Hello,
My wife and I live in NC. Long story , but my wife owes 18,000 to a cc company that has now suing. We got the cival summons from the sherrif yesterday. Before anyone says anything, like get another job, that's what you get or to bad. All I want is information about the best way to proceed with this. We don't have 18,000 to send to the cc. My wife was with citibank for 13 years never missed a payment or ever late. Then out of the blue the interest rate went from 12 percent to 24 percent. She called the cc company and they said they ran her credit report and seen a tailer that had been repoed that had her name on it. Seems this trailer was with her x boyfriend and he did not make the payments. The minimum payments were too much for her to afford, she started making payments less the minimum payment and the cc company gave her a bad report on her credit report. Now this has happened. No excuss she owes the money and is willing to payback the monies owed through a payment plan she can afford. It says we have 30days to respond, should she write the company sueing and try to make a payment plan with them?

Yes she needs to make the best offer she can, if they refused then this will look good for you in court.

Next you can file bankruptcy of course and just get rid of the debt, ( at 18000 I don't know what you own but this may be a real valid option.
( an attorney can tell you that)

Also a chapter 13 bankruptcy will set up a court ordered payment that you can afford within your budget ( it is a tight budget but a good plan)

Also what type of job does she have, If they do sue and get a judgement, the most they normally do is garnish her wages, and attach any and all bank accounts with her name on it?

Assuming your name is not on the credit card account

So if she don't work, takes her name off all bank accounts, there is little they can do beyond hunt for money.

Given the facts as you state them, I think you can go into court and win. First you need to respond to the summons that you will be disputing the judgement. Second, you need to document the issue about the trailer and file a protest with the credit bureau to remove it. Third, you need to document your previous payment record and put together a reasonable plan.

Write them with the plan offer as soon as possible.

You can then go into court and explain to the judge that:
1) she was making at least minimum payments until they raised the interest and the minimum payments
2) the reason for the raise was a debt that was not hers and goes against her good record with them (if they have increased her credit line document that as well)
3) that you have offered a resaonable plan to continue payments

With those three you should avoid ajudgement.

On a separate note. There was no need for your comments about whaqt we might have said. All you needed to do wasexplain the circumstances. You are asking us for our help.Its not a good idea to cop an attitude when doing so.

Thanks for your time. I apologize about any attitude. I didn't mean for it to come out that way. As far as her job she is a housekeeper making $30,000 a year. The cc bill only has her name on it. We bought a home, but of course we make monthly payments. We don't have any money in the banks. She does have a 401 k. Around 22,000. So I don't see how, even if they get a judgement, there is no money. Even though we are buying the home can they put a lean on it? She would rather not file bankruptsy. We have outstanding credit other then this. Were not trying to get out of paying the money, we just want it to work out fairly. Should she write the company within the 30days and try to get a payment plan? Also we feel we should file our taxex right away. Thanks

Is citibank suing you or a debt collector?

For them to proceed to sue you in court they most have the original contract you signed, not a copy of the alleged contract the original.

Dispute their claim and file notice to defend. Make them produce the original contract.

No contract , NO case.

Its says under name of plaintiff, Hudson LLC assignee citibank, na. Looks like they purchased the account from citibank. Thanks

Then do file notice to defend, then you can do discovery for them to produce the original contract, not a copy.

In you discovery ask if the purchased the debt and how much did they pay for it, and other question along that line.

But the inportant part is the original contract they must have it.

Do not admit anything, deny all, even if they ask is "that you signature" deny it until you can compare it to the original. In today world with computers anyone can scan a document, cut and copy any part of it to make it look like the original.

Due process is yours, make them comply.

First, your taxes have little to do with this. However, if you file jointly, then could attach any refund you have, but that would take awhile.

Second, yes defend it as we have advised. However, if the account has been sold, then you have to deal with the plaintiff. If they are just acting on the behalf of Citibank you can try to strike a deal with Citibank.

Third, if she is listed as co-owner on the home, they might be able to file a lien against it. But generally most states prohibit filing a lien against a residence to satisfy unsecured debt.

But, I'm still bugged about the change in interest rate. I have been a Citibank customer for over 25 years. On several occasions I have gotten my interest rate reduced (on my request) because of my good payment record. It just doesn't make sense to me that they would double the interest rate simply on the strength of an old credit bureau entry. Generally, creditors don't review credit reports unless a request for increased credit is made. I have to feel that something else happened.

Hello game:

The choices discussed are (1) deal with them - ask for a payment plan, or (2) defend yourself in court.

I suggest a third alternative. I think you need an intervention - by a credit counselor, by an attorney, or frankly, by yourself.

I'm bugged too by how you were treated by Citibank, but I'm not surprised at all. The credit card divisions of the major banks ARE the major source of the banks income. They DO run credit checks periodically. Yes, if you're golden, you get the cheese. But, if you're not, you get the axe.

Today, under a neglectful congress, the axe is devastating... 24% is obscene, but it's legal...

Nonetheless, OTHER than this ding, you ARE golden. The intervention I speak of, is with the bank. You need to remind the bank that you ARE a good customer, and it's in their best interest to treat you like one.

That's the truth, too. It IS in their best interest to work something out with you. Yes, I know, legally they can wash their hands of it because they sold the debt. Ok, I'm not talking legal here, I'm talking business. Someone needs to get to someone at the bank who can make a business decision regarding your account, rather than a clerical decision.

If you get to the right person in the bank, and I would not stop till I did, you CAN get this fixed.

If you try to deal with the scum sucking collection agency, you'll wallow with the pigs. You can't do that and come out clean. If you let them sue you, you'll lose that one too...

Try door number #3.

excon

excon has a point and I would defintiely try that tactic. But you will still need to respond to the summons within the time limit. And I disagree that you will lose. I think, you have a good chance to win based on the info you have told us.

I talked to the bankruptsy attorney today Seems North Carolina willnot let them garnish wages at this point. This is going to change soon. She seems to think we would loose in court. So even if they get a judgement against her, there going to find there is no money to get.