Question:
Dealing with Collection Agency
I have $12,000 Cdn Amex account that was sent recently to a local
credit agency in Toronto. Only one to go to collections of all my
liabilities. Decent credit till now. Collection guy called me up
with an intimidating tone obviousily. Mentioned I am being charge
24% interest. Saying i need to pay full balance and was gonna give me
a week to make other arrangments even tho i told him it was a waste of
time. He knows I am not working right now. I mentioned my commitment
to make payments (which i am...hello I am not gonna run from a debt
like this even with this size especially with that account only being
the one that went to collections...i do have morals and ethics) ...he
babled on about everyone says this they make payments...yadda yadda..
I am sure he'll be calling me back early this week to bother or harass
me. Any tips? I am 28, no assets, rent, currently not working. I
am in the position to pay maybe $150-200 a month to the agency for
which i will continue to commit to. I have no plans to file
bankruptcy or skip town. FYI: No one else is on this amex account
nor on any other liability or assets. (not that I have any)
Any suggestions? I don't mind making payments and will increase them
shortly after gainful employment but what tips, suggestions can anyone
make. I assume threats or intimation for takng me to court and all
that will come? Any phone tip suggestions? I have no
problemestablishing a strong hand over the phone. Do I clearly offer
up voluntary payments for the time being and ignore calls and letters
until my financial pciture gets better?
Answer:
Taking into account your situation you should look into declaring a
personnel bankruptcy.
At a rate of 24% compounded interest you will need some cash very quickly to
paid your debt. Tell the collection agency that you and your layer are
looking at the ramifications of declaring a personal bankruptcy.
Careful study of the ramifications will tell you if it is suited for you.
The other solution is to pay your debt quickly and save your credit rating
of what is left of it.
Once your debt is in the hand of a collection agency your credit rating is
questionable and you may be on the black list already. You should validate
your credit rating now and find out if it is worth to do some damage control
to save it now?
In either case seek the advise of a public lawyer. Some provinces have a
free legal service check it out.
