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 Dear
Bankruptcy Adviser,
How can I tell a collection agency that I do not have the money to pay on the debt?
-- Kim
 Dear
Kim,
When someone is trying to collect money from you -- money that you
don't have -- it is easy to get frustrated. Collections agents can
be persistent, and many of them will say illegal things to scare
you into paying the debt. And at the same time you're having these
adversarial conversations, you may be beating yourself up internally
for being unable to pay this debt in the first place.
There's no need for that, however. Remember that you
have done nothing wrong except fail to pay a debt. If you had the
money, you would pay it. In the future, you will be able to pay
-- but right now, you can't. It's something that happens to the
best of us. For example, a few years back, Donald Trump declared
bankruptcy because he couldn't pay some bills. I bet he was receiving
calls from collections agents, and I also bet that he didn't let
anyone push him around. You shouldn't either.
The key to handling collections agents is to be strong
and repetitive. Strength comes from accountability. Therefore, I
strongly suggest that you buy a phone recording device, Radio Shack
makes a model for under $30. Make sure to tell the agent that you
are recording the call and ask for his or her consent. If he refuses
or protests, ask him why he doesn't want the call to be recorded:
Does he plan to say anything illegal? Will he threaten to send a
police officer to your house or to throw you in jail? Of course,
the police aren't coming to your house -- the collections agent
doesn't have that kind of authority. As well, you can't go to jail
for debt. The point is that the stronger you are in handling the
call, the more likely it is that you will get treated fairly.
Continue to get full accountability. Make sure you
get the callers' full names, the companies they are working for,
and the origin of the debt. Let them know that you're taking notes
if you aren't recording the call.
Then, use a rehearsed phrase repeatedly in answer
to their questions. You see, the collector only has one real question:
When are you going to pay? Thus, you only need one real answer.
Tell them when you are going to be able to pay, or simply be firm
and say that you cannot. Repeat this phrase as often as necessary
-- the collections agent should understand quickly that you are
not to be treated rudely and that there's nothing to be gained by
harassing you.
Justin Harelik is a practicing bankruptcy lawyer
in the Los Angeles office of Price Law Group. To ask a question
of the Bankruptcy Adviser go to the "Ask
the Experts" page, and select "bankruptcy" as
the topic.
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