getting sued, trying to settle...

[noia]

OK. So, I'm getting sued by arrow financial. I almost lost house this year and came close to a repo because my husband wasn't working nearly as much as he used to (auto industry cutbacks). Anyway, the day I finally thought I'd get caught up on the house payment, I was served. UGGHHHH!!! I started crying all over again. Anyway, I want to settle this, but don't want to get behind on the house payment again because the only reason I caught up was because I took the very little that was in my 401k and used that. I am tapped out. They asked if i could come up with a lump sum and I said i could see if family could help me (they can't, except for $500 from my mother-in-law), but I wanted to see what type of lump sum they could offer. They said they could take the 3500 I owe and make it 2800. I said i didn't have that much and they asked if i could make a payment that day. I said I could pay something on Friday. They said to call back on friday and see what I could come up with and they would see what they could do. Truthfully, i can probably give them the 500 and work out a payment plan, but it sounds like they want it all up front. They were very nice. Is 2800 a good deal? i guess it doesn't matter because there's no way i can come up with that. should i just say i can pay 500 and then 50 a month after that? should I make them send me some sort of agreement so that I don't also have a judgement against me for 3500 after I start paying and have to pay double? Advice? Anyone done this before? I guess I just don't know what I'm doing.help please. i'm extremely depressed right now.

[LUEser]

First things first.

You should definitely concentrate on your house first. You've been served so it's in court now regardless. Unless you can get them to drop suit, which is not a likely possibility if you just agree to pay or settle with them, as they'll most likely still procede to get a judgment. (This is speaking from experience, as my GF and I ended up doing the same thing on a medical bill she had from 06). We set up payment arrangements in hopes they wouldn't continue on in court, and they did anyway.

So, my advice would be to prioritize. Remember, you can use the court system to your advantage here and drag this thing out while you get your house caught up. Which is, in my opinion, much more important than a purchased debt from a JDB (Arrow).

If you have a copy of the summons, could you type up what was being asked of your. (i.e. the claims against you) as you'll need to file an answer. See this thread:

http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=252142

post number 8.

You may also want to check out this topic on the CreditBoards forum:

http://creditboards.com/forums/index.php?showtopic=132612 (Dixie's Guide to surviving and winning lawsuits)

I've heard stories if this dragging on for months with all the tools you have at your disposal. Interrogatories, Request for Admissions, Requests for Production of Documents (all of this goes on during the Discovery phase of the suit). And it can help you buy the time to get your home situation straightened out.

So for sure file an answer.

Also:

Did they produce any kind of affidavit when they filed?

What state is it in; this is important because of the state and local rules of civil procedure?

What kind of court did they file in?

Did you DV them prior to them filing suit?

Who are the lawyers representing Arrow?

If you give us this information, we can further help you put together a defense, and likewise help you buy some time and maybe even get them to drop the case.

[noia]

Yes, I agree. I'm not losing my house over a junk debt buyer, but of course, if they garnish my wages by 25 percent, I'll lose it anyway. I did discover that i can file a motion for installments after a judgement to keep them from doing that.

Did they produce any kind of affidavit when they filed? yes, the affadavit was filed by a clerk at Arrow Financial.

What state is it in; this is important because of the state and local rules of civil procedure? This is in Michigan

What kind of court did they file in? district court

Did you DV them prior to them filing suit? no, I really don't know what I'm doing about any of this.

Who are the lawyers representing Arrow? Mary Jane Elliott in Novi

If you give us this information, we can further help you put together a defense, and likewise help you buy some time and maybe even get them to drop the case.

[LUEser]

Well, you're on the right track, and yes you do have the installment payment option.

However, it's much more beneficial to you if you don't get a judgment against you at all .

Since it's already in court, don't bother DVing now, it won't help.

File you answer with defenses.

and you can possibly look at filing a motion to strike the affidavit as hearsay.

Here is a sample:

A sample motion might look like this:

Comes now, Defendant [Noia], pro se, and respectfully states the following:

1. Plaintiff has submitted into evidence Exhibit "A" which consists of an "affidavit of debt."

2. Said document pertains to acts and events that allegedly occurred between Defendant and a third party, [OC Name].

3. At no time was the creator of the "affidavit of debt" nor any of Plaintiffs employees present to witness any alleged acts or creation of the records of transactions occurring between defendant and [OC NAME].

4. As such said affidavit falls under the hearsay rule and is inadmissible as evidence.

5. Defendant further states that the affidavit is not subject to the hearsay business records exemption because it was not made at or near the time of the alleged acts or events, and;

6. The information contained in the document is merely an accumulation of hearsay, and;

7. Upon information and belief, the creator of the document in Plaintiff's Exhibit "A" is not currently and has never been employed with [OC NAME] and therefore cannot have personal knowledge of how [OC NAME]'s records were prepared and maintained, and;

8. Is unqualified to testify as to the truth of the information contained in Plaintiff's Exhibit "A"

WHEREFORE, the Defendant prays that Plaintiff's Exhibit "A" be stricken from evidence in the above action.

Of course, all of this is only necessary if you're looking to do this pro se. If you can afford an attorney, then by all means, hire one. However, if the debt is small (say under 2000 dollars or around that) then you'll probably be paying more for a lawyer than the debt is worth. That decision, at the end of the day, is up to you to decide on whether or not the cost/benefit analysis works out in your favor.

Some other key points: When wording this, make sure the affidavit is "Exhibit A" and not another document. If this is the only thing they submitted into evidence, then it most likely is "A" but, check just to be sure (no need getting denied a motion based on a technicality), and check your local Rules of Civ. Pro. so you know whether or not you have to serve their attorneys a copy of the motion to strike. It's likely that you do, and that you also have to serve them a copy of your answer.

Check here: courtofappeals.mijud.net/rules/documents/1Chapter2CivilProcedure.pdf

For your rules. Additionally, you county may have other rules for your to abide by in District Court. I'm not familiar with the structure of the MI court system.

[noia]

I definitely have to respond to this lawsuit. I was served Thursday so I have 21 days from then. I'm going to focus on that first so they see they're not getting a default judgement.

I'm not sure if I should even bother calling back Friday because they wanted a lump sum payment of some sort and I can't do that. I can make payments. Maybe I should send what I can do by certified mail so that the judge can see that I'm willing to make payments???

[LUEser]

If you do call and talk to them, be wary. They like to LIE, and then LIE some more, and then LIE some more after that.

If you come to an agreement amicably, do so in writing. Always in writing.

And yes, do send your letters via Certified Mail, that way you have an indisputable paper trail.

[admin]

Don't settle before exhausting all your options in court first. Chances are good you can get this case tossed out merely because it's a third party collector.

You may also want to check out our legal forums.

[kranxel]

I am familiar with the attorney you are dealing with and the firm is low life scum sucking maggots. If you can't afford to pay an attorney to represent you go to Craig’s List, believe it or not the slow economy has even affected the lawyers and you can find one that is willing to represent you or advise you at a low cost.

The firm you are dealing with is usually unprepared and don't have the documentation to back up the lawsuit. I have seen them in court before several Judges and it's the same story every time, asking for more time to get documentation, or waiting for you to slip up.

Take a deep breath, contact an attorney you will sleep better not having to handle this on your own.