How Serious is Bankruptcy Threat from Collections?

[serenatomlin505]

@dccox55 You’re angry at the symptom and not the disease was my point… you can’t have one without the other

 

[pbutterfly]

@dccox55 It’s actually exactly that simple

 

[pbutterfly]

@dccox55 It’s actually exactly that simple

 

[cscotte]

@serenatomlin505 There are two parties to any credit agreement. Both the creditor and borrower has equal responsibility to ensure the ability for repayment.

All creditors know this, and has the risk of non payment build into their profit margin. When debt goes to collections, it has already been written off by the initial creditor and the debt has been sold for pennies on the dollar.

The collection industries works on intimidation and harassment to get paid. So yes, they are absolutely bottom feeders of society that contributes absolutely nothing!

 

[resjudicata]

@dccox55 years ago when my uncle opened up a business, we asked the phone company for a phone number that was reasonably easy to remember.

the phone number was recycled, and the previous owner had collections agencies after them.

they started calling us multiple times a month, demanding very rudely to speak to X person, we would tell them there's no one by that name here, and after a while we clued in that this wasn't someone asking for a non-existent employee, it was someone trying to call a residence.

we told them "we're a business, no one here by that name" and hang up, after about the 5th time I called them. and explained to them that "you guys keep calling us, we know who you are, we've been patient with you, but Im telling you, the phone number is recycled, we're a business, and X isn't at this number, sorry" and they would just tell me to go fuck myself , to drop the act, and to put X on the phone. This happened at least twice, we eventually went to the Lawyers. We were a business in Eastern Canada and it was a collections agency based out of Western Canada that we traced the number to, We had a Cease and desist sent over and they even violated that

eventually it did stop however. I think they gave up. or perhaps something more serious happened, I never did hear the end to the story because the calls just stopped coming, and I eventually stopped working there

 

[futchy]

@resjudicata Answer the call and mute instantly. Automated call machines will hang up after the dead air and never connect the call with the agent. Eventually your number will be seen as invalid.

 

[paulb1]

@resjudicata Would it be possible to call them to ask why they stopped calling? Do you still remember the number?

 

[resjudicata]

@paulb1 Cant remember, pretty sure I review bombed them on google too but I can't find it in my list of reviews.

 

[creek]

@dccox55 And people that say that are usually the one they're after, stay irresponsible.

 

[mrmustardseed]

@dccox55 Or people who can't make good on their agreements.... yeah shame on the people trying to rectify someone else's bad choices. Idk. Seems backwards to me.

 

[resjudicata]

@dccox55 Completely agree

 

[resjudicata]

@john3and30 Because it would be laughed out of court actually would even get there as the statue of limitations has passed

 

[geddie]

@john3and30 So if a company owes me for severance they didn’t pay and they’ve been given a judgement form the labour board that they owe, the collections agency can’t do anything about it?

 

[john3and30]

@geddie Thats a bit different since you already have a judgement

The collection agency doesn’t have to pay a lawyer to obtain one; they just have to enforce it

 

[geddie]

@john3and30 Oh good.

 

[harmony77]

@aaronmark That's not how that works. A person who is unable to pay their debts can be sued into bankruptcy, but otherwise you need to self declare. If the debt is that old and no payments have been made, it may be uncorrectable. I think federally it is 10 years with no payment but provinces may have their own limit. But it falls off your credit report after 7 years. See https://debtsolutions.bdo.ca/what-is-the-statute-of-limitations-on-debt-in-canada/ for more information.

 

[resjudicata]

@harmony77 In British Columbia the statue of limitations is two years. Collection agencies try restarting the two year rule by (1) Having the debtor acknowledge the debt. (2) Have the debtor make any payment on the debt.

I’d really like to know how buying and selling debt actually works. The fact that debts are bundled and auctioned off or bought and resold many times is hard to comprehend.

 

[harmony77]

@resjudicata Most of it at some point is just zombie debt. Stuff they don't really think they can collect, but anyone who pays them makes them profitable.

Even good debt is up for discussion. I negotiated a discount on my father's estate debt... I knew that 100% of the money was there, but they didn't!

 

[resjudicata]

@harmony77 This here. The debt is bought and sold several times over the years decades.

 

[resjudicata]

@harmony77 Statute of limitations is very sort an unless it’s for a massive mount the likelihood of you being sued is almost nil. Court costs money