Jump to content

2nd lawsuit from collection agency.........please help


maverick9
 Share

The last post in this topic was posted 1440 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

Hello everyone.

 

In 2015 I had a horrible financial crisis, my business was suffering as it is and then I discovered I had terrible illness that was life threatening. Coupled with my wife and I have a our firstborn child and her being laid off after a decade of job stability. I had a choice of paying my credit cards or putting food on my families table so opted for my family.

 

We stopped paying on all our credit cards in 2/2016. 

 

I'm finally now getting on my feet after all this time. My wife is still not working and looking for a job at the moment. 

 

A few months ago, I got hit with my first lawsuit from BofA for $4,400. I didn't have a lot of time to respond, went to court, and opted for a 3 year plan of $132.00 per month. I tried to do a settlement with them but their atty said, "They won't really come down much". When I asked how much, "Basically they will come down only to $4,100." I was frustrated and since I didn't know how much of these things are negotiable or even if they are, I just opted for the monthly plan.

 

Now my fear of the another cc is in play and it's an almost 26k credit card. They served me last month. I filed a motion to give me till the end of the month as I stated that I'm seeking legal console. 

 

I'm self employed as an employee of my company (so W2'ed) and have a small job (1099) that is truly part time making $800 per mo. So I only made 10k this year but the issue is, I have business income pending this coming week for 55-80k. BK atty's told me I would not qualify due to the pending income as that has to be disclosed of course but that's "if" these transactions do close.

 

This is the 2nd lawsuit and now my wife got her first suit last week for only 1k.

 

Guys and gals, please help as I'm freaking out! I have been through so much and I'm just exhausted and mentally drained. I had a very legit reason as to why I'm in this mess and though I could have filed BK 3 years ago, I felt it was my duty to avoid BK and pay what I owed. I wasn't borrowing all that cc debt for foolishness. I had a struggling business I was trying to keep alive as I believed in it but then ended up being sick with my wife losing her job. Worst season in my life not knowing if I was going to live with a new born in fear of leaving my wife as a widow and child fatherless. :(

 

My 2 lawsuits are with different creditors but represented by the same attorney.  Do I call the creditors and make an offer or do I call the atty?

 

Since I can't file BK now, I would imagine the next best option is to do a settlement with them? PLEASE HELP EVERYONE! The weight of the world is on my shoulders. I could cry.......CB has been hopeful with the great advise of other issues I've posted. Please help. What should I do?

Link to comment
Share on other sites


  • Admin

You can probably file a chapter 13 now and convert it to a 7 if the business income does not materialize. 

Also check your state rules for garnishment and bank levys.   At your income level (10K) most, perhaps all of your income might be exempt from garnishment.  If it is, they can sue you but there is nothing to collect.  That is a powerful negotiating tool if you are looking to settle. 

 

Link to comment
Share on other sites

Need more info. You stated you have W2 income as well as 1099 income (10k/y) from a part time gig.

 

Break it down. What form is the entity (corporation, llc, dba?) and is the potential business income net and to you or the entity. Also, do you solely own the entity?

 

My inclination is the same as Radi8 but it depends on a lot of details we don't know.

Link to comment
Share on other sites

  • 4 months later...

Hello everyone!!!

 

Ok I need help asap please and please forgive me as I'm a newbie learning as much as I can!

 

So here's the situation.....

 

Original debt was with a major credit card (bank and unsecured) for 27k. CA is now the owner of the debt and offered to settle in writing 12/17 for 15k, then 2/18 for 14k, then 5/18 for 14k. Then they sued me 8/18. I responded with a motion to extend time to file a response. They accepted and gave me 30 days from 12/19/18 to file a response to the plaintiff's complaint. 

 

I was going to call the CA to see if they would settle. I have the money to pay them the lump sum of the 14k.

 

Spent hours on CB to see what I can do and read the entire thread on DV Is Your Savior.

 

Questions:

 

1) I was excited to learn about DV but I'm within SOL. Should/can I still DV since I'm within SOL? (I'm about midway into SOL)

2) Should I even DV or just call them to settle?

3) If DV, do I send the hired attorney the DV and/or the CA?

 

Sincerely!!!

 

Link to comment
Share on other sites

You've been sued.  Traditional notions of debt validation are a ship that sailed A LONG TIME AGO!  You now are looking at the Rules of Civil Procedure, which are an entirely different sandbox.  You can make a discovery request, but you ALSO need to realize that this could contribute to them withdrawing their previous settlement offer. 

 

If they can prove up the original amount for which you have been sued, then you are looking at a potential judgment north of $35K when fees and post-judgment interest get tacked into the mix. 

Link to comment
Share on other sites

27 minutes ago, centex said:

You've been sued.  Traditional notions of debt validation are a ship that sailed A LONG TIME AGO!  You now are looking at the Rules of Civil Procedure, which are an entirely different sandbox.  You can make a discovery request, but you ALSO need to realize that this could contribute to them withdrawing their previous settlement offer. 

 

If they can prove up the original amount for which you have been sued, then you are looking at a potential judgment north of $35K when fees and post-judgment interest get tacked into the mix. 

omg... :(

 

So are you saying that I should just offer them a settlement?

Link to comment
Share on other sites

On ‎9‎/‎6‎/‎2018 at 11:38 AM, maverick9 said:

Hello everyone.

 

In 2015 I had a horrible financial crisis, my business was suffering as it is and then I discovered I had terrible illness that was life threatening. Coupled with my wife and I have a our firstborn child and her being laid off after a decade of job stability. I had a choice of paying my credit cards or putting food on my families table so opted for my family.

 

We stopped paying on all our credit cards in 2/2016. 

 

I'm finally now getting on my feet after all this time. My wife is still not working and looking for a job at the moment. 

 

A few months ago, I got hit with my first lawsuit from BofA for $4,400. I didn't have a lot of time to respond, went to court, and opted for a 3 year plan of $132.00 per month. I tried to do a settlement with them but their atty said, "They won't really come down much". When I asked how much, "Basically they will come down only to $4,100." I was frustrated and since I didn't know how much of these things are negotiable or even if they are, I just opted for the monthly plan.

 

Now my fear of the another cc is in play and it's an almost 26k credit card. They served me last month. I filed a motion to give me till the end of the month as I stated that I'm seeking legal console. 

 

I'm self employed as an employee of my company (so W2'ed) and have a small job (1099) that is truly part time making $800 per mo. So I only made 10k this year but the issue is, I have business income pending this coming week for 55-80k. BK atty's told me I would not qualify due to the pending income as that has to be disclosed of course but that's "if" these transactions do close.

 

This is the 2nd lawsuit and now my wife got her first suit last week for only 1k.

 What should I do?

What happened to the 55-80k income chunk you were expecting back in Sept.?  If it didn't happen perhaps you should talk to a BK atty again as that was the major issue.

Link to comment
Share on other sites

On ‎1‎/‎16‎/‎2019 at 3:43 PM, centex said:

You've been sued.  Traditional notions of debt validation are a ship that sailed A LONG TIME AGO!  You now are looking at the Rules of Civil Procedure, which are an entirely different sandbox.  You can make a discovery request, but you ALSO need to realize that this could contribute to them withdrawing their previous settlement offer. 

 

If they can prove up the original amount for which you have been sued, then you are looking at a potential judgment north of $35K when fees and post-judgment interest get tacked into the mix. 

I'm new and learning but I read in the "Index and starting point" thread we can still and should validate even if were sued. Is the following outdated?

 

"IF YOU'VE BEEN SUED:

Send a validation letter (if you've been sued by a CA) AND answer the complaint (by the timeframe imposed on the summons), show up -- don't allow a default judgment." 

Link to comment
Share on other sites

It isn't outdated, it is simply stupidly wrong, like most of the information on legal websites maintained by lawyers who have never been involved in debt collection. A summons and complaint tell you who is suing and for how much. That's all DV requires anyway, so forget this notion. You'll just make yourself look like an easy mark.

Link to comment
Share on other sites

3 hours ago, legaleagle2012 said:

It isn't outdated, it is simply stupidly wrong, like most of the information on legal websites maintained by lawyers who have never been involved in debt collection. A summons and complaint tell you who is suing and for how much. That's all DV requires anyway, so forget this notion. You'll just make yourself look like an easy mark.

This info was from a thread on CB. So you're saying this is wrong info?

Link to comment
Share on other sites

What you need to understand is that the notions of debt validation are simply NOT the same as discovery.  Being sued actually gives you an ability to seek a MUCH BROADER array of documents.  Provided that you can justify the need for some of the requested materials, you ALSO have the enforcement avenues through the Court being able to COMPEL the productions (provided you or your attorney file the appropriate Motions consistent with Rules for the jurisdiction in which you have been sued). 

 

You NEED to be learning procedure QUICKLY!  Either that or you need to hire local counsel.  Self-representation is not a task for the faint of heart.  You have MUCH at stake...a judgment can make your life a living hell. 

Link to comment
Share on other sites

5 hours ago, centex said:

What you need to understand is that the notions of debt validation are simply NOT the same as discovery.  Being sued actually gives you an ability to seek a MUCH BROADER array of documents.  Provided that you can justify the need for some of the requested materials, you ALSO have the enforcement avenues through the Court being able to COMPEL the productions (provided you or your attorney file the appropriate Motions consistent with Rules for the jurisdiction in which you have been sued). 

 

You NEED to be learning procedure QUICKLY!  Either that or you need to hire local counsel.  Self-representation is not a task for the faint of heart.  You have MUCH at stake...a judgment can make your life a living hell. 

Thanks for your help.

Link to comment
Share on other sites

Read the FDCPA. All they have to give you under DV is the name / address of the creditor and the amount. You have that already. It isn't clear who owns this debt; if BofA sold it, you have a little more negotiating room because debt buyers only pay around 3 cents on the dollar. You do NOT have the leverage of arbitration, BofA removed that in 2010.

Link to comment
Share on other sites

8 hours ago, legaleagle2012 said:

Read the FDCPA. All they have to give you under DV is the name / address of the creditor and the amount. You have that already. It isn't clear who owns this debt; if BofA sold it, you have a little more negotiating room because debt buyers only pay around 3 cents on the dollar. You do NOT have the leverage of arbitration, BofA removed that in 2010.

I will surely read FDCPA to the tee. Thanks @legaleagle2012

 

However, Citibank owned it but it was sold to a nationwide junk buyer. That I do know. 

Link to comment
Share on other sites

4 hours ago, legaleagle2012 said:

Citi has arb as I recall, they switched to AAA in 2011. You need the contract from the year you defaulted. If it's there, file for it. 99% of JDBs will not arbitrate, it costs them more than the debt they are chasing.

Thanks @legaleagle2012! I defaulted in 2/16 or about that time frame. The contract is the cc agreement? I will get it as you instruct. What is AAA?

Link to comment
Share on other sites

2 hours ago, maverick9 said:

Thanks @legaleagle2012! I defaulted in 2/16 or about that time frame. The contract is the cc agreement? I will get it as you instruct. What is AAA?

Those Cardholder Agreements that come when you GET the card and that are often updated every year or so will be the controlling language...what controls for one cardholder could be different than what controlled for someone else since the date of default would control what terms were in place at the point of default.  These are the sorts of things that EVERYONE should put into a folder and have at the desk in the event it became necessary to review it.  Same document covers APR and fees, to include foreign transaction fees and such...

 

AAA is one of the two common national arbitration entities, the other being JAMS.  The Cardholder Agreement would typically spell out which one the bank had agreed to use should a matter move to arbitration. 

Link to comment
Share on other sites

16 minutes ago, centex said:

Those Cardholder Agreements that come when you GET the card and that are often updated every year or so will be the controlling language...what controls for one cardholder could be different than what controlled for someone else since the date of default would control what terms were in place at the point of default.  These are the sorts of things that EVERYONE should put into a folder and have at the desk in the event it became necessary to review it.  Same document covers APR and fees, to include foreign transaction fees and such...

 

AAA is one of the two common national arbitration entities, the other being JAMS.  The Cardholder Agreement would typically spell out which one the bank had agreed to use should a matter move to arbitration. 

Thanks for the great explanation my friend!!!!

 

Link to comment
Share on other sites

  • 5 weeks later...

Happy to report that I was able to successfully settle with them at 25 cents on the dollar. 

 

I also paid chase at 10 cents on the dollar. 

 

Will these have a negative impact on my credit? I noticed my score dropped by 20 points after a steady climb in my score of about 55 points in 6 months. Don't know if  the "settled less than the full amount" payment was the reason why but can these be removed from the credit reports? 

Link to comment
Share on other sites

The last post in this topic was posted 1440 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      185291
    • Most Online
      2046

    Newest Member
    BREAURHODES0624
    Joined
×
×
  • Create New...

Important Information

Guidelines