My freind has become very ill with a mental illness and is on a very small pension and has offered the company what she can afford and they will not accept it and keep calling her and harassing her.What can I tell her to do...she has no pc therefore I'm trying to get help here for her...
2006-10-03 12:41:08 · 14 answers · asked by char bear 2 in Business & Finance ➔ Credit
She should write them a letter instructing them to stop harassing (her right).
She can contact a credit counseling service who will negotiate a reduction of the debt, or she can file bankruptcy if the debt is large enough to make it worth it (filing bankruptcy implements an automatic "stay" preventing the banks from doing anything more to her). Both are not the end of the world, and she will be able to rebuild her credit later after she's recovered, as soon as six months after discharge of bankruptcy.
Creditors are just slightly less ruthless than the Mafia. They make billions on money that doesn't exist, and get vicious when someone can't pay. Wish her well.
2006-10-03 12:53:33 · answer #1 · answered by manabovetime 3 · 0⤊ 0⤋
Unfortunately she's done what she can personally do as far as trying to put together a plan with the credit company. Maybe look at talking to Wells Fargo or somebody more flexible about plans and transfer the debt owing to them, just explain the situation. Credit companies will usually transfer credit and open you an account with them because you are giving them the interest and you have already been approved for the credit limit. Also just watch like FOX or something during the day, I've never called the phone numbers of all the creditors or solicitors but maybe they could give you a hand. Worse comes to worse she delcares bankruptcy and it appears negatively on her credit for 7 years. The larger the amount is, the worse it will look. Sorry the news isn't easy things or very good news, but unfortunately credit is not something that is very easy to deal with or to have a quick fix for. Hope this helps. =)
2006-10-03 19:46:54 · answer #2 · answered by mandabear 2 · 1⤊ 1⤋
Depends on the amount she'd default on.
If it's fairly small (under $2000 or so), the company will harass her for a while, but eventually just write it off and stop bugging her. It will damage her credit, but won't have any other bad effects.
If the amount is large, they will sue her, and almost certainly get a judgement against her. With that in hand, they can legally have her income attached, her bank accounts, any money she may have to pay the debt before she gets her own money.
I'd suggest contacting one of the credit counseling services, and asking them to get involved. They can often get a card company to delay payments, stop accuring interest, or even write off the debt with a promise of no legal action. Given her situation, I'd say the chances are good she can get them to leave her alone and have the debt written off with no bad effects other than a black mark on her credit. Do an internet search for "credit counseling services" and you'll find some local to you. Good luck to both you and your friend.
2006-10-03 19:46:03 · answer #3 · answered by Anonymous · 1⤊ 0⤋
She should continue making small payments - some is better than nothing. Some companies can be ruthless. If she doesn't pay her credit card off, she will get a bad credit rating and will find it difficult getting finance ever again. She should cut her credit card up and not use it again if she can't pay the minimum payment due. Some people never actually pay their cards off in their lifetime, they just keep accruing interest.
2006-10-03 19:47:14 · answer #4 · answered by jammer 6 · 1⤊ 0⤋
She should first try to reach some kind of agreement with the credit card company. If that's not possible, she should probably talk with a lawyer. She needs to do something, or they may take her to court and seize money from her bank account. In any case, she can count on her credit being ruined.
2006-10-03 19:42:54 · answer #5 · answered by Jim 5 · 2⤊ 0⤋
She should continue with the small payments that she can afford, that is better than nothing. If they continue harassing her, there is really nothing they can do, she is making payments and a person's pension cannot be garnished. In the meantime, she can screen her calls either by letting them go to voicemail or if she has it, call display.
2006-10-03 19:45:12 · answer #6 · answered by aliciarox 5 · 1⤊ 0⤋
She can tell them to stop calling and communicate in writing only.
She can also take the bull by the horns and call them and ask for a supervisor, explain her situation and make payment arrangements she can afford. It is fairly easy to get interest stopped.
Unless it is a large amount, they will not sue ... but her credit will be ruined.
2006-10-03 19:56:24 · answer #7 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
The CC company will turn her over for collections. Then they'll eventually sue and win a judgment against her that can eventually lead to garnishments and liens on assets. Depending on her financial situation, it might be best for her to file bankruptcy or try to consolidate her debts. I don't know if they can garnish a pension. They couldn't if she's on disability, BUT they CAN seize money after it's been deposted into a checking or savings account. I know that from experience. A guy at my bank told me that they can't touch social security, but they can after it's in a bank account.
2006-10-03 19:49:43 · answer #8 · answered by First Lady 7 · 1⤊ 1⤋
Talk to a lawyer. She can file bankruptcy. She can get on a paid plan with the credit cards companies. She can talk to the credit card representative to make arrangements. She can paid what she can each month on the credit card.
2006-10-03 19:45:38 · answer #9 · answered by Anonymous · 1⤊ 0⤋
She borrowed the money - she should pay it back. If she can't pay in full, she should call the company and try to get a more affordable payment plan. Most companies will try to work with you if you work with them.
She can go to consumer credit counseling service - again to get a payment plan she can afford.
Otherwise she can declare bankruptcy.
2006-10-03 19:44:25 · answer #10 · answered by Don't Know 3 · 1⤊ 1⤋