Jump to content

financial statement rec'd from CA


Recommended Posts

I have a cc from HSBC that was turned into collections. The CA contacted me by phone then by letter, thats how I found out. HSBC never notified me of this CA involvement. I sent the CA a registered letter last week requesting that they accept $500 to settle the $2400 debt, and not to issue a 1099 form for this debt at any time ever, and to make sure my credit report says "paid as agreed" or I will have to file bankrupcy. I got a response yesterday in the form of a letter stating that "in order for us to consider either your offer or temporary or permanent forbearance of further collection activity due to your financial situation, we will need to receive the completed financial statement within 10 days of this letter."

They also ask in this letter for the name of my employer and my bank, which I am leaving blank. The financial statement shows the grim truth that I am $1000 in the hole every month. I am taking a 2nd job soon. The $500 will be borrowed from my parents. ANY ADVICE PLEASE!!! How should I proceed?


Link to comment
Share on other sites

I wouldn't send them anything. They are just waiting for your bank info and the rest is all a smokescreen.

In your situation, you may have to be willing to ignore whatever is put on your credit reports for now and concentrate on getting solvent. Being $1000 in the hole each month but still maintaining a good credit score isn't really realistic.

The basic idea is outlined in the old-school Debtors Anonymous book "How to get out of debt, Stay out of debt, and Live Prosperously" By Jerrold Mundis. You basically ignore all your unsecured creditors for three months and don't even bother to open those bills. Just throw them in a box somewhere and quit answering your phone at all.

Build up a contengency fund first and pay only the bare essentials. In three months, you will hopefully be ready to negotiate settlement plans with your creditors or the CA's.

A second job to get out of debt should only be temporary. If you think you will have to work two jobs for more than a year, you may wish to go ahead and consider BK.

You also need to consider BK if, in three months, the payment plans you negotiate will keep you in debt to all of them for more than two or three years, while working only one job.

Living to work instead of working to live will only make your problems worse, but a lot of the OC's and CA's bring BK upon themselves by refusing to keep the interest rate and other fees reasonable. They want you to be in debt to them forever and will even agree to small payment plans to keep the actual balance increasing each month.

Link to comment
Share on other sites

I sent a letter out Tuesday offering the CA $500. Got a letter back from them yesterday(sat) saying "no we wont accept that, but we WILL take $1998.00." Even after I gave them my financial statement showing I am in the hole $1000 every month! crazy or what?!

Now what should I do, sit on the debt until they will take the $500. I even told them in my original offer that if they didn't take the $500 that I would be filing bankrupcy.

thoughts suggestions?

Starting my 2nd job tomorrow, will be an extra $100 a week. will help a bit, but not much. I am trying at least!


Link to comment
Share on other sites

This topic is now closed to further replies.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.