/Lawyer....In the letter, the CollectionAgency/Laywer says I must reply within 30 days to validate the debt or they can proceed with a Judgment....the debt is up to 16k (it was 5k 2003) Of course its 2007...what can they do to me? (I own a car&may name is on the deed of my house along with another person(not my spouse)
2007-02-12 23:57:53 · 4 answers · asked by strongchin1 1 in Business & Finance ➔ Credit
Well for starters, they wouldve defaulted you which stays on your credit rating for 7 years.
If you don't reply,they will proceed with action, it would be to recover all the monies owed to them plus court costs.
In 4 years its more than tripled.
The courts would ask you to provide proof of financial position (they may already have that) & they may garnishee wages, take a caveat over your house or demand payment immediatley.
My advice- Contact them & arrange to pay $10 p/w which is all you can afford.
The collection agency will get so sick of waiting for the next 10 years, they will more than likely ask for early settlement.
Ive known them to cut the amount by almost 1/3 if the person pays an agreed some of money (usually the original amount)
Goodluck.
2007-02-13 00:06:52 · answer #1 · answered by kriskros54 3 · 0⤊ 0⤋
You have acknowledged the debt is yours and now want to protect the assets you have worked hard to acquire. Your friend who co-owns the house will not want a lien on his/her house. One responder said ask for 1/3 off the bill. That would be a decent settlement but I believe professional negotiators could do much better for you. If you do not have another credit card to charge a settlement payment to (like $7500 perhaps) , you may have to even consider refinancing the property and pulling out equity though this might be tricky if your co-guarantor on the house is not your spouse. Check out the source website for more help.
2007-02-13 08:56:54 · answer #2 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
First, do what the letter says and request validation! If they can't get copies of the original debt then they can't collect. Look at other options ONLY after they have proven the debt is yours by validation.
2007-02-13 02:06:00 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
They, for one, CAN and more than likely will sue you and could take your house and/or car. To avoid this, you should contact them to assume responsibility asap! You can ask about a settlement which they really should give you. I know normally banks will consider a settlement normally after 90 days delinquency, so you really should try that route.
2007-02-13 00:56:52 · answer #4 · answered by imagined_dreamer 2 · 0⤊ 0⤋