can't pay debt collector settlement

[wornOUTinMD]

What is the name of your state (only U.S. law)? Maryland

Hello! I have two credit cards that have gone to a particular debt collection agency. They called me to offer me either a settlement of 65% of the debt in a lump sum ($5,000), or $6,000 but this is split into 3 payments of $2,000 each month. I have no way of paying either one at this moment - not from family, loans, anything. I would be able to pay about $4,000 towards the end of January. I doubt very seriously that they will even listen to this. The "non-attorney person told me that this is all that they have to offer. What happens now?

 

[JETX]

What happens now?

The 'Free Advice' crystal ball is in the shop.... but likely either of the following:
1) Things keep plugging away with them contacting you in an attempt to get your to pay your bills, or
2) A lawsuit is filed against you, a judgment issued against you and the judgment creditor uses the law to seize/garnish/levy any non-exempt assets you have.

 

[wornOUTinMD]

...still having issues with debt collectors

Thank you so much for your response (I reside in MD)...

Now, I can't pay either of the "offers" that the collection agency offered me, BUT I am willing to pay what I can, even offering them an ACH to insure that they receive a payment... I would like to pay this debt off, I just am not able to in such a large sum... So they would rather sue me, than accept my payment??? I offered them $100/month, until I can file my taxes... after that, I can increase my payments to a larger amount, just not to $2000 or even half of that... still no good?

 

[wornOUTinMD]

Two more questions: If they file a lawsuit against me, #1 - how long does that take and #2 - what happens if I pay it off before the judgement hearing?

 

[JETX]

If they file a lawsuit against me, #1 - how long does that take

Can't tell you how long it takes someone else, but I can file a lawsuit in about an hour.

and #2 - what happens if I pay it off before the judgement hearing?

If you pay them in FULL (the amount claimed, plus filing fees, plus interest, plus legal fees), they can file a motion to dismiss before the issue is heard.

 

[wornOUTinMD]

... hmmm well thank you again for the speedy response!


So, in between them yelling at me, why are they not willing to make a "real" payment plan - I mean, speaking to me in a nasty manner and getting nasty does not make me more able to pay the debt. I'm willing to pay something, and eventually pay it off - just not able to in the ridiculous large amounts that they wanted (or if I could, the debt would have been paid) - so my questions are #1 making an effort to make a steady payment with them is still considered a waste of time and #2 how long woul it be before I'd appear before the judge? How long does that stay on your credit and/or is it like bankruptcy ???

 

[JETX]

my questions are #1 making an effort to make a steady payment with them is still considered a waste of time

Hmmmm... not a question??

and #2 how long woul it be before I'd appear before the judge?

Depends on the docket load at the court. Could be as quick as a week after service... to several months.

How long does that stay on your credit and/or is it like bankruptcy ???

Accurate negative information generally can be reported for seven years, but there are exceptions:
* Bankruptcy information can be reported for 10 years;
* Information reported because of an application for a job with a salary of more than $20,000 has no time limitation;
* Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;
* Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and
* Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.
* Tax liens stay on 7 years from the date PAID.