Inflexible Creditor - Should I Risk Going to Court?

[SoopremeBeing]

Idaho (but I currently live in MD)

I am currently dealing with an Idaho-based creditor who is extremely inflexible. I am a government contractor, and my finances have been troubled ever since the October shutdown(I didnt recieve any backpay).

I have requested numerous times for a moreaffordable payment plan, they refuse to work with me. I eventually ended up maxing out a credit card to pay for late fees and daily interest when I was almost 30 days late. I have to make payments every two weeks, and if I dont pay, even if its a day late, they call and send my file to their pre litigation department.

Its getting to the point where my normal household bills are in jeopardy(rent, utilities, car/car insurance, IRS bill, groceries,etc.). Not to mention, my actual job is on a short time frame; a month after the shutdown, my employer announced that they were losing the government contract in March2014. AND they took our benefits, our tuition assistance, and my separation pay. So now in addition to normal bills, I will now have to pay student loans as well.

I am to my breaking point, and Im considering letting this Idaho debt end up in court, because I can no longer risk my livelihood to pay these people. I honestly feel my rent, my groceries, my energy bill, and my IRS bill are more important than this installment loan.

I am afraid of not paying them, the threats ofbeing sued and having my wages garnished are stressful. But it is too much atthis point. They are the only creditor that refused to work with me.

Any advice is appreciated.

 

[TigerD]

Wow.

You have it completely backwards.

They don't need to work with you. You need to work with them.

DC

 

[Blutodidit]

Idaho (but I currently live in MD)

I am currently dealing with an Idaho-based creditor who is extremely inflexible. I am a government contractor, and my finances have been troubled ever since the October shutdown(I didnt recieve any backpay).

I have requested numerous times for a moreaffordable payment plan, they refuse to work with me. I eventually ended up maxing out a credit card to pay for late fees and daily interest when I was almost 30 days late. I have to make payments every two weeks, and if I dont pay, even if its a day late, they call and send my file to their pre litigation department.

Its getting to the point where my normal household bills are in jeopardy(rent, utilities, car/car insurance, IRS bill, groceries,etc.). Not to mention, my actual job is on a short time frame; a month after the shutdown, my employer announced that they were losing the government contract in March2014. AND they took our benefits, our tuition assistance, and my separation pay. So now in addition to normal bills, I will now have to pay student loans as well.

I am to my breaking point, and Im considering letting this Idaho debt end up in court, because I can no longer risk my livelihood to pay these people. I honestly feel my rent, my groceries, my energy bill, and my IRS bill are more important than this installment loan.

I am afraid of not paying them, the threats ofbeing sued and having my wages garnished are stressful. But it is too much at this point. They are the only creditor that refused to work with me.

Any advice is appreciated.

How is your credit standing? The reason I ask is because if you let this matter go, it WILL affect your credit report! Why do you owe this money? It could be that since you are out of state, they may just decide to sell your debt off and the new creditors will hound you and not litigate the matter. Perhaps, if your credit is already bad, you may wish to have enough aside to pay for a bankruptcy filing, just in case litigation should occur.

 

[tranquility]

Wow.

You have it completely backwards.

They don't need to work with you. You need to work with them.

DC

This is the real answer. "Risk" going to court? You will lose. They have no duty to change your current debt agreement to better meet you needs. You should look to the remedies available to a judgment creditor and see how they compare to what you feel you can pay now and see if you are trying hard enough. Because, they will win, they will use the remedies, and there will be the additional costs of court, credit hit and lack of any flexibility in determining a payment plan.

 

[swalsh411]

One takes a "risk" going to Court when the matter could go either way and both sides have advantages over the other in terms of matters of fact or law. You aren't taking a risk so much as walking into certain defeat.