Hello,

i just got a disturbing phone call today about a debit that my mother owes, its for 20000.00 and it totally slip her head because she just recently was in the hospital for cancer treatment, well anyways, talk with the collection agency and they said they wanted to settle before they sue, but we dont have a clue as to how to get that type of money to pay for that amount that they ask for, its a nice settlement though, they want 60% total, she doesnt own anything except a house which she is still trying to pay off, what can we do, please do help!!!!!

Fr_Chuck

what income does she have, ?? social security ?
how about money in the bank.

So tell them to sue and not to bother you on the phone again about it.
What ever you do, don't YOU promice to pay them, do not obligate yourself to a debt of another.

The worst they can do is sue, get a judgement and then attach any bank account she has and perhaps but very doubtful put a lien on the home that they would have to wait for it to sell to get thier money.

So don't get upset collection people are jerks and will lie to you very often about what they will do. if this is the first you have heard from the collection agency they will not sue right way, they will send letters and more calls and more letters for months, perhaps even sell it off to someone else.

They won't waste the money to sue a person who does not have anything to get or a job to garnish ( normally) And depending on what type of debt this is, no 60 percent is very high, if it is credit card debt look more at 40 percent if the debt is old enough, often medical debt can be done for less than that. I get about 20 percent off of every doctor bill before I pay it, just by asking them for a discout and these are not even late bills.

stuckinacreditproblem

FR Chuck

so your saying 60% of what she owes is still very high?? also, i know that she has an IRA Retirement account, they wouldnt try to take anything off of that, would they?? as for the house, i think she only has a few months left to pay off and then technically it is hers, would they put a lien on it, and if they did, could they make her sell it, please advise, thanks!!!!!!!

ScottGem

First, its your mom's debt NOT yours, so I agree with Chuck that YOU don't agree to pay anything.

Second, you need to ask mom what this debt is about and whether its valid or not. Sorry, but a $20K debt doesn't slip one's mind unless you are rich enough not to worry about $20K.

Third, I don't believe they can touch the IRA, and it depends on the type of debt as to whether they can put a lien on the house. But unless the debt was secured by the house, they can't force a sell.

stuckinacreditproblem

thanks for the post ScottGem, the type of debt is from an old credit card, and i guess it wasnt that much at first, its just because of all the damn interest that it has gotten that high, but as for what i haven seen on other post, i take it that cant really put a lien on the house unless they sue, and then i take it they usually wont push for forecloser unless needed......please advise and thanks for the tip!!!

mr.yet

You must have the DebtCollector verifiy that the debt is valid.
Age of the debt, is the SOL up, etc.

cleaningcredit

You need to first vist this website debt consolidation credit counseling free credit reports you'll know everything about credit they will give you step by step procedures in validating a debt, second Never,never, never speak with a collection agency over the phone. Always submit conversations in writing.

Before they can collect on a debt the collection agency must validate the debt.
They must do this in the following manner.

1. They must display how they determine the amount owed.
2. They must provide you with POP. (proof of purchase)
3. They must prove the statue of limitation are not up on this account.
4. They must prove they are able to collect in the state you are in.

Collections agency purchase debt for pennies on the dollar. Believe me if your mother owed this kind of money and they were able to establish this in a court of law there would be no need of them to negotiate with you, they would send her notice and take you to court immediate

Read through this website debt consolidation credit counseling free credit reports you'll know everything about credit - Knowledge is power.