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BofA/NCO/Creditor's Interchange Charge-offs


markolas
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Newbie here. :)

Hoping someone has some advice for me. I've gotten myself into some trouble, and no one seems to be able to help.

In April of 2002, I opened two credit card accounts with Bank of America, each with a limit of $7500. To make a very long story short, I was having financial problems and ended up taking cash advances on the cards to make ends meet. I maxed out both cards and stopped making payments on them (I couldn't afford to). They were charged off sometime last year, and I started getting calls from collection agencies around December of 2003.

One of the accounts was sent to NCO, the other to Creditor's Interchange. So, they started calling me, and offered to settle. I couldn't afford their terms, so I did a really stupid thing and agreed to have them take small monthly payments out of my checking account ($100 a month on one, and $150 a month on the other...this wasn't even paying the monthly finance charges, so even though I was coughing up all this money, my balances were *increasing*).

They started calling again asking for more money, and pressuring me to settle again, which I can't afford to do, so I've stopped making payments altogether. I'm avoiding their phone calls.

Currently, the balance on one card is about $10,500 and the other is about $9500. I have no idea what to do. I talked to an attorney about bankruptcy, and he told me that if I tried to file Chapter 7 that the creditors would probably accuse me of fraud, and the debt would not be discharged. He recommended Chapter 13, but I have a few questions about how that works, which the lawyer did not answer.

Does anyone have any advice for me? Is bankruptcy the best solution?

HELP!!! :?:(

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Sorry for the delay...just noticed you haven't been answered. Don't know if I've got all the answers, but here's my opinion...

1. Have you DV'd the collectors? Make the prove this is your debt, and the have the right to collect it. Read the FDCPA at the top, and other posts on debt validation. If these debts have been charged off (CO) by the original creditor (OC) then they've already been compensated for their "loss" by the US Taxpayer and your debts have been sold for pennies on the dollar to these collection agencies (CA). You don't owe them a thing...that doesn't mean they won't try to collect...it just means you need to stand up for your rights and make them work for the money.

2. Less than 20grand isn't much to file BK on...although I think the attorney may be incorrect as to the "fraud" issue. If you took the money and went to the bahamas, maybe, but using the money to pay living expenses is not fraud. Again, this doesn't mean that the CCs won't show up at the BK hearing...just that its unlikely. You might try another attorney.

Other questions? Be glad to try to help....

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