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Verify income?


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Can creditors do income verification checks?

Will they straight ask you what your salary is? How do you respond?

My income is fairly decent but it is all relative.

I still cannot pay my cc bills due to extenuating circumstances (upside down on my house, ongoing medical bills, pay cut, bonus elimination, and unfortunately what looks like a pending divorce). I am negative every month.


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Thank you very much for your response. My position has a very wide salary range, especially nowadays as they pick and choose who they want to cut salary.

I assume they can ask anything they want.

My question is more what am I required to answer, and if I am not required to answer anything, how have others approached questions with regard to salary.

How do you respond without coming off as evasive even though I am not lying about my inability to cover my minimum payments.

Also, what should one avoid saying?

I do not want to put my foot in my mouth.

Thanks to all for any assistance..

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Guest usctrojanalum

If you are looking to get a mod or a repayment plan on your CC's. Then no, you do not have to answer. Their likely response will be we do not have to work with you to reduce your interest rate or payments.

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I'm glad you posted here Bob. I tried to answer the same post that you did over on debtconsolidationcare board and I cant get that site to respond to me for some reason. Im going to respond here as well to some of your questions over there as I cant get that board to work for some reason.

Verify income? - Debt Consolidation Forums

Officially they have no real way to verify what income you have independently. However there is a LOT of "wink wink nod" activity between banks so dont be suprised if they tell you to the dollar how much you have in your primary checking acct or even what recent deposits you've made. You simply have no way of tracking that info back to its source to hold someone accountable at your bank.

On this subject. What I personally did when I got ready for my debt settlement was I wrote down my income and subtracted out my real expenses and got a figure (not including my debt payments). I then "massaged" my expenses until I came to a figure that was showing me at around $100 positive per month.

When I began talking to creditors and asking for "help" at first we went over these numbers and I explained that I used to have more income but blah blah blah happened at work and I am now down to this. This is by the way a typical income level threshold for filing a CH 7 bk it was explained to me back then. Anything much over this and you have the chance of being involuntarily thrust into a CH13. The banks know this also. So now I have 100+ cash flow IF NOTHING ELSE BAD HAPPENS that month. This is key as well to let them know. This is no car repairs, home repairs, unexpected medical bills etc.

Explain to them you are unable to make any payments at this time. Be "willing but unable". Explain that you are exploring options (selling all your items for paying debts, bankruptcy (but dont stress this one too much), borrowing from family, loans at work, etc etc.). Also explain to them that you have other creditors and you want to do whatever gets out from under the most debt with your limited amt of funds available.

This process is not fast. It will take a while for them to begin to get into a good settlement position. They will several times ask you to go through your numbers again. Do NOT change them (unless you want to make it slightly worse for you). They take copious notes at each call and you dont want your story to change.

I have to get back to work, feel free to PM me and I can tell you my entire story. The bottom line is if you plan out your settlement strat you can get a good settlement.

Warning: BE AWARE that I am in a "no garnishment" state and I have very few assets. They knew that even post judgment they were getting nada so that DEFINITELY helped me in my negotiations. Your mileage may vary. It sounds like you are in a much better financial position than I was so they might get more aggressive with you than me.

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Thanks, I will definitely be writing down precisely what my story is and sticking to it.

I am truly negative each month if I pay my cc minimums, and still close to it if I do not, even without much "massaging" of numbers.. And this is if absolutely no other expenses arise, which is not likely considering my home life (ie - I have 2 special needs children [who I absolutely live for] who are constantly sick aside from the normal everyday they require).

As stated in another thread, I am most worried about my AMEX cards and Discover both of which I hear are difficult to work with.

I will likely eventually merge threads to update my story as it unfolds..

Thx for all the help and I remain open to additional feedback from anyone else with experience in these matters.

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You're not legally required to tell them anything, just as they are not legally required to work with you. It would make sense if you really want the help, to be honest with them.

From my experience and from reading and talking with others, modification is just a fancy way to bleed the final blood out of you before you default. There are usually all kinds of disclaimers that if you miss one payment or are even late a day all the interest gets added back, the default rate is imposed, and the deal is off.

I've read about people paying several thousands to the credit card company and then one car repair sends them into to BK. They can't get that money back, the debt is BK away, and they have just flushed a few thousand down the toilet.

Not saying you should give up, but I would really look at the terms. Are they really going to help you or are they just trying to squeeze that last little bit out of you.

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A lot of OCs' are asking fo ra financial statement nowadays in order to get a settlement or hardship.

Take this for what free advice is worth, but sounds like you should keep one or two cards ( say, a gas card adn a VISA) and forget the rest until you work through the divorce and other issues. Paying a minimum does nothing for you. If your cards are maxed, your credit hurt anyway. And soemtimes you will do better if you are 4,5 months behind then if you ask politely for a little help.

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