I am scheduled for an arbitration hearing on the 27th of November. Original debt was for $800. But is now at $2800. When the suit was filed it was at $2500. I have been trying since it was filed to settle with these people. I had a lawyer send a letter with an offer and we had no reply. I have called the lawyer and made offers only to be told she will submit my request but does not call me back with an answer. I call her again a few days later she tells me that they will not accept. I offer again but no response. I sent a letter during this time asking for proof of the debt so I am aware of how they came to this figure but they have never responded. I have nothing from them indicating that this is my acct and the debt is valid.

Now I have this hearing on the 27th and am naturally nervous. I know they are going to try to take the full amt but I don't have it. My last offer was for $1300 which is what I have in a saving acct. My mom has a small business and I am listed on all her accts. I am afraid they will try to take the business balance if judgement is approved.

Can anyone give me some advice as what to expect at the hearing? Do I have any defense? Can they take money from a joint acct even though technically it is not mine? I spoke with two lawyers and they gave me no encouragement at all.

Any advice would be greatly appreciated.

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Originally Posted by omgrusty5

I am scheduled for an arbitration hearing on the 27th of November. Orginal debt was for $800. but is now at $2800. When the suit was filed it was at $2500. I have been trying since it was filed to settle with these people. I had a lawyer send a letter with an offer and we had no reply. I have called the lawyer and made offers only to be told she will submit my request but does not call me back with an answer. I call her again a few days later she tells me that they will not accept. I offer again but no response. I sent a letter during this time asking for proof of the debt so I am aware of how they came to this figure but they have never responded. I have nothing from them indicating that this is my acct and the debt is valid.

Now I have this hearing on the 27th and am naturally nervous. I know they are going to try to take the full amt but I don't have it. My last offer was for $1300 which is what I have in a saving acct. My mom has a small business and I am listed on all her accts. I am afraid they will try to take the business balance if judgement is approved.

Can anyone give me some advice as what to expect at the hearing? Do I have any defense? Can they take money from a joint acct even though technically it is not mine? I spoke with two lawyers and they gave me no encouragement at all.

Any advice would be greatly appreciated.

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Would appear that interest and Attorneys' fees continue to be added. You should be furnished with the figures when you get to arbitration; if not, ask for an adjournment until you get them.

Yes, if they proceed to Judgment any account with your name on it can be liened. Joint funds belong equally to both people - all are yours, all are the other person's.

I don't know if you have a defense - do you owe the money? Did you not make the payments?

And the two Attorneys - did you call around seeking advice or actually go in to someone's office? Free advice is often worth exactly what you pay for it.

There are excellent threads about negotiating settlement figures and hopefully someone will repeat that info here - that is nothing familiar to me.

Send a letter (return recipt) to the plaintiff requesting verification of the debt. Send a copy to the court. If they don't produce the proof at the hearing ask for a dismissal.

If they furnish the proofs, show the arbitrator that you have offered to settle.

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Originally Posted by ScottGem

Send a letter (return recipt) to the plaintiff requesting verification of the debt. Send a copy to the court. If they don't produce the proof at the hearing ask for a dismissal.

If they furnish the proofs, show the arbitrator that you have offered to settle.

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If this is an in-office (as opposed to a Court) arbitration they do not have to furnish the documentation in advance - it's more of a brow beating session and I never know why in-office arbitrations are allowed. Part two will be after the documentation is furnished.

How did the arbitration get set up - with your consent (I would guess). How did the matter get this far?

Offers in settlement carry no weight in either direction - the creditor is not obligated to settle for less than they are "owed" (including fees and interest) so the offer indicates an attempt to settle but doesn't reflect badly on the creditor if it is not accepted. A low ball offer can reflect badly on the debtor.

I'd suggest getting your name off those accounts at least until this is settled. They might already be trying to get a judgement so that the accounts can be attached? Of course if you do it at this time, it might appear that you are trying to hide money, and the court might not look favorably on that situation either. Might also depend if your social security number is registered on the business accounts, or if only your name is on them.

If the accounts don't show up under your name when a credit check is done, then the creditor probably doesn't know about them. If you don't have to declare thoae joint accounts, don't volunteer any information... but of course don't lie and get into trouble for perjory or anything. If it is not a legal court, I don't see how they could compell you to reveal any of the information related to the accounts... only to establish if you owe the debt and what amount you will pay.

If this is a credit card debt, when you sign up for the card you usually sign an agreement to go into the third party arbitration which would be done before the issues get to a legal court.

I'd say at this point, the person trying to collect has nothing to lose by holding out for more money. They do this daily, and by running up the expenses it makes for a bigger write off for them at the end if they are unable to collect. Also, those extra expenses scare a lot of people into paying off the debt before the arbitration and extra fees are tacked on.

Probably the best you can hope for is that they will accept payments from you on the debt. At arbitration, I'd again ask for a settlement amount from them if you could pay at that moment rather than having to make payments or tell them that otherwise you might have to possibly file for bankruptcy. If you reveal upfront that you have 1300 to pay, that might lead them to think that if they pressure you, you would come up with 1800?? Play it like you are trying hard, but just having a lot of financial problems for what ever the reason. Also as one of the previous posts mentioned, if it is binding arbitration that they have set up, then it might not be any more than a formality to put you through. I had to do this several times before I filed a bankruptcy. They asked me if I had any diputes on the debt, and I said no, but that I had no financial resources, and as soon as I did I would be filing bankruptcy. That shut them all up, and it was over in less than five minutes. Before I actually filed bankruptcy, there were several other arbitrations that were apparently set up which were optional if I wanted to appear. I did not, but then it was not court ordered.

When you called the attorney with your offer, did you ask what amount they would be willing to settle for if any? It may be that you have struck a deal with the devil who wants to milk you for every dime. That could easily cost you 10 times the original amount.
Have they made any offers to you on what amount they would accept for immediate settlement? Also, if they do I would make sure that the amount is payment in full, as opposed to an amount to bring your account current or some such wording. I know of some people who got nailed for one settlement amount only to find out that what they paid was only a tempory settlement and that they were still responsible for the difference about six months later.

In my personal case, after the arbitration, I got a letter saying that you owe X amount of dollars, but we will settle for Y... if paid by a certain date, then it went on to say that if debt was not paid there would be additional interest... and that the entire amount was due

Hope that is some help...

Judykaytee- I did go see the lawyers and the one I retained. I gave her $100 has a deposit, she sent the letter of offer and I never heard from her again. I called later and apparently she is no longer with the firm. The other lawyer I saw was a bankruptsy lawyer. I did pay on the debt until 2003. I had some personal issues that arose and I was not working. Had two deaths(brother & dad) and new baby. Got behind. They don't want to hear that you are behind they just want their money so I stopped trying.

JudyKaytee- I was issued a letter that I was being sued. I submitted a notice of intend to defend. Next I received letter that I am scheduled for arbitration. There are arbitrators listed on the paperwork and judges names so I am not sure if I will be before a judge.

ScottGem- I sent a letter requesting validation of debt to Capitol One lawyer and a copy to court. They have never given me anything regarding the debt and how figure was obtained.

As long as you have made that request for verification and the court is aware of it, then they have to bring it to the hearing or you request a dismissal. They might get a postponement though.

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Originally Posted by omgrusty5

judykaytee- I did go see the lawyers and the one I retained. I gave her $100 has a deposit, she sent the letter of offer and I never heard from her again. I called later and apparently she is no longer with the firm. The other lawyer I saw was a bankruptsy lawyer. I did pay on the debt until 2003. I had some personal issues that arose and I was not working. Had two deaths(brother & dad) and new baby. Got behind. They don't want to hear that you are behind they just want their money so I stopped trying.

JudyKaytee- I was issued a letter that I was being sued. I submitted a notice of intend to defend. Next I received letter that I am scheduled for arbitration. There are arbitrators listed on the paperwork and judges names so I am not sure if I will be before a judge.

ScottGem- I sent a letter requesting validation of debt to Capitol One lawyer and a copy to court. They have never given me anything regarding the debt and how figure was obtained.

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Don't know if you want to argue the point when so much is going on but the firm where the Attorney was working when she took your $100 (and then disappeared) under almost all circumstances still represents you. She was speaking for the firm and whether she's still there or not makes no difference. If you had a financial arrangement with her (X Dollars an hour) and you are still interested, I'd make another stab at it with them, explaining that you had an agreement with the firm through this Attorney and "What should I do?"

Sounds like you agreed to arbitration at some time or another, possibly when you took out the card.

If they present you with the details of the debt at arbitration and you haven't had a chance to review them request an adjournment - you can't address what you're not prepared for.

(Sounds like you hit a rough patch in life; hopefully you can reach an equitable arrangement with them and end the chapter.)

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Originally Posted by oneguyinohio

I'd suggest getting your name off of those accounts at least until this is settled. They might already be trying to get a judgement so that the accounts can be attached? Of course if you do it at this time, it might appear that you are trying to hide money, and the court might not look favorably on that situation either. Might also depend if your social security number is registered on the business accounts, or if only your name is on them.

If the accounts don't show up under your name when a credit check is done, then the creditor probably doesn't know about them. If you dont have to declare thoae joint accounts, dont volunteer any information... but of course dont lie and get into trouble for perjory or anything. If it is not a legal court, I don't see how they could compell you to reveal any of the information related to the accounts... only to establish if you owe the debt and what amount you will pay.

If this is a credit card debt, when you sign up for the card you usually sign an agreement to go into the third party arbitration which would be done before the issues get to a legal court.

I'd say at this point, the person trying to collect has nothing to lose by holding out for more money. They do this daily, and by running up the expenses it makes for a bigger write off for them at the end if they are unable to collect. Also, those extra expenses scare a lot of people into paying off the debt before the arbitration and extra fees are tacked on.

Probably the best you can hope for is that they will accept payments from you on the debt. At arbitration, I'd again ask for a settlement amount from them if you could pay at that moment rather than having to make payments or tell them that otherwise you might have to possibly file for bankruptcy. If you reveal upfront that you have 1300 to pay, that might lead them to think that if they pressure you, you would come up with 1800??? Play it like you are trying hard, but just having a lot of financial problems for what ever the reason. Also as one of the previous posts mentioned, if it is binding arbitration that they have set up, then it might not be any more than a formality to put you through. I had to do this several times before I filed a bankruptcy. They asked me if I had any diputes on the debt, and I said no, but that I had no financial resources, and as soon as I did I would be filing bankruptcy. That shut them all up, and it was over in less than five minutes. Before I actually filed bankruptcy, there were several other arbitrations that were apparently set up which were optional if I wanted to appear. I did not, but then it was not court ordered.

When you called the attorney with your offer, did you ask what amount they would be willing to settle for if any?? It may be that you have struck a deal with the devil who wants to milk you for every dime. That could easily cost you 10 times the original amount.
Have they made any offers to you on what amount they would accept for immediate settlement? Also, if they do I would make sure that the amount is payment in full, as opposed to an amount to bring your account current or some such wording. I know of some people who got nailed for one settlement amount only to find out that what they paid was only a tempory settlement and that they were still responsible for the difference about six months later.

In my personal case, after the arbitration, I got a letter saying that you owe X amount of dollars, but we will settle for Y... if paid by a certain date, then it went on to say that if debt was not paid there would be additional interest....and that the entire amount was due

Hope that is some help...

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The business accts have my name on them but the business is listed via tax number as a sole propiertorship. When my brother and dad died my mom listed me on her accts because she was concerned that something would happen to her and I would not have access to her money for funeral expenses.

I don't know if they set up the arbitration hearing. I received a notice that I was being sued and I responded that I would like to defend. On the paperwork it has arbitrators name but also lists judges names as well. If I call the courthouse will they be able to tell me how it will be run?

When I spoke with the lawyer she said they would take nothing under $1800. I told her that I don't have that and I would like to make another offer of $1300. And I would give it to them by the 23rd. She said she would call me back but naturally she did not.

Did you go to the arbitration without a lawyer?

I appreciate all your help.

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Originally Posted by oneguyinohio

I'd suggest getting your name off of those accounts at least until this is settled. They might already be trying to get a judgement so that the accounts can be attached? Of course if you do it at this time, it might appear that you are trying to hide money, and the court might not look favorably on that situation either. Might also depend if your social security number is registered on the business accounts, or if only your name is on them.

If the accounts don't show up under your name when a credit check is done, then the creditor probably doesn't know about them. If you dont have to declare thoae joint accounts, dont volunteer any information... but of course dont lie and get into trouble for perjory or anything. If it is not a legal court, I don't see how they could compell you to reveal any of the information related to the accounts... only to establish if you owe the debt and what amount you will pay.

If this is a credit card debt, when you sign up for the card you usually sign an agreement to go into the third party arbitration which would be done before the issues get to a legal court.

I'd say at this point, the person trying to collect has nothing to lose by holding out for more money. They do this daily, and by running up the expenses it makes for a bigger write off for them at the end if they are unable to collect. Also, those extra expenses scare a lot of people into paying off the debt before the arbitration and extra fees are tacked on.

Probably the best you can hope for is that they will accept payments from you on the debt. At arbitration, I'd again ask for a settlement amount from them if you could pay at that moment rather than having to make payments or tell them that otherwise you might have to possibly file for bankruptcy. If you reveal upfront that you have 1300 to pay, that might lead them to think that if they pressure you, you would come up with 1800??? Play it like you are trying hard, but just having a lot of financial problems for what ever the reason. Also as one of the previous posts mentioned, if it is binding arbitration that they have set up, then it might not be any more than a formality to put you through. I had to do this several times before I filed a bankruptcy. They asked me if I had any diputes on the debt, and I said no, but that I had no financial resources, and as soon as I did I would be filing bankruptcy. That shut them all up, and it was over in less than five minutes. Before I actually filed bankruptcy, there were several other arbitrations that were apparently set up which were optional if I wanted to appear. I did not, but then it was not court ordered.

When you called the attorney with your offer, did you ask what amount they would be willing to settle for if any?? It may be that you have struck a deal with the devil who wants to milk you for every dime. That could easily cost you 10 times the original amount.
Have they made any offers to you on what amount they would accept for immediate settlement? Also, if they do I would make sure that the amount is payment in full, as opposed to an amount to bring your account current or some such wording. I know of some people who got nailed for one settlement amount only to find out that what they paid was only a tempory settlement and that they were still responsible for the difference about six months later.

In my personal case, after the arbitration, I got a letter saying that you owe X amount of dollars, but we will settle for Y... if paid by a certain date, then it went on to say that if debt was not paid there would be additional interest....and that the entire amount was due

Hope that is some help...

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Addressing one issue at a time - if Cap One is looking to collect their money, yes, they will try to attach the bank accounts but they need a Judgment and Order before they can do that. As a credit card company they may very well have already run a check to determine your assets. Because your mother’s (as I recall) business and interests are at stake here, this is nothing to guess about. Ask an Attorney.

As far as being compelled to release information - you raise your hand and are sworn in. I don’t advising hedging any questions, giving partial answers, not telling the truth. This is a legal proceeding.

Likewise, do not threaten bankruptcy unless that is in your plan. Once again, you are raising your hand and being sworn in.

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Originally Posted by JudyKayTee

Don't know if you want to argue the point when so much is going on but the firm where the Attorney was working when she took your $100 (and then disappeared) under almost all circumstances still represents you. She was speaking for the firm and whether she's still there or not makes no difference. If you had a financial arrangement with her (X Dollars an hour) and you are still interested, I'd make another stab at it with them, explaining that you had an agreement with the firm through this Attorney and "What should I do?"

Sounds like you agreed to arbitration at some time or another, possibly when you took out the card.

If they present you with the details of the debt at arbitration and you haven't had a chance to review them request an adjournment - you can't address what you're not prepared for.

(Sounds like you hit a rough patch in life; hopefully you can reach an equitable arrangement with them and end the chapter.)

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I did contact the firm back explaining that I retained the lawyer to represent me and his response was that I paid her to send a letter and they did their job. The agreement that I signed states that I retained her as my lawyer and if any additional services are rendered I would need to pay more money. It never explained that I paid for a letter.

Thanks for all your help and your encouragement. I just don't want them to take from my mothers accts because she would be devastated and I have not told her that any of this is going on.

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Originally Posted by omgrusty5

I did contact the firm back explaining that I retained the lawyer to represent me and his response was that I paid her to send a letter and they did their job. The agreement that I signed states that I retained her as my lawyer and if any additional services are rendered I would need to pay more money. It never explained that I paid for a letter.

Thanks for all your help and your encouragement. I just don't want them to take from my mothers accts because she would be devastated and I have not told her that any of this is going on.

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I think you'd better let your mother know before this gets out of hand and she finds out some other way -

More about my experience... I did go to court for the arbitration without a lawyer, but only to inform them that I did owe, but had no assets. It was also my plan to file backruptcy because I was in over $60,000 of debt without a job as a result of a nasty divorce and severe depression.

About your case, could you borrow the $500 from your mom to add with your $1300 to pay off the debt before the arbitration so that there would be no additional fees added on? It would be a lot cheaper to pay your mom back than to have to pay a bunch of additional fees as a result of the arbitration...

Also, when you got the offer of settlement for $1800, did it have a number or address to contact with any deadlines for payment at that price? Maybe you could send in that payment via certified overnight mail before the arbitration to show that the debt has been paid...

The only other idea would be to call the company directly and ask if the offer still stands for complete settlement of the debt at that price... perhaps they will give you a certain length of time to settle up if you show that you are trying... not sure... but I know that in my case, the cost of the arbitration added to the fees they tried to bill me.

I know it's a pain to borrow from family and sometimes that option is not available, but it was just an idea that might ease your mom's mind as far as the accounts getting attached. It would also be cheaper than hiring an attorney to go to court with you.

I guess you have to weigh your options. If this is the only debt over your head and you can clear it all away with one payment, that would be fantastic. In my case, clearing one only left a bunch more who were all adding on additional fees. Again, I would make certain that if you pay in advance, you get names-confirmation numbers-and possibly a written statement to show that the payment will be for complete payoff and not counted as only a partial payment on the account. That might be hard to get without a lawyer's help.

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Originally Posted by JudyKayTee

I think you'd better let your mother know before this gets out of hand and she finds out some other way -

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Can you tell me if the business is listed as an LLC would they still be able to attach the accounts?

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Originally Posted by omgrusty5

Can you tell me if the business is listed as an LLC would they still be able to attach the accounts?

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It varies from State to State -