I deal with correspondence like this almost everyday. What legal action is he referring too and when do I HAVE to declare bankruptcy? From my CCCS rep: Capital One just called me regarding the account with the $62 payment. He's now saying that he will accept $150 per month (instead of the $200 per month that he was asking for in May) to keep the account from entering a legal status. I said, "if XXXXXX can't pay it, she can't pay it--don't you think that if it goes into a legal status and you put her back up against the wall, she'll just declare bankruptcy? I mean, what more can you ask for than a consistent payment amount of $62, and you told XXXX in May that you would post them to the account and that it would impact the balance??" He countered with something like, "well, if she can't pay the $150, then the account will subject to legal action" and I said, "ok, I'll let her know." and he slammed the phone down. THEN he called back about 2 minutes later and said "you understand that the account is not accepted in a Program, so you'll need to take her off the Program" and I said "I can't just TAKE someone off the program, it is up to our clients whether or not they want to remain paying on it, and in her case, she's very happy having us deal with people like you...she's very upset by all of this and feels there is no way out," and he said that we were the only ones benefiting from this, and I retorted that I actually told you it may be best if you remove yourself, so how dare he say that we are benefiting when we try to do what's best for the client in all cases," I then got very quiet and just told him that we WANT you to be able to pay, and YOU want to pay, but that if the money isn't there it just ISN'T THERE, and I asked him what more could he ask for? I explained that he wasn't the only creditor and he should understand that fact. I basically finished with telling him that I'd tell you about the conversation's) we'd had, and that you could decide what you want to do next. I posted yesterday regarding my situation under Tears and Loss of Hope
You might want to post this (or a condensation of it) on your other thread. That way, the story will stay together. Otherwise, this thread will keep getting bumped up and the other one harder to find. The legal action is probably suing to get a judgment. But don't panic yet. Many times this is threatened but nothing actually happens. How much is your balance on this account? As I think someone suggested before, you need to send a validation letter to the collection agency. Even if they can prove it's your debt, it's a ploy for time. Also, go back to the original creditor and see if they'll work with you. Maybe they won't, but maybe they can pull it back and take it over themselves if they think they'll get their money. And you don't ever HAVE to file bankruptcy, although sometimes it becomes the best way out.
Does the judge care about my attempts at all? If not then why should I continue to try and strap myself like this? It just sounds like all the cards are against me.
OK< let's get back to the questions you raised here. 1: When do you HAVE to declare bankruptcy? You never HAVE to file bankruptcy, you CHOOSE to file Bankruptcy unless your crediors file an involuntary petition against you. The collector who called your CCCS counselor is usng the same arguments and words I heard as a CCCS counselor and Branch manager 25 years ago. The threat of "legal action" is not the same a "you will be sued". Legal action merely menas the collector intends to NOT do something that is ILLEGAL. He could send you a letter - that's legal. He could call you - taht's legal also. He could discuss suing you with his supervisor - that's legal also. He could go on to the next phone call - that's also legal. I used to defuse collectors like this in three ways: 1: I would point out that they have a choice - they can either accept the $62 a month from you or they can sue, force you into a Chapter 13 and get the same $62 from the Trustee - OR - if you file Chapter 7 they get nothing. 2: Mr Bill Collector - here's a list of creditors and their balances. If you think this person is concealing assets or withholding funds, why not get a couple of them to join you in filing an Involuntary Petition of ankruptcy and force the issue? If not, then what do you want? 3: The CCCS Counselor is probably talking with either a CA rep or Cap1's internal Collection department. Either way there is a chain of command an dthe CCCS counselor needs to go up that chain of command until )s)he finds someone who will listen to reason.
He even told her that she had to take me out of the program because they weren't accepting me in the program. Is that true? When do I need to start being concerned with being sued. Honestly I'm trying - I just wish they could see that but I guess just like someone said they don't care.
Re: Re: When do I HAVE to declare bkruptcy If you have't been served witha summons, don't worry about being sued. Bill Collectors use the veiled threat of suit all the time, and this guy seems to be good at finding your hot button and pressing it. You have a CCCS counselor, let the counselor do his/her job to keep the Plan alive. He wants you "out of the Plan" so he will be free to twist you in the wind to get higher payemnts. If you are served with a summons, it's THEN time to talk with an attorney.
Re: Re: When do I HAVE to declare bkruptcy I liken these kinds of threats to me telling my children "Do you want me to stop this car?" I really have no intention of stopping the car, I just want them to do (or more likely stop) something. Threats work, that's why we all use them. I'm just curious . . . what was the "next step" suggestion of your CCCS rep based upon the conversation he relayed to you? P.S. Have you written your validation letters yet?
Re: Re: When do I HAVE to declare bkruptcy Working on Validations this evening. She said to do what I wanted to do and if I wanted to continue on the program realizing it's not really "helping" me that she would be more than happy to help me deal with these people. She said they aren't rejecting payment and if they aren't applying them to the accounts that is illegal.
