Handling the Calls

[deepin]

In many posts I have seen reference to being careful about what you say to the Creditors on the phone ... looking for some clarification.

How can what you share about your situation with your creditors be used against you?

[StartingOver08]

People have a tendancy to be intimidated by the CA's and OC's - some people even give up the account number of their bank for a 'post dated' debit! People disclose that they have retirement accounts or other assets.

Sometimes the OC or CA is looking for complete financial statments and the debtor provides all of this information right over the phone - not smart. All of this information can be used against the debtor - depending upon how far along the debtor is in the collection process timeline.

[deepin]

What about sharing your intentions? Counseling, Bankruptcy ...

Does that simply accelerate the collection process or is the risk deeper than that?

[StartingOver08]

There is some discussion on this board whether telling the OC's or CA's you are considering filing BK is wise or not. I don't know if there is a definate answer. Some think it may push the CA to move more quickly to a lawsuit and judgement and others think it is just the opposite.

Once you have retained your attorney, then tell the CA or OC your attorney name and number. Its that period prior to retaining an attorney that none of us know for sure.

[BigJohn]

In many posts I have seen reference to being careful about what you say to the Creditors on the phone ... looking for some clarification.

How can what you share about your situation with your creditors be used against you?

If you talk to a collection agency that has bought your debt from an original creditor (known as Junk Debt Buyers - JDB), they just might get you to confirm the debt. If you confirm the debt, you really have no case in getting the JDB to confirm you really owe the debt.

If you talk to a creditor they might get you to verbally agree to making a payment. That verbal agreement , even if you you don't follow up with a payment, might reset the Statute of Limitations (SOL) to zero.

If you talk to a creditor, they might get you so angry that you threaten them with bankruptcy. Nothing wrong with doing that but if you use the card again before filing bankruptcy, then you might get charged with fraud.

This is a legal problem.

If you got a lawyer, would he reccommend talking to the creditors and collectors?

[2Bshinyandnew]

If I were a creditor, I would consider The Fair Issac Bankruptcy Risk score:

http://www.fairisaac.com/NR/rdonlyres/0BECF665-849A-4466-A220-DA9137BF36BA/0/Bankruptcy_Scores_1253PS_EN.pdf

Also see:

http://www.creditcards.com/credit-card-news/bankruptcy-risk-score-1270.php

"Are you a bankruptcy risk? Enigmatic score may tell lenders
Tool used to supplement consumer credit score, mitigate issuers' risks
By Jeremy M. Simon

It's a number that lenders may consider when deciding whether or not to lend you money, but it isn't the well-known credit score. Meet the bankruptcy score, the credit score's more mysterious cousin.

While the popular FICO credit score gives lenders an indication of how likely a borrower is to repay a loan, a bankruptcy score -- as the name implies -- suggests how likely a consumer is to file for bankruptcy. "Lenders are in business to extend credit to borrowers, not to refuse them credit. Lenders use tools like bankruptcy scores to protect their ability to stay in business and continue offering credit at competitive rates," says Craig Watts, spokesman for FICO score creator Fair Isaac Corp., which also produces bankruptcy scores. Fair Isaac's Web site notes that its bankruptcy scores can be used in combination with FICO scores to "sharpen" a lender's risk assessment."

[UhOh]

I received my first creditor call after filing Chapter 7 yesterday. I have never felt glad about anything happening in my finances and the call just confirmed those feelings. There was no relief and no satisfaction from having to admit to a credit collector that I am insolvent and must file bankruptcy. Might just be me but I feel like I am breaking a promise or something. It is very odd. I have read these boards for quite some time and I know a lot of people get some joy in saying "too bad" and others like me don't get that feeling.

Just so you know, they go through the normal collection process trying their aggressive collection talk. Then I say I am having my attorney handle all financial issues now and I have filed bankruptcy. The mood changes to getting case number, attorney name and address and phone number. They want to know what chapter and also joint or individual and the date of filing.

I tried to be polite and matter of fact but it still gets to me.

Before I was even off the phone a minute or two another collector call came in. Same story exactly.

[walkthaplank]

Might just be me but I feel like I am breaking a promise or something.

I understand completely.

If it make you feel better, your creditors made a business risk assessment in lending you money. They also kept doing that as they raised your credit limits when they WATCHED you get deeper and deeper in debt. Yes, you took the bait but they set the hook, let out the line and let you get deeper and deeper into debt. You will be one of the ones that got away I guess. Also keep in mind that they would do it in a heartbeat too, either as a negotiation tactic or just plain business decision.

We can only hope that along with us, the bankers looking to make a buck off of the next guy will learn their lesson and change the way they/we do things.

[UhOh]

I like the insight. You are so right! Let me tell you that the points for prizes is such bait. Those stinking low interest checks too. They got me good even though I should have known better.