Creditor threatens to send my account to an Attorney to pay off debt?
I got a letter today from Midland Credit Management, asking for a debt in the amount of ,181.56. The Debt is from Aspire Visa, a card I used to have .. I could not pay it all off since I lost my job and i’m having trouble finding a new one. I can’t pay off this debt in this amount .. it originally was NOT over ,000, it was 0. They added on all these late fees / interest when I could not pay over a amount of time. I tried to make small payments, but obviously they didn’t help, it just got larger and larger. The account has been in collections for a while and so, it doesn’t matter how much I pay, it’s still not enough.
They sent me a letter saying:
"This letter is to inform you that Midland Credit Mangement, Inc. Is Considering forwarding this account to an attorney with the intent to initate legal action to settle the debt.
Please call our office immediately at 800-939-2353 to make arrangements to pay this debt and prevent any legal action on your account"
What do I do?? I cannot afford this .. I have absolutely no funds, and there no point in calling telling them that because well, what are they gonna do?
I’ve told them that I can pay it when I get a job, which I am currently looking for, but if the case goes to an attorney, what are they gonna do? even if I will have to go to court, that’s still not going to get them money .. because I don’t have it. I also have no assets, no car, no house, or anything. So what can they do?
I’m really worried. I am still trying to find any job I can, but even if I do, it will take me a while to save up that much money.
Thanks for your help.
oh, and if you’re wondering, i’m posting this from my aunt’s house, I cannot even afford my own internet. LOL
CAN they take me to court though, over this debt??
Yes, of course they can take you to court over this.
What does that mean? Well, it means you need to go to court and try to work out a payment plan with them. Do NOT just not show up. That is the worst thing you can do.
You can also try to settle this out of court.
You can also demand that they validate the debt.
You can do many things. Research this topic and the topic of credit repair. You do have rights and it will make it a lot easier on you if you know your rights!
July 23rd, 2010 at 9:59 pmYou can make some payments and keep them off your back, or come up with $600 or $700 and make them a cash offer. Get it in writing from them before you pay them and make sure that the letter states that they are accepting it as payment in full without recourse.
This is a perfect example of why you need to have an emergency fund once you do get a job, and why it is much much smarted to pay CASH for the things you buy.
Good luck.
July 23rd, 2010 at 9:59 pmCall the phone number and see if you can workout a payment deal. Its better to inform them your situation rather ignore. Good luck
July 23rd, 2010 at 9:59 pmIt is better to attempt to explain why you have not paid the bill then to continue to incur debts on it. You should have contacted them months ago and told them you lost your job, you may not have owed as much as you do now. Either way, talk to them, by putting it off you have only incurred a higher pay off amount and they think you can pay the bill but refuse to. At this point if they take it to court, and find a judgment against you, they will be able to take part of your wages once you find a job until the debt is paid in full. Hiding from the debt will not assist you in paying it off, contacting them could prevent you from also having to pay court costs, and additional charges on top of what you owe now.
July 23rd, 2010 at 9:59 pmContact a credit counseling service. I believe most of them charge no fees. They should be able to work on your behalf in dealing with your creditors. They’ll probably get all of those fees and interest wiped from the bill as well. Then they’ll help you set up a payment plan that should work for you. It beats filing bankruptcy.
July 23rd, 2010 at 9:59 pmCalm down they are trying to intimidate you at this point. But you will have to deal with it sooner or later.
July 23rd, 2010 at 9:59 pmFor that amount they most likely will not take you to court. As you do not have any assets or steady employement they will not waste there time as well risking loss more of there money. I would advise to save up 600 dollars call them back and tell them i am preparing to make a 600 dollar payment take it or leave it… Make sure you get everything in writing when dealing with these folks, before you send any payment… What Midland Credit did was buy you account from Aspire for 100 bucks…. if you would pay them 1100 bucks today they just made a 1k in profit… Credit Guy left some good links read them, do your research and DO NOT LET THEM SCARE YOU. life is too short.
July 23rd, 2010 at 9:59 pmGood luck