Ask Me Help Desk - Received a citation for credit card debt

OK, first thing, take a big, deep breath and try to settle your nerves
A little. I've been in your shoes, and while it's not a pretty
Situation, I learned a lot from it.

You have rights, Knox, and the first thing to help you in getting this
All straightened around is knowing your rights. Let's get to it.

You are protected by a federal law called the Fair Debt Collection
Practices Act (FDCPA):

Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act

Are lawyers collecting a debt bound by this law? You betcha. They
Have to play by the rules too, and you can get a good explanation of
This right from a lawyer:

What Debt Collectors Are Covered By The Act
The Fair Debt Collection Practices Act (FDCPA)

The FDCPA clearly states that debt collectors may only contact third
Parties to verify your location and/or telephone number, and they may
Only contact a given third party ONCE.

They MAY NOT tell any third party about your debt - neither what you
Owe nor that you owe anything at all. Telling a third party about
Your debt violates Section 804(2) of the FDCPA:

Gathering debtor's location information 3rd Party Contacts - Section 804
Debtors rights; 3rd party contact is illegal

Debt collectors MAY NOT use threats or intimidation to hasten your
Payment of your debt. They cannot demand you call family or friends,
They cannot threaten to "sue you tomorrow", they cannot tell you to
Shut up, call you names, yell at you, or otherwise use abusive
Tactics. This is covered by:

Debt Collection and Creditor Harassment Abuse Laws - Section 806 of the FDCPA
Debt collection harassment laws against phone and email harassment

The 17 false or misleading tactics are prohibited according to section
807 of the FDCPA
Debt collectors deceptive harassing tactics violate the fdcpa!

So, how are you supposed to get these guys to leave you be?
Easy-peasy: Document, document, document. Start screening all of
Your calls for now - let them go to voice mail/answering machine. DO
NOT call them! No, you MAY NOT tape future phone calls without
Telling the collector you're doing so. Just screen your calls for a
Little bit, it's not illegal and it will help lessen your anxiety.
BUT! If they leave abusive messages, you may make tapes of those.

In the meantime, you can invoke your rights under the FDCPA with a
Cease and desist letter to the debt collector:

What If You Don't Want The Collection Agency To Contact You?
The Fair Debt Collection Practices Act (FDCPA)

As tempting as it might be to thumb your nose at the debt collector,
DO NOT tell them "go ahead and sue". They may very well do exactly
That, and if you intend to stand a snowball's chance of making some
Sort of reasonable settlement arrangements on terms that won't break
You, you need to be able to show that you're making a good faith
Effort to pay. Offering to make arragements: Good. Document this,
Making note of the precise arrangements you've offered (amount
Monthly, by what date, and the fact that you were rebuffed). Getting
Belligerent with the collectors: Very, very bad. Don't do that.

(Aaron Larson's entire explantion of the FDCPA is a must read. Start here:

The Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) )

Send your letter by certified mail, return receipt requested, and keep
Several copies for yourself in a safe place. When you get your return
Receipt back, put it with these copies.

File a complaint with the FTC. Describe the nature of the violations,
With dates and copies of any correspondence (including the cease
Contact letter above), and send it to:

Federal Trade Commission
One Bowling Green Ste. 318
New York, NY 10004

If you're not sure about what to send, you can call the FTC for more
Information. They're very nice, and will explain what you need to
Know:

1-877-382-4357 (877-FTC-HELP)

Of course, that still leaves the debt. What if they do sue? Can they
Get to your meager wages?

Yes, they can. You are NOT judgement proof. But first, they have to
Sue and win, then file for wage garnishment. Wage garnishment
Essentially orders your employer to pay no more than 25% of your
Paycheck to the local sheriff, who then forwards it on to your
Creditor.

NOLO explains it (for those seeking to garnish someone's wages) here:

Collect Your Court Judgment With a Wage Garnishment
Collect Your Court Judgment With a Wage Garnishment

Note that low income folks are granted additional protections - their
Take hom pay after garnishment must be 30 times the prevailing minimum
Wage. Also, you may file an objection to the garnisment in court, on
The grounds that you need the money for your own support.

Although you should certainly prepare to be sued (consult an
Attorney!), it's possible that it won't get that far. Taking someone
To court is a great hassle for most debt collectors. It's entirely
Likely that they'll simply sell your debt off to another collector,
And you'll have to begin all over again. (This is what happened to
Me. The third collector was amiable and willing to work out payment
Arrangements, and - yippee! - seven years later everything was paid in
Full, and we got out of the experience much, much wiser, with our
Dignity intact.)

Is bankruptcy right for you? Only you and your attorney can answer
That question. Do keep in mind that bankruptcy is supposed to be
Considered a last resort, and it will leave a nasty mark on your
Credit report for 10 years after your debt is discharged.
Additionally, bankruptcy will not get you out of your student loan
Obligations, and may make it difficult for you to buy a car or a home,
Or even get a job, as many employers check your credit as a condition
Of employment. Please consider your options very carefully with the
Help of an attorney.

I hope this answer has been helpful to you. There is light at the end
Of the debt tunnel, it just might take a while to get to it. Hang in
There!

If I can be of further assistance, please don't hesitate to ask.