During this period, you will continue to call your creditors twice per month BUT will now begin to ask for a settlement. Use this script:
“Hi, I’m calling to discuss my account with you. I know you have been trying to reach me. If you check the notes on the account, you will see that I have been in touch on a regular basis. I’m still in a financial crisis and I can’t make any payments. I had been hoping to turn things around by now but at this point I’m more concerned with avoiding bankruptcy. The best I’ll be able to do is work out some kind of settlement with you.”
They may respond with “We don’t settle” in which case you should say that you will keep working on your situation and end the call. You will call back and try again in two weeks.
If they say “We never settle for under XX%” (high number like 70-90) or “Ok, make an offer”, then you are in business and should continue to the negotiation section.
Some quick dos and don’ts for speaking with your creditors:
- DO share loss of income stories
- DO share brief medical stories
- DON’T provide specific details – your employer, your salary, savings balances
- DON’T say you are using a program or receiving professional assistance
