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TXbanker · Jan 22, 2010, 12:06 PM

I received a summons for response on an old credit card debt this morning. I'm not sure what to do. I got one on another credit card Dec. 2008, but nothing ever came of it. That one was from Pharr, LLC. This one received today was from Palisades collections. Are they using scare tactics here? Are these junk collectors?

Also, I am in Texas. I know the statute of limitations is 4 years due to research... when does that clock start ticking? I haven't paid on several cards I was left in a divorce in 2004 since about 2006. When my divorce happened, I found that my ex applied for credit without my knowledge... she filed for bankruptcy right after our divorce in early 2005. I have none of the paperwork on anything because she cleaned out the house of everything plus all paperwork on anything. This has left me in a rather awkward position.

How do I answer the summons? It asks me to confirm or deny allegations and I feel if I do that then that sets them up to get a default judgement. Can they really garnish wages for credit card debt?

Since the last request never came to anything in over a year... can I expect the same from this fishing expedition? Once again, is this a scare tactic? I have no money as my ex cleaned my out... however, I have a home and two rental properties... can anything be attached to those?

I would appreciate any help - this has really got me bugged. I don't need this...

rosemcs · Jan 22, 2010, 01:47 PM

It looks like they are trying to reach you again right before that statute of limitations is up. They can garnish your wages and they are not just using scare tactics. You have a choice to call them and try and work something out (good luck with that, they are not that helpful except lowering a monthly payment and cutting fees).

As for the Real Estate, yes they can attach a lien on your home so when you try and sell, it will have to be paid off first.

At this point, you may want to speak with a BK attorney.

AK lawyer · Jan 22, 2010, 01:57 PM

Originally Posted by TXbanker

... I know the statute of limitations is 4 years due to research...when does that clock start ticking? ...

Usually from the last payment made.

Originally Posted by TXbanker

How do I answer the summons? ...

Plead the statute of limitations as an affirmative defense.

TXbanker · Jan 22, 2010, 04:43 PM

Originally Posted by rosemcs

It looks like they are trying to reach you again right before that statute of limitations is up. They can garnish your wages and they are not just using scare tactics. You have a choice to call them and try and work something out (good luck with that, they are not that helpful except lowering a monthly payment and cutting fees).

As for the Real Estate, yes they can attach a lien on your home so when you try and sell, it wil have to be paid off first.

At this point, you may want to speak with a BK attorney.

I'm not sure you're correct. In Texas, they cannot garnish wages or place a levy on bank accounts. Are you with Palisades Collections?

ScottGem · Jan 22, 2010, 04:56 PM

Originally Posted by TXbanker

I'm not sure you're correct. In Texas, they cannot garnish wages or place a levy on bank accounts. Are you with Palisades Collections?

No they cannot garnish wages for credit card debt. Yes they can attach bank accounts.

Your response is that you cannot affirm or deny the allegations without documentation. Then send a copy to the plaintiff asking for verification of the debt.

TXbanker · Jan 22, 2010, 05:12 PM

Originally Posted by ScottGem

No they cannot garnish wages for credit card debt. Yes they can attach bank accounts.

Your response is that you cannot affirm or deny the allegations without documentation. Then send a copy to the plaintiff asking for verification of the debt.

Well, I'm still not sure you're right about bank accounts from what I've been reading relating to the State of Texas. The SOL for Texas is 4 years... that will be up in August 2010 since I quit paying on everything in August of 2006... if I respond and ask them to validate the debt, will that take another 7 months then I can tell all of them they are SOL??

ScottGem · Jan 22, 2010, 05:22 PM

Originally Posted by TXbanker

Well, I'm still not sure you're right about bank accounts from what I've been reading relating to the State of Texas. The SOL for Texas is 4 years....that will be up in August 2010 since I quit paying on everything in August of 2006....if I respond and ask them to validate the debt, will that take another 7 months then I can tell all of them they are SOL???

What have you been reading?

No. Once they file suit the SOL is no longer a factor. The SOL just states a time limit within which they have to file. Since they have filed within the time limit then the SOL ceases to apply.

TXbanker · Jan 22, 2010, 06:12 PM

Originally Posted by ScottGem

What have you been reading?

No. Once they file suit the SOL is no longer a factor. The SOL just states a time limit within which they have to file. Since they have filed within the time limit then the SOL ceases to apply.

Ok, thank you. This is all new to me. But, just for the record, I have several other cards that I have not been filed upon... so, if they don't do anything by the end of 4 years, I'm OK?

I received a summons like this back in December 2008, responded, and have heard nothing since. I requested validation of debt. Is that the typical response since they feel like most people will just let it go and take a default judgement?

I would like to think this one will go away after my response.

Thank you for your guidance!

ScottGem · Jan 22, 2010, 06:24 PM

Your debt NEVER goes away! At least not until its paid. All the SOL does is limit the time they have to use the courts to collect it.

rosemcs · Jan 22, 2010, 08:04 PM

Texas and Pennsylvania allow garnished wages only for federal or state tax debts, child support, defaulted student loans that are federally guaranteed, or for compensatory damages decided by a court during a criminal or civil law suit.
What are Garnished Wages?

TXbanker · Jan 23, 2010, 09:25 AM

Originally Posted by ScottGem

Your debt NEVER goes away! At least not until its paid. All the SOL does is limit the time they have to use the courts to collect it.

I KNOW THAT... are you just Mr. Gloom and Doom?

ScottGem · Jan 23, 2010, 04:10 PM

Originally Posted by TXbanker

I KNOW THAT....are you just Mr. Gloom and Doom?

It didn't appear that you did know that:

Originally Posted by TXbanker

Ok, thank you. This is all new to me. But, just for the record, I have several other cards that I have not been filed upon....so, if they don't do anything by the end of 4 years, I'm OK?

I would like to think this one will go away after my response.

I have been trying to help you. Its not real nice to attack someone trying to help you. I understand you have fallen on hard times and have a problem paying your bills. But you shouldn't be trying to get out of paying your bills. Instead you should try to arrange a payment schedule you can manage.

zena3546 · Jul 11, 2010, 01:38 PM

This not correct, not in the state of Texas. They cannot attach a lean on your home if it is your only home. They cannot garnish your wages but they can remove money from your checking accts.

zena3546 · Jul 11, 2010, 01:44 PM

The outstanding debt from the last day you defualted on a pymt till 7 yrs.. it stays on your credit report. IT IS NOT FOREVER!! PS.if you make a pymt within that 7 yr period, the time starts all over.