I have a 31,000 unsecure line of credit, left over from a small business I closed in Jan,2008. after march 09?
I could no longer make regular 850.00 mo.pymts. I have been paying 350.00 pr. mo while trying to work with bank by sharing all my info. including new job info.,tax returns,monthly ex penses, etc, They denyed request for loan modification, they feel me and spouse make enough money, and at the end of this month they will write it off and turn it over to their in-house collection agency. I have no problem paying back money I owe, I just can”t pay 850.00 pr. mon. WHAT CAN I DO TO PROTECT MYSELF FROM WAGE GARNISHING, AND OR BEING SUED. MONIES FROM MY IRA ACOUNTS HAVE ALREADY BEEN DEPLETED AT THE BEGINNING STAGES OF BUSINESS BEING CLOSED, SO THERE IS NO LUMP SUM OF MONEY FOR ME TO NEGOIATE WITH, THIS WAS A BUSINESS LINE GUARANTEED BY PERSONAL SIGNATURE. HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!
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2 comments
R J on September 9, 2009 at 7:01 am
First, you don’t have a 31,000 unsecured credit—you have a debt.
Second, you cannot be garnished before they obtain a judgment against you by due process,
If they do turn it over to their in-house collections, you will have the opportunity to negotiate with that department; do so. You may still be able to work things out. In the meantime pay nothing more.
Even if everything goes against you, you are probably at least 6 months away from any perfection;relax.
Good for you for trying to work this out; just be sure to maintain your rights and to exert what little leverage you have.
RJ
heyimjason on September 9, 2009 at 7:01 am
Your best bet is to continue making the payments that you feel you can make. Once their collection department contacts you, be kind, but firm, and explain that you can pay $350 per month and no more.
It’s a lot cheaper for them to accept that than it is for them to waste time going to court or selling the debt to an outside agency for a fraction of what it’s worth.
Also, when you applied for your modification, did you list your debts? If you have a high debt to income ratio, your chances are better.
If nothing else, you could just call them and tell them that either you or your spouse lost your job. Most banks don’t check to see if you’re lying (I’ve personally dealt with people and made payment arrangements for around $350-500 per month on ridiculous loans for houses and yachts worth hundreds of thousands of dollars).