Legal Question in Credit and Debt Law in New York

Re: Can Debt Collectors refuse payments?

I am impressed that you rule out Bankruptcy and are striving to do this with integrity by paying all of the debts. People make mistakes, and you are showing courage in working to rectify those errors. You have my respect and I will answer your question to the best of my ability.

Your question is not a simple (yes/no). Of course, if you have not paid on time they can immediately bring an action (sue you) and get a judgment. On the other hand, if the creditors have accepted the payment plan, then you may not be in arrears.

Answer the summons/complaint with a statement that you "have a 'novation' which includes a new payment schedule that you are current under. The debt is not in arrears." Use those words and submit some documents that indicate the creditors have accepted the payments.

MOST IMPORTANTLY, GET AN AGREEMENT THAT STOPS THE INTEREST.

Legal Aid or Legal Services Corp may be able to help you where you live (Syracuse?). I am in NYC. Thgey are free if your income falls below a certain amount.

Good luck. This is a tough time, but it will pass. You are doing the things necessary to get you to the other side of this situation.

Re: Can Debt Collectors refuse payments?

I will try to clarify the response of my colleague, if possible. First, you can be sued by anyone, anytime for anything. Paying voluntarily does not, in and of itself, mean you cannot be sued. Unless there is an agreement IN WRITING that you can provide that shows you are current in a repayment plan, you can be sued. NEXT...why are you ruling out bankruptcy? You should know that unless you own a house with considerable equity (over $20,000) you can file and not risk losing it. YOU SHOULD, at least, consult a bankruptcy attorney. Filing is easy. You fill out a form that tells the court what you own and what you owe (its very comprehensive, but straightforward). You list your income and expenses...expenses include basic items like rent, utility bills, insurance, food, health, etc., but also include the basics luxuries (cable, entertainment, etc., the list is exhaustive.) They realize you need to LIVE not merely exist. It is amazing how much expenses outstrip income in most households when you consider all the actual expenses people have to bear. Don't be afraid of bankruptcy...obviously, credit card companies are not happy if you file (after all they won't be getting your money!) so it's the credit card companies that give bankruptcy a bad name. IT AINT SO!!! The day after you are discharged from all your debts GUESS WHO SENDS YOU AN INVITE TO GET A NEW CARD??? THE VERY SAME CREDIT CARD COMPANIES. Now they're your best friend...after all, who better to lend money to...you have NO DEBT and you cannot get another discharge for 6 years! Your the best risk in the world! True, your credit history shows you filed...but so what? what's better, being hounded by creditors, having judgments on your credit record and getting NO BENEFIT FROM TRYING? The only way you take control is to file. At that point, no one can pursue you for money. IT is FORBIDDEN. You can at any time, make a deal to pay off your debt (reduced in amount of course and with NO INTEREST, etc.), while you are in banktuptcy and those agreements stick (if you keep to the schedule)...and you can end your bankruptcy after you've reduced your debt. MY ADVISE IS TO ASK AN EXPERT about it and if you have nothing to risk (such as a house...) go for it...the costs are very small in comparison and there is NO DOWN SIDE. Good luck.