[bjornolaf]

What are my options with a Credit Card Suit in Texas?
I live in Texas. I received a summons from a law firm representing American Express. I have never denied I owe the debt. However I did discuss with Amex and the law firm that due to the changes in my life which have lead me to minimal income I could not pay it in full or pay $5000 down and $500 each month which were the only options they gave me up to a couple of weeks ago. I told them several times my whole situation and that I could possibly pay between $50 to $100 each month and could probably accelerate that in 2 years.
They recently came with only one offer of $100 @ month for 6 months and then $250 @month for 55 months which I knew would put me in default at about the 8th or 9th month. I told the law firm I could not do that but that I could agree to $100 for 24 months and then increase to $250 after that. They said this was the only offer.
How do I respond to the summons. I have only about a week to get it filed. I am barely getting by each month. I have an ill wife and lost all health insurance last January. (I have always had health insurance and though it didn't pay for a lot it did help us get by). By the way I have been the sole supporter for the past 25+ years and have always worked 2 jobs all those years. I had to lease out my home or I was going to loose it. We moved into a townhouse that I own after the renters moved out. All of my savings have been wiped out. I feel that if the credit card companies would let me pay each of them about $50 to $100 for 24 months, I could increase my payments by that time and pay then what I owe them over time. I want to pay them back but I just can't pay the amounts they are requesting at this time. I worry about them jacking with checking accounts or trying to sell of my home or the townhouse. This is just the 1st credit card company that is currently suing me. I'm sure the others are close behind.
Even though I qualify for Bankruptcy I don't want to have to do that. I really want to pay them over time. Any advice is appreciated.

[Fr_Chuck]

You really should consider bankruptcy, they have options after getting a judgement to do lien on properly even. They have no reason to accept less than they want. Also on a debt this large, I am not sure if 50 dollars a month is even enough to cover the interest.

But you should consult a local attorney, if this is just one of many cards, with high amounts, if you pay this one 100 a month, what do you pay the next and then the next

[ScottGem]

First, you should know that wages are exempt from garnishment for Credit Card debt in TX. However, they can attach savings accounts and other assets.

Second, poverty is not a response to a suit. I'm not sure how you can answer this suit other than to say you have tried to work out a payment plan but have been unable to.

So bankruptcy does appear to be your best alternative. Applying for bankruptcy doesn't mean you won't repay your debts. It can be used to give you time to do so.

[bjornolaf]

Thanks for the advise. Savings are gone. However attaching my checking account would be a problem. Can they attach your checking accounts?

[ScottGem]

Thanks for the advise. Savings are gone. However attaching my checking account would be a problem. Can they attach your checking accounts?

Sorry, I should have said bank accounts, not just savings. Yes they can attach any bank account. But only after they get a judgment. Still getting a judgment should not be hard since you admit the debt.