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Bank failures, Govt rescue plan Does it help collectors?


fishwater
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With all this high finance going down and the government seizing and buying banks, what about the collections agencys? Will all this make them settle for less???

I owe several collection agencies and a few credit card companies somewhere in the neighborhood of $50,000 according to them. All of these debt are from 3 to 5 years old. Several are for around $5000 and a few are higher.

I have made less than $30,000 in the last 4 years, and have no way of paying them off. I did get a good job this year, but due to the enonomic crisis, I only have a few months left of employment.

You think some of these collectors would settle for 15-20%? I am sure they have all bought in for less than 10 cents on the dollar...

Great site you guys have here, thanks in advance for any comments

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Honestly, with your situation (about to lose a job), I would KEEP all the money I could.

I would only see collection agencies 'taking whatever they could get' happening when their monthly revenues and commissions tank. Currently, unemployment is up, but it is still a modest level of unemployment. If it bounces over 10%, then I would see that the CAs income would be more adversely affected.

With your debts being 3 - 5 yrs old, I would sock what I could into a savings account and start looking for that new job now. When you get that new job, I would reconsider my financial position based on the current value of the savings..... You have no idea how long you could potentially be unemployed.

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Date Updated:

06/2008

Original Creditor:

08 CIT

Pay Status:

>Collection Account<

Account Type:

Open Account

Responsibility:

Individual Account

Loan Type: Collection Agency Attorney

Remark:

>Placed for collection<

Date placed for collection: [ 03/2007]

Estimated date that this item will be removed: 12/2008

How did they update this??? I have had no contact with them....

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Estimated date that this item will be removed: 12/2008

How did they update this??? I have had no contact with them....

The CA can update without needing to have any contact with you. But, if this tradeline will be deleted in only 3 months, you're sitting pretty and should forget about it. I'm assuming this debt must be old, no longer in SOL?

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you say put it in savings account... cant they get my money there? or only from checking account?

I have two judgments, one 3 years old and one this year...

Your subsequent post showed a CA listing not a judgment. Are you sure that you have judgments out there?

Yes, they can get your savings account in addition to a checking if your state laws do not prevent it, but only if they have a valid judgment.

I know on some CRA reports CA accounts are listed in the judgment section when they are not truly judgments.

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If I was in your shoes, I would buy a fire proof combination safe and mount it to the floor in my house. I wouldn't bother placing money in a standard savings where is won't make didley on interest and be at risk of seizure from a judgment.

I would mount it in a discrete location where no one sees it. Actually bolt it to the floor, make sure it has a good lock on it so if you're broken into no crook could get it open or take it with him. Also place household important documents in the safe along with anything valuable.

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