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Charge-Off? (a q re creditors)

topic posted Fri, June 15, 2007 - 5:47 PM by  M. Marie
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Hey all! Sorry it's been so long...anyway...

So I am in credit hell. 6 cards-5 past due; 3 threatening to send my account into "charge-off" if I don't pay them something within 30 days. I would love to pay them! But I am lucky to make rent, power, and land-line phone (no cell here) each month! I am on SSDI and other types of public assistance such as food stamps and Medicare. I understand that not being able to pay is not a legal defense, right, but what can I do? I can't even aford the $25 application fee for consumer credit councelling! More importantly, what can they do? Can they garnish social security benefits? Can they freeze my bank account? Or something else I cannot imagine? I have NEVER been here before...unable to pay my debts, so I am walking down a very dark road...someone have a lantern? Please help. Thanks.

ps-this is in no way a solicitation for financial help...just for advice and/or information.
posted by:
M. Marie
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    Re: Charge-Off? (a q re creditors)

    Sat, June 16, 2007 - 2:50 PM
    Creditors can not take SSDI. It's illegal. They shouldn't try and they may not threaten to.

    If your funds are all SSDI then they can't freeze your bank account because those funds are off limits.

    Collectors are not all above trying though so you should communicate in WRITING.

    Charge off that event when a creditor gives up on you and takes a ":charge off" reducing your debt to a tax credit for them and usually bundles the account into a package called a portfolio to be sole to some debt collector ( like me) who purchases the deb5ts in huge half million dollar portfolios. Then they either get sent to debt collection agencies or as in my case the debtor goes to court where I reduce the debt to a judgment and I start collecting.

    Why not do exactly what the credit counselors would do: Make phone calls: negotiate for a rate and a payment plan and - - -stick to it.

    Additionally if you offer 69% of the debt in cash as a lump sum pay off they may take you up on it because under the new Bankruptcy laws the creditors are required to negotiate in good faith and the courts are interpreting 69% is a fair offer. If they turn it down and you declare bankruptcy that particular creditor may not get any love from the BK court.

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