Debt Settlement almost paid off

August 22nd, 2009 by Questions

In 2004 I signed papers with NCCC on a debt management plan for a few months over 5 years and I have only 3 payments left and am so `happy.` My case worker negotiated with my creditor Scotiabank and we all agreed in order to pay full amount of ove $18,71.39 I needed extened time to do so without accumulating interest and 0 % was proposal and now they might go back on their word I hear and charge me interest after I have only 3 months left. I cannot pay anymore as with the recession I am now having trouble to finally get these 3 payments paid. Can the Scotiabank do this go back on their word but zero interest with me all the time knowing I was finally coming to an end with this debt. It is five yrs and 3 months….

Posted from: Nova Scotia


One Response to “Debt Settlement almost paid off”

, A licensed trustee said:

You won’t like this answer, but from the bank’s perspective, you broke your word first. As soon as you stopped paying you broke the deal and gave them the right to re-instate the interest charges.

The same thing happens to people that don’t make all of their payments in a proposal, or people that fail to complete all the duties of their bankruptcy. If you don’t live up to your side of the deal then you shouldn’t expect your creditors to have to stick to their half of the deal either…

Your case is extreme in that you are almost done (3 months to go) – all I can suggest is that you find some way to get those final three payments to complete your deal immediately, otherwise the bank is well within their rights to charge you interest. Sorry.

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