Help being sued

How much is the balance? Do you know if you are being summoned to a small claims court?

The first thing you want to do is to contact the creditor and ask for proof of the debt. Since they are suing you, they are obligated to provide that proof to you. Now, one of two scenarios will happen. They will either cooperate and be friendly, or they will be jerks. If they are open and friendly, open a dialogue with them to see if they will enter into a settlement agreement with you to pay the amount off. Now, mention I said settlement. Find out what the whole amount owing is and how much the original debt was. Then, start negotiating with what you can do. Don't be surprised if they settle for the amount of the original debt. Try to get things worked out.

On the other hand, if they are jerks, don't expect them to be cooperative and DO show up for the court hearing. At least you can tell the judge that you tried to work with them but they were jerks.

Based on the assumption that this is a small claims court hearing, here's my advice on that. Most small claims courts will allow you to mediate the matter. Typically, small claims courts have mediators in the hearing room who are ready to help you to mediate with the creditor. Their service is free. I would highly recommend that you take mediation because you don't get a judgment and you don't have to pay court costs on top of the debt.

If you do mediate and reach an agreement with the creditor, make sure you get it in writing. Very often an mediator will write up a simple contract there at the courthouse and each party signs it. Then, whatever you do, make sure you do not default on the agreement or you will have wasted your time and effort to get things worked out, not to mention a judgment against you which could result in garnishment. Keep in mind that when you mediate, you are there to work out a mutual agreement. Don't feel pressured to cave in to what they want. You have to know that you can without a doubt be able to make the payments you agree to.

Hope that helps.

The amount is for 1199.58. Yes, this is in small claims court. When asking for proof of debt can they charge me additional attorney fees? Should I ask for this in writing or will phone be sufficient?

I would definately ask for it in writing and no, the only time they can charge additional attorney fees would be if they won a judgement against you--at which time you would be liable for court costs.

Thank you. I will get a letter out to them today.

Please do yourself a favor and check out this site: world wide web.fair-debt-collection dot com/statute-limitations-explained

I found it VERY EDUCATIONAL! Tell people about this site!

Did you know most states have a statute of limitations on debt collection? (In most states it is 3-6 years from date of last payment they received from you) It IS NOT the same timeframe as the length of time a negative remark can stay on your credit report.(7-10 years)

In general, most collection agencies will settle with an individual for a percentage (50 - 90% of the amount that is in collection. The debtor should ask the collector if they will accept a certain percentage to settle the debt in full.

Sometimes, if a collection agency is aware that you are desperately trying to clean up your credit or that you are in the process of applying for a loan or mortgage, they may NOT settle with you for a percentage. Being aware of your urgency, they may use this stategy for their own benefit and play on your desperation.
Be patient and hold them out. Many will settle for half of the amount owed.
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What if they insist on the entire amount? How much does a collection agency purchase an account for? I came home and found a sheriffs note on my door, went and pick up the notice and it was a notice of being sued for an old credit card debt. I called and offered the amount of the debt $2000, they sent me an agreement that had the entire amount in it for $2891.04. I sent a letter back requesting some kind of negotiation and payment plan. Haven't heard back from them yet. I am from Pa, can they really make me pay that amount?

The collection agency is CACH from Denver Colorado, has anyone dealt with them. They have a lawyers office here in Pa representing them from Pittsburgh? Am I ok with demanding some type of negotiation, I know they did not pay $2891.04 for this account. What is the norm that they pay for an account?

Greg, Check to see what the statute of limitations is. You may not NEED to pay the debt off. If the SOL has expired, you appear in court, bring up the SOL, and the case will most probably be dismissed. A paid charge off is every bit as bad on your credit report as an unpaid charge off. Ride it out. I did, and my credit looks great now. Go to the website I referenced, educate YOURSELF, DO NOT BELIEVE HALF of what you are told. Check it out for YOURSELF, in YOUR STATE, and DO NOT BE INTIMIDATED by these high and mighty collection agencys! They COUNT on that. FIGHT BACK, particularly if the debt has "aged" a bit. It's not that tough to ride out.'