This is for credit card debt of $2800. I've lost my job and been forced to take one that pays half of what I was making. I've offered them $1500 and a payment plan, but they won't evn discuss it with me. There's no way for me to pay that much all at once and when I spoke with the attorney, he said that making payments through a plan would still cause a judgment on my credit report. Is that true?

I cannot afford an attorney, so I am trying to figure out how to respond to the lawsuit myself. What should I say in the response? Do I need to file the response in person? If so, do I just appear at the court at any time before my 20 day window and file? What will happen after that?

Thanks in advance for your help. I'm totally freaking out here. :(

You need to file a response within the time frame. That response can be as simple as a statement that you Intend to Defend against the suit.

However, if this is a vaild debt and they can prove it a judgement will be entered against you. That's probably why they woin't negotiate. Once they get a judgement they can garnish your salary and attach cash assets.

So you need to determine your exposure in case of a judgement.

Thanks Scott.

When you say this: "garnish your salary and attach cash assets," what can they take? For example, they cannot take my entire salary every month, can they? Cash assets? I don't have any savings account. What do you mean by cash assets?

Depending on where you live they could take up to 25%. Cash assets could be savings, checking etc.