4 replies to this topic

[BrokeIn2011]

June 2010, my business failed. I had a 40K bank line of credit I defaulted on. I got tons of collection calls from the bank until February 11. In February and March I got one collection letter each month for this loan via a non-bank collection company in Arizona. Then I never heard any more from the bank or the Arizona collection company. Then from September until this past Monday, I received about one call per week from another non-bank collection company on this loan. This time from a new collection company in California. But I never returned the calls.

Then late last week, I received my first collection letter from the California company letting me know that they are trying to collect 45K from me on this bank line of credit. So they said in their letter since they have been unable to reach me by phone, that I have to call them to try to work out a resolution, but they have forwarded my account to their legal council. Yet they provided not deadline date for me to contact them.

Yet one haunting thing about the California company's phone calls was they kept making a reference that they located me at my home address and that they see that I have the house in my name. Then on Monday, the lady that always calls and leaves a message, had a very, very happy tone in her voice as she left the message . . . as if to say, this is the last time I have to call you, because they are going to take the collection to court.

I would like to see if there is a way I can work out a resolution for this business loan, but I am not quite sure if it is a good idea to telephone them, like their letter wants me to. Yet it may be too late. It sounds like in their letter, that they can take this matter to the court and have a judgment ruled in their favor and they can start seizing assets and property, without ever serving me a summons, and as if this letter is their final communication to me and whatever legal action they take, I will not be included on it and that basically the next thing that will happen, the sheriff will be at my door with the judgment for them to instantly start seizing assets and property. Can this be done, even if it is a business loan judgment? I doubt if I can file a business bankruptcy on this, since I personal guaranteed the line of credit I borrow. Yet right now, it is doubtful that I could pay back 45K in a timely manner, to satisfy them. Yet I feel if I at least make contact with these people, it may slow things down to see if I can try to pay them back or file business bankruptcy.

I am sure it doesn't matter, but looking at the envelope, the letter, the return P.O. Box address, it looks like this collector is one of those types of businesses that somebody is running from their kitchen table. Yet they have a very impressive website, that announces "A leader in debt acquisition and debt management.", yet they do not list the physical location of the business on their website, they only list the P.O. Box.

I really would sincerely like to try to pay this loan somehow, but I have fallen on very bad times, like a great deal of small businesses out there, due to our very poor economy over the past 2 years.

Edited by BrokeIn2011, 04 November 2011 - 02:08 PM.

[flacorps]

There are a ton of things you need to know about how the collections industry works and you will learn that as you go along. Right now, you need to try to figure out who owns the debt. If it is still the original creditor, you are probably in a more difficult position. If it is a junk debt buyer, you may be able to negotiate 25%-33% on the dollar, or maybe even less.

Your writing looks a little like you are almost in a state of panic. They have you right where they want you. You should avoid panic, and replace it with knowledge.

Get a free credit report from one of the big 3 CRAs (you can do it online) and look to see if the debt with the original creditor is showing a zero balance and "sold or transferred" ... then come back here and let us know.

[direct]

June 2010, my business failed. I had a 40K bank line of credit I defaulted on. I got tons of collection calls from the bank until February 11. In February and March I got one collection letter each month for this loan via a non-bank collection company in Arizona. Then I never heard any more from the bank or the Arizona collection company. Then from September until this past Monday, I received about one call per week from another non-bank collection company on this loan. This time from a new collection company in California. But I never returned the calls.

Then late last week, I received my first collection letter from the California company letting me know that they are trying to collect 45K from me on this bank line of credit. So they said in their letter since they have been unable to reach me by phone, that I have to call them to try to work out a resolution, but they have forwarded my account to their legal council. Yet they provided not deadline date for me to contact them.

Yet one haunting thing about the California company's phone calls was they kept making a reference that they located me at my home address and that they see that I have the house in my name. Then on Monday, the lady that always calls and leaves a message, had a very, very happy tone in her voice as she left the message . . . as if to say, this is the last time I have to call you, because they are going to take the collection to court.

I would like to see if there is a way I can work out a resolution for this business loan, but I am not quite sure if it is a good idea to telephone them, like their letter wants me to. Yet it may be too late. It sounds like in their letter, that they can take this matter to the court and have a judgment ruled in their favor and they can start seizing assets and property, without ever serving me a summons, and as if this letter is their final communication to me and whatever legal action they take, I will not be included on it and that basically the next thing that will happen, the sheriff will be at my door with the judgment for them to instantly start seizing assets and property. Can this be done, even if it is a business loan judgment? I doubt if I can file a business bankruptcy on this, since I personal guaranteed the line of credit I borrow. Yet right now, it is doubtful that I could pay back 45K in a timely manner, to satisfy them. Yet I feel if I at least make contact with these people, it may slow things down to see if I can try to pay them back or file business bankruptcy.

I am sure it doesn't matter, but looking at the envelope, the letter, the return P.O. Box address, it looks like this collector is one of those types of businesses that somebody is running from their kitchen table. Yet they have a very impressive website, that announces "A leader in debt acquisition and debt management.", yet they do not list the physical location of the business on their website, they only list the P.O. Box.

I really would sincerely like to try to pay this loan somehow, but I have fallen on very bad times, like a great deal of small businesses out there, due to our very poor economy over the past 2 years.

Now would be the time to speak to an attorney who specializes in business law, collections, etc. Tell him the exact circumstances and the type of loan...secured, unsecured, etc. Until they file suit and serve you the papers, you can relax a bit. If in fact this is already done, the only thing not to do is to not show up in court as they can get a default judgement, then start going after assets, levying bank accounts, etc. This is where a skilled attorney can intervene. At the very least, they can buy you time and/or negotiate a payment plan. If you have very little assets or the inability to pay, it is doubtful the collection company/bank is going to waste even more money trying to get blood from a stone.

Good Luck and let us know how you make out.

Edited by direct, 04 November 2011 - 06:44 PM.

[alplouis]

June 2010, my business failed. I had a 40K bank line of credit I defaulted on. I got tons of collection calls from the bank until February 11. In February and March I got one collection letter each month for this loan via a non-bank collection company in Arizona. Then I never heard any more from the bank or the Arizona collection company. Then from September until this past Monday, I received about one call per week from another non-bank collection company on this loan. This time from a new collection company in California. But I never returned the calls.

Then late last week, I received my first collection letter from the California company letting me know that they are trying to collect 45K from me on this bank line of credit. So they said in their letter since they have been unable to reach me by phone, that I have to call them to try to work out a resolution, but they have forwarded my account to their legal council. Yet they provided not deadline date for me to contact them.

Yet one haunting thing about the California company's phone calls was they kept making a reference that they located me at my home address and that they see that I have the house in my name. Then on Monday, the lady that always calls and leaves a message, had a very, very happy tone in her voice as she left the message . . . as if to say, this is the last time I have to call you, because they are going to take the collection to court.

I would like to see if there is a way I can work out a resolution for this business loan, but I am not quite sure if it is a good idea to telephone them, like their letter wants me to. Yet it may be too late. It sounds like in their letter, that they can take this matter to the court and have a judgment ruled in their favor and they can start seizing assets and property, without ever serving me a summons, and as if this letter is their final communication to me and whatever legal action they take, I will not be included on it and that basically the next thing that will happen, the sheriff will be at my door with the judgment for them to instantly start seizing assets and property. Can this be done, even if it is a business loan judgment? I doubt if I can file a business bankruptcy on this, since I personal guaranteed the line of credit I borrow. Yet right now, it is doubtful that I could pay back 45K in a timely manner, to satisfy them. Yet I feel if I at least make contact with these people, it may slow things down to see if I can try to pay them back or file business bankruptcy.

I am sure it doesn't matter, but looking at the envelope, the letter, the return P.O. Box address, it looks like this collector is one of those types of businesses that somebody is running from their kitchen table. Yet they have a very impressive website, that announces "A leader in debt acquisition and debt management.", yet they do not list the physical location of the business on their website, they only list the P.O. Box.

I really would sincerely like to try to pay this loan somehow, but I have fallen on very bad times, like a great deal of small businesses out there, due to our very poor economy over the past 2 years.

Now would be the time to speak to an attorney who specializes in business law, collections, etc. Tell him the exact circumstances and the type of loan...secured, unsecured, etc. Until they file suit and serve you the papers, you can relax a bit. If in fact this is already done, the only thing not to do is to not show up in court as they can get a default judgement, then start going after assets, levying bank accounts, etc. This is where a skilled attorney can intervene. At the very least, they can buy you time and/or negotiate a payment plan. If you have very little assets or the inability to pay, it is doubtful the collection company/bank is going to waste even more money trying to get blood from a stone.

Good Luck and let us know how you make out.

You need find out who is the note holder. Seek out a legal counsel to negotiate some sort of settlement or payment plan arrangement.Good luck

[BrokeIn2011]

Thank you very much Flacorps, Direct, and Alplouis. I greatly appreciate you taking the time to look over my issue, and I sincerely appreciate you all being most kind to offer me your advice. Based on the wealth of great information that you 3 have provided, it will take me a few days to digest it all and then try to decide what my next move will be.

The business line of credit was issued by Wells Fargo bank and the debt is now with a company called “Investment Retrievers” in Eldorado Hills, California. The first collector from Phoenix, Arizona is a company called "Primary Financial Services". Any idea what rating do these two collection companies fall into (i.e. top tier or bottom tier collector)?
Thanks a MILLION, you 3!!! Most of all, thank you for listening.

Edited by BrokeIn2011, 07 November 2011 - 07:08 PM.