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Need help! I am being sued by midland funding and need advice. I have no assets and I am still in school. No real source of income. 

 

1. Who is the named plaintiff in the suit? Midland Funding LLC

2. What is the name of the law firm? Midland funding LLC

3. How much are you being sued for? $749.38

4. Who is the original creditor? Citi Bank

5. How do you know you are being sued? My parents were served with papers at home where I no longer live. 

6. How were you served? In person.

7. Was the service legal as required by your state? Yes.

8. What was your correspondence (if any) with the people suing you before you think you were being sued? I receved some mail every now and then but I never answered it. 

9. What state and county do you live in? Alabama, Limestone county but I live in Florida now with a Alabama drivers license. 

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) It does not say on the paper and I’m not sure. 

11. When did you open the account (looking to establish what card agreement may be applicable) I am not entirely sure but I think 2015. 

12. What is the SOL on the debt? 3 years I think. Is this when I first opened it? 

13. What is the status of your case? Suit has been served.

14. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) No.

15. Did you request debt validation before the suit was filed? No.

16. How long do you have to respond to the suit? 30 days 

I have 14 days. No questionaire. Charges are as follows:

Midland is the successor to the original creditor. I made purchases using the card. I failed to make the proper payments. The card was charged off.

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.

 

see attached picture. 

73A1F160-0558-40A3-A46A-1D713811CFC0.jpeg

 

DA771A3C-B746-4645-87D9-D27B5D8391D9.png

Edited by JeanMore1

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The SOL is NOT from when the account was opened.  If that were the case, you could open an account, wait until the SOL was over, and then walk away from any debt.

The SOL is from the date of first default, which is usually about a month after the last payment on the account.  

So if you defaulted less than 3 years ago, it is within the SOL.

 

This is not a large amount.  You may be able to settle with them for less than the full amount.  Tough if you are a student, but the alternative is to have a judgment against you.  

 

You say you now live in Florida.  Here is the important question.  Did you ever formally establish residency in Florida?  You say you still have an Alabama drivers license.  Students are generally considered residents of the state where they grew up, unless they have taken means to establish residency elsewhere.  For example, did you ever register to vote in Florida?  If not, and if you still have an Alabama drivers license, you are still a resident of Alabama.  

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26 minutes ago, BackFromTheDebt said:

The SOL is NOT from when the account was opened.  If that were the case, you could open an account, wait until the SOL was over, and then walk away from any debt.

The SOL is from the date of first default, which is usually about a month after the last payment on the account.  

So if you defaulted less than 3 years ago, it is within the SOL.

 

This is not a large amount.  You may be able to settle with them for less than the full amount.  Tough if you are a student, but the alternative is to have a judgment against you.  

 

You say you now live in Florida.  Here is the important question.  Did you ever formally establish residency in Florida?  You say you still have an Alabama drivers license.  Students are generally considered residents of the state where they grew up, unless they have taken means to establish residency elsewhere.  For example, did you ever register to vote in Florida?  If not, and if you still have an Alabama drivers license, you are still a resident of Alabama.  

Yeah I never established residency in Florida so I guess there is nothing I can do there. So in other words what box should I check on the paperwork. Do I check the one where I deny all claims in hopes of being offered a settlement to pay less or? Just trying to gather info on the best way to go about it as this has never happened to me.  

If I barely make money and have no assets is there a category I can fall under that could get this dismissed? I just don’t have the funds and living off of student loans barely making it by as is. 

I attached the picture.  

07DB5810-89CA-412F-8102-0FA009ECAE5E.jpeg

Edited by JeanMore1

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1 hour ago, JeanMore1 said:

If I barely make money and have no assets is there a category I can fall under that could get this dismissed?

Permanently disabled and on SSDI is the only one.  Poor working student isn't.  Their theory is eventually you won't be a student and will be earning some day.

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10 minutes ago, Clydesmom said:

Permanently disabled and on SSDI is the only one.  Poor working student isn't.  Their theory is eventually you won't be a student and will be earning some day.

Exactly

 

If they win this case, and they almost certainly will if you don't settle, then they have a decade or two to collect the debt.  At some point you will be working.  When that happens, they can, in most states, garnish your wages until the debt, plus interest, is paid off.  

They will not contact you about a settlement.  Nor are you likely to get as good a settlement as you would have if you had settled this before filing, 

What you can do is call them up and discuss a settlement offer with them.  There is some amount of money they would rather have upfront than waiting until you graduate and are gainfully employed.  If you pay them that amount of money, this will go away.  Make sure you have everything in writing, that they will dismiss the case and agree to permanently discharge the debt and never sell it to anyone else. 

In the meantime, a general denial is probably a good idea.  That will buy you just enough time to settle the case, hopefully.  

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9 minutes ago, BackFromTheDebt said:

Exactly

 

If they win this case, and they almost certainly will if you don't settle, then they have a decade or two to collect the debt.  At some point you will be working.  When that happens, they can, in most states, garnish your wages until the debt, plus interest, is paid off.  

They will not contact you about a settlement.  Nor are you likely to get as good a settlement as you would have if you had settled this before filing, 

What you can do is call them up and discuss a settlement offer with them.  There is some amount of money they would rather have upfront than waiting until you graduate and are gainfully employed.  If you pay them that amount of money, this will go away.  Make sure you have everything in writing, that they will dismiss the case and agree to permanently discharge the debt and never sell it to anyone else. 

In the meantime, a general denial is probably a good idea.  That will buy you just enough time to settle the case, hopefully.  

So basically I need to call them and work out a possible settlement? When I’m not in school and making money I’m sure paying it won’t be a issue. I just have nothing to my name right now except medical bills. 

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31 minutes ago, JeanMore1 said:

So my best bet is settling with them. What option do I check in the box? 

Deny for now.  That will buy you time to settle.  If you concede the case, they have even less option to settle.

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22 minutes ago, JeanMore1 said:

So basically I need to call them and work out a possible settlement? When I’m not in school and making money I’m sure paying it won’t be a issue. I just have nothing to my name right now except medical bills. 

You have to do a cost-benefit analysis.  

1.  Pay less money now, or more money when you are earning money.

2. Have a judgment on your record, or not have a judgment on your record.  

#2 may be a bigger factor than you think.  There are some companies that simply will not hire you if you have a judgment on your record, because they don't want the hassle of dealing with garnishments.  Not fair, but that's life.  There are also some professions for which a judgment would severely damage your chances of employment.  I am now in the banking profession.  My son works for a defense contractor.  In both of these professions, having a judgment on one's record is really bad.  When I first went into banking I had to get fingerprinted as well.  If my son ever needs security clearance, so will he.  I came very close to doing some government contract work, but the big government shutdown took place while they were doing the extensive background check, and the job disappeared.  

When you are in the 'real world', working with a college degree, sometimes you will be in situations in which a judgment on your record could really hurt you.  Maybe not in whatever field you are studying, but you never know.  

If it is possible to somehow beg or borrow enough money to settle this account, then the money you pay now could greatly outweigh your problems a few years down the road.  

As for your medical bills, many places will NOT take the bill to collection if you at least pay off SOMETHING every month.  Maybe being a poor student you can pay off $10 or whatever a month just to convince them not to take the case into collections, and then pay off the rest when you are working.  

Sorry to be a bearer of bad news, but I am getting old and I have seen a lot over the years.  If you told me even 5 or 6 years ago I would be working in banking, I would've thought you insane.  You never know.   

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