Debt Collector Won't Settle, and May Take Me to Court
My question involves collection proceedings in the State of: Idaho
Idaho (but I currently live in MD)
I am currently dealing with an Idaho-based creditor who is extremely inflexible. I am a government contractor, and my finances have been troubled ever since the October shutdown(I didnt recieve any backpay).
I have requested numerous times for a moreaffordable payment plan, they refuse to work with me. I eventually ended up maxing out a credit card to pay for late fees and daily interest when I was almost 30 days late. I have to make payments every two weeks, and if I dont pay, even if its a day late, they call and send my file to their pre litigation department.
Its getting to the point where my normal household bills are in jeopardy(rent, utilities, car/car insurance, IRS bill, groceries,etc.). Not to mention, my actual job is on a short time frame; a month after the shutdown, my employer announced that they were losing the government contract in March2014. AND they took our benefits, our tuition assistance, and my separation pay. So now in addition to normal bills, I will now have to pay student loans as well.
I am to my breaking point, and Im considering letting this Idaho debt end up in court, because I can no longer risk my livelihood to pay these people. I honestly feel my rent, my groceries, my energy bill, and my IRS bill are more important than this installment loan.
I am afraid of not paying them, the threats ofbeing sued and having my wages garnished are stressful. But it is too much atthis point. They are the only creditor that refused to work with me.
Any advice is appreciated.
Sorry for typos. I am on my phone.
Re: Creditor Refuses to Work with Me.risk Going to Court
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I am to my breaking point, and Im considering letting this Idaho debt end up in court, because I can no longer risk my livelihood to pay these people. I honestly feel my rent, my groceries, my energy bill, and my IRS bill are more important than this installment loan.
what do you think that will benefit you? If they get a judgement, they can use all legal means to collect on the judgment. I have not checked what your state allows but in most states, garnishment of pay, seizure and levy of bank accounts, seizure of non-exempt personal property are common.
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I am afraid of not paying them, the threats ofbeing sued and having my wages garnished are stressful. But it is too much atthis point. They are the only creditor that refused to work with me.
why do they have to work with you? They have a contract and are allowed to demand it be followed.
Not sure what you are attempting to gain but generally, a negotiated payment plan or settlement agreement is better than allowing a judgement. Not only is the judgement on your credit report for years to come, it allows them to take actions you cannot prevent.
Re: Creditor Refuses to Work with Me.risk Going to Court
I fully had an ability to pay before the government shutdown. I am not refusing to pay, I am losing my ability to pay.
I contacted them about my employment situation before I was late on one payment. I explained the entire situation, but it obviously fell on deaf ears. I had to make my rent was paid and my lights remained on. I understand that everyone has a "story."
It is just very stressful and depressing having to choose between eating and paying this Idaho creditor.
I am not too versed on the Idaho laws, but I do know that if I have no money to pay them(and I dont own any property), then a judgement would be worthless. They obviously win, but cant really collect.
Re: Creditor Refuses to Work with Me.risk Going to Court
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Quoting
SoopremeBeing
I do know that if I have no money to pay them(and I dont own any property), then a judgement would be worthless. They obviously win, but cant really collect.
100% wrong.
Idaho judgments are good for 20 years. They might not be able to collect now but you won't always be in such dire financial straits. Corporate creditors can wait if they have to. And while they are waiting the debt keeps growing with interest, fees, and costs.
You might want to consider bankruptcy as a way out from under the debt.
Re: Creditor Refuses to Work with Me.risk Going to Court
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Quoting
SoopremeBeing
I am not too versed on the Idaho laws, but I do know that if I have no money to pay them(and I dont own any property), then a judgement would be worthless. They obviously win, but cant really collect.
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SOME EXEMPTIONS TO WHICH YOU MAY BE ENTITLED
Type of Money and Property
1. Alimony, support, maintenance (money or property)
2. Appliances (household) ($750 per item, up to $7,500 gross)
3. Annuity contract payments
4. Bodily injury and wrongful death awards*
5. Books (professional) up to $2,500
6. Burial plots
7. Child support payments*
8. Disability or illness benefits*
9. Furnishings (household) ($750 per item, up to $7,500 gross)
10. Health aids
11. Homestead, house, mobile home, and related structures
12. Jewelry (up to $1,000)
13. Life insurance benefits payable to spouse or dependent*
14. Medical and/or hospital benefits
15. Military retirement and survivor's benefits
16. Motor vehicle: car, truck, motorcycle with a value of up to $7,000 per person
17. Pension: stock bonus, profit sharing annuity, or similar plans
18. Personal property: ($750 per item, up to $7,500 gross) (furnishings, appliances, one firearm, animals, musical instruments, books, clothes, family portraits and heirlooms)
19. Public assistance: federal, state, or local including: Aid to Aged, Blind and Disabled (AABD); Aid to Dependent Children (AFDC); Aid to Permanently and Totally Disabled (APTD)
20. Public Employee's Benefits including Federal Civil Service Retirement, Idaho Retirement and Disability
21. Railroad Retirement Benefits
22. Retirement, pension or profit sharing plan qualified by IRS
23. Social Security Disability and Retirement Benefits
24. SSI (Supplemental Security Insurance Benefits)
25. Tools of trade and implements up to $2,500
26. Unemployment benefits
27. Veterans benefits and insurance
28. Wages or salary:
Consumer debts primarily for personal or household purposes: exemption is 30 times the federal minimum wage or 25% of disposable income, whichever is greater
Nonconsumer debts: exemption is 30 times the federal minimum wage or 25% of disposable income, whichever is greater
29. Worker's compensation
30. An unmatured life insurance contract other than a credit life insurance contract
31. An aggregate interest, not to exceed $5,000, in any accrued dividend or interest under, or loan value of, an unmatured life insurance contract under which the insured is the individual or a person of whom the individual is a dependent
32. An aggregate interest in any tangible personal property, not to exceed the value of $800
*To the extent reasonably necessary for support of family and if not commingled with other funds.
that is what would be safe. Anything else is subject to seizure.
and as jack said, 20 years is a long time. You going to be broke forever?
Re: Creditor Refuses to Work with Me.risk Going to Court
I don't expect to be broke forever.
But the reality of the situation as of right now, is that I will be losing my job at the end of March. And unless I secure another job soon, I REALLY won't be able to pay these folks.
What I'm not understanding is why I cannot enter a payment plan now....where if I end up going to court, I have the option of entering a payment plan through the court.
Re: Creditor Refuses to Work with Me.risk Going to Court
Apparently because they do not want to agree to a payment plan, which is their right.
to the payment plan through the court; what makes you think you have that option there? I have seen very few situations where a court would impose a payment plan upon a creditor. Generally they just enter the judgment and let the creditor take appropriate actions to collect on the judgement.