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Being sued for the 2nd time in Texas! PLEASE HELP!


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So, here's where I am:  A year ago I was sued over this same citibank CC debt, but they dropped the case without prejudice.  I assumed it was because I was fighting them tooth and nail and it wasn't worth the $2000 they were suing me for.  Well, they came back and I was served again near the beginning of March of last year.  I filed my answer letter and it went to mediation.  I chose to take it to court rather than admit the debt was mine.   The discovery they showed me is looking pretty intimidating.  They have the chain of custody (Ever statement from 10/2017 - 9/2018, or when the card went into default, however it's not from the very opening of the account), right to sue and card holders agreement.  The case is set for trial early next month.  

I guess what I'm asking is: what are my options?  I just don't have the money to pay!  Is arbitration still an option?  It says on the cardholders agreement that it cannot be arbitrated once it's been taken to court.  Any help would be greatly appreciated.  Thank you

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3 hours ago, Monolithic Cheesecake said:

I filed my answer letter and it went to mediation.  I chose to take it to court rather than admit the debt was mine.   The discovery they showed me is looking pretty intimidating.  They have the chain of custody (Ever statement from 10/2017 - 9/2018, or when the card went into default, however it's not from the very opening of the account), right to sue and card holders agreement.  The case is set for trial early next month.  

Is arbitration still an option?

No it isn't an option.  You have 2 problems:  first is the carve out in the CITI card agreements that cases filed in small claims are not eligible for arbitration.  At least one JP court judge in TX has already ruled that even though TX abolished the formally labeled small claims court those same cases in JP court are SMALL CLAIMS cases and covered by that clause. We can argue all day whether it is correct or not but in the end the Judge is the one who will rule if the clause governs and if you lose the financial burden of appealing and getting it reversed rests entirely with you.

Second:  in TX once you engage in the court/litigation process you waive your right to arbitration.

3 hours ago, Monolithic Cheesecake said:

I guess what I'm asking is: what are my options?

Settle or bankruptcy.  You are in Texas which is VERY debtor friendly.  They cannot garnish your wages. Make sure to not keep any money in the bank:  that money is not protected unless it is SSDI or a pension.  

 

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