NASA FCU Charge off Account

[BKinSM]

Hi everyone,

I really need your help....

 

Early 2012, I stop paying all my debts (including my mortgage) in order for me to be able to get house modification.

I finally did get my modification mid 2012 for my 1st mortgage and full forgiveness on my 2nd loan.

 

This is such a relief for my family since we have been struggling since 2009.

 

And, slowly I am tackling my junior debts.

Since 2012,

I am tackling to pay off my petalco FCU debts. It was 60 days late and now curent.

I paid off my line of credit with NASA FCU from 3k

and I paid down my Charge off NASA FCU Credit cards from close to 15k to 9.2k.

 

There is a paperwork mixed up in NASA where they should have sent my papers to outside collection agency since last year but they didnt.

So, this year, I contacted them again asking if there is a way to work this debt out.

In beginning, they kept saying that It is outside their hand because they have sent it out..but the fact it isnt.

So, In march, I asked if I can settle them for $4k. They denied, they asked for more than that.

 

So, without waiting again, they finally sent out the acct to outside collection agency, RA ROGERS.

 

I received a letter today saying that I owed $16093.95. Maybe it is true with Fees and interest but I dont have the $$ to pay off that much.

Principal that I owed is $9200 since i have been paying it down since Sept 2012 (and from my CC statements)

 

I am worried and scared and not sure what to do.

 

Can anyone point me to the right direction?

 

What should I do with this letter that I receive with the collection agency?

 

 

I tried to contact NASA again, and tried to settle for $5500 and they turned me to talk to the outside agency.

 

 

 

 

[BKinSM]

duplicate

Edited April 18, 2013 by BKinSM

[BKinSM]

can anyone guide me on what i should do with this?

[BKinSM]

anyone here that can give input?

I talked to the collection agency...

been offering 5.5k, now 7.36k that was offered to me prior sending it out to the collection agency.

 

but now they wont budge, asking for 7.9k.

 

I am hard time getting 7.36k, but i think a friend could lend me some money.

I am at the point dont care anymore, but they kept saying that it will go to judgement and etc. and they balance will be alot higher.

 

can anyone tell me what will happen if i got sued?

how much money they can take away from my paycheck/garnish?

50 - 60 % of my paycheck already goes to mortgage.

10 - 15% more for bills (phone, electric, pge and garbage and awater)

rest goes to food, gas and paying my current debts...

 

can anyone elaborate?

[BKinSM]

i am worried.....pleaase anyone!

[Clydesmom]

I see that you haven't had any responses and one reason maybe that there really isn't any leverage that you have in this one. The reality is you defaulted less than a year ago and that means in any state the SOL is still in play and they can sue you for this debt.

 

You are offering to settle with an OC for less than half of the debt which is nearly impossible when they know they can sue you and garnish for the entire amount, attorney fees, court costs, and post judgment interest. Not to mention get a lien on your house.

 

If you are sued and they get a judgment they can garnish bank accounts, wages if your state allow it can be garnished, and a lien against your home. In some states a judgment is good for 20 years and can be renewed which means as long as the creditor renews it every seven years it can also stay on your credit report. If your state allows wage garnishment they can take up to 25% of each paycheck.

 

Post judgment interest is as high as 12% in some states which means on a large debt that a 25% wage garnishment for an average earner would not even touch the accruing interest let alone the principal judgment amount.

 

7.9k on a 16k debt is about half and probably the best you are going to do on an amount that high. Beyond that I don't see any other legal remedies.

Edited May 12, 2013 by Clydesmom

[KingHeart]

i feel ur pain, any update?