My first collections letter

[twuoo]

How much do I need to worry??? I've received my first collections letter from a local address for a Discover card balance? Will they start to flood me now?

I'm not ready to file yet. I just took on a new job and was thinking of waiting until next year even before I file, but looks like maybe I don't have time on my side?

Any suggestions would be helpful. I don't officially have a bk attorney yet.

[JRScott]

You say the letter is from a local address?

Is it from a local attorney?

[twuoo]

No, it's not from an attorney. The letter is from a collection agency.

[JRScott]

Depends on the agency really, they might send letters for 3-6 months before doing anything else.

[Cassiopeia]

I got letters and calls from collections agencies for a year, and they still never did anything (if "anything" means a judgment, etc).

It was a year of HELL, believe me, and glad I finally filed BK when I did.

[treehugger1]

You need to make a decision in teh next week or two. If you just received the notice, you have 30 days from receipt to ask the CA to validate/verify the debt. Will this cause the CA to act quicker? Unknown. However, if you do not send a debt validation letter within the 30 day window, you lose this option. If you choose to send a debt validation letter, you should follow it up with a cease telephone communication letter, stating you will only receive communication via your mailing address. Send all letters certified-return-receipt.

If this debt is above your state's small claims limits, you might have at least a few weeks (maybe months) before they can get to court. Although there is no "fixed" time-frame when collectors will act. Be prepared to file for BK or see future wages and/or bank accounts garnished. I'm not trying to frigten you, but be prepared for any worse-case scenarios. I get the impression that many folks had no issues with creditors or collection agencies for months, but there is no way of knowing how an individual case will go. Just my opinion.

[twuoo]

Since I recently started a new job, I don't really know how my salary will pan out as there is a 90 day probation and then I can qualify for benefits etc. I don't know for sure how that will translate in terms of gross or take home pay. It will certainly be a little more than what I was making.

I was hoping to file in late Sept/Oct, but now it seems I need to hold off for yet another 90 days or more because of the new employment.

Sadly to say, I'm still a "no asset" case. I'd be filing chapter 7 because I am still under the median for my state. But can I be forced into a chapter 13, even if I am under the median?

How quickly should I be moving on securing a new attorney to file bk???

I haven't used any cc, paid any mins or answered any cc phone calls since May. It's been a struggle. I thought I'd have all this extra cash once I converted to cash only. But I didn't realize how heavily I leaned on the cc, so I'm still not doing as well as I'd hoped to be.

Thanks for all the help!