Worst Case Scenario

well Snow_angel, I understand how you feel and the place that you are in right now. But that is really hard for anyone here to say. I have been in the 'charge off' mode for over a year now on many of my accounts. They charged off in January of 2005, but by April I had wrote every one of my creditors a letter and had started sending payments. Some were on my own straight to the creditor--no collection agencies involved. While the others were through collection agencies. They are taking monthly payments as well but it took some negotiating back and forth to find an amount that both were happy with.

I was also sued in the past year. I was making payments to the original creditor (Sams Club) for several months--seven months straight---on my own with no collection agency .Then one day, I received a summons at my front door from a lawyer. Sams club was taking my payments every month, cashing them and the whole while, hired a lawyer to sue me. Now I have a judgement on my credit report. And I was paying the whole while.

so its really unpredictable as to what they may or may not do. Maybe you try to write each debtor/collection agency and explain your situation. Tell them you would like to make monthly payments and see if they will work with you. all of my collection agencies are working with me. I explained to them that paying them all at once would cause a financial hardship for me and my family. And also told them that if I had the money to pay them off all at once, I wouldn't be in the mess I'm in now! I guess they realized that I had a point. Hope I have helped. shirley

First of all, you have come to the right place. There is lots of support on this forum...and you will get through it.
Secondly, don't worry if you get a judgement, they can only take a certain percentage of your disposable income...they will not take what you need for basic bills, etc. If you are unemployed and your husband is not a joint holder of your accounts, then basically they might get a judgement against you, but that judgement will probably stay until you get employed and can start paying, not sure how that works. Here is the info on wage garnishment in New York:

New York Wage Garnishment

The maximum amount recoverable is ten percent (10%) of gross income, or the federal maximum, whichever is less.

If the debtor is subject to garnishment for alimony, support or maintenance, the combined garnishments cannot exceed twenty-five percent (25%) of disposable earnings.

Income executions are prioritized by order of delivery to the Sheriff, but garnishments for alimony support or maintenance always take priority.

The execution is a two-stage process. First, the sheriff serves the execution on the debtor at his or her residence. If the debtor does not begin making payments within twenty (20) days, the sheriff levies on the employer.

So, it looks like they give you a chance before they garnish any wages, so you will know in plenty of time.

If I were you though, I would sign up for the free credit counseling on this site...they may really be able to help you through this.

Keep us posted on what goes on, and don't worry...you are definitely not alone. Good luck.

Oh yeah, I also meant to add that when the lawyers sued me for sams club, they put me on a payment plan and I have to pay $70 a month. They didn't garnish me or anything like that. Just set me up on a payment plan. (which I was already doing to samsclub) shirley

So really the company wasted their time trying to sue someone who was already paying, as opposed to going after someone who has no intentions of paying....what a good way to utilize staff.

TMD, that was some good info for snow_angel. I hope it helps her to feel in a safer place than what she was. Be strong snow angel and hold your head up. I know its hard but you will get through this. We have all been where you're at now. and it does get better, I promise. Just keep coming here posting and getting support. Shirley

I am again asking for help for my mom. She lives in New York state and she has offered numerous settlements and payment offers to the hospital where she had surgery and now they have turned it over to an attorney and the attorney has given her ten days to pay up or go to court. Where the hospital has refused payments and sent them back and refusing settlements and she has copies of all the letters she has sent and copies of the letters sent to her where the hospital has denied her proposals for settlements and where they have refused payment arrangments, and if she does end up in court, will the judge look at the attempts she has made to pay the bill and what are the possible outcomes?

I think the judge will definitely look at her attempts to pay, medical bills are usually looked at a little differently than things like credit card bills. They are usually large, and unexpected....and your mom probably doesn't make a lot of money. I think the hospital is completely ignorant to refuse payments, and I think the judge is going to rule in your mom's favor. It is great that she has all that documentation. She is a smart woman.

Another thing, I had a hospital bill that got turned over to an attorney, he gave me ten days to pay or he would file suit...that was 8 months ago, I have heard nothing since. I had been making payments on the account, and they kept telling me it wasn't enough. I think they probably knew they didn't have a case, but thought threats would work. Maybe, it is the same in your mom's case. Good luck to her either way.

Thank you TMD. I will tell her your response. I am still trying to get her to join the forum, but she is ashamed to be in such a financial mess. I was the same way til I found the forums and started opening up and getting advice of what direction to go. I will keep working on her.

TMD---
Quote:

Brat,

It is the responsibility of the counselor to get the settlement offer approved by creditors. If they cannot I will raise a question of their efficiency. Ask your mother to contact some good consolidation company. She can take help of this site too.

However, if the case ultimately goes to court, judge will definitely look at all the previous activities. Court will understand that your mother tried to pay the bills but the hospital refused it.

Shirley, when you say they flexed their manly man muscles, you were obviously meaning their mouths right?