Expert: Creditwrench - 5/20/2008

Question
I received a phone call from Nations Recovery Service regarding a personal loan account with Capital One. This loan got lost in the shuffle between various financial and personal issues, two interstate moves, three phone number changes, and mail delivery problems. They finally managed to contact me through my parents and in-laws. The person I spoke to is threatening legal action (and boy, is he pushing that point) and keeps saying, "our staff has been trying to contact you for some time." He told me C1 offered a settlement amount, which I had to drag out of him, but I can't come up with the amount he mentioned.

Here are my questions. I would much rather work with the original lender and get this guy off my back. Can I send him a letter stating that I will not work with him and will only work with the original lender or is it too late for that? If not, is there anything I can tell him or try to work out with him to keep this out of court? Finally, what effect would bankruptcy have on this situation?

For your reference, I live in Oklahoma.

Answer
Here are my questions. I would much rather work with the original lender and get this guy off my back. Can I send him a letter stating that I will not work with him and will only work with the original lender or is it too late for that?
______________________

It is always too late for that. Don't even bother to try it. It can be done sometimes but you have to work out an agreement with the original creditor, not the debt collector. I've done that a couple of times and it worked out very successfully. But you have to be able to convince them that you can pay, are willing to pay and are either judgment proof or nearly so. You also have to be able to convince them that if they do not agree with you that you will be seeing their debt collector and their lawyers in federal court where you know how to win. Not necessarily easy but it can be done sometimes.
____________________________

If not, is there anything I can tell him or try to work out with him to keep this out of court?
___________________________________
Yes, you can pay them in full and that should get them off your back.

If you can't do that then maybe you can work out some kind of settlement with them. However, I suggest that you think very carefully before getting into any such thing as that. The reason is that if you make an agreement today you probably won't be able to keep it due to the rapidly increasing prices of gas, food and other necessities. Today you can go to the grocery store and buy $100 worth of groceries and carry them in the house in one armful by putting the bags on your arm. "Tomorrow" you will be able to carry them into the house without putting any of the sacks on your arm. "Tomorrow" or at some point in the very near future you won't even be able to eat the same way we do  now. We will have to learn how to eat like the Mexicans do. They make a single tiny piece of meat feed the whole family by putting it in tortillas or other forms of bread and mixing in large amounts of vegetables and carbohydrates such as beans. They can't afford potatoes . Beans are much cheaper than potatoes but provide lots of carbohydrates. They get full and they also get fat. Puts lots of weight on them but that's about all. We are going to be in the same shape and it isn't going to be long before it happens. So who wants to make agreements to pay knowing that in the very near future they won't be able to keep them?
_________________________________________________________  

Finally, what effect would bankruptcy have on this situation?
________________________________-
Why would you even consider bankruptcy when my creditwrench students get exactly the same thing done for a whole lot less money? My students get rid of their debts by learning the laws and how to use them to get rid of the debt collector and their judgments and leaves no black marks on your credit reports. Bankruptcy costs lots of money and if you can't keep up the payments they discharge your bankruptcy and toss you back out to the wolves. You just lost about 3 thousand dollars and maybe more for nothing. Bankruptcy is just plain silly.
_______________________________

For your reference, I live in Oklahoma.

++++++++++++++++++++++++++++
Oklahoma City or where?

Bill Bauer
405-684-9297