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I Think I Might be getting Sued


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I have a feeling an OC is planning to sue me over a $731 debt, although I am not sure. I DV'd a CA about 6 months ago who just recently produced some validation for the debt, but upon further investigation it turned out they were not licensed in my state, so I sent them a letter regarding this. About 3-4 days after the CA receiving this letter regarding their license issue, I received a letter from a law firm about the same debt. In the letter, they stated this is an attempt to collect a debt, and if we don't hear back from you we will assume you do not want to resolve this amicably. The law firm is located in my city about 15 minutes away from my house, which led me to believe the OC is planning to use them to sue. I DV'd them about a week ago and am wondering, should i also send them a request for discovery letter? I was reading in another thread someone who did this but I have no idea how to handle it at this point as I've been around the block with about 4 or 5 CAs but never a law firm.

I am sure the firm will produce validation (if they even have to ) based on the previous CA doing so (even though it took them about 6 months). So I was wondering if anyone could offer my some advice on negotiating a settlement with either the firm or the OC. I assume it would be easier to deal with the OC in order to convince them they do not need to pay a lawyer to goto court. I am, however, surprised if they do try to sue me for $730-some odd dollars because I am an unemployed college student and own no property.

I figured I'd call them and let them know, because based on my non-existant understanding of how this would work, if I were to be sued and obviously lose, the only way they can get their money from me is from garnishing wages and liening on property, which leaves me with some good bargaining power given the fact they will end up waiting years as far as they're concerned to collect this $731 after probably paying law firm a good portion of that to sue, right?

Finally, should I lose in court, will record of that show up on my credit report? I have no negative tradeline reported from this OC, so I was just wondering if any judgements or anything like that show up.

Anyways, any advice is greatly appreciated and I thank you for your time in reading this.

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Discovery is only applicable once a law suit has been commenced.

As you go through this, keep in mind that in North Carolina, attorney fees can only be 15% of the judgment. In your case, that only amounts to about $110.00. The CA will not be able to sue you without using an attorney. If they want to file suit against you, the $110.00 plus about $500 of the $731.00 will be eaten up before they ever get you into court.

Even if you were to be sued and lose, there is no garnishment in North Carolina.

If you are considering trying to work a settlement on this, it would seem that you are in a very strong bargaining position.

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I want to thank you for your reply. I think you've replied to a few of my threads over time and I really appreciate your information.

Out of curiosity, outside of the 15% attorney fees, what would the other $500 be eaten up in? I'd like to know this because at this point I might try and settle in order to eliminate any chance of this being posted on my credit report even though at this point it hasn't been. The contract I signed with the creditor most likely says something along the lines of how I am responsible to cover all attorney fees etc wouldn't it?? If so, then they would end up sueing me for closer to $1k right? Sorry but as I mentioned I am clueless on this aspect of collections.

Given the company I'm dealing with, negotiations will be a lot stronger on my part if I actually know why they will be spending $610 to take me to court over $731. If that is really the case, I see no reason to offer them more then $200 or $300.

What happens when this type of deal is struck? DO I have to write up a contract or something for them to sign indicating they agree to settle this debt for $300? Should I include verbiage that this is never to appear on my credit?

The thing that really confuses me is if there is no wage garnishment in NC, how do they actually collect debt? I used to work for the Wake County Revenue Department during last semester and through the summer, and they used to garnish peoples wages for delinquent taxes all the time.

Thanks again everyone.

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Maybe the law firm has the account because they are able to collect on the debt without a license?

I dont know anything about NC , but it sounds like you're doing the right things.

I figured I'd call them and let them know, because based on my non-existant understanding of how this would work, if I were to be sued and obviously lose

IMO ...calling them is a bad move.

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