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Linda

I have made my mind up to drop out of my debt
company if this suit goes to court. They instructed
me to answer the summons, and they will work
on negotiating a monthly payment for me.
They can not guarantee anything, just will do their
best. That is not good enough for me when I am
paying them monthly, so if this goes to court, I WILL
DROP out, save my own money and try to settle the
rest of the card by myself.

Am I crazy for thinking I can? is it really that
simple? Should I work on the big ones, the ones
causing the most commotion? or the little ones first?

Posted: Sun Jun 17, 2007 2:01 am Subject:

I assume you are enrolled in a debt settlement program. Have you researched on their business?

You may call your creditors and put the proposals. If you make them work on your terms, you don't need any outside help.

Posted: Sun Jun 17, 2007 6:41 am Subject:

Linda,

Have they come to any resolution with the creditor involved in the suit? Do you have enough money to settle the account before it goes to court? I know my debt settlement company warned me about being sued before I entered into the program. I had enough money to settle with one that was threatening law suit. I felt like I paid their enormous fees and nothing was being done. The credit counselor turned it around on me so I decided to leave the program. I was able to settle with mine on my own. Good luck in whatever you chose to do!

Linda · Posted: Sun Jun 17, 2007 6:57 am Subject:

I was served on the 11th and it is the 17th. I have to answer, but there is still time for them to negotiate. IF they don't negotiate and prevent this from going to court for me, I will drop out of the program and try to do them on my own. No, I don't have money to settle, just 600+ in my reserves and that won't appease them for a 5,000.00 account.

Should they get a judgement, would it be to late to stop it through bankruptcy?

My biggest all time fear is that I will walk into court room and they will grant the judgement allowing them to garnish our check and take our bank acct.
I am willing to work out something before or during court without it going to that. We are struggling, surely the Judge will not grant them right to take our checks and bank acct.

We don't have any savings period, it is just that I get paid once a month and as soon as it hits the bank, it is gone the next couple of days for our bills. How will we leave if they freeze our acct that we live on?

Posted: Sun Jun 17, 2007 7:47 am Subject:

Linda,

I don't think they can garnish and freeze your bank accounts. I think they might be willing to work with you before the court date. The first step is to answer the citation and go from there.

Posted: Sun Jun 17, 2007 7:49 am Subject:

Linda,

I don't think they can garnish and freeze your bank accounts. I think they might be willing to work with you before the court date. The first step is to answer the citation and go from there.

Posted: Sun Jun 17, 2007 7:52 am Subject:

If you do decide to file bankruptcy there will be a stay placed on the judgement until either you are discharged through a chapter 7 or it will remain on a stay until you complete a chapter 13 and once you successfully complete the 13, the judgement will be discharged. Have you already filed a bankruptcy? If so, I think you have so many days to add to it before the cut off.

Posted: Sun Jun 17, 2007 8:10 am Subject:

Would it disappear off her credit report? Wow, how did I post twice?

Linda · Posted: Mon Jun 18, 2007 8:03 am Subject:

I really don't want to file bankruptcy. I am hoping we settle either before or at worst at court.
I guess I will go and file today my answer to get the shit over with. I am praying for a call from CNI by Friday with payment arrangements.

Guest · Posted: Mon Jun 18, 2007 10:23 am Subject:

I am surprised that they are suing for 5,000. Are you a homeowner? Do you have any other major assets? What is your monthly take home pay? Are your cars paid for or do you owe money on them? These are questions that a judge and that company will look at and want answered. A judge will not leave you flat broke without money to pay for your monthly expenses including monies owed to other unsecured debt. The problem with trying to settle is you can not settle if you have no money to settle with. Typically you can settle all the way up to the point of the court date but I doubt the company will take less than 50% of the balance after all the fees they charged are subtracted out. I am not sure if the balance of 5,000 that you gave was the amount before or after late fees and over limit fees but if it is I would shoot for a 2500 settlement if and only if you can come up with the 2500. I have heard of companies taking less though. One settlement I read about paid 1000 on a 5000 loan. Do not negotiate a settlement if you can not pay it. If you have 650 tell them that are all you have and if they want to settle you will pay that amount. If they do settle make sure you get it in writing and it should state that the account is settled in full. Do not make a partial payment that only brings you current. You should argue out all fees charge to date and argue that you should not be liable for any legal fees as well. If the company sues then their next step will probably be to go for wage garnishment. Those terms will be stipulated by the judge. The can not just go in and confiscate your check every time you deposit it into your checking account. They can not walk into your house and take your furniture or you cars. Again these terms will be based on your current income situation and will all be set forth by the judge. My guess is they won’t settle for 650 and will take you to court and get a judgment. They will then try to act on the judgment by garnishing if they court allows it.

Being bankrupt depends on what else you owe. If you only owe 5000 unsecured then you are not bankrupt. If you owe 500,000 unsecured then you probably are bankrupt. You can not bankrupt secured debt like houses and cars. You can not bankrupt student loans and tax debt. You can possibly bankrupt debt like hospital bills and signature loans on furniture. You can bankrupt unsecured debt like credit cards. Bankruptcy laws have change recently and require more hoops to be jumped through to file. You will want to consult a bankruptcy attorney if you take those steps but I am not in favor of filing bankruptcy if it can be avoided. Once filed it remains with your for life even though it falls off your credit report. Many applications ask if you have ever filed bankruptcy which means in 20 years you still have to say you filed or you would be lying on the application.

Posted: Mon Jun 18, 2007 10:35 am Subject:

Sorry that was my post.

Linda · Posted: Mon Jun 18, 2007 3:42 pm Subject:

Thank you so much for the informative post. This was very helpful. Actually, I have no money saved up to settle, only the 600.00. My credit card company thinks they will make arrangements with them, but they can not promise me that at this time. If it goes on to court, are you telling me the Judge will not allow them to leave us with nothing to live on? That is what I am terrified of the most, that our check will be garnished and/or or bank acct frozen.

Like I said before, I live paycheck to pay check. We have vehicle payment, house payment, debt settlment payment on other cards, utilities, phonebill, we do have satellite--should I feel guilty for having satellite? Food, medications we take monthly. Gas for work is expensive. I have approx 25.00 spare to my name after all bills, living expenses, food and gas is paid for.

I am praying for the best here and again, I thank you for your time in posting me.

Posted: Mon Jun 18, 2007 3:46 pm Subject:

If they do garnish your check, the most they can take is usually 25% . . . . And that depends on the state. Some state don't allow garnishments for unsecured debts at all. They would also have to get a court order to seize your bank account. Most companies will garnish your check first, they usually only go after a bank account if no other options are available.

Posted: Mon Jun 18, 2007 4:26 pm Subject:

My advice to you would be to contact an attorney. Even if you cannot afford one to go to court with, some don't charge for an initial consult. Or go to naca.net to find a lawyer that specializes in debt collection in your area. Goudah is correct that they can only garnish 25 % but even this can be a big amount depending on your gross pay. And it does vary state by state.

Posted: Mon Jun 18, 2007 4:29 pm Subject:

Yup, 25% is all they can garnish, I think there is a formula they use for your net pay, they deduct that and then garnish 25% of that, I could be wrong, but I think that is almost correct, at least I know they can't garnish more than 25%. It could not hurt to get a free consult from an attorney in your area.

Linda · Posted: Tue Jun 19, 2007 5:35 am Subject:

I spoke with the court clerk yesterday when I filed my answer myself and don't plan on having an attorney with us if it goes to court. I consulted over phone with local attorneys and they all told me that a Judge will favor me and respect the fact that I am in a debt settlement company. They told me it was not likely that they will get a judgment to garnish unless i default in payment arrangements.

So, I consulted with local attorneys (because I wanted more than one opinion). Why am I still worried?

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