Expert: Michael Brotherton - 12/6/2008

Question
We have been using this lawyer for 6 years for our custody case. The last time that we hired him was on 5/11/07 paid our retainer fee of $2000.00. Last service date was 8/16/07 never  heard from him again until we received a letter in the mail on 11/20/08 stating we owe him $2066.41. I called to make payments and they require us to make the payment in full. We can't pay in full so if we make payments to them each month can they send us to collections? We have a 800 credit score and we don't want our credit ruined because they waited over a year to bill us and now they want their money immediately or their sending s to collections.  

Thank You

Answer
First, "turn you over to collections" is a broad statement. It usually means to turn you over to a collection agency. However, once the account is past due, usually 30 days it starts a collection process that can be in house, meaning they collect their own accounts, or they can assign collections to a third party. They may also report the delinquent account to the credit bureaus although it is not likely to be reported soon by the attorneys office. Most of them do not report to the credit bureaus.

Second, they can demand all they want. If you dont have it you cannot pay it. How serious things get really depend on the attorney. If he is hardcore and wants to be a butt he can be. But most of the time payments can be negotiated.

My aproach is simple. Put your budget to paper in detail. Income minus basic living expenses minus debt payments equals a surplus or deficit. A surplus can show them what you can reasonably afford to pay.

Submit a copy of your budget with a letter explaining your situation and make an offer to pay something monthly. Do not commit to somethng if it doesnt fit in the budget. Show the attorney in black and white and he is more likely to go along with you and keep this thng out of the credit bureaus.