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I have no money to pay credit cards


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It has been almost two payments late now. My job has been so slow last three yrs I used all my savings, behind in rent now. I had to stop on 4 cards. my old truck bareley runs. I own nothing. I sure would like some help. Ive been researching alittle. I havent talked to them on the phone. I sent them a letter saying im broke and cant pay now. and have no heat in my house. I live in tx so they cant garnish my wages. Should I send them Discovery or BOP before I get served? Or what should I be doing now? thanks for any advice

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The only relevant part of your post is it leads me to believe you've actually been sued and not just had the threat of a lawsuit. I would not do anything, if you have been sued, other than read up, study, and decide if you want to fight. Once/if served then you can decide what you want to do.

You judgement proof at this time. If you will be that way the rest of your life, there is nothing really to worry about. If you ever see or plan on yourself not being judgement proof, I would at least put of some type of fight, once served.

The creditor and the law don't care if your living in a 500K house or under a bridge. A judgement can follow you around and be renewed for 20 years or more. If your ever back on your feet or hit the lottery, that is when they will come for you. Your right, at this time, even with a judgement, there is not really anything they can do to you or take.

It's the future you need to consider.

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You need to provide more information. What is the total amount you owe on these 4 cards? Round it off to an even number. If your credit score is crap, consider bankruptcy. Who is calling you, the original lenders? You cannot send discovery or anything else until they sue you. What you can do and should, is send a letter requesting debt validation pursuant to the FDCPA (Fair Debt Collection Practices Act) 15 U.S.C. §§ 1692-1692p.

There should be some sample letters posted here. If you can't find them, someone will chime in and give you the link. Like Coltfan says, it ain't over til it's over. These bast----s will follow you to your grave. Like the old saying goes, though, (Confucius) Before you embark on a journey of revenge, dig two graves.

We at the forum provide them with the shovel.

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Who is calling you, the original lenders? You cannot send discovery or anything else until they sue you. What you can do and should, is send a letter requesting debt validation pursuant to the FDCPA (Fair Debt Collection Practices Act) 15 U.S.C. §§ 1692-1692p.

At only two payments behind, it is still the OC (original creditor). Don't bother with the letters, original creditors are exempt from the FDCPA.

You are still in the Grey area. At only two payments behind, they are not likely charged off yet, so the OC is still contacting you. They may even send you offers to "help" you. You won't get calls or letters from any Collection Agencies (CA) for a few more months. So the best thing you can do now is wait. Spend whatever money you have on your own and families needs. Read and learn about how to deal with the CA and JDB (junk debt buyers), because the will show up soon after charge off.

Lastly, if you cannot pay, STOP talking to the creditors. "Anything you say can and will be used against you in a court of law." They are not trying to help you, they are trying to assess how much money they can get out of you before charge off.

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They are not trying to help you, they are trying to assess how much money they can get out of you before charge off.

Exactly !! Guess what? If you tell them right now you can only afford to pay them 50.00, they will have a plan to "help you." If you can only pay 75.00, they will have that same plan. If you can pay a lump sum of 500.00, guess what, they will have a plan to help you.

Let me translate, for you, their idea of a plan.

We plan to milk you of every cent you have pre-chargeoff. Then we have finally bleed you dry, you have nothing else to offer, then we will sue you. And the beauty of our plan? Yep you got it, by the time it gets to court or a judgement, all that money you have paid has been eaten up by fees, interest, and over the limit fees. So we get paid again for the same thing you were just paying us for under our "helping plan."

In other words our plan is to get every cent you have. We plan on doing that by a slow bleeding or a fat judgement. What a plan, the choice is yours, how would you like to pay your 5K balance on your card with a 1K limit and 12% interest, which is now 36% interest plus a 40.00 late fee and 40.00 over the limit fee on top of that.

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First thanks to those who replied to my last post, I might need to give more info for more help.55 yr old man, I have a discover 5k owe, visa 5k owe,citi 7k owe and chase 3k i have paid on time until 2 months ago, because they cut my limits for no reason. and I could only pay the min. I made 35k 3 yrs ago now 18k 19k last 3 yrs because my job hrs are cut in half ive been there 14 yrs. now i dont even get a check some weeks. I was paying the cards from my savings and being late on my rent and owed the irs oct 15. I am not going to pay them anything. I cant. my ? is how not to get sued? will the cc companys always sell to colection agencys? If not how do I deal with them in court. the same as a collection angency? If I am served should I always despute the dept. If I am served should I send the motion for discovery or claim arbitration letter? Is there a form for these or do I just send them I claim arbitration?I am going to court if I have to. but need to know what to do. Also can they take my money in my bank account before they try to sue me? Thanks all for the help

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First thanks to those who replied to my last post, I might need to give more info for more help.55 yr old man, I have a discover 5k owe, visa 5k owe,citi 7k owe and chase 3k i have paid on time until 2 months ago, because they cut my limits for no reason. and I could only pay the min. I made 35k 3 yrs ago now 18k 19k last 3 yrs because my job hrs are cut in half ive been there 14 yrs. now i dont even get a check some weeks. I was paying the cards from my savings and being late on my rent and owed the irs oct 15. I am not going to pay them anything. I cant. my ? is how not to get sued? will the cc companys always sell to colection agencys? If not how do I deal with them in court. the same as a collection angency? If I am served should I always despute the dept. If I am served should I send the motion for discovery or claim arbitration letter? Is there a form for these or do I just send them I claim arbitration?I am going to court if I have to. but need to know what to do. Also can they take my money in my bank account before they try to sue me? Thanks all for the help

Wow, you just asked about a weeks worth studying and researching in one question. :)

Your going to be forced to study each of those questions one at a time. Each of the answer is dependent of knowing the answer(s) to all those questions.

Real quick;

To pay nothing and guarantee not getting sued is not an option. There is no guarantee either way. In my personal opinion, the Chase and Discover seem to very likely lawsuits. That kind of balance and those two creditors usually equal a lawsuit. However, no way to know for sure.

Arbitration might be an option, but you would need to study that and see if it seems like an option you should go with. You have the same case in arb as you do in court. However, it makes the creditor consider the costs involved with arbitration. It's not a silver bullet at all, but there are times a creditor will drop the case due to the amount it would cost to arbitrate.

Next, they usually will get a collection agency after you. They won't sell it to a CA, only hire a CA to hound you. They might or might not eventually sell the account. Once again, those creditors you mention, do sue a lot and don't sell off the account, if ever, generally speaking, until way past charge off status.

The one question I can give you a firm answer of no on, is can they take your money before suing you. They must get a judgement before they can take your money. The IRS can take it without a judgement but no a bank.

What to do in court? There are thousands of threads on that issue. It would take days to write out every court scenerio. It all depends on how the case unfolds, what their claim is, how much they claim, what they attach to the complaint, if you have counterclaims, what court, who the law firm is suing, and how and with what they answer discovery with.

If your 100% for sure not going to pay them from this point on, I would send a dispute letter to them. You don't have to list a reason. You just dispute the account and the balance. That at least will, or greatly reduce, the chance of them claiming an account stated argument.

Good luck, but if you want to fight this, your in for a ton of research, studying, and posting questions. A lot here, including myself, are willing to help. However, your going to have to get the basics down and also be willing to do the follow up research when you get opinions or advice.

Good Luck.

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With 20K in debt and no assets, I would say bankruptcy would be a good bet for you. There is no point in you fighting the original creditors with no legal expertise. If you just let it go, your credit score will continue to go down and down, they'll sue you, then most likely you'll lose and have 4 judgments against you unless you can figure out how to defend this and win. The scenario you presented, work hours, etc., is not a defense. It does not go towards attacking the validity of the debt. I should think these creditors will look into your status before spending a lot of money on law suits. If they think there is absolutely nothing to collect, they may decide not to bother. They may sell your accounts. Who knows, anything can happen. I would say be proactive, and stop the bleeding before they send the infantry to finish you off. Bankruptcy is not the end of the world. You can't use the cards now, what's the difference.

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I'd fight just to fight if I was going to claim BK no matter what. The second they got a judgment, then I'd file. A judgement will follow you around pretty much forever. You do want a judgement wiped away.

However, a lawsuit does have a statute of limitations. You never know what might happen. I know somebody that beat back AMEX on a 24K debt. That's not something you see everyday.

Of course a BK will just end this all, along with the calls and letters, so can see why you might just say the heck with this and nuke it all. Guess it's more of a question about your sanity. If you can handle them coming after you, go down guns a blazing. If that's not your style, drop the BK card on them.

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