Another Velocity Suit

[VelocityHelp]

Hi all.

I'm in North Georgia and I've read in this forum a ton of folks being sued by Velocity, in care of Lending Club. But, with the goings on of things lately (in the wake of the pandemic, I feel as though they're pursuing this more aggressively than they normally would) I feel like I'm in need of advice. 

In 2015, I stupidly took out a $20k loan. I bet my future earnings on the ability to timely pay off this loan. I lost my job in April 2016, and made my April, May, June, and July payments. I was financially unable to make a single payment after that. To add salt in the wound, I was unable to find meaningful work; I was making 1/4 of what I was making for nearly a year.

I racked up a TON of credit card debt, where I was finally able to start servicing it in early 2019. I was working the snowball method of paying off debt. I paid off 2 credit cards, in the process of paying off the third, and get laid off in March 2020. Side note: I paid off $22,000 of debt (car + Credit Cards) in 2019. I knew I still owe money from Lending Club, but I wanted to "get my house in order" with paying off my CC and car debt first.

It's now October 10, 2020, and I'm STILL trying to find work. All the money I'm bringing in from unemployment doesn't even cover my rent (Unemployment: $306 Net per week/ Rent: $1468/month. I was fully able to pay this rent + aggressively pay off debt when I was gainfully employed). 

Now the legal stuff. On October 1st, I was served by the county magistrate papers that Velocity is planning to take me to court; it was a standard "You have 30 days to reply, etc." That's not all.

Because of when I was unemployed in 2016, I wanted to have a decent amount in savings just in case of emergency. I currently have about $11,000 in savings/checking. I've only burned through about $3,000 thanks to major cuts in spending. I owe Lending Club about $18,000. I'm absolutely frightened that they will try to take this money from me which will literally leave me homeless. I have a family: A 5 year old son, a 2-month old son in the NICu (he's a preemie). I will fight to the death to make sure they're taken care of. Should I seek legal counsel? I HATE HATE HATE the thought of bankruptcy since I want to buy a home in the next 5-ish years. 

I strongly think they were able to see the money in my account and think they can get their hands on my savings. I'm also assuming that revenue for these debt collectors has been sluggish given the economic times, hence the aggressive nature of these guys. 

[nobk4me]

Look into the arbitration strategy.  That's the best way to beat a JDB.  And if you are worried about creditors seizing bank accounts, take the money out and operate on a cash basis.

[Clydesmom]

12 hours ago, VelocityHelp said:

I strongly think they were able to see the money in my account and think they can get their hands on my savings.

No.  What they saw was you aggressively paying off all the other debt and not theirs.  If you had the financial means to pay off $22k in an auto loan and credit cards some money could and should have been allocated to Lending Club.  They dump defaulted accounts to Velocity at lightning speed who ALWAYS sues timely.

12 hours ago, VelocityHelp said:

I owe Lending Club about $18,000.

Which means they are suing you in State Court not Magistrate.  State Court follows ALL the rules of civil procedure.  You need to draft a formal answer addressing all their counts in the suit.  If you intend to use arbitration as an option you need a motion to compel as well.

12 hours ago, VelocityHelp said:

Should I seek legal counsel?

For that amount of money I would.  Call Skaar and Feagle Monday morning.  DO NOT email.  They usually do the first consult for free.