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I'm about to be sued for a $900 credit card debt. Now, I can't deny that I owe them, but I'm unemployed, unable to find work, and broke.
If they take me to court, and win, which is likely, what are they allowed to do? They can't just take money out of my checking account if it isn't there, can they?
Please Help
~Nikki
Yes, they can levy your account depending on the state you live in, but not as easy to do. Usually IRS or state for child support can do it. It's easier to garnish your wages, but if you have no income and broke, what can they really take? If they get the judgement they can hold the judgement for 10 years. So when you start working again they can do it then.
Go to court and explain your situation to the judge. That's the only thing you can do at this time. Not showing is not a good idea.
Hi Nikki
Nothing worse than pressure from creditors. The harassing calls and threatening letters will make you sick with worry. Along with everything else it feels like the world is crashing down on you. I've been there.
You can do a couple of things but first know that no credit card co. is going to invest the time and expense to go to court for $900. It would cost them 3x the debt they are trying to collect. Even if it did go to court a judge would let you explain your circumstances and give you the opportunity to offer repayment within your means. The court thing is a threat. Ignore them and eventually it will stop. They will write it off but it will affect you credit record. At some point a collection agency may buy the debt for a small percentage on speculation they can collect it and then the letters and calls start again. Ignore them too.
If your only problem is this one card and you think good credit is something worth maintaining call them. Better yet get a credit counsellor. If you call you get put through to the people that have been writing and calling and they are collectors. A credit counsellor is like having a lawyer in court or a Chartered accountant at tax time. A credit counsellor will tell you no more interest will be charged on the debt and you only have to pay off a percentage. How much can you pay and how long do you need. He works for you. Once you figure that out he picks up the phone and presents your offer. They take it because at least it's settled and not a total loss. They made tons in interest off you getting to this point anyway.
Unless your young or unique $900 is only one issue. If you can get one credit card you can get three or more and most people do. Is there a car loan? Is there a mortgage? If so the credit cousellor is the way to go.
Good luck
Ronnie
Quote:
Originally Posted by ATYOURSERVICE
In most States the Judge has nothing to do with this - he/she hears the evidence and rules, has nothing at all to do with payment arrangements.
It's the other side that the OP has to deal with.
Certain funds cannot be seized - such as unemployment benefits if you receive them.
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