Credit Card Debt: Seniors or lawyers, will you advise me?

Question

Just got collection letter from Ken Hughes of Merchants' Credit Guide Co. Welcome all info about this outfit. Bad rep all over web.

Have you been sued by a collection agency? What did you do? How long from first collection letter to court date?.Were you represented?

How often do collection agencies sue low-income folks with no assets e.g. no home, old car? Seems like it wouldn't pay. Have you known it to happen?

Don't want to spend the rest of my life hearing from collection agencies. These guys sell debts to one another for pennies. I could be hassled for years. Some lawyers say to ignore it because I don't have anything. It's one thing to get a judgment, another to collect.

I just want peace of mind. I'm 69 with heart trouble and high blood pressure.I'm judgment proof but not stress proof.

I welcome mature advice. Lowest cost bankruptcy I can find is $1200. Legal aid won't do one.Should I do a bankruptcy just for the peace of mind?

Answer 1

Stay away from pre-paid legal plans - they are multi level marketing and nothing more.

You can file for bankruptcy without a lawyer. At your age, I think you don't care about your credit rating. Just make a list of debts and ask the court to waive the filing fee due to your low income (or lack of income). You do not have to sue any collection agencies or anything like that. When your bankruptcy is discharged - you will never hear from any collection agency. If any collection agency contacts you - you can have the court take legal action.

If you have millions stashed away somewhere, now would be a good time to tell the bankruptcy trustee who will oversee your case. Sounds like you don't - but be prepared.

You have to attend credit counseling before filing for bankruptcy and before you receive discharge. You receive certificates that are presented to the court.

Visit this site for additional info and good luck:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

Answer 2

john d, now it's your turn. Take your crappy, collection agent advice and go away! That answer is not only terrible, but loaded in inaccurate information. But in your case, I think it's safe to simply call it all lies.

Loganatha... R, filing a police report (here in the US) is worthless because it's not against the law for a collection agent to call requesting you pay your debt.

OK, other then ignoring John's moronic response, what do you do?

You say you have no property. At your age I'm also assuming that you have only pension and/or social security. You already know you are judgement proof and they can't touch you.

So WHY are you considering bankruptcy? Honestly, this makes no sense! How much do you owe anyway? This is only one debt? If you don't owe at least $20k combined in debt it's foolish to file for bankruptcy.

First, get the collection agency off your back by sending them a "cease and desist" letter. By law they can not contact you again. But be aware that this is also a "put up or shut up" letter. If they can't call to harrass you they may follow through and file a lawsuit.

But again...who cares? They can't collect? And all a judgement will do is hurt your credit, which I don't think you are going to need at your age.

Unless this debt is huge (several thousand dollars) I seriously doubt that they will pursue a judgement, especially when you inform them of your finances and lack of property and your age. They will simply be spending money on legal fees and never collect anything.

The only reason you are being stressed is because they keep harrassing you. By sending them a cease and desist that nonsense will stop.

Good luck

Answer 3

The fact that you have low income is beside the point. The fact that you borrowed the money and spent it on what ever you spent it on is the only thing they know. If you have an income they can get a judgement against you and garnish your income. They can legally take up to 50% of your gross till its paid off if they get the judgment against you. What you don't tell us in your question is how much money are we talking about here. It may be cheaper to pay it off than to fight about it.

Even if they don't have the ability to collect a judgment against you, they can still call and bother and annoy till they make your life so misserable that you pay them off to get them off your back. It is the job of a collections agent to collect. Alls fair in love and war and collecting debt. They will bend the rules and if they think they can get away with it they will break the rules.

In short you life is about to suck. So here is one possible solution for you. Yes as you mentioned, they do sell these debts back and forth for pennies on the dollar. No they will not tell you that nore will they tell you how much they bought it for. The point is that you know they paid something less for it than the face value. Just calmly ask if they would be willing to settle and if so for what amount? It may be a reduced amount that you can cough up and end it. Your bargining chip however is that you can't pay. You may have to let that go for a while. Once they see that they are going to have a hard time to get the money they may start to show some willingness to bend and bargan. So either pay it off now or hold out for a deal. Either way your credit rating will take a hit. The question is how big a hit. Good luck with that.

By the way as this progresses it will become increasingly harder for you to get a loan again if you need one. Keep that in mind. If you ever think you may need a loan again, now would be a good time to pay up any way you can. Other wise your going to be 76 by the time you may be considered for a loan again. Possibley 79. Sleep on it.

Answer 4

If legal costs are so high in ur country. Try this Go to police station and file a criminal complaint against the collection agent. Categorically state they harass u at this age. The laws of ur country clearly states that a litigation of thai bature has to be civil proceedings and anyone freom collection guys disturb U thay can be locked up. USE this law to ur advantage.

At 69 u need not consider giving bankruptcy. Try find some lawyer who can work with U for as little out of respect for ur age. U must get someone.

Do not forget to file a police complaint.

Tell the company to write off the debts as they have also earned enough money from u on transaction charges. U urself might have paid in thousands towards service charges, some uncomprehensible levies unknowingly when the card was active.

Also ask for a detailed account of ur transactions from the begining of card to as of date with details of their charges and is it as per law.

Check is there any USUARY laws in force in ur state or federal govt.

At this age be happy. do not worry too much. Give a hell for those collection agents.

Answer 5

well sir if your debt is over $1500.00 they can take you to small claims court and take a judgement on you. then again you can put privacy manager on your telephone. they can not ring your phone once you do this. second of all they can take you to court on a debt thats much higher than $1500.00 but i don't think that they can garnish your wages. if you are a fixed income they cannot not touch that either, and yes i've known it to happen, i am a collector for a credit card co. they do it to low income people before they do the higher income people!! you can write it off as an uncollected debt and put privacy manager on you're home phone. GOOD LUCK TO YOU SIR.