I have four credit cards in collections and I need help.?

Question

I want to fix my mistakes by clearing my debit, however, I lost my job back in December 2006. (I was denied unemployment benifits.) I currently stay home with my two children. (No job will pay what I need to make in order to pay childcare.)
Now I am really in trouble. I received a summons to appear in court in July for a debit I could not pay. I receive phone calls all day long for 3 other credit cards. AND we struggle every month to pay our mortgage, car payment and utilities. I can't file for chapter13 or 7. I called about a debit conslidation loan, our rating is too low. I have plans to get financial counseIing. But still what should I do about this mess I am in now? Does anyone have any GOOD ideas?

Answer 1

First, do not send a full cease and desist to the other creditors. If you send a full C&D they will have no options but to either sue you or sell the accounts.
You can send a limited C&D stating you are requesting that no calls are made to your home as it is inconvenient and that any communication from them must be done by USPS.

I agree with professor and red.
You must answer the summons or they will get an automatic default judgment against you.
If you make a deal with the creditor that has filed suit, "be sure" and have the written agreement entered into your case file or they will probably go ahead and continue with the suit. (yes they do that) And since you think you have an agreement, you will not realize that they are continuing and you could end up with a judgment against you.
File it yourself, do not trust them to file it !!!!!!!!

Answer 2

Interesting you can't file for Chapter 7 or 13. I know the laws changed effective October of 2005. Also be advised it is illegal under the Fair Debt Collection Act overseen by The Federal Trade Commission (www.ftc.gov) for a creditor to harass you on a daily basis. In fact, I had this problem with Chase Visa and the harrassment stopped after I filed a complaint. What you can do is settle the accounts as I did for my father. First of all since this is actually heading to court it must be over 6 months to a year you have not paid on this card. You can contact them and settle the account for less (for example, my dad's card was close to 12K and I settled the account for $4,600.00.) Unless you can prove some serious hardship (normally disabled or immediate family member like son or daughter that medical bills are eating away at your pocket). The court will rule against you. What happens thereafter is they can then put a lien on your car or any tangible asset (a house) to obtain payment towards the outstanding debt. If were a single parent I would suggest public assistance. This may have been a defense in court that you are on a very limited income. Not that it will relinquish the debt, but the courts may be a bit more lenient and force the creditor to settle for less. You can still make this plea in court. Tell the court I can pay X amount toward the debt, but that is all I have. If you can show you are willing to pay something that normally works as well.

Answer 3

You have made the mistake of ignoring these debts. It may be too late now, but normally you can call the credit card companies and explain your situation and ask for a low interest rate to get it under control. They will usually do this for you. It's the interest that is the killer. Call the credit companies and ask for this. You are going to have to get a job, maybe at night when your husband can take care of the kids so there is no childcare costs.

Answer 4

First of all, you should IMMEDIATELY write the bill collectors a CEASE AND DESIST letter. This will stop them from calling and harrassing you. In that same letter, you may want to also get them to try to validate the debt. It's an incredible tactic in credit repair.

You should also dispute any negative accounts on your credit report with the credit bureaus. By fixing your credit, you will eventually be able to get a better credit card. Try consolidating them all on to 1.

In the meantime, pay what you can. Try not to let them go more than 30 days late.

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Answer 5

You have to appear in court or file for bankruptcy. If you realy can't find a job where you work different hours than your husband so the child care problem will be solved, then maybe YOU need to be providing child care to others. The reasons you were denied unemployment will be brought up.

If the cards are in both your and your husbands name, then they are going to start garnishing his check after they get a judgement.

And find a credit counseling agency to work with.

Answer 6

Go to consumer credit counseling they are a non-for profit debt consolidating agency, which will help you pay them one payment every payday and they will take care of the rest. They are a tremendous help. Best Wishes!

Answer 7

Try going to www.daveramsey.com and find the number for his radio show. Phone his call-in show and ask for his opinion. He'll probably be able to help you lay out a plan.

Answer 8

A man went to the doctor, he raised his right hand and arm over his head, he said Doc, it hurts when I do that. The Doctor hit him in the head with a rubber chicken, and said, Well don't do that!!