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Negotiating debt I can't afford

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Negotiating debt I can't afford

Hi guys,

I'm going through a separation, and unfortunately I can't count on my spouse to help pay any of our old debt.
I have 2 debts I need a plan for.
both are installment signature loan type things.
-one is called Heights finance. This debt is still with the original creditor. I offered to pay them 500.00 to settle. They came back with 1,355.04. Technically this Loan is secured with "household goods", all of which are in my spouse's possession, but my name is on the debt. reporting open and perpetually late on CK, 90days.

-the other is world finance, I also offered them 500.00 to settle. they show charged off on CR but I just got a nasty gram from an attorney requesting 1,415.34. Nothing is filed with the court yet. I have 30 days to request validation (its definitely mine but maybe could buy me some time). it's a nation wide law firm but I am currently paying off my last judgment with a payment plan. Not interested in more judgments Smiley Sad I have had a ton and paid them all off. Nothing other than charged off debt showing on CK right now.

My spouse hasn't received any of these letters in his name. I feel like trying to negotiate something has made it worse.
so, I dont have the money for either of these or I would have paid them already. What do you guys suggest? I could get a second job, which would be exhausting on top of my 9-5 plus moving and OT but I'm willing.

I have had significant personal life events that have got me into this position, and I explained these events to the original creditors, they were unmoved, which I understand, everyone has a story.

sorry, some of that was just venting lol.

I could make payments, but they would have to be small, and these people arent offering a payment plan. How can I persuade them to accept small but timely payments? should I write a letter? is there anything I can say or should not say that will help? or is it just sending it to as many people as I can? and maybe catch a soft hearted person on a good day?
BK7 Discharged 8/2013, baddies after discharge. Rebuilding credit again after separation. Finances aren't my issue relationships are! Mortgage processor 17 years.

TU 455 > 504
Exp 479 > 538
Message 1 of 7
6 REPLIES 6
Regular Contributor

Re: Negotiating debt I can't afford


@petcredit0421 wrote:
Hi guys,

I'm going through a separation, and unfortunately I can't count on my spouse to help pay any of our old debt.
I have 2 debts I need a plan for.
both are installment signature loan type things.
-one is called Heights finance. This debt is still with the original creditor. I offered to pay them 500.00 to settle. They came back with 1,355.04. Technically this Loan is secured with "household goods", all of which are in my spouse's possession, but my name is on the debt. reporting open and perpetually late on CK, 90days.

-the other is world finance, I also offered them 500.00 to settle. they show charged off on CR but I just got a nasty gram from an attorney requesting 1,415.34. Nothing is filed with the court yet. I have 30 days to request validation (its definitely mine but maybe could buy me some time). it's a nation wide law firm but I am currently paying off my last judgment with a payment plan. Not interested in more judgments Smiley Sad I have had a ton and paid them all off. Nothing other than charged off debt showing on CK right now.

My spouse hasn't received any of these letters in his name. I feel like trying to negotiate something has made it worse.
so, I dont have the money for either of these or I would have paid them already. What do you guys suggest? I could get a second job, which would be exhausting on top of my 9-5 plus moving and OT but I'm willing.

I have had significant personal life events that have got me into this position, and I explained these events to the original creditors, they were unmoved, which I understand, everyone has a story.

sorry, some of that was just venting lol.

I could make payments, but they would have to be small, and these people arent offering a payment plan. How can I persuade them to accept small but timely payments? should I write a letter? is there anything I can say or should not say that will help? or is it just sending it to as many people as I can? and maybe catch a soft hearted person on a good day?

Is your spouse on the World Finance account? I have used World Finance before and they are impossible and nonresponsive. I hope you have better luck than I did. 

 

Also, if the items that were used as collateral are in your spouses possession for the first loan I would request those items back if you want to use them to settle the debt. If he refuses to turn them over then you can notify both the company and the police that he is in possession of items that were used to secure a loan and you need them to satisfy the loan and he refuses to comply. Secured loans can easily be satisfied by turning over the collateral. Since you were married he cant use the "they were mine not hers when she got the loan" since as a married couple all your possessions are joint (unless of course any of it was listed in a prenuptual agreement and those items were listed as his alone). 

 

How old are the loans? What is the defaulted balance? Are they with a Collection agency yet or still the original creditor? 







Message 2 of 7
New Contributor

Re: Negotiating debt I can't afford


Thanks for taking the time to read my story. to answer your questions:

-Is your spouse on the World Finance account? yes, and sorry you had bad luck with them too Smiley Sad

Thank you for the advice on the collateral. That had not occurred to me. I assumed it was like a car loan or something, they would say my stuff is worth 10.00 and continue to try and collect the debt. One of the items is not in either of our posession, it was confiscated by the police when he got arrested. hm. maybe I can work with this angle somehow. I will try and find the original paperwork to start.

-how old are the loans? both from June/July 2018

-What is the defaulted balance? heights shows 1466.oo on my CR, world 1415.oo

-Are they with a Collection agency yet or still the original creditor? heights is with the original creditor, world is charged off and I got the attorney nastygram, but isnt showing Anything but the original creditor on CK.
thanks again!
BK7 Discharged 8/2013, baddies after discharge. Rebuilding credit again after separation. Finances aren't my issue relationships are! Mortgage processor 17 years.

TU 455 > 504
Exp 479 > 538
Message 3 of 7
Legendary Contributor

Re: Negotiating debt I can't afford

Are you negotiating a legal separation agreement with the spouse in preparation for the divorce?

That will at least provide you with basis for determining the legal liability of the spouse for agreed amounts of each existing debt, providing a basis for your determination of what you can afford to negotiate on those portions that you are deemed responsible.

Additionally, if you have equity in joint real property, such as a home, you may be able to obtain court-ordered sale of the property upon approval of the final divorce decree.

 

I would suggest a consultation with your divorce attorney as to recommendations on distribution of existing assets and debts upon finalization of the divorce decree, such as by entering into a legal separation agreement.

Until you have such an agreement, you dont really know what your personal debt will be upon divorce.

Message 4 of 7
Regular Contributor

Re: Negotiating debt I can't afford


@petcredit0421 wrote:

Thanks for taking the time to read my story. to answer your questions:

-Is your spouse on the World Finance account? yes, and sorry you had bad luck with them too Smiley Sad

Thank you for the advice on the collateral. That had not occurred to me. I assumed it was like a car loan or something, they would say my stuff is worth 10.00 and continue to try and collect the debt. One of the items is not in either of our posession, it was confiscated by the police when he got arrested. hm. maybe I can work with this angle somehow. I will try and find the original paperwork to start.

-how old are the loans? both from June/July 2018

-What is the defaulted balance? heights shows 1466.oo on my CR, world 1415.oo

-Are they with a Collection agency yet or still the original creditor? heights is with the original creditor, world is charged off and I got the attorney nastygram, but isnt showing Anything but the original creditor on CK.
thanks again!

Did the cops confinscate it as evidence? If so see if you can get ahold of them to have it released as let them know its collateral on a loan that defaulted and you have to submit it to rectify the loan balance. As long as they arent using it for evidence in a case it should be able to be released. Per your loan contract it should state in there the terms of the collateral. In most cases if you turn over the collateral that will satsify the loan so long as all the items are in the same condition they were in when they were assessed to be used as collateral. 


For world finance, be sure to let them know that he is a coborrower and they should contact him as well. That way he is being hounded too. Who has the loan now? If its JH Portfolio they are as nasty as world finance is. I would send them letter after letter about it and they never contacted me. I didnt get a reply until I did a complaint through the BBB, then they were willing to submit information about the debt as requested. Mine ended up falling off at the 7 year mark. Since your loans are new you may have to work a "my aunt is gifting me some money to settle this account. All she gifted me was X dollars. Can we settle this account for this amount? If not, what can we do to satisfy this account. I am unable to make a lump sum payment at this time." Are you able to make payment arrangements if they allow a good faith deposit? if so make sure to get any agreement in writing from them before you agree to make any initial payment. When my debt attorney helped me with some debt they would negotiate payment on settlement. For instance. I had a $1700 debt and they negotiated three payments of $277 for three months and then the debt would be settled. Maybe you can do something similar. 

 

Im sorry your going through this. It's never fun. 







Message 5 of 7
New Contributor

Re: Negotiating debt I can't afford

@RobertEG, we have nothing, if we did, we would be able to sell it and divide it fairly easily. we have cars with loans, we rent, no savings.

I understand what you are saying and technically you are correct but in my case pushing a legal situation doesn't help much. This debt is in both our names and even if the debt was assigned to him in a legal document he wouldn't pay it. so then I have to pay a lawyer to do a separation and the debt is further behind.

my number one priority is getting my score higher. hope that helps.
BK7 Discharged 8/2013, baddies after discharge. Rebuilding credit again after separation. Finances aren't my issue relationships are! Mortgage processor 17 years.

TU 455 > 504
Exp 479 > 538
Message 6 of 7
New Contributor

Re: Negotiating debt I can't afford

thanks again for your time and advice.

It's not evidence, but I don't think they will release it. It's a long story, lol. But it's a weapon and in another state. Also, I found the heights finance documents and the schedule of household goods is conveniently missing from the note. I am considering asking them for a copy. I'm already on their radar. I dont think it would hurt.

World has hired Gamache & Myers who I have no experience with. But I dont expect they will be particularly easy. I thought they were a big national firm but I may have been wrong on that. Today, I received another letter from them saying they didnt accept the amount I offered world finance, but to call and make payment arrangements so that's a good sign and I'm feeling a little better about that one.

thank you, I may use the that wording about my aunt in the future!! Smiley Happy
BK7 Discharged 8/2013, baddies after discharge. Rebuilding credit again after separation. Finances aren't my issue relationships are! Mortgage processor 17 years.

TU 455 > 504
Exp 479 > 538
Message 7 of 7
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