Credit Cards

[jwp32750]

I am a small business owner that is trying to get along presently. Though I am trying to satisfy everyone who wants to be paid, there isn't enough money to satisfy everyone right now. I have worked with several of my creditors to establish payment programs in an effort to satisfy my debt. For those that I am in arrears with, they are saying things such as "once your account goes to collections, we won't be able to establish any type of payment program with you." How true is this statement? I realize that the people at the call centers makes their bonuses by "closing the deal" in their collection call, but with the ever growing threat of people filing for bankruptcy, wouldn't they want to receive something rather than nothing at all?

[iwantbettercredit]

In the real world that is not the way it works.  There is no logic when it comes to being late on credit. such as they add late fees and over the limit fees that can triple your minimum payment. It is just like insurance companies when they would rather risl having to pay for cancer treatment as opposed to paying for preventative care (How stupid is that!) Anyway, if you want your business and you need their business in order for your business to survive then they need you to pay them because your business does them no go if you dont pay their bill.  "They will simply put you on the cash basis terms" or cut you off completely.

[iwantbettercredit]

In a nut shell they really do not care if you go out of business as long as they get their money, and they will get it one way or another.

[Creditaddict]

I have only had experience with Citi and it was about 3 years ago. I had a credit card with 22500 credit line and a 22400ish balance that I would pay $400 month and then turn around and charge the $200 or so available each month. I was current and called for help and was told there was no options for payments plans or anything.

I stopped paying and less than 30 days later before any lates even reported to my credit they called to try to collect and offered me a fixed payment plan for 12 months with 0% interest for those 12 months and payments of $208... half of what I had been paying.

So my experience is I had to miss a payment before they would work with me but then they were eager to help me. 

[jwp32750]

It's sad that it takes a missed payment to get their attention. With the current economic, and that credit card companies are "unsecured" debt in terms of bankruptcy, do you think that more options will be made available by credit card companies in an effort to receive anything rather than the alternative of not receiving anything from someone filing bankruptcy?

BTW, if you sign as a personal guarantor to a corporate credit card, and that person files for personal chapter 13 bankruptcy, can creditors still go after the business if the credit card that is being included chapter 13 bankruptcy?

Also, if a credit card has been sent to a collection agency and one files for chapter 13 bankruptcy, can you just include the account number of the credit card and the issuing bank, or does one have to try to find information of the collection agency that the card was sent to.

[wajones]

You are right. They rather receive something then nothing. You should negotiate hard. They are all negotiating right now in this economy! Be nice and courteous and tell them your story. Sometimes it also depends on who you speak with. I heard some of them speak of a reputable debt collection help Nova who most of them work with and those peopel sometimes can cut your debt in half! Do not give up though. It takes time. All the Credit card company and all these different loans are in negotiation mood right now because of the economy.