Sued by discover
Date: Wed, 02/29/2012 - 11:57
I was served a summons from Discover card yesterday. I wasn't sure what to do with it! It's for $10,163.68 + $800 lawyer fee. I stopped paying on the account 3 or four years ago. I was planning to settle when I got a decent job but that didn't happen.
I think I'm pretty much judgement proof though. My tax return says I earned $5000 last year, and am currently unemployed and live with my girlfriend. I own a car worth about $5000. I haven't had a job for most of this year, I've been training to become a massage therapist. So soon I will have a job hopefully, as I recently got my state certification to practice. I also owe $40,000 to federal student loans from years ago, $13,000 to Citibank, $11,000 to my new school. The thing is I'm hoping to land a decent job as a Massage Therapist soon, and I don't want to have my wages garnished.
Anyway, should I just go in and tell them the situation? Any advise appreciated.
Thank you!
Sincerely,
Steven
At this point, hardship stories are moot. You either pay it, se
At this point, hardship stories are moot. You either pay it, settle it or they get their judgment.
You are far from judgment proof. Judgment proof applies to those you will never have a income and/or live on exempt income. You have future wages they will be able to garnish.
After 3-4 years, the SOL may have kicked in (if you timely raise
After 3-4 years, the SOL may have kicked in (if you timely raise it as an affirmative defense), depending on what state you're in and whether it treats the SOL as substantive law or procedure law. Even if the SOL doesn't apply, just file an arbitration with JAMS and move the court to compel arbitration with Discover based on the cardholder agreement.
Thanks!
Hello!
I'm in California now, but I applied for the card in Arizona. California is 4 years, Arizona is 5. My last payment was 5/09. I recently changed my address to California so I guess the SOL changed and they served me right away?
Thanks! I will try to demand arbitration with JAMS. What does that accomplish?
Also, is there anything I can do to throw a wrench in the works for Discover?
Thanks!
Steven
I think your understanding of state SOL is a little simplistic.
I think your understanding of state SOL is a little simplistic. Here's a good link to get better understanding: http://www.lacba.org/showpage.cfm?pageid=3628
JAMS arbitration makes obtaining a judgment a lot more costly for a creditor, and thus can make it rethink its reluctance to accept reasonable settlement. However, this is for you only if you're prepared to learn a lot and fight them tooth & nail.