[indefault]

OK, so I think I have made some mistakes here. I was served a Summons by a debt collector. I called them up and they told me to Answer the summons by sending them a letter of what I intend to do about this debt. I did this asking them for a chance to negotiate my debt. We talked about an offer of repayment and they sent me a contract that has some things missing so I did not sign it. When I called to discuss they said I had agreed to it and now they would file for Default Judgment.

First of all I want to say that I did not deny my debt and in fact want to pay it. My problem is that I was not allowed enough time to get money set aside or to make payments. I asked the CC for a deferred payment setup and the denied it. Now the debt collectors have too and they have filed for a Default Judgment.

What I want to know:

1: Was not my answer to them enough?

2: I have mentioned that I will have money October 2009. None of them have accepted this and they want money now. This was never possible due to severe lack of income.

3: Since I have offered to pay this debt can I force the Debt Collector into accepting any payments before the court date? (Assuming I can borrow to pay my debts (wonderful I know)).

4: Can I file an Intent to Defend and explain that my Answer to the summons was to start negotiating repayment?

All I want to do is make payment arrangements starting next month. This seems like a reasonable request.

Thank you,
indefault

[stevetcg]

Yeah, you did make some mistakes... namely admitting that the debt was valid.

Now they will take you to court, the judgement will most likely be a rubber stamp and you will owe them all of it.

[indefault]

I did not deny it because I want to pay it. I owe it and that is only fair.

My question is how can they sue for default judgment when I have agreed to pay in the future? When they first contacted me in July I told them I could settle in October or start a payment plan then. They wrote their contract for payments starting in August and so I did not sign or make payments.

How can I get them to wait until I have the cash to pay them? I don't want a Judgment or for them to go after my accounts (which would sink my struggling business)?

Thank you,
indefault

[stevetcg]

If they are intent on suing... and it sounds like they are, there is little that you can do to stop it.

They can sue for a judgement because it's a valid debt. They are under no obligation to negotiate or accept payments from you.

You can offer to pay today... that might stop the process... but why would they accept payments when they could easily get a judgment and go after it all at once (garnishment)?

[indefault]

I wish that there were some better ways for honest people with temporary money problems to deal with these folks. It has taken 2 years to get back on my feet due to the economy.

Thanks for your time!

[indefault]

Well I called the attorney dealing with the case and he agreed to a stipulation. If I agree and make a first payment they will strike the Judgment.

I guess it never hurts to call. Most advise not doing this but again I am not trying to get out of it.

Thanks again,
indefault