Re: PLEASE RESPOND!!!!!!!!!!!!!!

Posted by Tammy (24.59.27.46) on September 14, 2003 at 15:02:04:

In Reply to: Re: PLEASE RESPOND!!!!!!!!!!!!!! posted by Pleae Help on September 14, 2003 at 08:08:24:

Please Help.

I assume you are still unemployed. I am sorry that you are really confused and it is hard to think of what to do. maybe Legal Aid can help. Are you getting unemployment. The first thing I would think you would need to do is contact the OC and find out exactly what is going on. Lawyers and collection agencies may not tell you the real deal, but you really need in my opinion to find out what is going on. Second thing, Have you gotten a copy of your credit reports. I believe in California, you can get one free copy a year if you are unemployed. The credit report will tell you the status of the bill more than anything else. If it is in default, if it has been charged off.

You need to know this information first before you can decide to do anything.

I believe that you do need to do a validation letter anyways for the following reason.

One, you need to make sure that all the account information is accurate. When you ask for a validation letter, it does not mean that you are trying to deny the bill or that you are trying to get out of it. Often when you go into default and an account is charged off or foreclosed on, the company may stop sending you monthly invoices and statements. A validation letter is a good way of obtaining necessary account information. I think that people should stop looking at validation letters as a means of shoving them off. It doesn't shove creditors or collection agencies, not if they have the documentation and the account information like contract, proof of payments, etc. The primary reason you want validation is for account summary information. You need to make sure that your account information squares as closely as possible with the OC's account information. The collection agency has to supply this.

Second reason you want this information is in case you have to go to bankruptcy route. You will have to supply this information to the judge and the creditor will have to supply this information to the judge.

Cease and Desist Letters: Those are great for debts that are past the statue of limitations. However, if your debt falls withing the statue of limitations and you have a sue happy collection attorney (who plays the numbers games), then a cease and desist letter will tick him off. A limited one where you stress that they are not permitted to call you at work (when you get another job) or at home, but that you prefer to do all business in writing will probably work. I believe that we need to examine our strenghts and weaknesses. I never talk business on the phone generally unless I initiate it and I am in control. I don't accept telemarketers calls, sales solicitations, charity calls, or personal business calls on the phone. I knew that these situations can be high pressure and intense and if you are not a good negotiator, or you are a person easily stressed, you might feel pressured into an agreement that might satisfy the creditor or collector, but in reality is one that you would not be able to practically honor. That is a worse situation because maybe two months down the road, you cannot honor the agreement you were pressured into accepting and now you appear as even a greater deadbeat. Never make a bad situation worse. Always maintain your calm, know your situation and where you stand, and never put yourself in a position where a potential weakness can be used against you to force you into a situation that is in the long run worse.

Bankruptcy: Bankruptcy's are always an option but I believe that they should be the last option. Several facts about bankruptcy that one should be aware. Not all people qualify for bankruptcy. Yes, that is right. Not all consumers who are in way over their heads will be able to get a bankruptcy. To suggest otherwise is in error. My sister, a single parent, got way in over her head with CC debt. She had collectors calling for her all the time. She had six of her CC in judgements and she had another one that was over the limit. Plus, she owed other things as well. She tried to meet the minimum payments for a while but could not keep up with them, and the late fees and over the limit fees and interest charges were driving her balances higher and higher and she got in way over her head. Her monthly income didn't stretch far enough to make the minimum payments, and the creditors would not lower her interest payments, would not work with her. She went to a lawyer and presented her situation. She was told that she COULD NOT file for bankruptcy because the total amount of her debt/compared to her income did not meet the minimum state (Indiana) requirements to file bankruptcy. My BIL was denied bankruptcy because he didn't have a steady job and his situation required that he be able to enter into some kind of payment plan with the creditor due to the state laws regarding bankruptcy. Every state is different and every situation is different which is why I recommend going to legal aid or consulting an attorney.

No one can give you the advice on what to do because every situation is different, but I just thought I would point out to you that you do have options, it is not hopeless and just hang in there.

God bless, Drew

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