Hello,

I posted in the credit forum of my dilemma, I was served 2 days ago.I have 20 days to respond in writing.. The debt is rather high, I have been reading a lot on this forum. And this states law.. I moved here(WI) 19 months ago.. Not sure how to approach this.Have been reading about Bankruptcy as well. Not sure if that is the route to go. If so will I be able to keep my transportation?As I have nothing else of value.
Any help or direction to look for reading or help would be appreciated
Thank you Nova

Unless the debt is for your vehicle, they generally cannot take it... but they can garnish your bank account or your wages if they win. What, exactly, were you "served" with.

Was it an actual notice from a court of a court date? If so, it should include, among other things, the plaintiff name and case number.

How much do you owe?

You must respond to the credit card company. Don't panic, and don't accept their solution which will almost certainly be the most expensive and punitive arrangement.

I'm not sure how the law works in the USA, but in the UK at least, the Court is your friend in cases of debt.

Important: Do not be tempted to use a Debt Consolidation company (I hope you haven't been down that road already) because they will lock you into a debt repayment scheme that is extremely poor value and they will make you sign away your rights.
ALWAYS deal with your creditors directly - middle-men are there to rip you off.

Contact the credit card company and tell them that you cannot afford to repay them; offer them a repayment plan that is well within your budget - don't be afraid to make a ridiculously low offer: If you offer to repay ata rate of $10 a month, and they won't accept, then tell them you want to settle the matter in court.

Now, I don't know how the courts work in the US, but I would haver thought you'd be given a court-appointed attorney if it is a large sum of money, and if not, then it will be dealt with
in a lower court, "Judge Judy" style.

In the UK, the court will always impose a repayment plan that strongly favors the debtor -
the only downside is that the debtor is then legally obliged to honour that judgment.

I suggest that you get yourself down to the local courthouse ASAP and ask for advice (give them a phone call and explain that you need guidance). Once you have done that, you will be well prepared to deal with your creditor.

to find out the original balance, just call your credit card company - they will have complete details of your account status.


Don't stress-out, it may take a long time to get on top of your finances, but I promise you will be out of debt eventually, just so long as you don't fall into the trap of trying to pay off one debt with another.

Sit down and very methodically go through all your bills and expenses and see what you can do to reduce your costs and find out where you are bleeding money - even saving a couple of dollars a week will make a difference over time.

Do not be intimidated by the Credit Card Company: They will ALWAYS try to seduce you into accepting their advice, but it will be advice designed to trap you into a bad deal.

Do not use a Debt Consolidation Company: they are legalized loan sharks.

Thanks for responding..

Rick,

No it wasn't for a vehicle. It is an older debt.It is partially mine I know this. The papers I was served with are from a CC company with Law firm (Chinglers are Us) I have with in 20 days of receiving this summons to respond in writing with a written answer to the court.If I do not respond with in said such time, The court may grant judgement against me.Enforcing of such judgement by garnishment of seizure of property.There is no mention of a court date, I do have the plaintiffs name,file # and a case #.

I am so stressed and screwed right now it isn't even funny.
I have no $ for an lawyer,no assets.All I have is my truck.
And am not sure what course to take.Bankruptcy? Not filing a response... filing a response and seeing what happens... Funny though I got a letter from a debt relief lawyers firm 3 weeks prior to being served.It is appalling how the interest is almost as much as the debt.
Would they in fact work out a payment plan?
Plaintiffs law firm is a debt collector.. are they all?
Thank You
Nova

Lord_Darkclaw,

The total is 12,000. With interest and penalties.
Once it goes to the lawyers, do I not have to go through them to make any satisfactory arrangements to all parties? And will they forego the interest which is 1/2 of the balance?Court appointed lawyer I don't think so... But then again I do not know how any of this works.If I do not answer or show up.Do I have to show? I would be terrified to do so alone. And if a judgement is entered against me.I am sure I will be notified, If my wages are garnished, will I be notified before they are?
And if I can work out an arrangement with the CC company will this stop the proceedings?
If I paid a certain amount every month, Would the penalties and interest stop?
Also do lawyers want all $ up front? I count every penny, I do not eat out, Do not spend $ Because I do not have any, after bills there is nothing left.. I have gotten so good at it my lunches for the week cost me under $4.00.
As for the debt relief, I won't go that route, I have heard to many things I didn't like.

Any help would be appreciated.
Thank You Nova

Absolutely, you MUST show up at court!

If you fail to turn up at court, a judgment will be made in favor of the CC Company, and that would be bad news for you. By being present in court, you will be demonstrating your respect for the legal process and showing that you are behaving in a responsible manner.

I can't pretend to know how the law works in the USA, but it is crucial that you demonstrate to the Judge that you have been making real efforts to repay your debts.

As I said: Go to the Courthouse - tomorrow if possible - and get some info. I have no doubt that they will at least be able to provide you with a couple of forms to fill in.

"And if I can work out an arrangement with the CC company will this stop the proceedings?
If I paid a certain amount every month, Would the penalties and interest stop?"


Very likely, yes. But they will also try to make you sign a contract binding you to that arrangement - and you won't be able to get out of it once you've signed. Make a VERY low offer - and I mean VERY low, and see what happens; they will have a lot more respect for someone who is a tough-nut than a marshmallow.

Even if they don't accept your offer, it's all part of haggling down the debt - when you say you can only afford $10 a month, they'll figure you can really afford $30 a month.
And when it comes to the court case, you will have a record of having made them an offer that they refused.


Really, you should have contacted your CC Company months ago to tell them that you were not able to repay. I'm not sure if you will be able to get the interest you have already incurred cancelled-out, but you should certainly ask both the CC Company (who will obviously not be keen to do so) and then ask the Court - they may cancel part of the debt.

Don't be too hard on yourself; if you think about, it there are people out there living the high-life who are tens of millions of dollars in debt - so $12,000 is nothing in the grand scheme of things.

I agree with Rick that you are unlikely to lose your truck - especially if your defence is that you need it to make a living.

Go to court, take all the paperwork you need with you (ask them at the courthouse to find out what you need to bring - it will probably all be explained in the letter you will be sent notifying you of the upcoming court-case but it doesn't hurt to get your homework done well in advance) and be as polite to the Judge as you have ever been to anyone in your life, and whatever anyone wants you to repay, PLEAD that it is more than you can afford!!

You will find that the Judge will be infinitely more sympathetic to you than the CC Company has been: the CC Company will not want to take the case to Court and very likely they will offer you an "easier repayment plan" at the last minute... don't accept it!

When you go to Court as a decent and honest person in financial difficulties, the CC Company will pretty much get their kicked.

I know the prospect of going to court is scary, but you'll get the best possible settlement if you do. Take a friend to Court with you for emotional support, but however you do it, YOU ABSOLUTELY MUST BE THERE.