I'm about 4-5 months behind on 3 personal cards and 4 business (but sole proprietor) cards, all unsecured. When my business closed and I became ill I wrote all 7 and explained the situation and offered a percentage that I would pay to settle from my liquidation. They all received them (sent DC) but only WAMU acknowledged it (and all they did was tell me to call them.) We've already gone beyond the please call us letters and into the semi-threatening ones. WAMU has even called my mother-in-law, how they got her number I've no clue. Today I received a delivery notice that I have a certified letter at the PO from sender "OPS." Do I get it or ignore it? I have no idea who OPS is - does anyone? - but I doubt it's someone sending me oodles of money. Also, do I respond to the demand letters at this point? I already explained the situation and told them bankruptcy might be my only alternative, another communication may do more harm than good, right? I feel horrible about this but honestly can't pay. I'm trying to save my house so my kids have a roof over their heads, I can't pay on credit cards. TIA
The standard advice is to stay off the phone, but frankly it is often better to simple call your creditors and work out a settlement over the phone. It's often different with collection agencies and the like which one would actually go through the FDCPA "validation" process amongst other things. In your case, it sounds as though you haven't yet charged-off. I would call your creditors and see if they will take a settlement. Unfortunately, some will not consider settlement offers until the account charges-off (Capital One comes to mind). However, some will (Bank of America and MBNA). Playing the Bankruptcy card is a good manuever as well. If it is your only option and your eligible under the new guidelines, take it. Frankly, a Bankrupcty is no worse than voluminous charge-off's. In any event, try to settle the accounts now with the creditors. Attempt to at least get a neutral status with respect to how they report the accounts. If they won't budge and you don't have enough to pay in full, file your petition. You can only try.
