Heironymous Posted July 18, 2005 Report Share Posted July 18, 2005 I need some advice about a situation my friend is in. She was sued by Citibank for unpaid credit card debt(about 12k). They pulled the usual "we wont work out any kind of payment plan" BS. Anyway, so she has a lawyer and the lawyer says Citi ALWAYS wants a judgement. He told her he may be able to work out a payment plan with them but only if she agree's to a judgement. Now, she lives in NC at present but is moving to FL. She has no assest aside from her car that she is about to pay off(its only worth about 3k). She is worried they may try to take her car which is really all she has. She owns no property and has very little in her bank. She lives week to week like many people. What is her best plan of action and how will her move to FL affect things if she agree's to a judgement? I would think if she agree's to the judgement and works out a payment plan and stays current with it that they probably wont go after her in FL. She knows little about how judgements work(and I dont know much either) so I am trying to advise her and you guys on here are so incredibly helpful that I figured this would be the best place to ask.Any advice for her?? Link to comment Share on other sites More sharing options...
LadynRed Posted July 18, 2005 Report Share Posted July 18, 2005 If she signs a consent to judgment that judgment will ONLY be enforceable in NC as that is where it is rendered. If she moves to FL, the judgment becomes unenforceable UNLESS they move the judgment to FL. There ARE exemptions in every state. She probably has more to lose in FL where the exemption for a car is a lousy 1000 (in equity) as opposed to NC's exemption of $1500. If she owes more than its worth, then she has nothing to worry about anyway. Cars are not attractive targets unless you're driving a really expensive one, they just depreciate too quickly. How old is this debt anyway ?? NC has a very short 3 year SOL on debts. Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 It is a fairly recent debt. From last year I think. Her car is a 98 Dodge, not worth much. She is just about to pay it off though so she is worried she will pay it off then loose it which would ruin her since she couldn't get to work etc. Should she accept the payments and judgement? She will be moving to Fl soon, could she just accept the judgement, make the payments and move and just hope they dont go after her. She would keep up her payments. How long does a judgment last, until its paid off?? I read it was 20 years in FL. What should she do about a bank account? Her account is actually from CA so I am not sure they can go after it anyway.Does a judgement basically ruin your credit permanently or what? Seems worse than a bankruptcy. I dont know what other options she has right now. Link to comment Share on other sites More sharing options...
codename_fortyseven Posted July 18, 2005 Report Share Posted July 18, 2005 I don't personally see what the point of accepting a payment plan with a judgement. The lawyers want it, so they have their bases covered, but either way the consumer's credit is wrecked, so I'm asking what's the incentive if you are going to have trashed credit either way?Is it a reduced settlement? It isn't worse than a BK, per se, but it is a significant black mark. I tell ya, it isn't a bad negotiation tactic to mention BK a few times. I bet they'll change their tune when you do that. "You know what, either way my credit is shot, and if I am going to have trashed credit, I might as well just declare bankruptcy and not have to deal with the payments, unless we can work something reasonable out...I know the BK laws are scheduled to change soon, so I probably should hurry up to get a fresh start." I'm not necessarily saying do it, but if you let them know that YOU know it is an option, an option where they get zip, they'll probably start backtracking. Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 I feel the same way, I don't see the point of paying them when they will just put the black mark on either way. She is moving to FL so I don't know if they will file another there or what but I wouldn't be surprised, Citi are notoriously A-holes about this kinda stuff. If they had just worked out a payment plan when she was late no her credit card payments they wouldnt have had to sue in the 1st place. Idiots. Anyway, so what do you think she should do, advise her lawyer to tell Citi's lawyers that she may file bk? Seems like a good idea. I mentioned she might consider bk anyway, it may work out better than having a judgement. Sucks because her FAKO scores were high 700's before this happened. My mom filed bk about 3 years ago and now has a brand new car and a house so it just goes to show you...it isn't the end of the world. By the way, I am a HUGE hitman fan...eagerly awaiting the new xbox version!! Link to comment Share on other sites More sharing options...
admin Posted July 18, 2005 Report Share Posted July 18, 2005 What kind of stuff do they have on her anyways - I know Citi typically has good records - but has she checked into this angle? Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 They have everything. This all started because she was out of work for a few months, got behind on her citi card and wammo, they wanted 27% interest which she couldnt pay then they sent it to collection. She did the validation method and got nothing back but copies of statements. Then they served her and now say they will only accept a judgement. Seems to me filing bk might be better. I have a co-worker who was in the mortgage industry and said she had customers who had just filed bk then bought a house months later. Their credit score didnt drop much if it was already high as my friends is. It seems a shame to file bk over one credit card but the alternative is a judgement which will affect her ability to get a job, buy a house etc. What would you guys do?? She has a couple other cc's and is in total debt of maybe 15k with all of them. She is totally up to date with all her other payements, its just this citi account causing all the trouble. Link to comment Share on other sites More sharing options...
mennypause Posted July 18, 2005 Report Share Posted July 18, 2005 I have a similiar situation with NCR who is collecting for Cross Country Bank. I have never rec'd anything in writing from NCR only phone calls. They just started last week and he is demanding that I make a settlement payment by tomorrow. He wanted my banking information to make 2 payments, but I would not give it out. Now he says that I will be sued for less than $1000.00My husband was out of work for a year and I was out of work for several months about 2 years ago. We placed several accounts in Consumer Credit Counseling and that is working well. NCR rep says they will not work on a payment plan, but wants a big settlement. What exactly will happen to me? Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 That is just collection scare tactics. STOP talking to them on the phone 1st of all. Use the validation method next and include a cease and desist order so they stop bugging you. Link to comment Share on other sites More sharing options...
codename_fortyseven Posted July 18, 2005 Report Share Posted July 18, 2005 Yeah, I agree. Collectors ALWAYS say they need payment in full right now, and the only acceptable answer to them is "My checking account number is..."They often threaten garnishment and lawsuits, which I am sure will sound really great to the FTC on a recorded line.If you aren't recording, you have no reason to talk to them. Send them a CMRRR letter saying it is inconvienent for them to phone you at any time/place, and if they want to contact you, they should utilize the US postal service. Don't send a full C/D letter. Dispute the debt and they MUST cease collection efforts. Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 Of course you should keep in mind that I had my friend do all this and she still got sued from Citi so...validation doesn't always work. Worth a try though. Back to the topic at hand- would bk be better than a judgement? If so she would need to get on that soon since the laws are changing... Link to comment Share on other sites More sharing options...
codename_fortyseven Posted July 18, 2005 Report Share Posted July 18, 2005 Validation is neither a defense, nor a protection against a lawsuit. It is a tool to log violations and to force CA's to provide proof of a debt. These guys had it, so there isn't much you could do to stop them from filing and probably winning other than suing.DVing DID work, they did validate. Now, as far as working out an agreement in the consumer's best interest, that is the next step. If they don't want to deal, why should she? Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 Actually Citi never validated. The collection agency ignored the 1st two attempts at validation and then sent a photcopy of her last statement. Then about a month later she got served. Typical tactics. They did the whole "you better pay or else" phone call barrage. They even told her "well just borrow the 12k from your parent or something to pay us!!" Link to comment Share on other sites More sharing options...
codename_fortyseven Posted July 18, 2005 Report Share Posted July 18, 2005 And why didn't you buy a tape recorder?Are you filing counterclaims for FDCPA violations? Link to comment Share on other sites More sharing options...
Heironymous Posted July 18, 2005 Author Report Share Posted July 18, 2005 That was awhile ago when this first happened and she didn't know enough about the process to tape the phone calls. Now the collection agency sent it back to Citi so she is dealing with their lawyers now. Apparently they only want a judgement. Seems pointless since she has no assets and was willing to make payments. I dont see the point of making payments when they will still file the judgement and you have that black mark on your credit already. Link to comment Share on other sites More sharing options...
Heironymous Posted July 21, 2005 Author Report Share Posted July 21, 2005 bump...any advice on which would be worse, a judgement or bk?? Seems like bk may be a better option in this case... Link to comment Share on other sites More sharing options...
gorillacredit Posted July 28, 2005 Report Share Posted July 28, 2005 Actually Citi never validated. The collection agency ignored the 1st two attempts at validation and then sent a photcopy of her last statement. Then about a month later she got served. Typical tactics. "I was under the impression that a suit can't be filed on an unvalidated debt. why not motion the court to dismiss on those grounds? Link to comment Share on other sites More sharing options...
Rlee from Ohio Posted July 28, 2005 Report Share Posted July 28, 2005 Just read your posts.While I am not going to tell you what to do. I will tell you what I would do.Living wk to wk, as you say, no extra money, ruined credit either way, so why would I want to deal with citi bank for the next whatever years, just scraping by, while they get their money every month. SCREW them I would file BK, and right away, before the new laws change things. This is like getting a divorce and being able to decide whether or not you want to pay alimoney payments for the next five years or not. Your getting the divorce like it or not, why in hell would you want to be reminded every month for the next 5 years of that fact. It is a no brainer as far as I am concerned. Your freind is moving to Florida, and a new start on things, why would your friend want this albatros hanging around their neck, slowly chocking them to death. CitiBank, and the attorenys will do just fine without the 12 grand, and their 29% interest. Rlee Link to comment Share on other sites More sharing options...
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