Debt Settlement - Trying to pay debt but.......................... - Canada

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RE: Trying to pay debt but..........................

Postby montyloree » Thu Jan 17, 2008 05:10:37 AM

hey freedom,

Make them an offer... the best thing to do is communicate with the creditor and keep a conversation going. If they know you're progressing with your payments and not a dead beat, they may work a deal with you.

With regards to the creditor communicating with you for a judgment. You would have to receive some sort of court notice to say that there is an action against you. IE.. the rules of small claims say that the plaintiff must serve the defendent.

It's always a good idea to stay in touch with creditors ... they worry most when they aren't communicating with a delinquent client.
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RE: Trying to pay debt but..........................

Postby freedom » Wed Jan 16, 2008 12:56:54 PM

I've sold a piece of real estate and am planning on using the proceeds to settle debt.

Can anyone tell me - what's the least balance that a creditor will pursue a judgement on you for??

If I can settle all debts at 25% - I will be debt free - not possible for anything over that.

I have some credit cards for approx $5000. If I know it's not worth their while to get a judgement on me for $5000., I'll hold out a little longer until I can get them down to 25%.

another question - when they start threatening judgement or garnishee - is there any other warning - in writting - before this happens - because you never know when to believe their threats.

what's the latest I can wait this out??
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RE: Trying to pay debt but..........................

Postby freedom » Sat Jan 12, 2008 03:29:12 PM

Thank you so much - that's a huge tip- negotiating having negative indicators removed - I didn't even think of that - because I thought it was an automatic thing that equifax put on based on the deliquency.

Re the leasing - I was working the numbers today. I might be able to pay off all the outstanding principal - but not the interest. If the leasing co were to take the fabric covering for the building and try to re-sell it - they wouldn't get that much for it and would incur the labour charges. At least the lender would get all his capital back and have a chance to re-invest - he's only losing future earnings.

thanks

great site - very informative - first one I've found with Canadian content.
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RE: Trying to pay debt but..........................

Postby angella » Sat Jan 12, 2008 12:41:13 PM

I've never tried to negotiate with a leasing company, but it seems to me that they would still rather have the money than the building. If the choice is accept a settlement that pays off the principle and some of the interest or take the building, they'll likely take the settlement. Not sure how the contract is worded... but while penalties for early buy outs are common, I don't know that there are any that require payment of all interest and I'm not sure they would be legally enforceable if there were. Even Rent to Own is cheaper to buy it out earlier. Check into that.

The settlement will reset it and it will drop off 6 months from the day you settle. You may be able to negotiate having negative indicators removed completely... but make sure if they agree you get it in writing.
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RE: Trying to pay debt but..........................

Postby freedom » Fri Jan 11, 2008 08:33:13 PM

Has anyone had any success negotiating a debt with a leasing company??

We have a lease on a farm building - I've tried to contact them- but they just ignore my letters and calls.

It's one of the buildings you see with the fabric cover - so if I stop payment - they could possibly come and take the roof.

I was planning on putting a stop payment on the cheques - so that they will contact me. A family member will lend me the money to pay off the principal - but with lease companies - they want the interest for the entire period.

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RE: Trying to pay debt but..........................

Postby freedom » Fri Jan 11, 2008 08:28:30 PM

I've been negotiating debts for some time now - I'm making slow progress - but progress.

One of the things that really took the stress off me was to send the collection agencies a letter asking them to "cease and desist" phone calls to my residence and home - that I was liquidating everything I could and would contact them re a settlement - when I had some funds. This stopped all the calls except the ones from Citi financial - they are total idiots.

What's the best strategy to take to settle a lot of creditors - I have some funds to work with next month - and wasn't sure whether - to try and settle a couple of the big debts first, or lots of small ones.

Also - you said that the debts drop off your credit after 6 years from the last payment - is the settlement considered the last payment?? These debts have had no payments in over 1 year - or would they drop off 5 years from now - since there's been no payments on.

So if there's debts un-settled in 6 years - they will drop off my report??

In your experience - what sort of numbers do banks go for judgement on - will they go to court for a debt worth $5000.00 - or $2000.?? Or will they only go for the big ones - line $20,000.

If I know they won't come after me for the small ones - I'll work on the big ones first and leave the small ones till the very end.
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RE: Trying to pay debt but..........................

Postby mmacdonald » Wed Oct 31, 2007 09:44:19 AM

One more thing. If I pay the collection agency the full amount in one lump sum, will this start the SOL over again?

Same for the original creditor, will it start the SOL over again to? Thanks in advance.
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RE: Trying to pay debt but..........................

Postby angella » Mon Oct 22, 2007 04:09:47 PM

It should drop off 6 years from the date of last payment automatically, but you should monitor your reports to make sure it does... and that the collection agency does not list and re-date it. If possible, keep records of that account and all payments made to that account.
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RE: Trying to pay debt but..........................

Postby mmacdonald » Mon Oct 22, 2007 11:19:48 AM

Thanks, this helps

now, in 2009 will it actually drop off my credit report or stay on there? And would I have send a request to the bureau to have it removed after the statute is up or would it happen automatically?
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RE: Trying to pay debt but..........................

Postby angella » Mon Oct 22, 2007 11:01:55 AM

The collection agency can do nothing about the rating on your account. That has to be the original creditor who changes it, although once it is paid in full you can send the information in to the credit bureau and fight with them to have it noted paid in full.

My course of action would be this:

Contact the original creditor to see if they have sold the debt or simply assigned it. If they have simply assigned it you can ask them to take the account back from the collection agency and resolve it privately with you.

If it has been sold, and the date of last payment is 2003, depending on where you live, I'm not sure that I would pay it considering that the debt will be gone in 2009 if you don't, and will remain as a negative mark, even paid in full, from the date you pay it off... which means not before 2013... or longer depending on how long it takes to pay it in full.
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