[wbrhodes]

I just received a Statement of Claim from the County Magistrate Court.

I know that this is my debt and I want to pay it.

I called the Attorneys with the Debt Collector (the BOA credit card debt had been sold to Midland Funding) and they are not willing to work out a monthly payment plan. They did say that they would take a $5200 settlement on the $8574 debt. But that it must be paid by next Wednesday. Or 3 equal payments of the full amount 30,60,90 days.

I am trying to get a $5200 loan to pay it off but am uncertain that anyone will loan it to me (due to financial crisis situation)

What can I do at this point? :confused:

Thanks, BR

[ScottGem]

There isn't much. First you do need to answer the summons. But if that can prove the debt they will win a judgement. So the next thing you need to look at is your vulnerability to a judgement.

[wbrhodes]

ScottGem,

What would you suggest that I do in regards to the Debt Collector (Midland)... negotiate? And how... what terms... I tried to get a loan for 5K was declined...

??

-BR

[ScottGem]

Negotiation is a 2-way street. If they refuse to negotiate, you can't force them. So you need to establish some leverage. And that's why I suggested to look at your vulnerability. Once they get a judgement they can garnish your salary, attach your bank accounts and possible go after other assets. So you need to determine your vulnerability. If you can say to them that youi have no cash assets and that if they garnish your salary they will only get $x/mth and you offer to pay them $x/mth directly, Or even $x+/mth they may accept that

[mlr08]

Midland is a well-known third-party "junk" debt collector. Oftentimes all these junk debt collectors have is a one page printout on you. They pay pennies on the dollar for the debt. When forced in court to provide proof of ownership of the debt, original signed contracts, statements, etc. they generally fall short.
If you want to pay the debt, I would immediately send/fax them a Cease & Desist letter and let them know of your intent to defend and file an Answer demanding X,Y,Z... then you are in a better position to negiotiate.
They don't want to actually fight you in court. I think a good rule is to offer 70% of the overall balance. Good luck.

[wbrhodes]

mlr08,

1. Will the judge demand a copy of the signed credit card application, statements, etc.?

2. Should I file an answer with a demand to see these documents before the court date.

3. Will these actions make it easier to negotiate with them?

Thanks

[ScottGem]

1. No, You have to file your Intent to Defend then send that with a copy to the Plaintiff requesting verification of the debt. They have produce it in court or you ask for a dismissal.

2. See above.

3. If they can't prove the debt then you don't have to pay.