Help! I knew this would happen!

Have you considered trying Chapter 11? I believe that is the one where you can declare your debt, and the court figures out how much you would pay each month. It is all lumped into one bill. You would be making one payment to the court, and THEY would distribute the payments to your creditors. Although, I believe you mentioned that most of those were medical bills? I don't know what state you live in, but you caould try and find out if you could include medical bills in the chapter 11. You would need to hire an attorney in order to do this though. I believe it is chapter 11 that you can do this. If I am incorrect, then I apologize.

 

Its Chapter 13.

 

Your intentions are honorable and your heart is in the right place but that really doesn't mean much when it comes to bill collectors, unfortunately.

What's happened is you paid someone, they updated your credit report and all the other collectors got pinged so now they all think you have money so they're licking their lips hoping to get a piece of it.

If you started sending payments without contacting them, you may or may not have screwed yourself. Even though they haven't been sending you monthly statements, you can bet that when they go to court, they'll be looking for the original amount PLUS interest PLUS lawyer's fees and court costs.

As far as the snowflake plan, that really only works if you: a) keep your payments up to date, b) don't charge any more on the credit cards and c) pay at least the minimum payments. If you get behind, then a whole new set of rules come into play.

As far as what to do next, well, like the others have said, bankruptcy (either Ch. 7 or 13) would seem to be a reasonable option if paying the bills will make it hard to impossible to live.

The other option would be to work extra hours or at another job so you can start saving up until you have enough to pay them off in one payment. When you have that much money, call one of them up, negotiate a settlement, and then pay them to settle. Making payments to them is, IMO a very bad idea, however tempting.

 

So these are charge offs?
Didn't know who to start paying first so I started paying smallest ones first and ended up with a letter from a lawyer for one of the bigger bills. This is exactly what I was trying to avoid. I don't have much time on computer so I haven't been able to get much feedback on my questions but was told about Dave Ramsey and his snowball plan. Looked it up and he says to pay minimum payments on all and use all extra money to start paying small bills off first and go up the line. I don't have minimum payments because I haven't been paying anything because I haven't had money. If I was to pay something on everything it would only be $10/month because there are 31 old bills. Then there is no extra money, so I have just been putting all money on small bills. Now what should I do. Stop paying off small ones and pay this one off? Either way I feel like I'm screwed and am starting to really feel helpless!!!!!!!!!!!!!!!!!
All they want to do is argue on the phone and want you to pay what they want you to pay. But we would starve or not have gas for cars. I've budgeted what I can and I'm just lost. All we do is work, come home, cook whatever cheap food we have, sulk around because we have no money to do anything with, go to bed, get up and do it all over again. I don't think I can do this for the 3 years it going to take to pay these all off. Any ideas please besides bankruptcy. Maybe I should just let the lawyers sue me and let the judge decide how much and who I pay.

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Tell us who you are and where you are in the debt thing.
Still with OC? No suing? JDB? Who has the debt now?

As for the medical bills I would call up the credit department of the hospital. There are funds for people that cannot pay the total amount. Also I have found that they will reduce the amount by 50% anyway if you really are having a hard time paying.Even the collection companies that handles these accounts are very easy to work with if they are local.
Try it.
Woofer

 

Question for OP - why not bankruptcy?? If you make less than your state's median income you might qualify for a Chapter 7, a total/legal way to wipe out all your debts.

 

Why not determine what's in SOL, what's not in SOL and whether any payments have tolled or restarted the SOL. Then make some more infomred decisions about what, whether, who and when to pay.

Being informed about what does, what doesn't, what might, and what might not happen helps you make the best decisions. When you understand how the whole system works and how to control the information that flows within the system as best you can, you can manipulate the system to your benefit. If you don't understand these things, you will get either taken to the cleaners or you will live under a debt cloud for more years than you need to.

Bankruptcy is only necessary if something intolerable is happening (garnishments, asset seizures or what have you). Don't use it to scare off a few animals in the night. Only use it if one of the animals is actually gnawing on one of your limbs.

 

And then sometimes even if they are you can give them a taste, and they will go away sans bankruptcy ; )
Woofer

 

What is the total and on each of the CA's you have mentioned, who are the JDB's as well and how much was the original charge offs and WHEN and what do they want now.??
If I am understanding correctly you used these charge cards to pay for your medical bills???
If so why? Was it because you had to pay up front and then thought you would get a check in the mail from insurance company?

On the medical bills owed, I would go and visit the hospital credit department if it is close by and tell them what you wrote here.

Many people have compassion and I can tell you from experience I have dealt with several hospitals that took 50 percent or less on the bill and would also do small monthly payments. Also there is a fund that will zero out the debt completely. If you are under a certain income this may be the thing for you to do.


While you do have a lot of deb accounts your total to get out form under may not be so bad.

Have you gotten your credit reports?
We need to start there and see if any are nearing SOL.
Have you gotten sued yet?
It is very hard to really help you as you have so many accounts and doesn't seem to be in any order as far as charge offs payments amount owed, JDB's etc.
You need to get it on paper and then make good files on all of this.
Many many times JDB's and CA's screw up and this can be your out as well.: )
I think FIRST you need to get your CR's. Then while you are getting them make contact with the hospital to get your debts reduced or wiped out. I really think this is going to be good for you and will definitely start clearing up all of these debts.
So to reprise.

1.Get your credit reports.
If you have not gotten one in a year or have been denied credit you can get them for free.

2.Call or visit hospital credit depart.

3.Contact the OC's and ask them for a no interest for one year and also a reduction in amount.

4.DO NOT CALL THE JDB's OR CA's

5. Keep good files. Any phone calls left on your machine document as to what time number and what was said.
If you do not have caller ID or machine now is the time to get one.

I feel for you as your head must be hurting.You will have to read much and learn what you can do for yourself.

Remember though keep things clear on paper and this will help you out a lot now and in the future.

I feel the reasons I have been successful in my suits is because of the very good files I kept.



Woofer

 

Okay you really need to get organized. Instead of attempting to do ALL just do one thing at a time.

Get some files. Get a red, green, blue and yellow.
In the RED (STOP and beware)put any dunning letters you have gotten in the last 30 days. Of these letters you are going to write a letter CRRR asking for validation.
Keep a copy for yourself, and paper clip the dunning letter, your copy, and also a sheet of paper so you have when you sent it , if they have called you, and when, and what they said. This is a good thing to do for each and every person that calls you when you have sent out the validation letter and they have not honoured it and continue thier collection activities.
In the green file (GO) put ALL your medical bills.
Read them all and then write a letter to each and every Doctor or hospital that is billing you stating as clearly as possible how you would like any and all consideration on these debts.
Make a copy and keep a file as to who you sent them to and when and what happens.
In the yellow (proceed with caution) file put Junk Debt Buyer 's or Collection Attorneys that have bothered you but not in the last 30 days.
DO NOT ANSWER ANY PHONE CALLS BUT KEEP A LOG.
I know you said you work all the time, but you are going to have to take a half hour when you are finished at home and from work to log into all of these calls and messages.
This may help you some day believe me, as it could turn the table and instead of paying out you may get some money back.
I believe eventually you may want to get a good NACA lawyer but he/she is not going to take your case if they think there is nothing to go on. This is why having a good paper trail is very important to you.
As for your credit reports, look the three over and see any problems and or duplicates as to a mounts account numbers, charge offs, transfers etc.

Check off the ones that are all the same on all three credit cards.

Highlight the ones that have been sold to JDB's and check out the DOLA (date of last activity and balance to see if they coincide with the original debt)
I know all of this sounds like so much, but just do ONE THING AT A TIME ,until you get the hang of it.

The first things are the letters on the medical debts, if you can not call or visit, and also the letters to JDB's as to validation.

Again though you need to keep things organized so you know what is going home and can be clear on the situations.

If the OC's say they donot have accounts anymore most likely they have charged off. Check your credit reports to see if this is so.
Have a list of the OC's that still have your accounts, and you can call them TODAY and ask for some sort of help.
If they don't want to check off and put them in the file and await a JDB to get them. Then write a letter and ask for validation and a inconvenient to call letter.(This way they can only contact you thru mail or worst case scenario sue you) which may or may not happen for a long long time.

STOP answering the phone and making payments to anyone but an OC.

There are things that can be left on message machines and things that cannot be.

Please someone chime in here. I didn't think you could leave a message saying this is to collect a debt!!!!!

Today, write off the medical letters, write off a limited cease and desist and validation letter to any dunning letters, and if open call the OC's and talk to them.

Make sure you write everything down so you are clear as to what you agreed to or did not agree to.

Then sit back and relax for a few, and try to get your head unwound.
Woofer

 

What is a SIMM's letter?

Again you need to FOCUS on one thing at a time. You can't work ON ALL of this AT ONE TIME, ok?

Woofer

 

Whether you get sued will depend a lot on your bankruptcy score. A bad bankrtupcy score makes you the mystery meat without a date on it at the back of the fridge. If you're paying people you look a little fresher. I know you want to take care of your creditors, but that's the way it is.

Paying nobody, collecting FDCPA violations and suing on them as necessary (or asserting them as counterclaims in the unlikely event you do get sued), and in general fighting for your rights is likely a better approach than simply going bankrupt. Especially since bankruptcy discharges ain't what they used to be (google an article called "Prisoners of Debt").

As for insurance companies jacking up the costs when they think you're insured ... it's the other way around. Insurance companies negotiate huge discounts in return for funneling patients to providers. Once you don't have insurance, your costs can more than double. When I have a problem like that, I tend to find out what insurance would have paid and negotiate to pay no more than that.

But if I were in the unfortunate situatin of simply being too poverty stricken to pay, I wouldn't worry that anyone at any original creditor, collection agency or junk debt buyer would miss a meal because I didn't pay. There's more than enough abuse of the consumer built into every system to keep them all well fed despite the occasional consumer who gets wise and protects himself or herself.

Frankly, although formal, federal bankruptcy frees you of further obligation, so also does the passage of time, and even if you are obligated, no court is going to take away your basic needs (unless you fail to show up and fight for them). "Informal bankruptcy" is an option practiced by millions of consumers. At the moment, it seems the best approach here.

 

If I were in your position, I would save any extra money in a mattress somewhere so that if you decide to pay someone, you can pay them once and close it out. Payment arrangements tend to be a bad deal for a lot of reasons.

While all this gets sorted out, it's better to have cash in your pocket and not theirs.

 

As mentioned, "informal Bankruptcty" is an option. This is more often the case when the debtor may have sufficient resources to pay on a "few" debts and languish on others. A Chapter 13 BK will force you into a possible 5-year payment plan where a US trustee controls your flow of capital resources. As an example, it is probably not uncommon for a person to file a chapter 13 BK that sucks away 50% of their income, when a judgment and wage garnishment may only take 25% of income. In such a case, one has to wonder what the purpose of a BK 13 is other than shorten the recovery time to improved credit. The real issue may come down to assets and exemptions of equity in such assets.

I record all phone calls from creditors and CA's and inform them I'm doing so. Some continue to call, but most cease and desist. Keep in mind that if a creditor or CA believes you are ripe for a lawsuit leadin got selling of assets or wage garnishment, they will most likely sue you. If judgments don't frighten you and you can survive wage garnishment or freezing of assets, tell them to "bring it on." LOL

Just my take and opinion on the situation.