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    #1

    Right to cure default question

    Hello all! Thank you in advance for any light you may be able to shed on our situation. We are considering filing a chapt. 13 and we received today a notice of consumer's right to cure default. Of course, they want a payment in 10 days that we can not afford. I have sent payment solutions to them, with no response. Is there any chance they will work with me now, or is this headed to a lawsuit? How much time will I have to head off a lawsuit? This is a personal line of credt, non-real estate loan, unsecured. Any help would be greatly appreciated!

    Thanks
    Tags: None
    #2
    They *may* work with you, but they most likely won't. You probably have a couple of months before you get a summons. Once you do, you will have between 20-30 days to answer, depending on your district. Answer the summons and appear in court. Neither affirm or deny owing this debt. The judge will send the matter to Arbitration, which will probably buy another month or two. Meanwhile, be getting your paperwork duck in a row.

    Now, this opinion is based on our experience here in Florida. Illinois civil courts will be a little different. Hopefully, a fellow Illinoian (is that a word? ) will chime in.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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      #3
      They probably will work with in that of getting your phone numbers, place of work, etc. so they will use it all against you.
      Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

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        #4
        Is the debt an unsecured debt? Who was the lender, if I might ask? How long since you last paid? Is the letter from the original creditor or from a collection agency. I used to get letters to "cure default" all the time. I think I got these from CC companies between 30 and 90 days after not paying. They were just another tactic attempting to get me to pay some account I could not pay. Can you give us a bit more information?

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          #5
          Agreed, they love to use scary language to make you think they are going to sue you, when in reality, they probably aren't going to do anything.

          I don't know how many letters I got saying they were going to take legal action against me if I didn't pay the debt immediately. Legal action means anything that's not against the law. And there were so many phone calls from people claiming that my "file" was about to leave their office. Or that this was my chance to voluntarily pay my debt.

          It's all a bunch of scare tactics.

          They can't sue every debtor out there. They don't have the resources to do that.
          The world's simplest C & D Letter:
          "I demand that you cease and desist from any communication with me."
          Notice that I never actually mention or acknowledge the debt in my letter.

          Comment

            #6
            Originally posted by BigJohn View Post
            They probably will work with in that of getting your phone numbers, place of work, etc. so they will use it all against you.
            Yep, working with them, if you can't afford to truly pay it all off, is a great way for them to get phone numbers, employers, bank info, asset info, that they will use later against you.

            You need to remember with debt collectors, anything you say will be used against you later.
            The world's simplest C & D Letter:
            "I demand that you cease and desist from any communication with me."
            Notice that I never actually mention or acknowledge the debt in my letter.

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              #7
              Thanks to you all! It is an unsecured personal line of credit through HFC. The letter came from the original creditor. There are 3 options. 1. Pay the past due amount to make current. 2. If the amount is paid, then I can't default in the next year and they have the right to skip the cure to default. 3. If I don't pay, then they have the right to acquire the debt according to the original loan. Should I make another plea at a payment arrangement? They list an address for any questions. It is not signed by a person, just HFC. May I vent for a moment and say, If I am having trouble paying at 6% and they won't work with me, how does making it 29.9% going to help? Thanks for everything!

              Comment

                #8
                If you think there is a possibility of declaring BK, why pay them anything at all? If you have several lates showing on your credit report, and you are "not paying as agreed," it could be a long time before your credit recovers. If your credit score does not matter, then you can sit on the sidelines and see what their next move is. Eventually, you could be sued and need to deal with enforcement options allowed under Illinois law (garnishment, liens, etc.)

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