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I'm so scared:(

4K views 18 replies 11 participants last post by  ladykemma2 
#1 ·
Hi everyone, this is my first post here, although I was lurking for a long time:)
I don't know why do I write this down but I really feel the need. I have many debts because of poor choices I've made and now I'm determined to change, I already changed many things in my life in order to get back on my feet. It seems it's too late now:(
I just got a letter from a debt collection agency about a debt I didn't even know about (basically my bank "forgot" to tell me about it).

I'm scared, very scared. I was trying to live frugally and pay back my debts slowly but this is too much. It's not a huge amount but it's more than enough for me right now. I moved to a different country so my previous landlord only gave the letter to me now and they wrote it in October 2010. Basically they threaten with lawsuit if I don't pay and I didn't pay as I received the letter late but even if I received it in time, I couldn't have payed it and I certainly can't pay it now. I'm more than terrified about this whole thing. My bf says they just want to scare me into paying them but I don't know, I kind of believe them. Somebody please tell me it's not a big deal or it is a big deal and I have to pay up, anything, I think I need to hear other people's opinion. I hope I wrote it down clear enough, the important things are: unexpected old debt, old letter, I moved, a small amount of debt, threatening with court...that's it I guess:) Someone told me they will come after me and find out who I am and take my stuff, I'm more than terrified:(
 
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#2 ·
What country did you move from and how large is the debt?

I would start by looking up laws regarding debts. In the U.S., we have laws to stop creditors and collection agencies from harassing you for debt repayment.
I also would give some thought to calling the agency and negotiating a payment plan, rather that paying all at once.
 
#3 ·
I don't know anything about debt collection practices in Hungary, but I would guess their language in the letter is just intimidating on the off chance it WILL scare you into paying them, by whatever method you have at your disposal. I would think you could just call them (use a pay phone so they can't have your number) and find out what you can work out with them, even if it's just small payments or something. You sound really scared and freaked out, but try to remember that it's only money and not your whole life. In time, it will seem not so bad. You have my compassion. I'll be looking forward to your updates.
 
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#4 · (Edited)
Thank you for the advice, I AM really freaked out but I try to take it easy. I moved to Transylvania but I still live in Hungary too, I travel a lot because of my job (I'm quitting in a few days). Maybe I'll try to call them but as I'm in the middle of moving and changing jobs, I would like to wait til August. Do you think it can wait til then or should I act right now...? I don't know anything about how things work, I've never been in a similar situation before. I don't want to do anything stupid:(
The debt is really small, something like close to 1000 dollars but it's more than enough for me right now, I hardly can afford to buy food so it's really bad news. This can be the last straw. And they managed to really scare me with the lawsuit part too.
 
#5 ·
So ask yourself this: For the folks you owe the debt to.. Is $1000 dollars worth coming to get "your stuff"? Think of the travel and costs it would take to recoup that money. They are trying to scare you, your BF is correct. Besides, wouldn't they have come by now considering the letter is 9 months old?

So, you can call if you want and make arrangements, but beware, they will likely try to push you and get you to pay way more than you can truly afford. Remember, you still have to eat.
Or, wait a month and then call when you are more settled.

Whenever you do call, or if you do, do NOT call without a plan.
 
#6 ·
My bf says they just want to scare me into paying them but I don't know, I kind of believe them. ...... Someone told me they will come after me and find out who I am and take my stuff, I'm more than terrified:(
they can't take your stuff, except your car or house, if collateral on a secured loan. we don't have debtors prison. it's 1000 bucks. the most they can do is take you to court. and they've probably written it off by now.

edit: another thing to consider is do you even recognize that debt. because i get letters on occasions demanding payment for debts that are not me and that I don't owe. could they be fishing.... ?
 
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#7 ·
Oh my...So to sum it up I allowed them to scare me with a piece of paper with words written on it and I allowed the other person whom I asked advice from to scare me with her advice...great. She said they can take away everything that belongs to me, my laptop, my phone, etc.

I'm a bit embarassed now if I watch it from this point of view. That's exactly what I needed, some perspective! I'm too involved in my own problems to see clearly and I have so much going on right now...Besides, I don't know how things work so I completely believed it that they can take away my belongings.

You're great and thank you!:) You put it in perspective, so I'm just embarassed now that I was so scared...

And yes, they might well be trying something on, I don't know about this debt and I have no idea how I got it in the first place.
 
#8 ·
Keep in mind this person is not in the United States, so things may be very different, there. It would also depend on the laws where the debt originated.

Typing "hungary debt collection" and a few other qualifiers gave me the following site:

Debt collection practices - The Office of Fair Trading

It might be helpful. If not, you can try various other searches, maybe something will turn up a government or consumer sponsored site relating to debt collection practices.

As a guess, and only because I have a small idea of how things work here, I wouldn't worry too much about the collections letter. If it is that old, and you haven't heard anything else by now, I would imagine they were bluffing. They sent a letter to a wrong address. What would have happened if your old landlord didn't forward that letter?
 
#9 ·
is this debt from when you were in the US? or europe?
 
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#10 ·
If the debt is yours I would call and let them know that you are aware of the debt and make a plan for repayment, unless you plan to skip out on your debt.(If you plan to skip out, then why would it upset you if they raised hell?)Set a small amount that you know you can pay every month.Do not be swayed to pay more than you can each month.Faithfully pay every month.You provide a service to your employer. I am sure you would be upset if they did not pay you for that service and told you that they had no money. You would seek to be paid.Your creditor is no different. Be upfront. It shows that you have a commitment to repay your debt.
 
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#13 ·
You need to know the laws in the country that governs this debt. It would also be a good idea to know the law in the country where you now live. In the USA there are federal rules governing fair debt collection but each state has its own laws governing things like garnishments. So you have to know the law that governs where you created the debt.

If you contact the creditor to offer to make payments, I suggest if you are willing to pay $100 per month you begin by offering $50. They likely will counter with $100 so then you will be paying what you intended. Leave room to negotiate.
 
#14 ·
Find out if the debt is yours. It concerns me that you didn't even have the "oh, crap, I forgot about this one. " moment. It seems to me that you are still wondering where it came from.
They may be maliciously mailing out letters or it might be a simple as someone with the same name or even someone using your name. Still, in any of those cases, you don't need to pay it.
 
#15 ·
I agree with the others: make sure you know the law of the country where this debt occurred.

Perhaps there are some similarities with another european country...

In the Netherlands one has to be presented with a summon(s?) that needs to be presented to you by a special collection agency. They may do this in person or put a letter in the letter box of your current address. If your address of residence is unknown it needs to be published in one of the big newspapers. The summons then needs to be sent to court and there they will treat the case. If you do not respond to the summons the verdict will follow in a few weeks and it's likely that the one who owes the debt will be held accountable. It can then be redirected to a collection agency who can indeed block your bank account, but they usually are quite reasonable... as long as you keep to the agreement... don't miss a payment.

Step 1: check the law of the country where the debt is owed. Step 2: check if the rules have been followed. Perhaps this is just the "scare them" letter. In the Netherlands the first rule is: the one who demands the money needs to provide proof.
Step 3: if it goes to court, keep communicating. Is there something as subsidized legal help, perhaps you can hire a lawyer?
 
#16 ·
Thank you so much everyone for all the great advice, this was so very helpful!
I think I will leave it right now and will get back to the matter when I'm more settled down. Because yes, I still have to eat so I couldn't pay them right now anyway.

Thank you again for the support and advice! :grouphug2
 
#18 ·
You can try to find out more about the debt by going on line and searching for the debt collection agency.

I once received a letter saying I owed x-amount. When I called and asked what date the debt was from they were able to give me a date. Luckily the bank was able to go back to in time and stated that the statue of limitations was up. Personally I did not even remember writing the check. So I called the collection agency back and stated I did not remember the debt and that my bank told me I was not responsible for a check that old and to tell them to stop calling me.

For all you know it could be a scam.

Once you are ready you can call them to find out what is going on. If you do end up paying on the debt make sure to keep copies of all payments made.
 
#19 ·
did she come back?
 
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