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captjim · Aug 19, 2008, 05:49 PM

My wife was served a summons this evening notifying her that she is being sued by a credit card company. And in short it says that if this is not responded to or resolved , there will be a judgement filed in favor of the CC company. I suppose that this means a judgement against personal and real property... right?
On the flip side of this is the IRS already has a lien on my home,autos and anyhing else I own or will acquire in the future.
I am 73 and wife is 66... and are living on SS (about $1400 a month combined). We don't have the money to pay the CC company ($2300) and are making monthly installments to IRS. Both my wife and I have had triple heart by-pass and can't even afford the medications necessary, much less the $2300. We can't even afford a lawyer to try to calm the waters.
I tried to get a equity loan on my house(it's paid for) to settle the IRS debt ,but the banks refused because of the real estate crunch.
I don't know which way to jump!! Any suggestions?
Thanks
captjim

JudyKayTee · Aug 19, 2008, 06:16 PM

Originally Posted by captjim

My wife was served a summons this evening notifying her that she is being sued by a credit card company. And in short it says that if this is not responded to or resolved , there will be a judgement filed in favor of the CC company. I suppose that this means a judgement against personal and real property....right??
On the flip side of this is the IRS aready has a lein on my home,autos and anyhing else I own or will acquire in the future.
I am 73 and wife is 66...and are living on SS (about $1400 a month combined). We don't have the money to pay the CC company ($2300) and are making monthly installments to IRS. Both my wife and I have had triple heart by-pass and can't even afford the medications necessary, much less the $2300. We can't even afford a lawyer to try to calm the waters.
I tried to get a equity loan on my house(it's paid for) to settle the IRS debt ,but the banks refused because of the real estate crunch.
I don't know which way to jump!!! Any suggestions??
Thanks
captjim

Do you owe the money? Is it within the Statute (I don't know what State you're in.)? Statute varies by State and it's by the last activity on the account (last charge, last p;ayment), not when the account was opened.

It sounds like you are pretty much collection proof. Even if they get a judgment I don't know how they will enforce it as they will be secondary to the IRS.

As far as the house the best the credit card company can do is file a lien against the house. When you pay off the IRS they will be the first lien in line but in most circumstances and particularly with this relatively small amount in comparison to the value of the home they don't force you to sell. When you do sell, they get paid off the top.

captjim · Aug 19, 2008, 06:59 PM

Thanks Judy. Not sure of SOL here in Texas. Think its 7 yrs.
I just wonder what we should do. Do you think we should contact the JP court or the rep of the CC company.

ScottGem · Aug 19, 2008, 07:07 PM

You file an Intent to defend and send the plaintiff a request for verification of the debt. You show up for a hearing. But frankly, if they can verify the debt a judgement will be entered against you.

But you are pretty much judgement proof. The best they can probably do is wait and hope they can get it from your estate.

captjim · Aug 19, 2008, 07:23 PM

Thanks Scott
I'm sure they can get the judgment in their favor, so why go to the trouble of filing the intent to defend? Is it going to help matters?

captjim · Aug 19, 2008, 07:29 PM

What really hacks me the most is the credit card was unsolicited and my wife "fell for it" When we hit the skids with our health and was late on payments, the late fees were enormous and we soon found that making the minimum monthly payment was not lowering the balance at all. In fact, it was growing so fast it was completely out of control. This is when my wife ceased to throw good money after bad.

ScottGem · Aug 19, 2008, 07:35 PM

Because you might get a sympathetic judge or an arrogant plaintiff who doesn't bring the records and you get a dismissal. You don't want to hand them the judgement. At least make them work for it.

JudyKayTee · Aug 20, 2008, 06:39 AM

Originally Posted by ScottGem

Because you might get a sympathetic judge or an arrogant plaintiff who doesn't bring the records and you get a dismissal. You don't want to hand them the judgement. At least make them work for it.

Agree with Scott - take a look at what they are claiming you owe. If it's in line with what you think you owe, take a look at your (and your wife's) health.

If you can both withstand the time and effort of making an argument, then do that.

If you can't - then let them take the Judgment. As Scott said, they're just going to hold onto it like vultures and wait to collect.

The Statute in Texas is a straight four years - four years on 99% of all debts, including credit cards. That's four years since the last activity on the account - using the card, paying on the card - not four years from when the account was opened.