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Old 11-13-2008, 09:52 AM   #110
Gnosis5
Avalon Senior Member
 
Join Date: Sep 2008
Location: Canada
Posts: 1,659
Default Re: Clear Your Debts 70% of Credit Agreements Are Unenforcable Therefore NON repayabl

Quote:
Originally Posted by zorgon View Post
Back in Canada I had occasion to help a friend through debt crisis... one case went to court...

When the Judge came in he made a little speech. He told the creditors not to expect sympathy from the court...

His reason? The creditor obviously made the loan easy to get without checking to see if the person had the ability to repay... Credit companies make it so easy to get in on purpose...

The courts do NOT favor the guy wanting his money back. This is why most companies will easily settle for 50% of the original.

Also a court will never collect accrued interest... only the initial debt will be considered...

Obviously saying "STOP BUYING ON CREDIT" comes to mind... but that is not the reality of todays market. If we stopped doing that tomorrow, the financial world would indeed crumble over night

Not paying back your debt does not hurt the company, as they can write off the entire amount from their taxes... so only the tax man gets hurt...

And I doubt many will sympathize with him

THEY set up this debt system, not us... WE are made victims not by choice...

For the few who can break away... congratulations but the rest do not know how...


Mortgage... instead of that shopping spree, put 100.00 extra a month on the principal... (or more if you can) In a short time you will not miss that 100.00 as it becomes routine...

Another idea.... (we do this) make 100 envelopes... mark them 1 to 100...
Now any extra cash you get... say a yard sale, a little side job or money you feel you can set a side... start filling the envelopes... $1,000.00 each

As soon as one is full... put it on the principal... because if you leave it around the house you will spend it

As long as you make a conscious effort you will be amazed at how your mortgage shrinks

Past Debt... I do not know if this works out side Canada or the USA... but there is a law that allows you to contact the credit bureaus and get your report Here in the US we have three main ones...

As soon as you get the lists... WRITE A PROTEST on every item on the list...

By law the credit bureau now is obligated to verify the debt. They do this by contacting the original debtor and requesting confirmation of the debt...

The debtor has 30 (maybe 60) days to respond. IF THEY DO NOT RESPOND then the credit reporting agency MUST remove it from your credit history

When we bought our house... the finance company we used did this for us. Like the OP stated 70% of them literally vanished, the rest all settled for 50%

Here is what happens...

Company A you owe 500.00 or less... after one year of no activity they sell off the account to a collection agency for a percentage of the debt.

At this point they have written you off literally on their taxes. The collection agency takes a gamble that they can harass you into paying... In most cases it works... or they would not be in business

After a year this agency sells it to another agency, again at a percentage... the lower down the food chain the nastier they get

So if you protest and the ORIGINAL debtor has washed his hands of it and already processed it in the books... it comes off you credit report...

Also if there has been no activity on a debt, after 4 years it is removed and no longer collectible. Though be aware that some can still check back 7 years... but no longer...

As they say "Time heals many wounds"

Now I am not showing you this so you can go out and do something stupid, but to show those that are in serious debt a way out. It takes diligence and effort but you don't need to pay someone to do this. A credit report is free on yourself (3 or 4 times a year I believe)

Countrywide mortgage helped us this way, and I am sure other realtors do the same for their clients.


Next installment... Once you cleaned up your past, how to build it up again...


Pardon me, but if it goes to court and the judge says you owe the money then the creditor will garnish your wages, will he not?
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