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Xalicarius · Oct 9, 2007, 08:16 PM

Hello.
I was making payments of $50.00 a month to a collection agency on a bill of $8,000.00 which they accepted for about a year. They then wanted more money and refused payments. I stopped paying for over a year and then started paying $25.00 per month which they acceppted for about 6 months, then started returning my payments(3 total).

They have now filed a lawsuit and I was wondering if I would have a case with them first accepting payments, and then returning my checks. Also, can they touch my roth ira if they win a judgement if I offer payments. I live in Indiana.

Thanks.

this8384 · Oct 10, 2007, 05:44 AM

It depends. Was a payment agreement ever put into place or were you just sending the money? Did the $50 equal more than the interest being charged each month?

excon · Oct 10, 2007, 06:39 AM

Originally Posted by Xalicarius

1) I was wondering if I would have a case with them first accepting payments, and then returning my checks. Also, 2) can they touch my roth ira if they win a judgement if I offer payments. I live in Indiana.

Hello X:

1) No. You violated the contract. That is the ONLY thing that matters. It doesn't matter that you were paying less. 2) Yes, they can get your IRA.

I would suggest that you negotiate a CASH settlement with these people. Otherwise it's going to cost you a WHOLE lot more.

excon

ScottGem · Oct 10, 2007, 06:53 AM

$50 a month wouldn't pay the interest on an $8K balance. That's why they stopped accepting it.

So you need to enter into a WRITTEN settlement agreement or they will obtain a judgement against you.

Xalicarius · Oct 10, 2007, 07:52 AM

OK,
Well thye haven't set a court date yet, but that will be coming soon. I would be willing to pay $100.00 per month if they accept it. I just don't want my IRA toucjed. Thanks for the help.

ScottGem · Oct 10, 2007, 07:55 AM

$100 is barely going to touch the interest. You need to get them agree to freeze the interest and balance if they accept the $100.

excon · Oct 10, 2007, 08:05 AM

Hello again, X:

I understand what you're WILLING to pay. But, YOU don't understand that you have NO leverage. Why should they accept your agreement to make what amounts to a minimum payment, when you ALREADY had an agreement like that, that you violated?? Plus, they know that with a judgment, they can just waltz through your accounts taking what they please.

I say again, you need to negotiate a CASH settlement. Yes, I know you don't have the money (what about your IRA?). When I said earlier that they'll win a WHOLE lot more, let me give you an idea. The bill is $8K now. After they sue you and win a judgment, the bill will grow to about $16K when they include attorney's fees and court costs.

Do you have more than that in your IRA?? Kiss it goodbye.

excon

Xalicarius · Oct 10, 2007, 09:38 AM

I only make about 1,000.00 per month profit after myself employemnt business expenses, that's why I was thinking about the $100.00 amount.

I have $7,000.00 in my Roth Ira and by doing some research(Indiana) A Roth Ira can be froze, but a Traditional Ira cannot be touched. Maybe I would be smart to switch the Roth over to a traditional if I can.

If I can reach a payment agreement with them in court, would that stop them from attempting to touch my bank accounts??

excon · Oct 10, 2007, 09:48 AM

Originally Posted by Xalicarius

Maybe I would be smart to switch the Roth over to a traditional if I can....

If I can reach a payment agreement with them in court, would that stop them from attempting to touch my bank accounts????

Hello again, X:

Yes, if you can reach an agreement with them ANYTIME, that would stop them. You don't need to wait till you get to court. As a matter of fact, if you do it in court, they will have already spent money for lawyers that they're going to want you to pay. So, waiting to make an agreement with them wouldn't be something you should do.

However, you're still living in la la land if you think they're going to agree with your payment plan. In my view, it ain't going to happen.

If you move your IRA, and it can be proven that you moved it in order to protect it from seizure (which is exactly what you'd be doing), they can get it anyway.

excon

ScottGem · Oct 10, 2007, 09:58 AM

Only if the agreement specified that no further collection effort would be made as long as the payments are kept up. But I agree with excon, they are unlikely to accept such an arrangement.

Xalicarius · Oct 10, 2007, 10:17 AM

The thing is, they have already contacted a lawyer and a court date will be set, so I will still have to go to court. But I do know, that I will be talking with their attorney first ,instead of the judge. So hopefully I can reach a payment agreement with him. I just didn't know if they would just go after my bank accounts first, or try to reach a payment plan.

My thing was , they accepted so many payments, then returned and refused the same amount of payments 3 different times, then they accepted a payment after this. This is when they hired an attorney.

Thanks for all the input mates!!

ScottGem · Oct 10, 2007, 10:35 AM

They can't go after your assets until they get a judgement. But there seems little to stop them from getting a judgement. Their previous acceptance of payments will have little if any bearing.