Debt collector won't compromise

[ramblynn]

I have several debt collectors calling me. One of them will not compromise with me on a payment plan. They want 10% of the debt now or payments to high for me to afford. I'm sure they will try (and succeed) on garnishing my wages. My question is...Will I have the oppertunity to make more affordable payment arrangement with either the debt collectors attorney or the judge? Or will I be forced to pay what the debt collector wants? Any info would be appreciated.
Joe in Rhode Island

 

[bigun]

I don't know the specifics of your situation but, I'd file for bankruptcy before I'd let anyone garnish my check. A bk filing has a way of getting some creditors to be a bit more reasonable.

 

[ramblynn]

Bankruptcy? I'd like to make payment arrangements. I dont want to lose my home because a owe a few 1000. I would still like to know if a judge or the the debt collectors attorney would give my the oppertunity to make payments or once its in court, is it to late for that? Its all unsecured debt that I owe, credit cards mostly.

 

[JETX]

First, you need to understand that the debtor is under NO obligation to accept any payment plan offered by you. They feel that they already have/had a payment plan (based on your initial agreement) and didn't comply.

With that out of the way, here are some random thoughts:
1) Your initial post seems to imply that the creditor has threatened you with specific action ("I'm sure they will try (and succeed) on garnishing my wages"). A debt collector or creditor CANNOT garnish your wages without a court judgment first, and any threats of doing so without a judgment is illegal under FEDERAL law (the FDCPA, Fair Debt Collections Practices Act, copy at http://www.ftc.gov/ ). So, if they don't have a judgment against you, get rid of that concern.

2) You asked, "Will I have the oppertunity to make more affordable payment arrangement with either the debt collectors attorney or the judge?". If you are asking will the court set a payment plan, the answer is 'maybe'. Some courts (I don't know in RI) have the power to set payment plans in their order. I would suggest you call the RI courts and ask if this is within their jurisdiction.

3) Even if the creditor takes you to court and gets a judgment, you can still negotiate a settlement.