Discover recovery center

[MakinMeCrazy]

Hello,
Today in the mail we received the following collection notion from Discover, we plan to file BK7 in august. Our only income is Social Security pension. can someone give an opinion as to how bad this is?
We are really scared!

DISCOVER
FINAL NOTICE
CHARGE OFF DATE: MAY 31, 2010

If we do not hear from you , we will have no alternative but to send yoour account to our recovery center. If this should happen, the following may occur:

** Your entire balance will be due in full

** Your account will be recorded as a bad debt withan R( rating

** Our Recovery Center will determine the best course of action to secure your balance. This may mean that they will attempt to collect it themselves or they may refer the account to an outside agency to collect the balance.

To prevent such measures pay a minimum payment of $197.00 before May 15.


We are scared now, as I said all we get is our pension and right now before we file we have one house payment to catch up on. Do we stand a chance of holding on until August? We have no assets other than a house underwater.
Any answers or suggestions will be greatly appreciated. Thank you

[frogger]

** Your account will be recorded as a bad debt withan R( rating

Just more collection tactics. All revolving debt has an "R" rating.

Chill, take your time, and hold on till August.

[OHBOY]

Quote:"We are scared now, as I said all we get is our pension and right now before we file we have one house payment to catch up on."

I guess they accomplished their goal.....namely to have you shake in your booties....
I am getting messages that they will send a 'red & white envelope' next week.....oh boy ! (lol) ...I say: Bring it on !

[jwmc1]

You can wait till August, don't worry

[GoingDown]

It is very unlikely that they will sue you and get a judgment before August.

Don't worry about it. Just keep moving forward on filing your bankruptcy, so that you will be ready to file in August.

They used to send me lots of threatening letters, about "legal action" and "it would be in your best interest to resolve this matter voluntarily" etc. It's bluffing meant to scare you, and it obviously is working.

[keptdigging]

They haven't even threatened to sue you yet!
And until they not only threaten, but actually file a suit, it's just words.
Since you're planning on filing, I assume you've given up on having a 780 credit score...

Absolutely nothing there to change your August plans.

[AngelinaCatHub]

They are blowing smoke. That letter is mild from ones I have seen. It will take you beyond August to be sued if at all. You are collection proof. They cannot come after your pension. If you get a notice of suit, dispute it until you file. At will be stopped at that time. File sooner if possible. 'Hub

[ryan]

I've received the same exact letter awhile back....nothing since then. I also agree with Hub, this is very mild. Not like the ones I was getting from Chase...

[secondtimer]

Even if they win a judgement against you which results in a garnishment order your only income is SS which is exempt.

Take care of you and yours first.

[catleg]

That is not a "demand letter" yet (demand for payment in full). That would be the last step prior to a lawsuit. Technically everything it says is true and they will do it, once they "give up" on getting you "back on track" by making regular payments, the next step is charge off and then "recovery" (of whatever they can). Kind of like when a plane crashes in a fireball and a million pieces and they put the fire chief on camera and he says "this is no longer a rescue..it is now a recovery operation".

On the other hand there is no guarantee that recovery -> immediate lawsuit. My wife and I both had Discover. She got sued, I didn't.