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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

Past/Present Clients
(private)

You are here: Experts > Shopping > Credit/Debt Management > Creditors and Bankruptcy > t mobile bill

Creditors and Bankruptcy - t mobile bill

Expert: Regan Shinski - 10/22/2009

Question
"hi
I have a outstanding bill with t mobile that i cannot afford to pay as i am currently unemployed they have offered me a reduced bill sent to me through a lawyer and i would like to know what the worst action they can do to me if i ignored them i have several outstanding debts and i am really worried as to what to do the t mobile bill is for $300
thank you"

Answer
Hello Chris:

You asked for the worst case scenario. Here you go:

First T-mobile may report it on your credit report as a charged-off derogatory account. They can sell the debt to a collection agency, who in turn will report their account on your reports. They will call everyday and send letters. Eventually they may give up and sell it to ANOTHER collection agency. THEY will call and send letters everyday and report THEIR account to the credit bureaus. This agency may then decide to sue you in court. If you don't show up, you lose and get a default judgement against you. Same thing if you do show up and lose the case. Interest, court, and attorney costs turn the $300 debt into a $1000+ judgement. This judgement then goes on your credit reports - a fourth derogatory account on your credit reports. The judgement allows the collection agency garnish your wages, place a lien on real estate, attack your bank accounts, and even have the sheriff confiscate personal property for sale at auction to satisfy the judgement. The judgement stays on your credit report for seven years AFTER it is paid. You may not be able to get certain jobs because of the credit and judgement. Other credit companies you currently have pull your credit reports - as they often do. They see the judgements and collection accounts. They close your credit cards, lower your limits, or charge you higher interest. All attempts at credit repair fail. You cannot get new credit because of the derogatory accounts.

Now that is a worst case scenario. Would all of that happen for a $300 debt? Probably not. In fact, LIKELY not. But it is possible. In reality, this likely would not go beyond the reporting to credit bureaus, calls and letters and you can stop the calls with a cease and desist letter. You may end up with a couple derogatory collection accounts which really does drag your credit score. Your other existing credit likely would be adversely affected. However, I would be surprised if the court and judgement thing happens because of the small amount. It probably just would not be worth it for them to sue you, but they could if they wanted.

The decision is obviously yours. If you have good credit, I would negotiate a settlement because a first collection REALLY drags your credit down. Get a settlement in writing that it will NOT be reported to the credit bureaus.

Good luck, sorry for the long answer but you did ask :)

Regan
mbscompany@aim.com

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