[nctwinmom]

First off if its important I live in North Carolina, Ok, I'm not going to lie here, I'm an idiot when it comes to money and my credit. Up until a year ago I only had one joint credit card with my husband and all of the ones I had that were in my name were gone and paid off. Then I got an offer and another and before I knew it I had 5 credit cards. I was doing OK, I of course would pay one off with another and instead of cutting up the paid off card I used it and amassed roughly 20k in credit card debt in over a year, mostly I was supplementing my grocery budget, and buying clothes for our twins (and not designer either) and things we actually needed but there was some useless spending going on. Anyway, I was paying on them until one day my payments jumped from reasonable to almost 1/2 what was owed so I stopped payment. Now I have had one attorney contact me who agreed to a $50 a month for 6m and then $150 a month payment till its paid off. Then I received a Civil Summons today not sure what for, other than I know its one of the cards. How long do I have to respond? We are living paycheck to paychek as is and have nothing left over, its either pay our mortgage, & car, utility bills &feed the kids or the credit card companies. What are my options here? If I go to court and present them with what we take in verses pay out will I stand a chance or do I just ignore it all together? Can we lose the house, car etc? I am not on the mortgage but am on the deed. The cars are in my husbands name and I only make like $300 a month at my job. Help what are my options?
Thanks!

[nctwinmom]

First off if its important I live in North Carolina, Ok, I'm not going to lie here, I'm an idiot when it comes to money and my credit. Up until a year ago I only had one joint credit card with my husband and all of the ones I had that were in my name were gone and paid off. Then I got an offer and another and before I knew it I had 5 credit cards. I was doing OK, I of course would pay one off with another and instead of cutting up the paid off card I used it and amassed roughly 20k in credit card debt in over a year, mostly I was supplementing my grocery budget, and buying clothes for our twins (and not designer either) and things we actually needed but there was some useless spending going on. Anyway, I was paying on them until one day my payments jumped from reasonable to almost 1/2 what was owed so I stopped payment. Now I have had one attorney contact me who agreed to a $50 a month for 6m and then $150 a month payment till its paid off. Then I received a Civil Summons today not sure what for, other than I know its one of the cards. How long do I have to respond? We are living paycheck to paychek as is and have nothing left over, its either pay our mortgage, & car, utility bills &feed the kids or the credit card companies. What are my options here? If I go to court and present them with what we take in verses pay out will I stand a chance or do I just ignore it all together? Can we lose the house, car etc? I am not on the mortgage but am on the deed. The cars are in my husbands name and I only make like $300 a month at my job. Help what are my options?
Thanks!

[ScottGem]

Never ignore a debt. That just makes matters worse.

The summons should tell you how long you have to respond. Generally its 20-30 days.

Poverty is not a valid defense. If they get a judgement (and they likely will), they can attach your bank accounts, possibly garnish wages, maybe even place a lien on your home.

Your best bet is to try an negotiate a payment plan you can live with.

[mlr08]

If you can settle with the debt collector for monthly payments that is probably your best option since I'm assuming the debt is within SOL?

Unfortunately, the court does not care about your ability to pay the debt. The only folks who are exempt are those on social security or disability income.

Oftentimes prior to the hearing you will offered a chance to negiotiate down the settlement or go through some process of mediation or arbitration.

I completely understand the paycheck to paycheck thing and as a SAHM I know how hard it can be to stretch that dollar. I was sued awhile back for a ten year old debt and it is very scary but it's important to face it head on, do your research and use it as an opportunity to really assess your finances.

These resources should help get you started:

Here's an article I would recommend: Served a Summons Or Credit Card Debt Lawsuit - Don't Call the Creditor! AND a blog about credit card debt lawsuits The Growing Trend of Credit Card Debt Lawsuits « Credit Card Debt Lawsuit Help AND E-Document Package

Good luck to you and hang in there!

P.S. They won't go after your house or car. The worst case scenario is a wage garnishment or frozen bank account.

[this8384]

First off if its important I live in North Carolina, Ok, I'm not going to lie here, I'm an idiot when it comes to money and my credit. Up until a year ago I only had one joint credit card with my husband and all of the ones I had that were in my name were gone and paid off. Then I got an offer and another and before I knew it I had 5 credit cards. I was doing ok, I of course would pay one off with another and instead of cutting up the paid off card I used it and amassed roughly 20k in credit card debt in over a year, mostly I was supplementing my grocery budget, and buying clothes for our twins (and not designer either) and things we actually needed but there was some useless spending going on. Anyways, I was paying on them until one day my payments jumped from reasonable to almost 1/2 what was owed so I stopped payment. Now I have had one attorney contact me who agreed to a $50 a month for 6m and then $150 a month payment till its payed off. Then I received a Civil Summons today not sure what for, other than I know its one of the cards. How long do I have to respond? We are living paycheck to paychek as is and have nothing left over, its either pay our mortgage, & car, utility bills &feed the kids or teh credit card companies. What are my options here? If I go to court and present them with what we take in verses pay out will I stand a chance or do I just ignore it all together? Can we lose the house, car etc? I am not on the mortgage but am on the deed. The cars are in my husbands name and I only make like $300 a month at my job. Help what are my options?
Thanks!

When your payment increases, it's because you defaulted or went over your credit limit. I would try to contact the prosecuting attorney to find out if s/he is willing to accept a reasonable payment plan, just like you've established with the other companies.

If the attorney refuses the payment plan, you still need to show up for court. Failure to do so will result in a default judgment being granted against you and allow them to garnish your wages, place a lien on your home, freeze your accounts, etc.

[ScottGem]

I've merged your two threads. Please don't post the same question in different forums.

[this8384]

Unfortunately, the court does not care about your ability to pay the debt. The only folks who are exempt are those on social security or disability income.

Not true. You cannot garnish SSI or disability, but that doesn't make the party "exempt" from having to pay. You can still freeze their accounts.

P.S. They won't go after your house or car. The worst case scenario is a wage garnishment or frozen bank account.

Not true either. If the creditor isn't able to garnish wages or find a bank account, then they'll most certainly place a lien on the debtor's property.