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Got pra general case filing notice.How does it work for me if I really have no money to pay


Bamaga
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 Any advice is greatly appreciated.I am just a ordinary guy with wife and child,works hard,never had any issues or trouble with anybody.However 2 years ago I could not pay credit cards and go so far behind I never could catch up.Portfolio Recovery Associates been sending me letters for a while.I have been trying to tell myself not to worry about what I can not control because there is nothing I can do but I finally got the General case filing paperwork.

        I really do not know how a person in my shoes should proceed.I have no money to negotiate and I cant afford a lawyer.I know nothing about the laws or what to do in a courtroom.My only experience with a courtroom is  watching a "A few good men" and "a time to kill" not trying to be funny but my point is that I am a candidate to make a bad choice or mistake.

    What is likely to happen to somebody that really has no money.My bank account usually has between $100-500...sometimes grows to $800 briefly but Its pretty much been that way for 2 years.I pay the bills all a litlle late but just barely,no savings account,car title is always at titlemax pawn shop.I just dont have money.I have no possesions worth anything

  Do I actually show up and just say I have no money?if so what happens.Can I be ordered to pay money when its obvious I do not have money? I do not know how to dispute that I owe when they have all the paperwork and paperwork where they bought the credit card debtWill they assign me a payment plan anyway.I owe this account over 15K and so I doubt I could call them now and offer to pay $100 a month

I work for myself selling items on ebay using paypal so I dont have what would be called a normal job but it has been what I have been doing for 12 years.I did not want to file bankruptcy because ebay and paypal would kick me off.

Any advice is  greatly appreciated.I am overwhelmed and I have a wife and child who count on me.

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The court couldn't care less that you have no money to pay. You entered into a contractual relationship to repay the debt, and you defaulted on that agreement. PRA now owns the debt and steps into the shoes of the original creditor. It's about a simple of a case as could be.

Your only real shot is to use arbitration if possible. Capital One removed arbitration from their agreement several years ago, so if the original creditor is Capital One it won't work there. The only other problem would be if the agreement contains a small claims exemption for arbitration. Citibank is the only major credit card issuer that has this exemption, but there are a couple smaller Banks that have it also.

https://www.creditinfocenter.com/community/forum/199-arbitration/

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3 hours ago, Harry Seaward said:

The court couldn't care less that you have no money to pay. You entered into a contractual relationship to repay the debt, and you defaulted on that agreement. PRA now owns the debt and steps into the shoes of the original creditor. It's about a simple of a case as could be.

Your only real shot is to use arbitration if possible. Capital One removed arbitration from their agreement several years ago, so if the original creditor is Capital One it won't work there. The only other problem would be if the agreement contains a small claims exemption for arbitration. Citibank is the only major credit card issuer that has this exemption, but there are a couple smaller Banks that have it also.

https://www.creditinfocenter.com/community/forum/199-arbitration/

Thanks for the words of advice.The original creditor was citibank and I do not have the user agreement.

So if I dont respond in 30 days their will be a judgement against me.

When I show up and you say "its about  as simple as a case could be"...I know this would be a obvious answer for most but what would happen?The judge says you owe them every penny and gives them my bank account?,or will he come to a amount I have to pay every month?,or tells me to negotiate with them?

Is there any advantage of calling PRA now for first time to see if I can pay them now a small amount now or now that I received the papers is it usually to late?obviously they will sense that I am scared if its now the first communication  from me.

 

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2 hours ago, Bamaga said:

So if I dont respond in 30 days their will be a judgement against me.

If you don't respond or show up to the trial date they will get a default judgment.

2 hours ago, Bamaga said:

I know this would be a obvious answer for most but what would happen?The judge says you owe them every penny and gives them my bank account?,or will he come to a amount I have to pay every month?,or tells me to negotiate with them?

First you will be sent to the hallway with their attorney to try and settle the matter.  The attorney will want a consent judgment for the entire amount plus court costs and attorney fees.  They will agree to payments but you sign a consent judgment meaning if you default again they don't have to sue you.  They can simply file that consent judgment with the court and levy your bank accounts.  Which they WILL DO.  If you do not settle it then you go back in front of the Magistrate and the trial is held right then.  If you lose a judgment is entered and it is then up to the creditor to decide when and how to pursue collecting on it.

2 hours ago, Bamaga said:

Is there any advantage of calling PRA now for first time to see if I can pay them now a small amount now or now that I received the papers is it usually to late?

You can but they are still going to want a consent judgment to protect themselves from another default.  

7 hours ago, Bamaga said:

Do I actually show up and just say I have no money?

You can but being broke is not a defense legally.

7 hours ago, Bamaga said:

if so what happens.Can I be ordered to pay money when its obvious I do not have money?

Yes, you can be ordered to pay via the court issuing a judgment.  Whether PRA ever collects is another matter.

7 hours ago, Bamaga said:

I work for myself selling items on ebay using paypal so I dont have what would be called a normal job but it has been what I have been doing for 12 years.

Dude, if you have a wife and child who count on you then it is time to get an actual W-2 job and start earning real money to support your family.  What you are doing is too high risk for raising a child.  Consistently paying bills late for 12 years and now being sued is no way for your family to exist.

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3 hours ago, Clydesmom said:

If you don't respond or show up to the trial date they will get a default judgment.

First you will be sent to the hallway with their attorney to try and settle the matter.  The attorney will want a consent judgment for the entire amount plus court costs and attorney fees.  They will agree to payments but you sign a consent judgment meaning if you default again they don't have to sue you.  They can simply file that consent judgment with the court and levy your bank accounts.  Which they WILL DO.  If you do not settle it then you go back in front of the Magistrate and the trial is held right then.  If you lose a judgment is entered and it is then up to the creditor to decide when and how to pursue collecting on it.

You can but they are still going to want a consent judgment to protect themselves from another default.  

You can but being broke is not a defense legally.

Yes, you can be ordered to pay via the court issuing a judgment.  Whether PRA ever collects is another matter.

Dude, if you have a wife and child who count on you then it is time to get an actual W-2 job and start earning real money to support your family.  What you are doing is too high risk for raising a child.  Consistently paying bills late for 12 years and now being sued is no way for your family to exist. 

Thanks for the response.I do file a w-2 and am not running a flea market from my home.I run a specialized car parts business  that has potential that is why I have not given up on it.If I ever have the capital to invest in it then then I would have something.I just always teeter around that threshold keeping it going and just short of the level of being able to take to next level.I do work 50 hours a week on it and has allowed me to so it from home and have critical time with my young daughter that most people dont get so thats my motivation.

Thanks for giving me some understanding on the basics and process of how it works.

I am not sure if I can file for arbitration When the original creditor was citibank.I guess there is a chance they would not pursue any further.I will contact PRA and see what kind of payments they will let me make Its just impossible to make another "mortgage style" payment each month.

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4 hours ago, Bamaga said:

If I ever have the capital to invest in it then then I would have something.

If you are paying bills late each month and getting sued the chances you are going to have investment capital are really slim.

4 hours ago, Bamaga said:

I just always teeter around that threshold keeping it going and just short of the level of being able to take to next level.I do work 50 hours a week on it and has allowed me to so it from home and have critical time with my young daughter that most people dont get so thats my motivation.

That is the part that would concern me as a parent.  "Just teetering around keeping it going" while it is wonderful you have been able to work from home and be there the long haul is that the expense of raising a daughter rises dramatically as they reach their teens.  You are fortunate to be in GA with the HOPE scholarship which will cover college tuition along with a small amount for books if she has a decent GPA but even then she has to go to a state school. I would seriously consider keeping this car parts business as a back up and looking to either find an investor (which could be hard with bad credit) or get something more reliable.  NOTHING would be more frightening than having the bottom fall out in another recession and putting the family at risk.

4 hours ago, Bamaga said:

I am not sure if I can file for arbitration When the original creditor was citibank.I guess there is a chance they would not pursue any further.

Before you contact PRA who is the law firm representing them in the suit?  There is one in GA that got defeated quite a few times on a MTC arbitration thanks to this forum.  If it is this firm they now know how to successfully fight a MTC.  The CITI arbitration agreement does have a small claims carve out. Are you being sued in Magistrate Court?  There are 2 opinions:  mine is that yes because of the cases Magistrate Court is small claims in GA.  Others argue that because it does not actually say "SMALL CLAIMS" it isn't.  The problem is no one we are aware of here from the forums has had a law firm in GA argue the carve out applies and had a Judge rule.  You have nothing to lose by trying a MTC.  The worst that will happen is it gets denied and you have to go to trial.  You can always settle at any time prior to the trial and PRA's lawyer will have settlement authority on the day of trial.  

Just a reminder what law firm is on this case?

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I'd take a swing at arbitration. There's a decent chance it won't work, but the odds of success with arbitration are still better than rolling the dice in court. And if it doesn't work, you've lost nothing. You'll be in the same situation you're in now.

Re: your job situation, sign up to do ubereats/doordash/grubhub/ deliver pizzas while you're waiting for your online business to go somewhere.  There's a ton of money to be made out there if you have an ounce of ambition.

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1 hour ago, Clydesmom said:

If you are paying bills late each month and getting sued the chances you are going to have investment capital are really slim.

That is the part that would concern me as a parent.  "Just teetering around keeping it going" while it is wonderful you have been able to work from home and be there the long haul is that the expense of raising a daughter rises dramatically as they reach their teens.  You are fortunate to be in GA with the HOPE scholarship which will cover college tuition along with a small amount for books if she has a decent GPA but even then she has to go to a state school. I would seriously consider keeping this car parts business as a back up and looking to either find an investor (which could be hard with bad credit) or get something more reliable.  NOTHING would be more frightening than having the bottom fall out in another recession and putting the family at risk.

Before you contact PRA who is the law firm representing them in the suit?  There is one in GA that got defeated quite a few times on a MTC arbitration thanks to this forum.  If it is this firm they now know how to successfully fight a MTC.  The CITI arbitration agreement does have a small claims carve out. Are you being sued in Magistrate Court?  There are 2 opinions:  mine is that yes because of the cases Magistrate Court is small claims in GA.  Others argue that because it does not actually say "SMALL CLAIMS" it isn't.  The problem is no one we are aware of here from the forums has had a law firm in GA argue the carve out applies and had a Judge rule.  You have nothing to lose by trying a MTC.  The worst that will happen is it gets denied and you have to go to trial.  You can always settle at any time prior to the trial and PRA's lawyer will have settlement authority on the day of trial.  

Just a reminder what law firm is on this case?

Hi Tracey H.Reese/Tamara D Starks/Bryan D Thompson/Brian M Bilodeau

The "state court" and "magistrate court" both have their boxes checked

 

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1 hour ago, Bamaga said:

Hi Tracey H.Reese/Tamara D Starks/Bryan D Thompson/Brian M Bilodea

Perfect.  LOL  They are not the law firm that has been hammered by several MTC and now know how to fight.  In fact these clowns can be defeated.  My guess (and it IS a guess) is that they have not ever read the CITI agreement.  I would try the arbitration route but have a back up plan to litigate if that fails.

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42 minutes ago, fisthardcheese said:

Ignoring the highly inappropriate and unsolicited parenting advice above;  Is the total dollar amount listed on your summons and complaint over $15k?  And does the complaint they served you have a caption headder on it that says "In the STATE court of...?  or does it say "In the MAGISTRATE court of...."

It is a little over 15k and reads "In the state court of Emanuel county State of Georgia"

I really appreciate your input

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7 minutes ago, Clydesmom said:

Perfect.  LOL  They are not the law firm that has been hammered by several MTC and now know how to fight.  In fact these clowns can be defeated.  My guess (and it IS a guess) is that they have not ever read the CITI agreement.  I would try the arbitration route but have a back up plan to litigate if that fails.

Well that is encouraging.I am going to to try the arbitration as outlined on the  link I was sent earlier.

I appreciate your input

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2 minutes ago, Bamaga said:

Well that is encouraging.I am going to to try the arbitration as outlined on the  link I was sent earlier.

One other thought:  you might want to get a free consult with a Consumer Attorney.  These particular lawyers really are bottom of the barrel and frequently make FDCPA violations. A quick free consult might uncover one or two making it worth it for the consumer attorney to take the case for free with making it not only go away but getting you a little money in the process.  Skaar and Feagle is a great Atlanta firm but they work other counties.  CALL.  DO NOT email as those mail boxes are often never checked.

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9 hours ago, fisthardcheese said:

Arbitration should work well in this case.  PRA does not arbitrate.  The big work you will need to focus on is filing the Motion to Compel Arbitration and getting the judge to grant your motion and move this case to Arbitration.

 

I am very encouraged by that! One concern i have is getting my credit card user agreement.To be honest I was dumb and usually ignored the credit card agreement.I never assumed I would default and need them.I did see a list of user agreements online and I can not find Citicard that says "Dividend world card" and I would assume I need one specific to that.

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This is a generic CitiBank card agreement that you could use if you can't find a specific Dividend one.  You could try calling CitiBank and asking if you can get a copy of the Dividend card agreement from the account you used to have with them.  They may or may not be cooperative with that.

https://www.citicards.com/cards/wv/pdf/CMA_DoubleCashADA-3.pdf

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  • 2 weeks later...

Hello,

  Here is a motion to compel arbitration draft I did.I value any ones opinion if there are any fatal flaws.Yes I have zero experience with this.Thanks

Tom C. Hanks
47 Harold place
 Seattle Wa.92345


              IN THE STATE COURT OF EMANUEL COUNTY  )
                                       STATE OF GEORGIA                        )
                                                                                                     )
PORTFOLIO RECOVERY ASSOCIATES,LLC                         )
    Assignee of CITIBANK,N.A.                                                  )
               Plaintiff                                                                         )
                                                                                                     )
          vs.                                                                                       )
                                                                                                     )
Tom C. Hanks                                                                             )
               Defendant                                                                     )
__________________________________________________)                           

              


Motion to compel private/contractual arbitration and to stay 
Proceedings pending arbitration
__________________________________________________

NOW COMES Defendant,Tom Hanks,appearing Pro Se for its motion to compel private contractual arbitration and as grounds thereto states the following

1)That on or about November 26th.2018,Plaintiff filed its complaint against Defendant.

2)Defendant sent a letter via certified mail to Plantiff”s attorney  on December 12th,2018 electing arbitration with AAA and requesting dismissal of this case (see exhibit A attached)

3)Defendant moved the court to compel binding private arbitration based on the terms and condition of the credit card agreement (see exhibit B Attatched)

4)The parties are bound by the credit card agreement.The arbitration agreement states among other things:

(a)You or we may arbitrate any claim,dispute or controversy between you and us arising out of or related to your account,a previous related account or our relationship

b)If arbitration is chosen by any party,neither you nor we will have the right to litigate that claim in court or have a jury trial on that claim.

c)You may arbitrate on a individual basis claims brought against you,including claims to collect a debt.

d) Arbitration may be requested at any time,even when there is a pending lawsuit,unless a trial has begun or final judgement entered.Neither you nor we waive the right to arbitrate by filing or serving a complaint,answer,counterclaim,motion or discovery in a court lawsuit.To choose arbitration, a party may file a motion to compel arbitration in a pending matter and/or commence arbitration by submitting the required AAA forms and requisite filing fees for the AAA

5)The defendant elects arbitration to settle the dipute


WHEREFORE,Defendant moves this honorable court to compel private contractual arbitration pursuant to the Cardmember agreement and to dismiss Plaintiff”s complaint due to lack of subject matter jurisdiction or in the alternative,to stay proceedings pending contractual arbitration


Respectfully submitted this day December 14th,2018

______________________
Tom Hanks,defendant pro se
  
 

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