Legal Question in Credit and Debt Law in Massachusetts

How much information am I obligated to give a bank on a hardship form? for the past two years I been dealing with a company that deals with Dept. consolidation, so far everything is working fine until yesterday. I was told that they really don't deal with Banks. The loan is consider a un-secure loan (personal). I have already done a hardship 2 years ago for this company. So, if I was to deal with the creditor myself, I feel that they are going to ask for a hardship form. But of course my situation is a little better now then before, but still dealing with issues of living pay check by pay check. So I am asking, what do I need to do and what am I required to give them. Please see below with some question I am asking. Thank You in advance for all you advice. Really do appreciate it.

1) I am living with a friend who was in need of help paying the mortgage due to there own personal reasons. But at the same time, I need a place to stay due to a separation, so it kind of worked out for both parties. It gave me a place to stay with my kid. So am I obligated to report that person name to them. or just the amount I pay for rent, in which I do not claim on my taxes. Due to, it might cause them problems with there own current situation.

2) Can I just send them the last 3 months of my bank statements? Which will show what I put in and what I have in there. Can I also, black out my home address and employee information?

3) I don't feel I need to tell them my place of work or address. Or do I?

4) I have about 57% money saved up through that program. Not sure if that something I should say to them.

5) What about W2, do I need to send that. Do I need to report any bonus I do get from my current employer.

6) Do they need to know if I'm Hourly or Salary?

7) Does any of the forms need to be Notarized?

8) Am I just able to send them just my house hold Expense?

9) last question. Am I obligated to sign the any portion of the Hardship Form. Or is it enough to sent the information only?

Asked on 1/27/19, 7:27 am

2 Answers from Attorneys

Christopher S. Tolley Phillips & Angley

I would not volunteer anything about yourself or your finances. There is nothing saying you have to fill out a hardship form disclosing anything. I suggest you negotiate based on what you can pay, not what they think you can pay based on the information you give them.

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Answered on 1/28/19, 5:36 am
Christopher Vaughn-Martel Charles River Law Partners, LLC

You really don't have to provide the creditor with any personal information, unless pursuant to a valid discovery request or court order. The court may demand financial information in the setting of a payment review hearing or similar. That being said, if you want to convince somebody of your hardship for purposes of settling a debt, you should expect to provide data in support of your claim of hardship.

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Answered on 2/01/19, 4:50 pm

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