I am in debt to Bank of America for a credit card, approximately $9,000. The account has been referred to a collection agency, Allan C. Smith, out of PA. I have written them several letters advising them that I am in no way avoiding this bill. I have also offered to pay the amount of $25.00/month until my financial situation improves (which I do not see happening in the foreseeable future). This law firm has threatened to sue me. Also, I am currently going through a foreclosure with B of A, and my vehicle has been repossessed. I am currently paying the lender for the vehicle $25.00/month. I do not live in the house, I have not lived in the house for over 1 year.I would prefer to not file chapter 7, as I cannot afford the $1300.00. What are my options as far as dealing with Allan C. Smith and avoiding garnishment or court?
Country relating to Question: United States
State (if USA): Tennessee
I have written several letters to Allan C. Smith, P.C. offering to make monthly payments for the amount of $25.00. I have not sent any payments to this collection agency to date.
Hello,Thank you for using JA. Please don't shoot the messenger, but if the account is in default, then the creditor wouldn't be under any legal obligation to enter a payment agreement with the debtor and could instead choose to file suit to get a judgment. Once they got a judgment, they could garnish wages and seize bank accounts in an attempt to collect..With that said, if the debtor contacts the attorney directly and mentions that they are considering filing bankruptcy if they can't come to some sort of settlement with payments, that can give the debtor some leverage in negotiating a settlement they can live with. The creditor knows they will get nothing if the debtor files bankruptcy, so they may agree to some lesser amount rather than potentially get nothing..
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So, contacting the collection agency would probably be the best thing to do at this point, with the information that the possibility of filing chapter 7 in order to negotiate a monthly settlement?
Yes, the original creditor has turned the account over to the collector so it wouldn't do any good to contact them. .The bankruptcy threat may give the debtor some negotiating power..
13 yrs practice, Realtor, Landlord 24+ yrs
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