Comments on: Trying to dodge bankruptcy….Can I negotiate payment terms even after the debt has gone to the collection…? http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/ Help For Small Business Owners Considering Bankruptcy Sun, 15 Jan 2012 00:01:18 -0600 http://wordpress.org/?v=2.8.3 hourly 1 By: bdancer222 http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/comment-page-1/#comment-2188 bdancer222 Wed, 27 Jan 2010 14:28:58 +0000 http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/#comment-2188 Yes, you can negotiate settlement offers and payment plans with creditors. Your problem is that they are not going to accept small monthly payments that stretch out for years. I'm surprised you got anyone to accept $50/mo on a $5K debt. Even if there's no further interest added, that will still take more than 8 years. Collection agencies typcially want payment within 6 months. Depending on what debts you have, you may want to consult a bankruptcy attorney. All the defaulted debts have already damaged your credit. Paying them off won't improve your score. It will be there the balance of the 7 year reporting period. While the bankruptcy would further damage your credit, it would at least give you a clean slate and you could start rebuilding your credit. Yes, you can negotiate settlement offers and payment plans with creditors. Your problem is that they are not going to accept small monthly payments that stretch out for years. I’m surprised you got anyone to accept $50/mo on a $5K debt. Even if there’s no further interest added, that will still take more than 8 years. Collection agencies typcially want payment within 6 months.

Depending on what debts you have, you may want to consult a bankruptcy attorney. All the defaulted debts have already damaged your credit. Paying them off won’t improve your score. It will be there the balance of the 7 year reporting period. While the bankruptcy would further damage your credit, it would at least give you a clean slate and you could start rebuilding your credit.

]]> By: David http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/comment-page-1/#comment-2189 David Wed, 27 Jan 2010 14:28:58 +0000 http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/#comment-2189 Maybe a debt consolidation loan? Maybe a debt consolidation loan?

]]> By: Financial Freedom Guy http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/comment-page-1/#comment-2190 Financial Freedom Guy Wed, 27 Jan 2010 14:28:58 +0000 http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/#comment-2190 Hey Urban Dancer -- It is great you are trying to avoid bankruptcy. It is not a good option all around. After going into collections, it is pretty difficult but can be done. Remember the collections person already has a negative view of you. "Gimmee the money now" is their best weapon. Usually works. They work on commission so they will try everything. Ask the person, "What are my options for payments? If I go bankrupt, we both lose. I want to pay it, just cannot do it all right now." In my article series on getting help with credit cards (http://www.household-budget-made-easy.com/help-with-credit-cards.html) I talk about how to negotiate and also best ways of paying off the plastic with the debt snowball. Create a budget (spending plan) so you can show the person you are negotiating with you are doing so in good faith. Hang in there. Change your habits and reach for success! David Hey Urban Dancer –

It is great you are trying to avoid bankruptcy. It is not a good option all around. After going into collections, it is pretty difficult but can be done. Remember the collections person already has a negative view of you.

"Gimmee the money now" is their best weapon. Usually works. They work on commission so they will try everything.

Ask the person, "What are my options for payments? If I go bankrupt, we both lose. I want to pay it, just cannot do it all right now."

In my article series on getting help with credit cards (http://www.household-budget-made-easy.com/help-with-credit-cards.html) I talk about how to negotiate and also best ways of paying off the plastic with the debt snowball.

Create a budget (spending plan) so you can show the person you are negotiating with you are doing so in good faith.

Hang in there. Change your habits and reach for success!

David

]]> By: CFPwunaB http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/comment-page-1/#comment-2191 CFPwunaB Wed, 27 Jan 2010 14:28:58 +0000 http://businessbankruptcylaws.org/trying-to-dodge-bankruptcy-can-i-negotiate-payment-terms-even-after-the-debt-has-gone-to-the-collection/#comment-2191 To answer your question: Yes you can negotiate your debt with the collection agency. Remember that they will be happy getting anything from you. I suggest you take part in Dave Ramsey's Financial Peace University. It costs about $110.00 but its well worth the cost, I've lead this course in my church twice and look forward to doing so again in the future. The answers you get and the things you learn in these classes are exactly what you are asking about here. To answer your question: Yes you can negotiate your debt with the collection agency. Remember that they will be happy getting anything from you.

I suggest you take part in Dave Ramsey’s Financial Peace University. It costs about $110.00 but its well worth the cost, I’ve lead this course in my church twice and look forward to doing so again in the future. The answers you get and the things you learn in these classes are exactly what you are asking about here.

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