[ediconu]

Hey everyone!

I've read through a whole bunch of posts here and find that you're all very helpful. It seems that some situations require different actions for what appears to me to be the same thing, so I'm posting my plight for official consideration.

Problem: 2 AMEX charge-offs on my credit report, still actively seeking 100% of the money. (Wont' settle, not that I have enough yet anyway...)

History: At the beginning of 2006, I bought a house and had a few of my friends move in with me. Their 'rent' paid to me allowed me to afford the house. Things went well for 6 months and then one left, then (within a month) my income decreased because I got laid off and had to find another job.

Attempted solutions:
Sell house, but it's worth far less than what I owe because of plummeting property values.

Sell car, done, didn't yield enough cash and didn't increase my usable money/month enough to help

Sell household items that are worth anything, done, but again, wasn't enough to really help, just enough to stay afloat.

Result: Racked up $25,000 in AMEX debt over the course of 15 months.

Recently: 2 months ago, I got a new job making more than I did previously, so now I can actually cover my house and utilities and nearly enough food to get me through a month, but since I stopped paying my AMEX cards when I was completely destitute, I was not able to prevent them from going to collections.

I'm repaying the personal loans I took from family members and friends to keep my house through that bad time. I'm pretty much square, aside from this big looming AMEX thing.

Each of my cards, one @ 10,000 and the other @ 15,000 went to different collections agencies, GC and Zwicker, both in other parts of the country. Zwicker is acting like it's working with AMEX to try to recoup the money, but my credit report already has the write-offs, which means AMEX sold its debt to these guys, right?

I tried contacting AMEX last month to see if they could get me onto a payment plan to get the debt paid down at a normal interest rate (A lot of that debt was the 31% interest + late fee + more interest) . They refused to lower my interest rate and wouldn't work with me. I've been trying to gauge where this lack of interest is related to them holding out for all of it, or the fact that they have sold off the debt and don't care about it.

Currently: Yesterday, I was contacted by two new collections agencies, I didn't write down their names yet, but I still have the Voice-mails so I'm going to get that info tonight. I'm not sure if this is AMEX trying another company, or if the two originals have given up.

I know that 'validation' often indicates that a person does not intend to pay, which expedites any pending law-suit creation, so I've been hesitant about requesting validation from the DCA which initially contacted me.

Any advice aside from "spend less money than you make" and "be sure to pay back what you owe" would be greatly appreciated. I have already taken those two tidbits to heart and this will be the last time my credit report says anything but "current".

Thanks for reading that long-ass message.

Mike

[centex]

AXP rarely ever sells their paper. They will not hesitate to litigate. They are also amenable to placing customers into the OASIS program which gets you back into their good graces after you have paid off the balance(s).

The key with AMEX is to understand their litigious nature but also their ability to work with a defaulted customer if the customer knows the right office to contact. Contact information for the OASIS program can be found online...I believe it has been discussed here previously and may appear in a search.

Zwicker's office has the capacity to enter you into the OASIS program but you have to expressly make the request. I know someone locally who went through it after the case had originally been referred for litigation and service of the suit was perfected. In that case, the paper was still fresh, less than 120 days delinquent, with the delinquency having followed entry into one of those stupid debt reduction plans being advertised on television. Same plan resulted in a suit by another OC, also resolved without litigation.

[ediconu]

So if the OASIS program is my way out, how can I delay them from doing anything until I can gather up $25,000?

Thanks,
Mike

[centex]

Originally Posted by ediconu

So if the OASIS program is my way out, how can I delay them from doing anything until I can gather up $25,000?

Thanks,
Mike

OASIS does not require lump sum. They will do payment plans. I don't know how generic the plans are, never having had to deal with it directly. With the aforementioned acquaintance, it was structured across something like six months, but there was only five or six grand at issue and she was capable of paying more than a grand per month.

[ediconu]

Originally Posted by centex

OASIS does not require lump sum. They will do payment plans. I don't know how generic the plans are, never having had to deal with it directly. With the aforementioned acquaintance, it was structured across something like six months, but there was only five or six grand at issue and she was capable of paying more than a grand per month.

That sounds pretty similar to what they were proposing to me, although I think it started out at 4 months. I'll have to talk with them some more tomorrow and find out what they can do.

Any ideas about how to approach to try to get the best deal possible? I have a pretty high income, but I also put just over 50% of that into my mortgage with about 30% going to my standard bills and 10% going to groceries and gas... that last 10% isn't enough to cover several grand / month

Thanks!
Mike

[jlynn]

Originally Posted by ediconu

That sounds pretty similar to what they were proposing to me, although I think it started out at 4 months. I'll have to talk with them some more tomorrow and find out what they can do.

Any ideas about how to approach to try to get the best deal possible? I have a pretty high income, but I also put just over 50% of that into my mortgage with about 30% going to my standard bills and 10% going to groceries and gas... that last 10% isn't enough to cover several grand / month

Thanks!
Mike

I would come up with a dollar amount you can live with, and work from there. No sense in promising something that you will likely fail at.

[Doc. E.]

given your tight budget, i'd consider a chapter 13.

[jlynn]

Originally Posted by Doc. E.

given your tight budget, i'd consider a chapter 13.

Another possibility of a lawsuit is imminent.

[ediconu]

Does chapter 13 work if you make over $60,000?

I thought there was some kind of roll-off where it doesn't protect as much, or at all, above a certain income level.

Mike

[Hedwig]

You need to consult a bankruptcy attorney to understand all the nuances of the new laws. Most give a free initial consultation.

[medicomalo]

Originally Posted by ediconu

Does chapter 13 work if you make over $60,000?

I thought there was some kind of roll-off where it doesn't protect as much, or at all, above a certain income level.

Mike

I believe it is more a function of your budgeted expenses for housing, food, etc. when compared with your income. Basically it's a test where your disposable income will go into a plan and after the plan is over, you will get a discharge for the balance.

Hedwig is right, and a bankruptcy attorney will be able to give you a better idea as to where you stand.

[jlynn]

Income relationships are also somewhat state driven under BK reform. 60K in my podunk goes a long way, whereas somewhere like DC you would probably be living in a cardboard box.

[spinn]

As long as you dont eat, drive, or date women you meet on DB you are good here on $60k/yr.

BTW.....I vote to keep this Drivel and ban the other one.

[ediconu]

Originally Posted by jlynn

Income relationships are also somewhat state driven under BK reform. 60K in my podunk goes a long way, whereas somewhere like DC you would probably be living in a cardboard box.

You are correct, since I live in the VA suburbs of DC where the median income is 400 bazillion dollars per year, 60 is pretty rough.

I'm trying to understand the process here... One of my collection agencies has now switched to NCO. Does this mean that AMEX is trying to go with another agency, or would the original collection company have gotten these guys involved?

[centex]

I can almost guarantee you that AXP still owns the paper. It is not unusual for them to move it from one third-party to another.

[Enigma]

In order to preserve your rights under the FDCPA, you should DV each and every collection agency.

[ediconu]

Originally Posted by Enigma

In order to preserve your rights under the FDCPA, you should DV each and every collection agency.

The message I got from NCO says:

Creditor: American Express
Credit's account #: (the correct number)
Current balance due: $ the right amount of money

How much more information do they need to send to prove the debt is legit? It indicated on some places on the internet that this was legally sufficient, but in other places they said that they'd need a signed copy of the agreement and a bunch of other stuff.

If I mail NCO the DV, do I send it to the payment address or the office address?

If I am going to mail them a "There is no convenient time that I can be reached through the phone and since you have my correct address, corresponding through the mail is sufficient" letter, should I include the DV in that?

Thanks,
Mike

[ediconu]

Originally Posted by Enigma

In order to preserve your rights under the FDCPA, you should DV each and every collection agency.

I gotta say- I feel like I'd be poking a bear if I send this DV to NCO. I know AXP is pulling the strings and I want to avoid pushing them toward a legal battle.

I intend to pay so I don't really want to send it, but I do want to preserve my rights, so I really think I should send it.

Any thoughts?

Mike