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Sued by Unifund


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Being sued by Unifund for credit card debt $6200. The step we are at now is we had court ordered mediation. At mediation, the Unifund's attorney from Ohio didn't show, he had a lawyer from Michigan take his place and he was 20 minutes late! First thing he shows my husband is the letter I typed to Ohio lawyer showing that my husband receives Social Security Disability and tells my husband that he is "uncollectable". But he said he was there to get a judgment. Unifund's lawyer seems to have things in order: shows how debt was exchanged from Citibank to 2 other JDC & then to them. Have a notarized affidavit from someone at Citibank (I'm a little skeptical of this). Have all bills from Citibank except for the first year husband had card (which I thought was odd). This stand-in lawyer said that husband will have judgment against him & if he should ever come into some money to pay them. Said that since all our other things are either joint or in just my name that they can't collect on any of that. Husband thought it best to settle for this. Right now the mediation status is at "Entry of consent judgment under the 7 day rule". We are having 2nd thoughts about this for many reasons. Should we just get a lawyer? We both have other credit card debt that has went to collections & I'm worried this is all going to snowball. We are always on time with our mortgage, but his disability has caused us quite a bit of debt. One other thing, all his cc debt shows up on his 3 credit reports, but NONE from this Citibank card!!

 

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48 minutes ago, MIRocco said:

One other thing, all his cc debt shows up on his 3 credit reports, but NONE from this Citibank card!!

This is not unusual.  These days when a debt is sold one of the conditions is that the seller/OC (Citibank in this case) remove their trade line to eliminate the possibility of counter claims if the purchaser/JDB wants to sue to collect.

49 minutes ago, MIRocco said:

Should we just get a lawyer?

I would get a few bankruptcy consultations ASAP.  If you both have that much debt wiping it out may be a lot less stressful.

50 minutes ago, MIRocco said:

"Entry of consent judgment under the 7 day rule"

DO NOT agree to this.  The attorney submarined your husband.  The consent judgment means you are voluntarily agreeing to pay them and from what you post you don't have the discretionary income to do that.  Miss ONE payment and they don't have to sue you to collect.  

If it were me I would call the attorney and tell him you withdraw consent to the judgment and you are seeking a continuance to consult with a bankruptcy attorney.  Ask the court for a continuance to speak to legal counsel then do it.  

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@Clydesmom-thank you for your response. Husband doesn't have the money to pay them, his only income is his social security disability & they can't touch that. 

Another thing I just noticed is on the Order for Mediation, says "the attorneys that intend to try the case shall attend the mediation". Bader is listed as the attorney from ohio....but he didn't show for the mediation, a lawyer from kalamazoo came. This lawyer said he was asked to come on Bader's behalf. Bader is on Ohio, the lawyer that showed up is from michigan. 

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1 hour ago, MIRocco said:

on the Order for Mediation, says "the attorneys that intend to try the case shall attend the mediation"

Quit looking for a 'gotcha!'  These are all very minor things that a court won't spend 10 seconds listening to.

My biggest regret is not filing bankruptcy when I qualified for Chapter 7. If SS is your only source of income, and you don't own 5 homes or $200,000 worth of art or something, you should have no problem qualifying for Ch.7 and having all of your unsecured debt wiped out. I agree with clydesmom. Get a free consult with 3 or 4 BK lawyers and see what common threads run through the advice each gives you. 

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