Poorgirl Posted April 3, 2005 Report Share Posted April 3, 2005 A about a month ago I got a letter from a local attorney representing Discover card threaten to get a judgment against me if I did not pay the balance owed on my charged off card. He offered to settle with me for half the cost and even due monthly payments but the problem is I have ZERO money to take him up on any of the deals.I use to be able to keep up payments on my credit card but was laid off from my job and payments fell way behind. Now, the only job I have is a small part time job that pays me barly enough for my rent. If he wins a garnishment against me I’ll end up homeless, I’ve been looking for an extra job but have had no luck. I have no real assets not even a car etc… The debt I owe discover originally was $2,000 now with late charges and things it’s $3,500. The only bright side in this for me is it’s the only credit card I ever had “Thank god” I have no other cards! I could not handle it if I had more then one. Anyway, I’ve been order to appear in court soon over this debt. I have a sneaky suspicion even if I show up the lawyer will win. I need good advice on what to do I’m totally broke! Link to comment Share on other sites More sharing options...
ghacorp Posted April 4, 2005 Report Share Posted April 4, 2005 poorgirl,Here's the scoop. If you already have a court date, then you've been sued. The letter was no threat, it was a summons and you probably did not answer the complaint or you informed them you were broke. You probably do not NEED to go to court and Discover probably WILL win because they are pros at this. Given no assets, etc. you can file bk if you need to and it is highly likely Discover will offer you a reasonable settlement and terms after they win. They probably already know your financial situation and you WON'T be out in the street! Link to comment Share on other sites More sharing options...
Poorgirl Posted April 4, 2005 Author Report Share Posted April 4, 2005 Thanks for the info, I kind had this weird feeling not to bother going to court. Since the guy suing me for discover card is well known in my local area. Besides I have no assets. There is a bank account I share with my roomate but the money is no way enough to pay on the debt. Should I take my name off me and my roomates joint acct. before he goes after it?All the money in our acct. is my roomates and I don't want discover card taking her money for a debt that is not even hers'? Link to comment Share on other sites More sharing options...
willingtocope Posted April 4, 2005 Report Share Posted April 4, 2005 poorgirl: I'd suggest you do show up in court and take along the article referenced in:http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=27020...similiar sort of case. There is really no reason to beleive that your local court would agree with what was done in Cleveland, but you should at least put forth the effort to plead your case. You can't pay because you lost your job...not because you're a deadbeat... Link to comment Share on other sites More sharing options...
Xanathos Posted April 4, 2005 Report Share Posted April 4, 2005 One other thing to toss out there is garnishment is only up to 25% of your check they can take BEYOND what you reasonably need to survive (i.e. food, rent, etc.)Since you stated your only bills are home-related...they tack on a little extra for food and whatever's left after that they can try to garnish. But from the sounds of it, that number's going to turn out to be 0.People don't become homeless because of CC debt Link to comment Share on other sites More sharing options...
codename_fortyseven Posted April 4, 2005 Report Share Posted April 4, 2005 what state are you in? There are limits to garnishments as others have said. You could threaten BK or just tell them you are out of work and they won't be getting a dime if they get a judgement. Link to comment Share on other sites More sharing options...
Poorgirl Posted April 4, 2005 Author Report Share Posted April 4, 2005 I'm from the state of Louisiana. That part time job I have is a school work study job that is tax exempt. Another friend of mind told me they can't take money out of a school work study job is that true? Becuase if that is true I don't see how they or going to get collect money from when I have really zero. Link to comment Share on other sites More sharing options...
almost_there Posted April 7, 2005 Report Share Posted April 7, 2005 what is your court date? Just curious so I know what kind of time frame you're looking at. Sounds like you'll be exempt though.Btw, it sounds like you and I are in the same boat...no money. Best of luck! Link to comment Share on other sites More sharing options...
ghacorp Posted April 7, 2005 Report Share Posted April 7, 2005 willingtocope,The well publicized case you are referring to will not likely mitigate the case in court. All Discover will be seeking is a default judgment and by virtue of winning does NOT mean they can or eventually will collect anything. If the attorney shows up prepared with statement copies, signed agreements and a representative of the bank to affrim the debt which is what they usually do will be plenty sufficient for a judge. The judge will not consider clippings of some recent publicized cases on Discover's abusive collection practices because there has been no abuse in poorgirl's case as yet. I am not aware of LA laws with regard to civil procedure, but in most states if you know your probability of winning is not good, let them get a default. In DE it can be worse to show up in court, then lose as opposed to just not showing up at all because we do not have debtors exams nor can be ordered to surrender anything or face contempt, etc. on judgments awarded by default. The winner must sleuth out your assets on his own so most likely they came up with half-price settlement offers after the fact. They already are aware of her financial circumstances, but in order to assert their future collection rights they must sue now. Link to comment Share on other sites More sharing options...
willingtocope Posted April 7, 2005 Report Share Posted April 7, 2005 ghacorp: I basically agree with what you've said, but...First, there has been abuse...turning a $2000 debt into $3500 with excessive interest and late fees...Second, its unlikely that the lawyer is going to have someone from Discover with him, because he's counting on no one showing up.And, as I said, it is unlikely that the judge will care, but by being there, Poorgirl can at least tell her side of the story... Link to comment Share on other sites More sharing options...
Poorgirl Posted April 7, 2005 Author Report Share Posted April 7, 2005 First, there has been abuse...turning a $2000 debt into $3500 with excessive interest and late fees...quote] Yeah, I still don't see how $2000 came to be $3500 is beyond me. I think they charged a ton of late fees and interest. If I remember right my interest was for %24.00, its crazy to charge that much interest. But, like I said before I will never again use Discover card. Link to comment Share on other sites More sharing options...
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