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ashbylk · Jan 23, 2008, 05:37 PM

I have a lot a credit card debt to the tune of 35,000. I was at one time a month behind some some of my payments and immediately put the card under debt management to avoid bad credit and law suits.
I have been paying monthly under my debt management program for three months now and I got a summons 2 days ago saying that I was being sued from one of my creditors. I really don't know why they are suing me. I have not avoided my payments and I am paying my debt. Can anyone give me advice on what I can do?
I did call my debt management company back and they told me that not all of my creditors have accepted the agreements with them yet but not to worry and not to talk to my creditors. I think I just got with a bad debt management company.
I am a teacher and the code of ethics we had to sign will get me fired if my wages are garnished.
Please give me some advice.:confused:

sunnyMI · Jan 23, 2008, 06:06 PM

You need to contact your credit card companies directly. I understand your "bad debt management company" is telling you differently but obviously they've tried and failed. In general you'll be able to negotiate something with them, as they don't want to have to write off your debt. Call the CC company immediately and find out what you can work out with them. I don't know what you can/can't afford, but from my experience (wrote mortgages for a living) you can generally negotiate something that will work out for both of you. Again, they'd rather get some money as opposed to no money. Most of the CC companies will stay away from suing because they risk you filing for bankruptcy. Good look!

progunr · Jan 23, 2008, 06:13 PM

It may be too late to negotiate with the creditor as they have obviously already filed suit.

Just because you went to a credit agency means nothing to this creditor if they declined to accept the offer the credit agency presented to them.

I would try contacting the Credit Card Company directly and see if you can work anything out that could result in them dropping the suit but it is doubtful since they have already filed. They obviously realize that you are gainfully employed, and that they will be able to collect on any judgment they are able to obtain.

The only other thing I'm going to say is this. Did you ever pay this credit card company directly from your debit card, or checking account? If you did, keep in mind, they have all your account information on file and there does exist the possibility that they could go directly to levy your bank account/s when they get a judgment in addition to garnish of wages.

Good luck, sorry about your luck with that agency.

Fr_Chuck · Jan 23, 2008, 06:51 PM

I will also say get with an employment attorney, I do beleve it is against the law to fire someone for getting a garnishment. You can of course file bankrutpcy which would stop the collections

peter030205 · Jan 24, 2008, 01:25 PM

Originally Posted by Fr_Chuck

I will also say get with an employment attorney, I do beleve it is against the law to fire someone for getting a garnishment. You can of course file bankrutpcy which would stop the collections

I agree with everyone that you need to call the credit card company directly. But also Fr_Chuck has a point. I believe there is a federal law that states you cannot be fired for having 1 garnishment, however more than 1 is left up to the employer. Of course because you signed the ethics form I don't know what happens... here comes the employement lawyer. Good luck!

ScottGem · Jan 24, 2008, 01:33 PM

I had the same reaction that you can't be fired for a garnishment.

I would, however, take a slightly different tack on contacting the creditor. First, I would file an answer with the court stating your Intent to defend against the suit. Send a copy of that to the creditor and the debt management company. Then arrange with the creditor to have a conference, either a telephone call or meeting, with the debt manager and the creditor. I would not go behind the debt mgr's back at this point, but I would insist that they work together with you and the creditor.