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?
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.
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.