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Collection Lawsuit just filed against me.

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Kaydee84
New Contributor

Collection Lawsuit just filed against me.

Hi Everyone,

 

I got a notice today that I'm being sued for a credit card that went into collections back in 2018. It was opened in 2017 and has a balance of $1173. The reason it went into collections is that I am going through a divorce and have no income of my own. I'm still a stay at home mom and haven't worked in over 4 years. When I filed for divorce, I mentioned my debts to my divorce attorney. She didn't seem concerned about them. She said that such a small amount wouldn't be worth the effort to go to court and get a judgement against me because I was unemployed. Nearly two years later, I get this letter.

 

My question is... what can I/should I do about this? I don't have money for an attorney. I can do small payments, I suppose. Who should I call at this point? The company's attorney? Help please.

Message 1 of 14
13 REPLIES 13
donkort
Valued Contributor

Re: Collection Lawsuit just filed against me.

That's pretty rough.


If you can get on a payment plan, it would be much better than a judgment.

FICO 8: EQ 810; TU 816; EX 822 as of 7/5/2022
Message 2 of 14
FireMedic1
Community Leader
Mega Contributor

Re: Collection Lawsuit just filed against me.

Google your area where you live and search for  legal aid. You may qualify for legal advise. You also may claim "Judgement Proof" Read this article and see if any apply to your situation.

https://www.nolo.com/legal-encyclopedia/what-does-judgment-proof-mean.html 


Message 3 of 14
Anonymous
Not applicable

Re: Collection Lawsuit just filed against me.


@Kaydee84 wrote:

Hi Everyone,

 

I got a notice today that I'm being sued for a credit card that went into collections back in 2018. It was opened in 2017 and has a balance of $1173. The reason it went into collections is that I am going through a divorce and have no income of my own. I'm still a stay at home mom and haven't worked in over 4 years. When I filed for divorce, I mentioned my debts to my divorce attorney. She didn't seem concerned about them. She said that such a small amount wouldn't be worth the effort to go to court and get a judgement against me because I was unemployed. Nearly two years later, I get this letter.

 

My question is... what can I/should I do about this? I don't have money for an attorney. I can do small payments, I suppose. Who should I call at this point? The company's attorney? Help please.


In reality, no one wants to go to court; even the lawyers and creditors. I had a similar experience, so I know how you are feeling.  Some lawyers would rather do so much more with no pay than to represent a client for $1100; I would argue - no pun intended - that this is merely to get your attention.  Your goal, ultimately, is to prevent a judgement.

 

You will want to call the court first and learn a little bit more about the process - usually they will tell you if a few cases come through and are ultimately settled.  Sometimes the person who answers the phone gives you a lot reassuring information. Find out the timeframes so that you know when things have to be done.  This is important because if you call the creditor's attorney and speak to a paralegal, who twists the law and timeframes a little, you will know.

 

You can have the suit removed (possibly) if you make acceptable arrangements with the creditor's attorney.  You call their attorney when you have your plan together (have a "plan B").  Tell them you are responding to the summons and would like to know if you can work out an arrangement to prevent going to court. It is absolutely imperative that you are very polite - and I am sure you are - and are using an apologetic tone.

 

Sometimes, they may look for an immediate payment - and I would recommend that when you call, you be prepared to give them as nice deposit to show good faith.  "I am prepared to provide a payment today - or mail - for $___ and to pay the balance off in _ equal installments.."   Be careful not to stretch it out, they could grow irritated and ask for 2 payments in 2 months or something..  

 

Normally, once you set up a payment arrangement, they will withdraw the suit and you will get a copy.  I am hoping they are accommodating.  If you feel you have a compelling personal story, then you want to communicate that to the person who is making the decision on a potential agreement.  Be brief, but focus on your commitment to resolve the debt.  Remember that if you enter into an aggreement and default, you could ultimately get another suit or worse, with a judgement for the original amount plus legal costs.

 

Lastly, you could reach out to the divorce attorney and ask them if the would contact the creditor's attorney on your behalf for free, since they gave you bad information before.  If they remember, then maybe they'll feel obligated to do this for you.  

 

Breathe.... and know that once you have our plan that is half of the battle.  Things will work out.  I am speaking from experience but I can assure you that there are lots of people on these boards who may give better ideas.  Be patient..

 

Best of luck my friend,

 

 

 

 

Message 4 of 14
Anonymous
Not applicable

Re: Collection Lawsuit just filed against me.

Some counties offer pro bono attorney services to low to no income parties. I would do a search for your county to see if such a program exists. 

 

 

Message 5 of 14
Anonymous
Not applicable

Re: Collection Lawsuit just filed against me.

If you cannot pay always always show up in court. They are counting on you not showing up to get a default judgment. Explain you have no income and cannot repay at this time. Hopefully you would have secured the services of a pro bono or other free legal aide. The judge will ask how much you can pay. Be realistic. If its $20 a month, say so. Now (or then) is not the time to be aspirational. Once you get on your feet you can look into a pay for delete or other settlement. Good luck

Message 6 of 14
wa3more
Established Contributor

Re: Collection Lawsuit just filed against me.

Who is trying to collect, the original creditor or collection agency ? Debt buyer ?

remember no one is judgment proof.  They can always get a judgment and wait until you get a job or have money in the bank. Saying one can't pay will be an unsuccessful defense and no one cares. Judgements in some states, like NY , last 20 years and accrue interest at 9%. 20 years is a long time where ones financial position can change. 

whatever you do, if you get court notice , show up or you will get default judgment. Keep all correspondence in writing and stay off the phone. 

Message 7 of 14
daveg38
Established Contributor

Re: Collection Lawsuit just filed against me.

@Morpho, I have read conflicting information about judgments.

 

Yes, you should always appear and stand your ground; however, I do not believe summary judgments are any better than default judgments.

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Message 8 of 14
Kaydee84
New Contributor

Re: Collection Lawsuit just filed against me.

Thank you for your response. I was able to get a settlement of $800. $400 payment today and another $400 payment next month. They will withdraw the case after the last payment is received. It's not exactly what I wanted but I'm grateful to not have to go to court over this.

Message 9 of 14
Kaydee84
New Contributor

Re: Collection Lawsuit just filed against me.

Thank you for your response. I spoke with an attorney and he thought I may be judgement proof now. He did warn me that judgement proof doesn't last forever though. I was able to get a settlement of $800 though. $400 payment today and another $400 payment next month. They will withdraw the case after the last payment is received. It's not exactly what I wanted but I'm grateful to not have to go to court over this.

Message 10 of 14
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