Sent to collection agency

jmil02

I have recently (November) been sent to collections for two of my cards. I am self employed and the recession has pretty much killed my company.

I have been getting phone calls from the collectors but haven't answered them as I have no money to give. I am basically just trying to keep from getting forclosed on at this point.

I just got a noticed from one of the collectors about my Chase account giving me a few options to settle my account. I cannot meet any of these options. The wording said "Our client wants their records to reflect that we have done everything possible to resolve this" which makes me a little nervous.

So what happens next? Am I going to get sued? Are the credit card companies suing more now because of the economy or less? Can they legally take my house? One debt is 4200, the other is 5,000.

I am not trying to not pay them, I just can't.Would consulting a non-profit debt counseling service be a good idea? If I called and talked to them would they accept a low monthly payment (like $50)?

Thanks for the help,
Jason

cifpower

This is a UK site. I would advise you to post on a US equivalent as practices may be different.

Asiacat

Consult a non profit counselling agency as soon as possible you have nothing to lose. They have experience in dealing with these matters and will be able to offer professional guidance.

Theoretically if a creditor is owed more than 750 pound they can make an application for bankruptcy which would put your house at risk.

By all means make an offer oif a token payment that you can afford and see what they say. However do not call and offer this money make your offer in writing and send it by recorded delivery.

Your total debts are not too high and if your circumstances improve which they surely will you should be able to pay them off without going down the bankruptcy route.

However don't bury your head in the sand make contact with your creditors offer them what tyou think you can afford and let them know you will do all you can to increase your income and future payment sin the meantime.

Don';t worry things are not too black I would expect most creditors wiould be willing to work with you rather than go down a cost building legal route.

Good luck and keep us posted.