I just received summon paper tonight, I'm being sued by American Express through Zwicker and Associates.

It says I have 30 days from when I was served to respond, which would be tonight November 19th. However, the date on the summons says October 1st. So what date would they go by?

And I admit I do owe Amex the money, and most of it is due to high interest rates. And I didn't pay it because I had lost my job, but the past few months I've been working and was going to intend on paying it. I just had to take care of other things first. But apparently it's too late.

Earlier tonight before the summons, I did make a payment over the phone directly to American Express. However, the payment didn't go through yet. And I'm not actually sure if it will or not. Because when I tried to call Amex's customer service I got a recording that they're no longer handling my account and that I need to contact Zwicker.

So I'd guess I'll check tomorrow to see if the payment went through or not. But will be calling tomorrow morning to see.

Also.. I know I have to respond to the summons. However is there a way to settle without going to court? I have no idea what the process is. And I'm trying to read up online considering I just received the summons earlier around 10pm.

What are my options?

Usually, the date on which you are served the summons starts the clock ticking. For example, a summons may be prepared on October 10th but it didn't get served to you until October 15th. The countdown starts from October 15th.

If you had been in contact with AMEX from the start of your job loss, then they might have tried to work with you. However, most creditors don't care about personal situations such as job loss, divorce, etc. Maybe they would have worked with you and then again, they might not have. They turned the delinquent account over to a collection agency who now has legal right to come after you. For the most part, AMEX is out of the picture. AMEX sold the account off to the collection firm and now the collection firm is trying to recoup what they can.

Doing nothing is the worst thing to do. If you don't respond to the summons, then it makes it very easy for them to win a judgment against you. Once they receive a court order, then they'll able to freeze your bank account and sue you personally, which would mean full disclosure of your assets and their value. It can get extremely ugly. They're relentless and they want the money or its value in an asset for example. You didn't say how much you owe, but if it's for example $5000, then they'll do whatever they can to get it.

You might avoid court by trying to work out a settlement plan, but most creditors, when and if they settle, will want a lump sum payment right away. A lot of them aren't interested in a what they would consider an unsure and unsteady payment plan. If you have defaulted this long, then their belief is that you probably wouldn't be able to commit to a repayment plan.

Your final option is bankruptcy. Bankruptcy supersedes everything. Once filed, the court orders, the harassment, the threats -- it all stops. And if you have had a job loss, filing a successful Chapter 7 case would undoubtedly be a piece of cake. I'm not sure of what your total financial picture looks like. If you have a lot of debt and you know in your mind that you're not going to be able to pay it, then take the bankruptcy route. It will stay on your credit report for 10 years, but it will give you a "fresh start, " and you will get them off your back. But consider your whole financial picture very carefully when and if you wish to file. Essentially, the only options to get the collection firm off your back is to either work out a sizable payment plan with them, which would probably be a hardship for you, or file for bankruptcy and let the government do for you what you've been paying your taxes for them to do - protect you. Just remember, all those banks got billions of dollars in stimulus money and so many of the executives went off on exotic adventures that you and I will be paying for the next 10 years. The average American citizen didn't get a bailout, so if necessary, let a bankrutpcy be your stimulus plan. Good luck!

If I file bankruptcy, what will answer them, in the summon.