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I'm Afraid I Am Being Sued For Cc Debt

Discuss anything relating to Consumer Law

I'm Afraid I Am Being Sued For Cc Debt

Postby Quincey » Tue Nov 22, 2016 6:09 pm

I am a single parent/head of household who got herself into trouble with credit cards a few years ago and I have several charge offs between $700 and $1200 each. I hadn't heard from any creditors for 2 years until last November when I was attempting to get a $10,000 HELOC to pay for some home repairs. The bank told me I would have to pay these charged off cc debts with the HELOC, and that would have been in excess of $8000 total. It wouldn't have left me with enough money in the HELOC to make the repairs I was getting the HELOC for. After all the credit score pulls I was having by different banks, I began to get the dunning phone calls from collection agencies again in January over the cc debts from a few years back. In February I received a letter from an attorney's office that stated they were now representing Capital One and my debt with them. I didn't have the money to pay it back, and stupidly ignored them. Ysterday I came home from work to find a tag on my doorknob from the sheriff saying they were from the Court Process Unit and had a letter they had to deliver to me. I have never been in any trouble, so this frightened me terribly.  I called them and they said they couldn't tell me who the letter is from. They are returning to my house next Monday with the letter.  The only thing it could possibly be is a letter from those attorney's who contacted me in Feb. I'm not positive yet, but I believe they are going to take me to court for payment. What will happen to me there?  I have never been in court. Should I call them and try to work out a payment plan?  Will they even consider that do you think? I could't pay much per month on it. The debt is from 2004 and is for 2 capital one credit cards about $2400 total with all the late fees. What does the judge say to you in court? Do you need an attorney yourself?  I have no money for that either. This is a terrible predicament and I am very scared about it. Thank you for any advice.

ANSWER: Once you receive the summons make sure you read it thoroughly. You will need to fiole an answer to the complaint. You should fight it and request they provide verification of the debt. Deny the debt based on the fact you do not recall the debt. If they provide proof once you get to court at least dispute the amount.If they get a judgment ask the judge to set up a payment plan. Be sure and take an accurate budget with you to show them you cannot afford any large payments or it could force you into bankruptcy.

If you do not feel comfortable dealing with this you can hire an attorney or someone such as myself to negotiate the payment plan or settlement. They may still get their judgment but may consider a payment plan.

---------- FOLLOW-UP ----------

Thank you for your advice. I have received the summons and there is a court date for mediation on July 19th. Included with the summons were my original application for the cc, and copies of the last 4 bills. There also was a letter attached from the attorney who is representing Capital One. It stated that they were enclosing a Stipulation for Entry of Final Judgement Execution Withheld. The monthly payment amount was left blank and I was told I could call and ask about a payment plan. I spoke to them today and they said that my $500 cc debt with late fees/over the limit fees is now 1223.54(they aren't suing for the other debt yet I guess) The interest now due on the account adds another $398.72 to that total, and then there will be $175 court cost and $400 lawyer fee. They said if I paid it in one lump sum within 30 days it would be $1820.  They offered monthly payments in the amount of $150 a month but on the total amount, not the $1820.

What should I do?  If I go to court in July could my monthly payments be less based on my low income? Would the judge ever consider eliminating some of the over the limit fees that had more than doubled the original amount of the credit card?

Or would there be more costs involved with going to mediation? I am lost and need help.

ANSWER: Mediation is usually a good thing. A mediator can help you hash this out. My question is whether they can actually collect their money. What state are you in? Are you employed or self employed? DO you have assets or equity in your home? Some people are what is referred to as "judgment proof". Although he term is a misnomer it indicates that you are "insolvent" and have no ability to pay. Although this may not apply to you, the creditor may be limited in what they can actually do to collect the debt. Some states do not allow wage garnishments and others have exemptions from attachment. I would need more information. I may also be able to renegotiate the debt if you need help.

---------- FOLLOW-UP ----------

I live in Florida. I work as a teacher's assistant -- making 17,000 a year. I do receive child support and I do have equity in my home. I have no car loan and my car is a 1998 model. When I tried to get a HELOC last November for repairs, the bank told me I must use it to pay off the unsecured cc debt. I didn't end up taking the loan because I couldn't use it for it's intended purpose, and someone told me it is dangerous to pay unsecured debt with secured equity. I ended up qualifying for a no interest low income loan through the county I live in to make the repair to the house.  I don't have the income in the county's opinion to pay it back at this time, but it will be due if I sell the house. Would mediation cost more in court costs than they are already telling me to pay? I apologize for so may long questions but I am feeling so overwhelmed and I have no one to ask for advice. Thank you for your time.

ANSWER: You are in luck. Florida law does not allow wage garnishments. However, they can attach checking and savings accounts. You can set your own terms. I would negotiate for a lesser amount and make minimal payments. I may be able to help. Let me know if you need further assistance.

---------- FOLLOW-UP ----------

Will they attach a checking account that has child support automatically deposited to it? What are the chances they might offer monthly payments instead of attaching a bank account? I live paycheck to paycheck basically, falling behind on monthly bills often whenever my quarterly homeowner's insurance becomes due.  The cost of homeowner's ins. is really getting a lot of Floridians in financial trouble. You mention that you may be able to help.  What can you do? How much do you charge for helping beyond answering these questions so graciously? Thank  you for your advice.
Quincey
 
Posts: 50
Joined: Wed Jan 01, 2014 8:26 am

I'm Afraid I Am Being Sued For Cc Debt

Postby Cecilio » Thu Nov 24, 2016 12:10 pm

I am a negotiator. This is what I do at FInancial Emergency, Inc. Check out my web site at www.financialemergency.com. Virtually any type of debt is negotiable if you know what to ask for and how to ask for it. Many times the collection attorney will attach anything with your name attached other than your paycheck unless you make over $500 week. It is best to be proactive and make a proposal to them before they force the issue. Either you make the proposal or allow me to do it for you. You may call me at 877 270 8204 if need direct assistance.
Cecilio
 
Posts: 48
Joined: Mon Jan 06, 2014 12:00 pm

I'm Afraid I Am Being Sued For Cc Debt

Postby lyulf » Wed Nov 30, 2016 4:04 pm

I am a single parent/head of household who got herself into trouble with credit cards a few years ago and I have several charge offs between $700 and $1200 each. I hadn't heard from any creditors for 2 years until last November when I was attempting to get a $10,000 HELOC to pay for some home repairs. The bank told me I would have to pay these charged off cc debts with the HELOC, and that would have been in excess of $8000 total. It wouldn't have left me with enough money in the HELOC to make the repairs I was getting the HELOC for. After all the credit score pulls I was having by different banks, I began to get the dunning phone calls from collection agencies again in January over the cc debts from a few years back. In February I received a letter from an attorney's office that stated they were now representing Capital One and my debt with them. I didn't have the money to pay it back, and stupidly ignored them. Ysterday I came home from work to find a tag on my doorknob from the sheriff saying they were from the Court Process Unit and had a letter they had to deliver to me. I have never been in any trouble, so this frightened me terribly.  I called them and they said they couldn't tell me who the letter is from. They are returning to my house next Monday with the letter.  The only thing it could possibly be is a letter from those attorney's who contacted me in Feb. I'm not positive yet, but I believe they are going to take me to court for payment. What will happen to me there?  I have never been in court. Should I call them and try to work out a payment plan?  Will they even consider that do you think? I could't pay much per month on it. The debt is from 2004 and is for 2 capital one credit cards about $2400 total with all the late fees. What does the judge say to you in court? Do you need an attorney yourself?  I have no money for that either. This is a terrible predicament and I am very scared about it. Thank you for any advice.

ANSWER: Once you receive the summons make sure you read it thoroughly. You will need to fiole an answer to the complaint. You should fight it and request they provide verification of the debt. Deny the debt based on the fact you do not recall the debt. If they provide proof once you get to court at least dispute the amount.If they get a judgment ask the judge to set up a payment plan. Be sure and take an accurate budget with you to show them you cannot afford any large payments or it could force you into bankruptcy.

If you do not feel comfortable dealing with this you can hire an attorney or someone such as myself to negotiate the payment plan or settlement. They may still get their judgment but may consider a payment plan.

---------- FOLLOW-UP ----------

Thank you for your advice. I have received the summons and there is a court date for mediation on July 19th. Included with the summons were my original application for the cc, and copies of the last 4 bills. There also was a letter attached from the attorney who is representing Capital One. It stated that they were enclosing a Stipulation for Entry of Final Judgement Execution Withheld. The monthly payment amount was left blank and I was told I could call and ask about a payment plan. I spoke to them today and they said that my $500 cc debt with late fees/over the limit fees is now 1223.54(they aren't suing for the other debt yet I guess) The interest now due on the account adds another $398.72 to that total, and then there will be $175 court cost and $400 lawyer fee. They said if I paid it in one lump sum within 30 days it would be $1820.  They offered monthly payments in the amount of $150 a month but on the total amount, not the $1820.

What should I do?  If I go to court in July could my monthly payments be less based on my low income? Would the judge ever consider eliminating some of the over the limit fees that had more than doubled the original amount of the credit card?

Or would there be more costs involved with going to mediation? I am lost and need help.

ANSWER: Mediation is usually a good thing. A mediator can help you hash this out. My question is whether they can actually collect their money. What state are you in? Are you employed or self employed? DO you have assets or equity in your home? Some people are what is referred to as "judgment proof". Although he term is a misnomer it indicates that you are "insolvent" and have no ability to pay. Although this may not apply to you, the creditor may be limited in what they can actually do to collect the debt. Some states do not allow wage garnishments and others have exemptions from attachment. I would need more information. I may also be able to renegotiate the debt if you need help.

---------- FOLLOW-UP ----------

I live in Florida. I work as a teacher's assistant -- making 17,000 a year. I do receive child support and I do have equity in my home. I have no car loan and my car is a 1998 model. When I tried to get a HELOC last November for repairs, the bank told me I must use it to pay off the unsecured cc debt. I didn't end up taking the loan because I couldn't use it for it's intended purpose, and someone told me it is dangerous to pay unsecured debt with secured equity. I ended up qualifying for a no interest low income loan through the county I live in to make the repair to the house.  I don't have the income in the county's opinion to pay it back at this time, but it will be due if I sell the house. Would mediation cost more in court costs than they are already telling me to pay? I apologize for so may long questions but I am feeling so overwhelmed and I have no one to ask for advice. Thank you for your time.

ANSWER: You are in luck. Florida law does not allow wage garnishments. However, they can attach checking and savings accounts. You can set your own terms. I would negotiate for a lesser amount and make minimal payments. I may be able to help. Let me know if you need further assistance.

---------- FOLLOW-UP ----------

Will they attach a checking account that has child support automatically deposited to it? What are the chances they might offer monthly payments instead of attaching a bank account? I live paycheck to paycheck basically, falling behind on monthly bills often whenever my quarterly homeowner's insurance becomes due.  The cost of homeowner's ins. is really getting a lot of Floridians in financial trouble. You mention that you may be able to help.  What can you do? How much do you charge for helping beyond answering these questions so graciously? Thank  you for your advice.
lyulf
 
Posts: 55
Joined: Sat Feb 16, 2013 9:08 pm


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