If you cannot make an arrangement with your creditors whereby they will agree to accept what you can afford, you are really wasting your money by paying less than what they want. This is because with fees and interest, making a minimal payment is not helping.
The extra money you have to pay these creditors would probably be better used to save up enough to file a Bankruptcy, which will cost around $1200 for the attorney, and $299 for the court filing fee.
I think this is what you wanted to know. If not, please let me know.Thank you!
The collection agencies will eventually start calling you, but if you notify them in writing that they cannot call, they must stop, or you can sue them for up to $1000. This is because of the Fair Debt Collection Practices Act.
After about 6 months to one year or longer, some collection agencies go to court to get judgments, and some collection agencies sell the debts to other collection agencies, which will start to call you, and then if you notify them, they must stop, etc.
If any collection agency gets a judgment, that judgment can be used to garnish wages (if you take home more then $217.50 per week), and bank accounts, and can be used to place liens on property.
It is unlikely that any judgment will be gotten before one year, as the court process takes at least a few months (you have to be served the papers, and have to go to court, where you are allowed at least one postponement, which will be for at least another few months).
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).