Need some SERIOUS advice.

iVillage Member
Registered: 03-26-2009
Need some SERIOUS advice.
4
Thu, 03-26-2009 - 7:05pm

I have a creditor that is threatening legal action by the end of the month. The original debt was 2500 with Chase Bank it has since been sold to First Resolution Management Company.

The debt is up to 4200 as we speak, I offered 1, 800 as a settlement. They declined and came back with 3000, I said I could do that but it turns out I can't. My tax refund was garnished ( a thousand of it was) from an old student loan that is now officially paid off. Anyway.

I am wondering what I should do I called them (yes I know never call) and told them I could no longer do the plan and they said I had to either pay 3000 dollars or agree to 500 dollar a month monthly payments or they would take me to court. I work for a law firm if my wages were garnished I would be humiliated.

I need help! Should I just pay them the 2000 dollars and then make monthly payments that I can afford ( 200 dollars/month) or should I take this 2000 dollars and pay a credit card off that I'm current on and do a DMP??? Does anyone know if First Resolution even agrees to DMPs?

I think since they are threatening legal action that I've pretty much waited too late and that's nobodys fault but my own but I still would like to see if anyone has any ideas/suggestions.

Thanks SO MUCH.

iVillage Member
Registered: 03-17-2003
Fri, 03-27-2009 - 7:57pm
Hello heyheyrayray.
iVillage Member
Registered: 03-26-2009
Sat, 03-28-2009 - 5:44pm

Geesh Carolyn thank you so much. You gave some GREAT advice.

I did ask for validation of the debt. It was sold to a collection agency who then in turn sold it to the collection agency I'm dealing with now. They didn't include the original contract with the validation, they are charging me 24% interest, they included a fee of 1,400 dollars and included the bill of sale but NOT for how much they paid for it.

I work for an attorney so if it comes to that point then I might have to ask for his help. I'd rather not though that's embarassing.

Also, I called the collection agency again and offered them 2000 they said they wouldn't take that. They told me to call them back when I have 2600, I said okay. I'm not sure if I should do that or not. I'm afraid that if I do go to court I'll end up paying the whole thing. BLAH. I guess I'll just hold onto my money for now but it's so hard for me not to stress about this. If I had my wages garnished I would just die of embarrasment if they got a judgment on me.

ANyway THANKS again. I truly appreciate it.

iVillage Member
Registered: 03-17-2003
Sun, 03-29-2009 - 7:09pm
violation reported.
iVillage Member
Registered: 12-08-2008
Sun, 03-29-2009 - 9:49pm
If you don't mind my asking, how far behind are you on the Chase account? I have a Chase and haven't been able to pay on it for about 3 months. I won't be able to file BK for another four or five and am worried that they will sue by then. What was your situation when you stopped paying? Were you unemployed without assets or did they know they could come after you for something?