Sued!
Date: Tue, 04/03/2007 - 16:25
I am in a debt consolidation program, which I just started in February, and one of my creditors accepted the consolidation company's repayment proposal and a payment has been made to them. I got my mail today, and there is a postcard from some debtrepair.us place saying they noticed that an action had recently been filed against me in my local court, and before it was too late, they could help me. I also got a letter from a local law firm basically stating the same thing....they'd been made aware that an action had been filed, blah, blah, and they could help me with bankruptcy.... The debt is for $2500!! Geez....not enough to file bankruptcy over.
Anyway, I totally freaked, because I had received nothing regarding this. Due to the wonderful advice on this forum, I recalled someone being advised to contact their local courthouse to get info. on filed actions. I did just that, and lo and behold, Target National Bank filed a suit against me, and I was to be served by Sheriff. I just sat there with my mouth open. The lady at the courthouse did give me the name of the creditor's counsel, which was a local number. I called my consolidation company to verify they had paid the creditor, and they indicated that they had. I gave them the info. and they said they'd call their contact person at Target to find out what was going on. I came home and the Sheriff had left the Summons rolled up in my front door, soaking wet from the rain. The counsel for Target acknowledged that a recent payment had been received on a date that was before this action was filed.......So why the hell are they filing this, and again, aren't they supposed to notify me of their intent beforehand?
They don't have to notify you.As long as they legally serve you
They don't have to notify you.As long as they legally serve you with a summons,they are in compliance with law. Now a judge probably will not be happy that they are trying to sue while accepting payments. That is almost like breeching a contract they signed with your cons. company.
The cons. company said they would contact creditor and ask them
The cons. company said they would contact creditor and ask them to get in touch with their counsel. I asked what could/would happen. She said that the case could either be dismissed, or I would have to respond. If it's dismissed or I respond and show that they accepted payment in a repayment program, how does this affect my credit report....it's not going to show a judgment or anything like that unless the suit is successful, is it?
Judgements only happen if you sign agreement to it or if they dr
Judgements only happen if you sign agreement to it or if they drag you to court and win their case. You just have to make sure you respond to that summons on time so they don't get a default judgement.
Some states will require a creditor to send a "right to cure" le
Some states will require a creditor to send a "right to cure" letter to you before they proceed in any sort of proceeding. Wisconsin, for example, makes the creditors send a notice at least 15 days before they intend to go to court. The notice must show the reason the account is in default, and what the debtor must do to "cure" the default. Unfortunately, not all states have these cure letters.
Usually if you call and work out acceptable arrangements with the creditor's attorney, the case will be "dismissed with leave to reinstate" or "dismissed with prejudice". Meaning, you will usually put your agreement/payment arrangements in writing, it will become a part of the case, the judge will sign of on the agreement and close the case without issuing a judgment. This gives the creditor room, so that if you renig on your agreement later on, they can come reinstate the case and get their judgment.
BTW, just because a creditor accepts partial payments, doesn't mean they can't sue you. If you are in default on a contract/agreement, the lender is allowed to demand full payment. If they demand full payment, and you send them anything less than that, they can proceed to remedy the default.
I know they can still sue which is their right. I am simply stat
I know they can still sue which is their right. I am simply stating if they have accepted a proposal from a debt cons.company,I would see no reason to go to court.If they are dissatisfied with arrangements they could simply call the company and rework agreement.
I apologize, I didn't see the part of the original post that sai
I apologize, I didn't see the part of the original post that said "one of my creditors accepted the consolidation company's repayment proposal." I will agree then, that if they signed the proposal and sent it back, they shouldn't be going to court. Their signed acceptance could actually become a defense for you.
They did sign it right? Negotiating a payment, of itself, does not constitute their acceptance of the proposal.
I'm assuming they did. My consolidation company told me they ac
I'm assuming they did. My consolidation company told me they accepted the proposal, and a payment was sent, but whether it was in writing, I have no idea. I have to call the cons. co. today to find out what's going on, as they were supposed to be contacting the creditor.
As for my response, the legal docs state that it is advisable to have an attorney draft up the reply. So now I have to pay an attorney just to write up some response to the suit? More money I don't have....!
If the company accepted your proposal from the consolidation, it
If the company accepted your proposal from the consolidation, it seems to me that this would be a pretty good defense in court. Seems they would be backing out on their agreement.
