Negotiate a Debt Settlement
Help with a credit card suit?
I was just served lawsuit papers from the court clerk. They are not requiring me to appear, just to file a written response within 10 days. What am I supposed to write? I obviously don't have the money, or I would have paid. Is there a chance I can still negotiate a settlement? The debt is about $6700 from Discover. It sucks because I am not an irresponsible person... my husband and I just had some major financial problems for about 2 years that we are still recovering from. I don't think they are even legally allowed to garnish wages in Texas... but can they if the debt was incurred in Ohio? Also, I don't work (I stay home with the kids) Can they garnish my husband's pay? What is most likely to happen? So if they are expecting me to file a defense, and I don't have one, do I just do nothing and wait for them to make me appear?
Public Comments
- Call Discover and make some sort of settlement or payment arrangement. When you write the response, let them know that you've done this, and include all the details. If you still have to show up in court, this should stand because you've worked it out with Discover (probably will be their attorney at this point). If you agree to a payment arrangement and you default, usually they will garnish wages at that point. You don't want that, because it is usually 25% of EACH paycheck, 10% if your husband files taxes as head of household. You would be better off to pay just what you arranged with Discover! I hope that you can just do a settlement, though, like you said. Do some research on how it works in your state - this is just how I've seen it work in mine. Maybe call the court clerk and ask what usually happens in these cases. Hope this helps. Good luck to you!
- You're being asked to file a defense. You need to say why the debt isn't yours. I don't think "I can't afford to pay" qualifies as a defense, all that will really work is "The debt isn't mine because...." If you don't have a defense, they will receive judgment against you.
- Call an attorney that specializes in consumer affairs. There are some things that are correct and some that are incorrect with the other answers and unless any of them can claim they are legally allowed to practice law in the State of Texas you should seek the advice of an attorney. It is true that they can garnish your wages and can get a judegement against you but they have to take you to court first to get a judgement and get a judgement before they can garnish wages. If the account is only in your name not joint with your husband they won't garnish your wages but can seize your bank accounts if they know where you bank. Most of the time CC companies or colleciton agencys file suit and hope you think you can't afford an attorney and just not show up. If that happens they get what's called a default judgement so you def want to show up for court and you def want to answer the lawsuit papers. But get an attorney and work out payment arrangments. If you are below a certain income they have programs to help you out such as legal aid and you should qualify since you technically have no income.
- you know what - i have been reading a lot about this stuff in the last 3 weeks. and from what i have been hearing, these collection agencies are ruthless - they lie, cheat and steal. the bottom line is.... its up to them to prove this is your debt or they loose thier case. and so what if they do prove it! then you go to plan B. make sure you take all your income verification and bills. and let the judge know you can only afford X amount of money a month to pay off. if your worried they will freeze your bank account - close it. bankrupcy is an option as well, if your poor - legal aid will help you. yes it goes on your credit for many years but if your not going to be buying a large purchase any time soon you might want to consider it. my friend filed bankruptcy and they were able to buy a house down the road. my neighbor just filed bankrupcy last summer and she already has a new credit card. (go figure) the one place with a lot of info is www.creditinfocenter.com - read - you will see what i'm talking about! good luck! don't let them scare you!
