What if you default on your settlement payments?
Date: Fri, 02/12/2010 - 12:33
At this point this is hypothetical but lets say you are successful in negotiating a great settlement with 3 payments over 3 months. You make one payment and suddenly can't make the second. What happens then?
The settlement would be revoked and balance would become due in
The settlement would be revoked and balance would become due in full again.
Does this just put you back to square one, restart the clock and
Does this just put you back to square one, restart the clock and you have to begin the same process all over again or does it push it to a new level ie. collections, court?
Quote:Originally Posted by AnonymousDoes this just put you back
Quote:
Originally Posted by Anonymous Does this just put you back to square one, restart the clock and you have to begin the same process all over again or does it push it to a new level ie. collections, court? |
yes the payment you made goes towards the balance and the settlement is voided, if the payment was bigger than a minimum payment it would become current again.
now if your already charged off and your debt is at a collection agency and this happens the settlement will be cancelled and the full balances minus that payment will be owed again.
I always use reverse psychology with my clients, actually almost talking them out of the deal but being mostly HONEST " if can cant do this deal dont do it, if you think you can do this deal but miss the last payment, DONT DO THE DEAL AT ALL" this actually seals the deal with them atleast. they now know how important and serious this really is.
aka RIOT
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