Litigation Criteria and Patterns during the Settlement Process
Date: Fri, 04/10/2009 - 17:14
I'm considering DYI debt settlement to eliminate a debt of 40K. Of course, the only thing holding me back is the possibility of being sued. I'm not concerned with my credit score since I recently locked in my home mortgage at a decent rate. Can someone share their experience with potential litigation when undergoing the debt settlement process? What is the probability of being sued for more than what I currently owe? I'm concerned about the accumulating fees, and interest during negotiations.
My background.
-Just bought my first home, little equity, only 5% down.
-My wife and I make about 100K together per year.
-In the past, I've always accpeted low intro rates for balance transfer offers. My card activity is none to zero as these balances keep lingering.
-I've never been late on my credit cards.
The debt is starting to really stress me out. I'm losing sleep at night and sometimes my chest begins to tighten. Please share your honest experience. Please, no bias posts, just plain ol facts. Thanks Everyone!
What creditors do you have? Some are more aggressive than other
What creditors do you have? Some are more aggressive than others.
I was sued by Citibank on a Home Depot card, balance just under $8,000, 7 months after I made my last payment.
I was sued by Target National Bank, balance just under $2,400, 8 months after last payment.
FIA Card Services aka Bank of America sent an account with balance just under $13,000 to a local collection law firm last month, 11 months after last payment. I expect I would have been sued on that one within a couple months except I had come to a settlement agreement with the CA they were using the month before!
Once you stop paying they will start to add late fees, overlimit fees if that is the case. I had about a $120 fee added on the Citibank balance owed when I was sued so I'm guessing that was some court fee. I settled the Target before it actually went to court so didn't have any extra fees other than late fees and overlimit after I stopped paying.
Good luck!
I'm starting to think credit cards given by retailers are bad ne
I'm starting to think credit cards given by retailers are bad news (i.e. Target, Lowes, Home Depot, etc.). Luckily my cards are all directly with the banks. Here are my amounts.
Citi Diamond Card = 13K
Citi Platinum Card = 9K
Chase = 6K
Chase = 6K
US Bank = 6K
Yeah know Eric/Henry and whatever other name you post under....i
Yeah know Eric/Henry and whatever other name you post under....it would be easier to continue posting under the same name with the same info instead of starting off a whole new thread.
Why does it matter, I'm trying to get feedback? What is the big
Why does it matter, I'm trying to get feedback? What is the big problem if I go about it in different posts? Chill out, I'm just trying to collect as much information as I can.
i had 9 cards, 1 sued me citibank and it was the smallest accoun
i had 9 cards, 1 sued me citibank and it was the smallest account just over 1,000 at the 2 year mark. Its not as bad as you think and frankly the judges frown upon it scince you are attempting to do something. Its not as scary as you think it is, and when you get in there, you are on a VERY long list of other people in the same boat, some are upstanding people in the community. Debt effects everyone no matter how much money you make. Dont be scared do what ever it is that you gotta do to get out of it and know better next time.
Sue
Im on the same Boat. I own AMEX 30k.
I wanted to do a debt payment plan with them like the other cards from other banks offered. They wouldnt reduce my apr and are charging me 600.00 a month on intrest alone. My payment i can afford wont even tackle the principle. The collection agents are threating to sue.
What is the sue process like?
You go to court and the judge does what?
well it depends on what state you are in, but frankly its not as
well it depends on what state you are in, but frankly its not as bad as you would think. I live in a no garnish state so all that they could have done was set me up on a payment plan that you CAN afford according to your bills, or put a lien on your property. in my case the juge was sympathetic and was angered that i was attempting to do something and they would not work with me. he said it wasted his time. i had a lein put on my home till the debt was paid. it seems scary at first but its not as bad as your imagining im sure.