Calling all Lawyers/anybody with the pleasant experience of being sued for CCard debt

[cycfan1]

The original debt may not even exist! It may well have already been written off, and the debt sold for pennies-on-the-dollar to a collection agency.

That doesn't mean you don't pay it. Collection agencies pay credit card companies for the right to collect knowing that many are not collectible. Because debt is sold off does not mean you don't owe it.

[kilgore_trout]

Do not ignore the court date. Call the office of the attorney suing you and try to cut a deal. They are in this business to cut deals. Ask for written proof of what they claim is owed. Mentioning that you are considering bankruptcy may be a good negotiating tactic.

[justcynn]

in the good ole days I would walk to class, get a credit card app or two on the way and get "money" in the mail a week or two later, my fiance did the same with out my knowledge - man it sucked paying that off as newlyweds but thats just what we did...you would have thought we learned from that - not exactly...but my motto now is pay cash or don't go - as someone else said on here it is liberating! Credit Card companies suck - I paid mine but spare me the moral high horse BS - we the american taxpayers bailed THEM out for being irresponsible, then they jacked most of the rates to 20+ percent - I don't feel sorry for them at all - nor will I ever use one again.

[Three4Cy]

Do not ignore the court date. Call the office of the attorney suing you and try to cut a deal. They are in this business to cut deals. Ask for written proof of what they claim is owed. Mentioning that you are considering bankruptcy may be a good negotiating tactic.

Just because you threaten bankrupcty doesn't mean you won't have to pay the debt back. If you file Chapter 13, you are going to have to pay back the money.

Chapter 13 is like Chapter 11, but for individuals. The debtor retains control and ownership of assets. He also works out a three to five-year repayment plan. Some portion of the debt may be discharged, depending on the income of the debtor. There are also limits on the amount of debt involved.

The only way to eliminate everything (except govt. back student loans) is a Chapter 7 and that is the last thing you want to do, because this will destroy your credit.

Chapter 7 is what most people mean when they say, "I'm filing for bankruptcy." This is a liquidation bankruptcy, which means that the trustee sells off all non-exempt assets held by the debtor so that the debts can be repaid to the fullest extent possible. Individuals, corporations and partnerships are all eligible for Chapter 7 bankruptcies. The portion of the debt that can't be repaid through liquidation is discharged. Businesses generally try to avoid Chapter 7, because it is impossible to conduct business operations. Income generated after the bankruptcy filing is not a part of the bankruptcy -- the debtor can keep it.

[CyPride]

If they take you to court, GO. Don't skip the court date.

Here's what happens in MANY situations. Debt is bought and sold so often, that very often the collection agency that ends up with the debt doesn't even have proper paperwork that it ever even existed. They rely on the fact that, in a great percentage of cases, the debtor will skip the hearing, resulting in a default judgment against him or her. Just attend the hearing, and ask for proper proof about the debt. If the collection agency doesn't have ALL of their paperwork in order, you can have the WHOLE DANG THING dismissed immediately. Boom, no cost to you (except your lawyer). You could even roll the dice and be your own lawyer, but that's a bit of a gamble.

good advice.

one thing however - i think this will be small claims, and you definitely don't need an attorney for small claims. If the debt has been sold, the borrower will know this - i.e. started out mastercard, and now it is first american funding, for example. so if the debt has been sold, a good way is to go to court and see.

BUT - i have a personal experience with someone who did this very same thing, and the courts just continued so the plaintiff could gather docs.

[CyPride]

That doesn't mean you don't pay it. Collection agencies pay credit card companies for the right to collect knowing that many are not collectible. Because debt is sold off does not mean you don't owe it.

exactly. just because a firm purchased the debt for a percentage of the value does not mean that the borrower does not owe the full amount.

something being 'charged off' also is just an accounting term. does not mean the borrower does not owe the full amount.

[CyPride]

just sent you a p.m. - mccrappins.

[Bipolarcy]

These days a lot of people dont have land lines and just have cells. A phone is a necessity, especially if looking for additional work.

Sorry, I just don't believe a phone is a necessity if you are having trouble paying off your bills. I lived without a phone for 6-plus years and never missed it. Sure, it's tough ordering pizza without a phone, but it's not impossible. There are still a few pay phones around too, if you absolutely have to use one. You can't live without utilities or a roof over your head, but, believe it or not, you can live without a phone and TV.

[MC CrappinHawks]

You didn't at all factor in the recent economic collapse that had already crashed the stock market, only politics? I thought it was common knowledge and just plain common sense that the market would be down for a long period of time, regardless if Obama or Mccain or Superman was elected.

This site continues to amaze me in a good way! Look at the responses to an off topic issue that effects a lot of people. Not looking for any sympathy as one poster suggested, just some ideas, some insight, some wisdom. I was laid off in Jan of 09 from a decent paying job that, um..................................................................Bingo, Bango, Wells Fargo(ironic,,,,i KNow)!!

Home mortgage industry=not good in Jan, 09 Long story short, I am working at a much lower, lower, lower paying job, about half as much. Thank you for all the suggestions, reprimands, and encouragement in most cases. I felt wierd and apprehensive/embarrassed about posting this conundrum, but yall have proved why this is the best site on the planet. Thank You, thank you, thank you! Objective, smart people, who bleed cArdinal and gOld!

[alarson]

Sorry, I just don't believe a phone is a necessity if you are having trouble paying off your bills. I lived without a phone for 6-plus years and never missed it. Sure, it's tough ordering pizza without a phone, but it's not impossible. There are still a few pay phones around too, if you absolutely have to use one. You can't live without utilities or a roof over your head, but, believe it or not, you can live without a phone and TV.

Quite a few employers will expect you to have access to your own phone. And especially if youre looking for new\additional work, you need to have a phone. There are obviously cheaper phone options though... without data plans, no texting, etc.

[FDCy83]

You didn't at all factor in the recent economic collapse that had already crashed the stock market, only politics? I thought it was common knowledge and just plain common sense that the market would be down for a long period of time, regardless if Obama or Mccain or Superman was elected.

Yes, it was mostly a political decision for me. I am not saying it is any better to have Republicans in total control or Democrats. But with the election results in, and knowing that 1 party would be running everything. And knowing the many campaign promises of eliminating the "Bush tax cuts" that will raise every rate level, with this as the primary factor, I decided to borrow. Fortunately for me, I received my loan at a very high market that did go down. We are in an unstable market right now with ups and downs, and I believe this is the wrong time to pull money. But maybe I am wrong. The tax cuts end at the end of this year, so everyone's paychecks will take a hit. The taxes for health care will begin at some point, further pulling money out of the economy, as benefits from the new law do not take effect until January of 2013, amazingly after the next election cycle. So maybe the economy will get much worse in the coming months. I just figure it will stay unstable with some growth opportunities, but also will have some down times, just not long term.

[Klubber]

If they take you to court, GO. Don't skip the court date.

Here's what happens in MANY situations. Debt is bought and sold so often, that very often the collection agency that ends up with the debt doesn't even have proper paperwork that it ever even existed. They rely on the fact that, in a great percentage of cases, the debtor will skip the hearing, resulting in a default judgment against him or her. Just attend the hearing, and ask for proper proof about the debt. If the collection agency doesn't have ALL of their paperwork in order, you can have the WHOLE DANG THING dismissed immediately. Boom, no cost to you (except your lawyer). You could even roll the dice and be your own lawyer, but that's a bit of a gamble.

Good advice overall here, but he really does not even need a lawyer. This is a small claims court case. Anyone can adequately represent himself in a case such as this. As you said, most likely, the collection agency won't be able to provide any proof of this debt. As a plaintiff in this type of case, you can file for proof of the debt through the courthouse via legal documents, if you so choose, to let the collection agency know you mean business and know your rights. This isn't necessary, but could expedite things.

The collectors are banking on the fact that most people don't know the law with regards to fair debt practices. 99.9% of the time, the collector will not be able or willing to provide any proof of the debt, or provide any witness to the original debt, etc. It costs them money to obtain all of this and all they are looking for is a way to make as much money as possible off the plaintiff while avoiding as much additional cost as possible. Going to court doesn't really cost the collector very much at all. They are simply trying to use the court as a way to make money off the plaintiff. Did I mention these guys are parasites?

A couple of other things here: Don't fill out anything giving them your personal information. They may try to get you to do this at the court hearing. They may ask for bank account numbers, lease information for your car, etc. This will come into play if you miss an additional court date giving them a default judgment against you. They will try to draw this out as long as possible. Their thinking is the more court dates the plaintiff has to attend, the more likely he'll miss one. With a default judgment against you, they can then move to seize your assets.

Read up on the law in Iowa regarding fair debt practices. Know your rights. The info is readily available on the web.

If (when) you get this dismissed, ask the judge for a "dismissal with prejudice", as opposed to one "without prejudice". This is very important because the collector will ask for one "without prejudice" which enables them to resume further collection of the debt at a later time if they so choose. The judge will grant you one "with prejudice", but you must ask for this.

One final thing here. I can't believe the people here lecturing this poster and siding with the collection agency. These debt collectors are absolute parasites, and operate outside the law to collect debts that they never backed in the first place. They simply buy these "junk debts" for literally pennies on the account and then try to collect as much as possible to make money off of other people's financial hardship. A lot of times the debt is so old it's beyond the statute of limitations.

The sad thing is that even if someone wants to pay off an existing debt, he's almost better off not doing so when dealing with unscrupulous collectors, which make up the vast majority out there.

There are so many class action suits currently against these scumbags, hopefully they'll be sued out of existence. At the very least I would expect some new federal and state laws will be enacted in short order to protect consumers from these morons.

[GoCubsGo]

One final thing here. I can't believe the people here lecturing this poster and siding with the collection agency. These debt collectors are absolute parasites, and operate outside the law to collect debts that they never backed in the first place. They simply buy these "junk debts" for literally pennies on the account and then try to collect as much as possible to make money off of other people's financial hardship. A lot of times the debt is so old it's beyond the statute of limitations.

Yes, heaven forbid someone actually pay what they owe...

As others have mentioned, it doesn't really matter who is doing the collections work. The issue is that if someone owes something, they should pay it. The fact that the debt is sold to someone else doesn't have any effect on the underlying debt. It's called personal reponsibility. If the person using the credit card can't afford the item he is purchasing, then maybe...here is a novel copncept...they shouldn't buy it?

[CYNWIA]

My advice: if you legitimately spent that much money on a credit card and actually owe the debt... stop looking for a way to weasel out of it and nut up and work more hours to get it paid off... take some responsibility... you dont go charge that much to a credit card and then cry when you get bit in the a** and pretend you are a victim. Yeah, some of their lending policies are BS, but everyone knows that when they enter into these contracts (or they should)... get another job, many people work more than 40 hours per week ya know

[CYNWIA]

Yes, heaven forbid someone actually pay what they owe...

As others have mentioned, it doesn't really matter who is doing the collections work. The issue is that if someone owes something, they should pay it. The fact that the debt is sold to someone else doesn't have any effect on the underlying debt. It's called personal reponsibility. If the person using the credit card can't afford the item he is purchasing, then maybe...here is a novel copncept...they shouldn't buy it?

AMEN... i cant believe people actually think that this person shouldnt have to pay all of it... the only person that should pay for your stupidity is you