Question regarding outstanding bill

[newbie001]

I am beside myself about this and dont know what to do.. I was hoping I could explain the situation and see what others thought.. Before me and DF met he had to abandon some land and a mobile home-- Obviously his credit is messed up due to this.. The company who took it back is now coming after him for the money.. They have pretty much threatened him regarding the money and want to make a $24,000 settlement which is a huge chunk off the original amt.. however he doesnt have the credit to get a loan to pay this off and pay monthly payments.. I cant get a loan.. My credit isnt really bad but Ive recently recvd a credit report and I think my problem is that I have too much revolving credit and the few cards I have are close to the limit, etc.. which Im currently working on rectifying this.. We dont have anyone that could cosign nor anyone who has this kind of money.. They called him last week and offered the $24000 settlement and told him to think it over and call them this week and discuss it.. I asked him if he asked them if he could arrange payments and he didnt, so he will do that when he calls him back this week as that is honestly the only thing that we can do.. My DF is nervous about it because they of course said that if this isnt resolved then they will take him to court and then he is looking at another approx $6000 in court costs..

Just wondering if anyone knows when he talks to them this week and asks about payments and they turn that down and he has to go to court, what will the judge do? DF doesnt have anything they can take away.. Are we looking at possible money being directly taken out of his work check or will the judge order him to pay a % of his check each month?

I just am looking for advice from anyone who might have encountered anything like this.. I just dont know what to do.. If I had the money I would pay this... If I knew someone that I could ask to cosign I would.. but I dont .. I wish he had asked them when he was on the phone last about the payment plan but of course he didnt.. at least that way we'd know what we are looking at.. I wish he had never abandoned it years ago, but whats done is basically done and this is what Im looking at with this situation..

 

[Cindyluwho]

There should be a free legal advice number listed in the blue pages of your phone book. Start there and see how you do. It's very seldom that you can walk away from $$ owed, unless you declare bankruptcy. Once again, you need an attorney's advice. Good Luck!

 

[newbie001]

Never thought of looking there.. will do that.. I definitely dont think he should get out of paying.. and declaring bankruptcy isnt something that he's even considering (that Im aware of).. he owes the money, Im just hoping they will work with him..

 

[Loubon]

Making installment payments is a show of good faith and nearly any judge would honor that. Most attorneys and collection agencies know this as well so even if they threaten suit if payments are being made they most likely won't push it.

However you have to stick to the payment plan because if you don't the reverse becomes true....that you are not acting in good faith.

 

[newbie001]

so do you think he should offer a monthly payment and then just send it and see what comes of it? then at least if he does have to go to court they will see he is paying it ...

 

[Loubon]

Usually they will look for a letter agreeing to a payment plan with the terms (amount and frequency) outlined.

 

[newbie001]

Great.. Thanks alot.. I will tell him to ask them about a monthly payment plan.. I figure I may have to get a part time job to help pay this off.. but it'll be worth it to get this paid off.. I would think they would rather work out a deal rather than not getting paid..

 

[Loubon]

That is absolutely correct and don't let them make you think differently. The fact that they have already offered a settlement from the original amount proves that.

 

[Shugardrawers]

Generally an offer of settlement for a reduced amount is good for cash only due immediately. It's their way of trying to clear it up asap. Don't hold your breath on their making a payment schedule on the 24k. It is entirely possible though that they will allow him to make payments on the balance. Doesn't hurt to ask.

 

[AllyandJack]

The problem is that, even though you have nothing now, if they get a judgment against you, the judgment is good for a certain period of time. In MA, it's 20 years, I don't know about other states. So, if you gain assets within that time period, they're subject to the judgment and can be levied. Wages can be garnished and bank accounts can be attached.

Don't let them scare you by threatening to send it to an attorney. That's not always a bad thing. When I represented the collection agencies, they were rude to ME and I was on their side. A lot of times, the attorneys are easier to deal with - at least, we were nicer. Being taken to court isn't the worst thing in the world either. Who told you it was $6,000 in court costs?? Filing fees and reasonable attorney's fees can be added, plus interest on the amount owed - does he still have the contract? That should lay out the interest rate, etc. Most of the time, if you work with the attorney a reasonable payment plan can be reached. Most of the time, if you get to court, the judge will approve a reasonable payment plan. Have an amount you can pay every month and present that offer to them. The attorneys might suggest they take it. The judge might insist the take it. As long as you're forthcoming and you return phone calls and show up to court, they'll work with you. It was the people who tried to run and hide from us that got their bank accounts attached and their wages garnished. If you find the attorneys unreasonable, it might be worth it to hire your own to negotiate with them. At the very least, it'll take the pressure off of you.

Good luck with everything.