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Got Served and Need a Plan of Attack

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tfkallday
Frequent Contributor

Got Served and Need a Plan of Attack

HI everybody! Smiley Happy I am new here and am hoping I have found a home (you guys seem great and very helpful and resourceful! ).  I have been putting off this credit thing for a long time.  I have had my share of personal struggles so here I am at 25 with poor credit.  I have begun rehabilitation on my federal student loans through their program and have also tackled my Perkins loan which I had defaulted on.  Anyway, I have recently been served and the paperwork says that I owe a shade over $1800.  This paperwork came by mail to my house and according the paperwork, was filed April 1st.  It says I have 30 days to respond.  I live in NJ by the way.  It is now April 11th, I got this paperwork two days ago and have been studying what to do ever since.  I was going to call to try to negotiate a payment today but figured I would come on here and get your guys opinion before I make a mistake which I will regret down the line.   Should I call to negotiate or should I respond by letter with a PFD letter (or is it too late for that)?  Will I have to shell out the full 1800 which will break me or do you think I can negotiate it down, and should I go on a payment plan?  I am sorry for being such an amateur but I promise I will take the time to study and get better and help other people with their credit issues.  I just really need help myself because I feel trapped.  Any advice is appreciated and thank you so much.  Tom


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 1 of 13
12 REPLIES 12
DiabolicallyRandom
Established Contributor

Re: Got Served and Need a Plan of Attack

I really dont know much about judgements, but I have read about people doing settlements at the stage youre in. I dont think it would be harmful at this point to enter a payment plan, but if possible I would try to settle/pay in full so that you can show up to court and show the judge that you have done so. I have also read that you want to show in court no matter what so that you dont end up with a default judgment, paid or not.  Im sure someone will come along shortly with more experience than myself with a much more detailed answer.

Message 2 of 13
guiness56
Epic Contributor

Re: Got Served and Need a Plan of Attack

Message 3 of 13
DiabolicallyRandom
Established Contributor

Re: Got Served and Need a Plan of Attack

Guiness to the rescue!

Message 4 of 13
tfkallday
Frequent Contributor

Re: Got Served and Need a Plan of Attack

It says "NJ Superior Court" on it.  I believe it is a summons.  At the end of the letter it has a woman's name and I suppose she is the representing attorney for the credit agency??? Thanks again!!


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 5 of 13
guiness56
Epic Contributor

Re: Got Served and Need a Plan of Attack

Make sure you reply before the date given.  If you need to show up in court make sure you go.

 

Is it a creditor you are familiar with?

Message 6 of 13
guiness56
Epic Contributor

Re: Got Served and Need a Plan of Attack

Message 7 of 13
tfkallday
Frequent Contributor

I was planning on replying today (earlier) or tomorrow bu...

I was planning on replying today (earlier) or tomorrow but don't want to do so misinformed.  I am not familiar with any of this as it is brand new to me but the card was a Capital One card I had in college I really can't tell you the last time I have used it maybe three years ago or so.


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 8 of 13
InvincibleSummer3
Established Contributor

Re: I was planning on replying today (earlier) or tomorrow bu...

In my experience, if you are served and don't take steps to address the debt, then you could end up with a judgment against you. That's not good, because a public record can stay on your report for years and is a major derog. Plus it puts you closer to an involuntary garnishment.

If it were me, I'd try to pay that ASAP. If nothing else, it'll keep a judgment off your history.

 

More here: http://ficoforums.myfico.com/t5/General-Credit-Topics/If-You-Get-Sued/m-p/17871

 

ETA: By paying, I mean either PIF if possible, or negotiating a payment plan.

 

 

Message 9 of 13
guiness56
Epic Contributor

Re: I was planning on replying today (earlier) or tomorrow bu...

The statute of limitations in NJ for CC debt is 6 years so you can be sued.

 

Answer the complaint.  Get it back to the court before the 30 days are up.  Contact the creditor or their attorney and ask to settle before court.  If they say yes and you pay them, make sure you get something and take it to the court to show proof it is paid.

 

At the same time the attorney should have the case dismissed since you paid before court.

Message 10 of 13
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