I am brand new to this and desperately need help! Please forgive me if this is sort of long... My husband and I are both disabled for different reason. We have been living off of his S.S. for the past two years while I have been trying to get my S.S. disability approved. It finally has been, and I have taken a portion of my back benefits and paid a deposit on a home with seller financing. (Mortgage plus taxes and insurance is only a few dollars different from what we have been paying for rent!) We are required to find alternate financing in a few years. Question: What should I do with remaining funds? We have quite a few medical bills and we currently have several credit cards that we have not paid on the last few years which equate to aprox. $8000. They have all been turned over to CA. (Viking, Arrow, and RMJ). Viking has offered to settle for 50% but will not budge on tradelines,etc. What is best for us in this situation? What is the best solution for the future when we are required to get our own loan? Will it look better to settle? Leave charge-offs on our credit report, etc?? If we settle for the 50%, how can we get Viking to agree to report us as Paid As Agreed instead of Settled or Charged Off? I sent validation letters to all of the other CA's today via CRRR. Should I go ahead and settle with Viking or send them a validation letter too? I am so confused. Please advise. Thanks from the bottom of my heart for any help that you can provide.
No don't settle those cards!! Wait, let us get a little information and see what we can do to help. How many cards? When was the last time you made a payment that was on time, on each card? What state are you in? You need to be careful with that money - once you start paying things, it will hit the fan. They will all come after you. You need to file some legal paperwork with your bank, which will make it impossible for anyone to touch your money - your money is exempt from any kind of garnishment, but collection agencies may try to get it anyway. So, wait, don't pay anything just yet, and tell us about these cards.
I am in South Carolina. Credit Card Info.is as follows: Capitol One - Viking CA- Dis. Ins. pd. last on 01/03 Capitol One - Viking CA - Last pd. on 04/01 Providian - Arrow CA - Last pymt 08/01 Providian-Aty. Office trying to collect-Last pymt 07/01 Providan - Arrow CA - Last pymt 11/01 Household Bank - RJM CA -Last pymt. 12/01 What sort of legal paperwork with the bank? Thanks again for your help!
I will find out what the legal paperwork is called, and get back to you. I'm not a lawyer, I just know you can do this, to protect your money. So, you are saying you had the credit protection on the CapOne card - but it has run out and won't pay any more payments? Roughly, the statute of limitations begins when you first fall behind on a debt, however, I will have to research to find out exactly how SC defines it - it can vary from state to state. But my point is, you are a few months away from reaching that point on all these accounts, except the Cap One card. They have been charged off already. Don't pay the collection agencies. It won't help you, it will hurt you. That disability check is not that big - you may need that money later for your own survival. If you feel a moral obligation to repay the money, hold off, and let that work for you, not against you (paying the collection agencies will work against you). Trust me. Don't talk to them, don't make any promises, and don't pay anything right now. Keep a low profile until you are past that date (I will get the exact info for you). After the statute of limitation shas run, you hold all the cards. They can try to get your money, but they can't actually get any if you don't let them. Since you've lasted this long, I bet you can last a few months longer. The "lawyer's office" with the Providian account is most likely a collection lawyer - they fall into the same category as collection agencies, except that they can threaten you more because of that law degree. At this point, you have nothing they can take. Don't talk to them. If they DO something let us know, we will help you with it. Hang in there, you found help.
Are the credit cards in BOTH of your names? If so, set up a money market account with your bank with SOME ONE ELSE (a trusted family member) as PRIMARY on the account. If the credit cards are in only ONE name, open a joint account with the NON OBLIGATED spouse as primary. You need to send out cease and desist letters (contact by mail only) and ADD to those creditors where the disability insurance has been paying that you are contacting the consumer affairs dept. of your State with a request into an investigation of WHY the credit disability insurance has not completed it's obligation to continue to pay. DO NOT pay anyone a ¢, if you do, they will ALL descend on you like vultures. Opt out on your credit reports, a link to opt out is on my website linked below. You have been through a lot, DO NOT allow the CC companies and the collection agencies to steal from you your only chance to live with dignity and comfort without having to declare BK. ( if you DO decide to declare BK, ALL of your assets and income are exempt, and you may wish to do that to avoid future problems)
The credit cards are in either my name or my husband. None are joint. The credit protection plan for Capitol One supposedly ran out and they are no longer obligated to make payments. I have gone ahead and sent Viking a verification letter. Do I need to send one to Capitol One directly since they are the OC and Viking is their CA? Any other ideas or advice at this time? Thanks to everyone who is helping me!
NO, I wouldn't send Capital One anything. Just lay low, keep your head down. Since you had activated your disability coverage under the credit protection, I would think they know you are unable to work. They might just leave you alone. Wait a while and see. Give yourself some time until you have to secure your own loan - you want to make it past the SOL - next summer on all but Cap One. Be sure to opt out with the CRA's, or it will all blow up when you go to get your loan.
