parsoc Posted December 27, 2007 Report Share Posted December 27, 2007 Am being sued by Chase, court date set for March; I'm in CA, total Chase debt $10,000. When I started to file the response I was stunned to learn of the $300 fee...couldn't pay it so filled out Fee Waiver Request, which has just been denied due to not meeting income requirements. (we apparently make too much money, that's good to know!) The response got filed at the time, and was served on Chase as required, but now it will be invalid unless we come up with the filing fees in 10 days. So now it's the usual dilemma...robbing Peter to pay Paul!We are with AFS (debt settlement company) and included Chase in that program, but obviously they do not want to wait for the money. I know I can't ignore this but $300 may as well be $3000 at this point.I'm a newbie to this site, this is my first posting; I would appreciate any ideas/suggestions/advice. Thanks Link to comment Share on other sites More sharing options...
willingtocope Posted December 27, 2007 Report Share Posted December 27, 2007 Hey there, welcome...And, first, I'd suggest you get rid of the debt fixer. They've already shown you that they're simply not handlng your debts in the way they say. Debt fixers are really collection agencies that have decided they can catch more suckers with honey than with intimidation. Just like CAs, they have contracts with certain creditors to "settle" debts for them. If they don't have agreements with all of your creditors (like Chase), you wind up getting sued. This may be just the first in a series...And, this is the first I've heard of a court requiring you to pay money to respond to a suit (not saying it doesn't happen, just I've never heard of such a thing). You might want to go to www.naca.net and see if there is a consumer lawyer in your area that will help you wade through all this... Link to comment Share on other sites More sharing options...
parsoc Posted December 27, 2007 Author Report Share Posted December 27, 2007 Thanks for the info...maybe that explains why BofA settled for $3000 on a $10,000 debt? I'm happy about that one however...I don't think I could have done that on my own. But that's why I joined this site....maybe I'm doing it all wrong??Sometimes I'm not so sure BK is such a bad thing...I KNOW it's bad, don't get me wrong, I just see why some people opt for it when things look so bleak and neverending. Link to comment Share on other sites More sharing options...
Methuss Posted December 27, 2007 Report Share Posted December 27, 2007 Sometimes I'm not so sure BK is such a bad thing...I KNOW it's bad, ....Horse-pucky! That's what the creditors want you to think.Bankruptcy is a social safety valve that prevents the economy from collapsing. If everyone ran up debt they could not repay it would quickly spiral out of control and even the creditors would suffer under a system where no one could repay what they owed.As a matter of facts...Bankruptcy was considered so important to the founding fathers of the United States that it was put into the Constitution even before the amendments adding rights of privacy and right against unreasonable searches and seizures. The last nail in that board is that bankruptcy can be found in the Bible under Dueteronomy 15:1 "In the 7th year, each creditor shall release his debtors. This shall be known as The Lord's Release."In the Old Testament, it was the policy that a debt could exist only 6 years, and should be relaxed or forgiven in the seventh year.So don't believe that rot you see on TV from "credit counseling" services and in articles written by creditor shills that bankruptcy is immoral or "bad." It is a moral public policy, it is not bad, and only they want you to think so.If you are that far in debt, you may want to consider bankruptcy. Start by going to this sticky thread I wrote (http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=278066) and reading up. Fill out a form 22a on your own and see where your finances fall in a means test. You may be suprised to find it isn't so hard to file as the creditors want you to think.And if you find that bankruptcy is the direction you need to go to protect your family. Get the petition filed. As soon as you do that all you do is go to court and tell the judge that under Federal bankruptcy law he must dismiss the case as it is now a matter for the bankruptcy court to decide. Chase then can go pound sand. They get nothing and can pursue nothing. Link to comment Share on other sites More sharing options...
Rick9972 Posted December 27, 2007 Report Share Posted December 27, 2007 What is this about a 300.00 fee to file a response to a suit??? Never heard of this. Link to comment Share on other sites More sharing options...
willingtocope Posted December 27, 2007 Report Share Posted December 27, 2007 maybe that explains why BofA settled for $3000 on a $10,000 debt?Another little detail that the debt fixers usually leave out is that you now owe the IRS taxes on that $7000 found income. They may have had you claim "insolvency" to get that settlement and implied that because you were insolvent, you wouldn't pay taxes. Unfortuneatly, the IRS has a different definition of insolvent.... Link to comment Share on other sites More sharing options...
Fozzle Posted December 27, 2007 Report Share Posted December 27, 2007 What is this about a 300.00 fee to file a response to a suit??? Never heard of this.It's a California thing. Superior court requires a fee for an "answer or other first paper filed by each party other than plaintiff"; The fee would be around $180 if the claim were $9,999 or less. Link to comment Share on other sites More sharing options...
parsoc Posted December 28, 2007 Author Report Share Posted December 28, 2007 So how does that work....how does the IRS know? Excuse my ignorance, but since these debts are not deductible there's no form (1099, etc) to be filed. I will certainly look into this, for sure! Link to comment Share on other sites More sharing options...
brokeinok Posted December 28, 2007 Report Share Posted December 28, 2007 Yes there is a 1099, it will come in the mail. The creditors are required by federal law to report the difference between your balance and what you actually paid as "found income" and you will be required to pay taxes on it. Link to comment Share on other sites More sharing options...
parsoc Posted December 28, 2007 Author Report Share Posted December 28, 2007 Yes there is a 1099, it will come in the mail. The creditors are required by federal law to report the difference between your balance and what you actually paid as "found income" and you will be required to pay taxes on it.What I think of this cannot be printed!! I had no idea. "found income" my butt Link to comment Share on other sites More sharing options...
parsoc Posted December 28, 2007 Author Report Share Posted December 28, 2007 Horse-pucky! That's what the creditors want you to think.Bankruptcy is a social safety valve that prevents the economy from collapsing. If everyone ran up debt they could not repay it would quickly spiral out of control and even the creditors would suffer under a system where no one could repay what they owed.Thank you for this information; I've already gotten started on it and will be calling an attorney for a consultation....My other question involved what happens to my response if the fees are not paid? It's as if I never filed it and can be treated as a "non response" or "failure to respond"? It was filed and sent to Chase, but so was the denial of fee waiver. The court date is in March so hopefully I can get some answers from the attorney (and this site!) before then. Link to comment Share on other sites More sharing options...
Fozzle Posted December 28, 2007 Report Share Posted December 28, 2007 My other question involved what happens to my response if the fees are not paid? It's as if I never filed it and can be treated as a "non response" or "failure to respond"? Yes. Link to comment Share on other sites More sharing options...
willingtocope Posted December 28, 2007 Report Share Posted December 28, 2007 And there's more bad news. The OC is required to issue a 1099c...but...they may not send you a copy. Whether you get one or not, you have to pay the taxes anyway, and if you don't pay in the year in which the OC claims the loss and sends the 1099c to the IRS, you get to pay penalty and interest on top of that. And, the IRS specifically says that if the forgiven amount is less than $600, the creditor doesn't have to send you a 1099c...you still owe the tax. Link to comment Share on other sites More sharing options...
cracrap Posted December 28, 2007 Report Share Posted December 28, 2007 what in the world are you talkin about a 300.00 answering fee?? ive been to court...theres no fees to file an answer, its your legal right...methinks theres a wrong interpretation there and u should talk to the clerk of the court....if your in socal then your mistaken... Link to comment Share on other sites More sharing options...
Fozzle Posted December 29, 2007 Report Share Posted December 29, 2007 what in the world are you talkin about a 300.00 answering fee?? ive been to court...theres no fees to file an answer, its your legal right...methinks theres a wrong interpretation there and u should talk to the clerk of the court....if your in socal then your mistaken...It's in the state Goverment Code:70614. (a) The uniform fee for filing the first paper in a limitedcivil case on behalf of any party other than a plaintiff is threehundred dollars ($300), except as provided in subdivision (. ( In a case where the amount demanded, excluding attorney's feesand costs, is ten thousand dollars ($10,000) or less, the uniformfee for filing the first paper is one hundred eighty dollars ($180). © The fees in this section do not apply to papers filed for thepurpose of making disclaimer. (d) The fee for a paper filed under this section shall bedistributed as provided in Section 68085.4. Link to comment Share on other sites More sharing options...
parsoc Posted December 29, 2007 Author Report Share Posted December 29, 2007 Double screwed, just makes me sick. Would this be for tax year 2008, since the settlement won't be completed until April? I have a good CPA, we'll see just how good! Link to comment Share on other sites More sharing options...
trueq Posted December 29, 2007 Report Share Posted December 29, 2007 If you are wiling to fight on principle, and it sounds like you have nothing to lose....Find a good class action attorney, high powered, wiling to take on the establishment, and file a class action on behalf of defendants similarly situated on contingency.This fee can be a barrier to defending yourself and can literally deny your due process rights.File it in Federal court, because the Ninth "Circus" court of appeals out there is so liberal, I could see them striking this fee down for Pro Se defendants VERY EASILY! This is one of the few matters I would agree with a liberal court on!In Wisconsin there is no fee to file an answer.Just my 2 cents on the matter. Link to comment Share on other sites More sharing options...
Rick9972 Posted December 29, 2007 Report Share Posted December 29, 2007 If you are wiling to fight on principle, and it sounds like you have nothing to lose....Find a good class action attorney, high powered, wiling to take on the establishment, and file a class action on behalf of defendants similarly situated on contingency.This fee can be a barrier to defending yourself and can literally deny your due process rights.File it in Federal court, because the Ninth "Circus" court of appeals out there is so liberal, I could see them striking this fee down for Pro Se defendants VERY EASILY! This is one of the few matters I would agree with a liberal court on!In Wisconsin there is no fee to file an answer.Just my 2 cents on the matter.I have to agree. This situation was made for a Federal Class action suit. IMO Link to comment Share on other sites More sharing options...
Recovering Attorney Posted December 29, 2007 Report Share Posted December 29, 2007 It's a statute. THank your legislators. They call it a user fee. Link to comment Share on other sites More sharing options...
cracrap Posted December 30, 2007 Report Share Posted December 30, 2007 ive been sued more than once for more than 10 grand...never had i had to pay a users fee to answer complaint nor has any other business associate that ive been involved with...what does © mean in regards to disclaimer? Link to comment Share on other sites More sharing options...
cracrap Posted December 30, 2007 Report Share Posted December 30, 2007 after u said this i rechecked my files...gonna have to claim bull spit..im holding in my hands copy of 2 different suits in limited civil for claims under 10k...i never had to pay to answer...la superior court Link to comment Share on other sites More sharing options...
cracrap Posted December 30, 2007 Report Share Posted December 30, 2007 not only that but the following section in 70617 states fees for filing motions among other things...i never paid fees to file motions....dont know what to say... Link to comment Share on other sites More sharing options...
parsoc Posted January 4, 2008 Author Report Share Posted January 4, 2008 not only that but the following section in 70617 states fees for filing motions among other things...i never paid fees to file motions....dont know what to say...Wonder if it's a county by county issue? Maybe not all county courts impose the fees allowed? Link to comment Share on other sites More sharing options...
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