and you in turn can sue them for violation of the FDCPA (see source) due to their actions.
(NOTE) do NOT pay any amount as that resets the state SOL
Use this link to find your states SOL
http://www.creditcards.com/credit-card-news/credit-card-state-statute-limitations-1282.php
2) If they call again inform them you want written validation of the debt sent to you. That you do not want to discuss the situation over the phone. Many collections agencies will say they are a law firm just to intimidate people which is illegal under the FDCPA (see source).
3) if the debt is not time barred, then wait for them to send you a letter informing you of their intentions and what your options are. They must do this before they can file a petition to obtain a summons to appear in court or any other legal actions.
Worst case scenario, you get a summons to appear then you simply show the court your income statements and other expenses and the court will in most cases force the collection agency or law firm to accept what you can offer.
Also inform them that under the FDCPA they have five business days from the first contact to send you written documentation showing how much the debt is, who the original creditor was and that they legally own the debt and what your rights are under the FDCPA to dispute the debt.
NOTE: This communication is not intended as or should be interpreted as legal advice. It is intended solely as a general discussion of legal principles or definitions of the FDCPA and FCRA. Always consult an attorney if needed.
Here is the options i see you have. You can try debt management see if a 3rd party can work out a payment plain. Bankruptcy is another option but i think i would try debt management over bankruptcy.
NEVER agree to any terms or agree to pay debts off or anything over the phone! Never assume responsibility for a debt over the phone!!! By law they are required (if you ask) to send you proof of the debt within 30 days. Then, if you decide you want to negotiate, get everything in WRITING.
Right now, it sounds like they are using their, “we are a law firm” line to scare you into agreeing to something you can not live up to and they will end up suing you anyways!!!