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Arbitration Claim & Offer of Compromise

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nneedofhelp

Guest
What is the name of your state? Texas

I recently received an Arbitration Claim Form and Offer of Compromise from an attorneys office trying to collect a credit card debt. To make a long story short we are financially in serious trouble and are barely making ends meet. After months of repeated phone calls this particular creditor wanted me to make "arrangements" so, since I had to respond to their claim w/in 30 days, I replied - in writing - that I would accept their offer but could only pay a minimum of 15.00/month on this $5,500.00 debt.

In the mean time, our situation has worsened. I have now received another letter from a creditor represented by a new set of attorneys wanting a lump sum on a $15,000.00 debt. If this continues, my minimum payments will be in the hundred dollar range a month - something we simply cannot afford.

After just finding this msg. board. My question is it to late to ask for "validation" on either of these two debts and future ones? Esp. if these creditors are already being represented by attorneys and not collection agencies?

Or, should we try to beg and borrow the money to file bankruptcy?

Any advice would be greatly appreciated.
 


I AM ALWAYS LIABLE

Senior Member
nneedofhelp said:
What is the name of your state? Texas

I recently received an Arbitration Claim Form and Offer of Compromise from an attorneys office trying to collect a credit card debt. To make a long story short we are financially in serious trouble and are barely making ends meet. After months of repeated phone calls this particular creditor wanted me to make "arrangements" so, since I had to respond to their claim w/in 30 days, I replied - in writing - that I would accept their offer but could only pay a minimum of 15.00/month on this $5,500.00 debt.

MY RESPONSE: If I had received your offer of $15.00/month, I would have busted out laughing! That's 30.5 years of payments - - and that's just on the principle ALONE - - forget about the accrued interest, which would then take you into the next century!



In the mean time, our situation has worsened. I have now received another letter from a creditor represented by a new set of attorneys wanting a lump sum on a $15,000.00 debt. If this continues, my minimum payments will be in the hundred dollar range a month - something we simply cannot afford.

MY RESPONSE: You're way beyond "validation". Doing that would only act as a stop-gap measure, and the eventuality would be the same. So, that's not realistic.

Look, you're obviously in way over your head financially - - especially if you're only able to pay $15.00/month.

Next stop, Bankruptcyville.

IAAL
 
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nneedofhelp

Guest
Thanks IAAL for your response. Sadly, your right - I guess we're in denial.

Since collecting the $$ for a Bankruptcy Attorney will take some time. Should I not "waste" any money to them and any others and just save for the attorney? Also, can credit card judgements be added to a bankruptcy file?

Obviously, I'm really green with all of this so any detailed advice would be greatly appreciated.
 

I AM ALWAYS LIABLE

Senior Member
nneedofhelp said:
Thanks IAAL for your response. Sadly, your right - I guess we're in denial.

MY RESPONSE: No, you're way beyond "denial". You're so far out into the deep end of Space and into the 4th Dimension, that you've crossed into . . . The Twilight Zone! (Doo, doo, doo, doo, doo, doo, doo, doo, doo)



Since collecting the $$ for a Bankruptcy Attorney will take some time. Should I not "waste" any money to them and any others and just save for the attorney?

MY RESPONSE: Well, gee . . . what do you think? Call a BK attorney or two on Monday and get a price.



Also, can credit card judgements be added to a bankruptcy file?

MY RESPONSE: Yes, all current, present and anticipated debts and judgments can, and should, be included. Even the debt you owe to Auntie Martha.



Obviously, I'm really green with all of this so any detailed advice would be greatly appreciated.

MY RESPONSE: You got it. Now, file your BK as soon as possible, and then take a breath of fresh air. And, when it's all over, DO NOT EVER place yourself in this position ever again. I mean it. You need to learn from this experience, and never, never, spend more than you can easily pay back. As a matter of fact, if you can't afford something, tell yourself, "I'm not in a position to buy, no matter how much I want it."

You save first, and then pay cash - - or you don't buy at all.

Good luck, and sin no more.

IAAL
 
S

shadow01

Guest
I agree with IAAL. Learn from this experience.

Sadly, we were in debt up to our eyeballs in credit cards. We managed to get out from under all of them except one. It took some borrowing of some money but we managed to pay them off. All but one. We quit paying on that last one around the time I lost my son and we now have a judgement on us. Luckily for us, the representing attorneys have been very kind and we have been able to make payments, which we have done on time each month.

Now we carry NO credit cards(one because we can't get them and two, because they are evil and we don't need them). We have a Visa debit card that we use for plane ticket purchases and stuff but other than that, we pay cash for everything. If we can't afford it, we don't buy it. If we don't really need it, we don't buy it. It has been MUCH easier this way and our monthly payout on bills has been incredibly low. To the point where we have been actually able to have a savings for once in our life. I say it is about dang time.

File for bankruptcy and let this be a lesson learned.
 
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nneedofhelp

Guest
Thanks IAAL and shadow01 for your replies. Sometimes a person needs to see it in black and white to believe it! I called a Bankruptcy Attorney this morning and have an appt. for Thurs. of this week. I'll let you all know how it goes.
 
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nneedofhelp

Guest
IAAL -

"Why?"

--In case it helps someone else who's in a similar situation and is considering bankruptcy. That's why I said "I'll let you ALL know how it goes." I wasn't just talking to you and shadow01 - then I would have said "both". It's not just about you - "!#%*!#%"!!
 

I AM ALWAYS LIABLE

Senior Member
nneedofhelp said:
IAAL -

"Why?"

--In case it helps someone else who's in a similar situation and is considering bankruptcy. That's why I said "I'll let you ALL know how it goes." I wasn't just talking to you and shadow01 - then I would have said "both". It's not just about you - "!#%*!#%"!!

My response:

Well, don't lose sleep over it. Your post was not unique. In fact, we have hundreds of posts in the archives that are either similar or exactly like yours. All you had to do, like so many others can, is use the "search" button, and you'd come up with the other posts.

So, don't worry about "letting us know". We already know how it's going to end. We've seen the movie before.

IAAL
 

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