I have collectors (not the OCs) attempting to collect numerous cc debts for both my wife and I. They all fall within the SOL period for the state we live in. The total amounts are in the 10's of thousands (less than 20k). Our combined income is way over to pass the means test, and would require her to quit her job if we were to attempt Ch. 7, but the lower income would force us to sell our house.We've only spoken to Ch.7 attorneys, as Ch.13 attorneys are hard to find or unwilling due to our income, and the high fail rate of Ch. 13s. Given the 5 year sentance and constraints with a Ch. 13, we are loathe to follow that route. The only other alternative is to settle with the collection agencies who are mercilessly hounding us, and have already one judgment against us which they are trying to garnish on. So, what alternatives are left? We are willing to pay back most of the debt (although not ALL of it due to the inflated collection fees), but need a couple of years to do so, and need to ensure collection activity would stop. Are there any other options that wouldn't force us to sell our house or quit our jobs?And no, we can't use the equity in our house due to the terrible FICO scoring system: Our scores are too low to get a new mortgage, even though we could pay off all our collection debt if we got a new loan. What a stupid system. Got money but can't use it because someone else relies on an antiquated system of credit scoring. And also no, if we were to get a lawyer (hard to find) that will go to court and defend us on all these accounts, it would cost the same or more than if we just settled.Any help or suggestions sought. Thanks
I would seriously attempt to start accuring violations of the FDCPA and FCRA for potential counter-claims. Along the way, your scores may improve some.
Ditto to what Apex said. Remember, whether you owe the money or not, the CA MUST follow the law (the FDCPA, for starters). They like to think and they like to tell anyone who'll listen that if you owe money, they can do whatever they want, whenever they want to collect it. THAT IS NOT TRUE so don't believe them. Once you know what your rights are and start asserting them, they'll change their tune...
Thanks apex... Thanks ccbob...I don't have much concrete, I haven't really spoken to them on the phone, just responded via mail on a few things. I've been looking for violations, but haven't found anything noticeable (threats, lies, abuse, etc) They've played by the book on this for the most part. Do you have any specific things to look out for? Are there any common mistakes they might make? I pretty much only have a month to collect counter issues as it'll go to court by then.Thanks for your advice and help.