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Portfolio Recovery sued me but now sending a hardship application???


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So portfolio recovery sued me with a acting attorney, I answered lawsuit and sent in a settlement offer of around 22% percent of original amount owed.  It’s stil on the court documents online.  So yesterday I received this in the mail from Portfolio not the attorneys.  I don’t understand. I made a offer now this? Has anyone ever got this before? Are they trying to be tricky? Why isn’t the attorney reaching out with this? The date I responded to the complaint summons was 9/21/21. Along with the settlement offer.  Im

not sure how to respond to this due to the lawsuit pending . It shows online the status is pending a alternate resolution and a mediator will be assigned by March 29,2022. Should I call their attorney first to just ask what is happening? Should I file this request from portfolio with the pending case in court? This is confusing because I already made a settlement offer. I mean why would they do this and not decline or accept my offer. I know in the complaint answer I asked for plaintiff to prove that I had received any documentation involving this debt . One of their complaints stated that the original creditor sent a letter in reference to “right to cure” but I never received that either and I asked for them to prove that also. I declined admittance of amounts owed due to the lack of knowledge because the original creditor  no longer had the account listed on my credit report. But as admitted that I did aquire the account way back in 2009. They had bill of sale , affidavits of the sale via Portfolio records employee. They had the interest sheets etc. so the loan was real but this whole shift of offering me a hardship program makes me feel like something else is up . The letter is dated September 25th but I just received it October 8th . It’s says I have 30 days to respond. What should I do?

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Edited by MLH
Additional question n info added
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56 minutes ago, MLH said:

Ty I was just curious as to why they just wouldn’t take my offer .  Seems kinda dumb that they are willing for me to pay nothing than make a little on what I owe. 

I agree with @BackFromTheDebt.  In addition, once a lawsuit is filed, it’s possible that PRA has a minimum percentage that it will agree to settle for unless a defendant can show hardship.  You also need to understand that negotiation can be part of the process.  You want to pay as little as possible, but they want to get as much as possible.  

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  • 3 weeks later...

I'd be willing to bet the fact that you are SC, and they can't garnish your wages has something to do with it?

If you don't own property, in SC there really isn't much they can do so 'waiving' debts in these places to improve their overall image is a 'win-win'.

It's odd they paid an attorney to file, then sent a hardship application after you submitted an offer for settlement.  Seems like most agencies would jump on the settlement.

Would love to hear how this turns out! 

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  • 1 month later...

Hello, I’m following up on my post with needed help. I had received from Portfolio Recovery a hardship application letter. I sent it in with all the backup documents that gave them proof of my hardship. They received the documents via certified mail on October 20, 2021. I just checked my case online and on November 23 they filed for a Motion for Summary . Is there anything I can do? I’m wondering why they sent me a hardship application stating they would not seek collections for 3 months and or be accepted for permanent hardship and then send it to motion for summary.  Im

confused. Can you help please? 

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I called the attorneys office after calling the court, in which they said, I should reach out to the attorney to work it out. In calling the attorneys office here in South Carolina they transferred me to their collections department in Texas. I spoke with a woman that said they would put me on a 60 day no collections and said either make small payments, or contact the courts for further options such as setting up a hearing. I know I’m at risk of then paying all court costs. I don’t know how to request them to stop the summary judgement and when I answered the original complaint I did offer them a settlement. I don’t understand why they would not answer my “answer to their hardship request” nor do I understand why they wouldn’t just counter me on the settlement offer.  I am on the deed as a tenant for survivorship with my mothers home in South Carolina, so I’m guessing they just want to place a lien on the home. In my answer I did tell them I was long termed unemployed.  Can you tell me what is my best option at this point please. Ty in advance 

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Has a court date been set for the MSJ?

Basically, you have a fight on several fronts.  This can be frustrating.  I once had two rental properties go into foreclosure while I was negotiating with the banks.  i lost both MSJ cases.  In one case we reached a settlement AFTER they won the MSJ.  So it is possible to still reach a settlement AFTER you lose the MSJ.

The problem is, you are negotiating with PRA and the attorney's office at the same time.  Maybe PRA put you on a do not collect list, but the case is already in court, so the attorney's office will just continue with the case.  Unless you reach a deal with PRA, your negotiations with PRA won't matter at all.  

Meanwhile, you need to do several things.  

First, see it there is a court date already set up.  If there is a court date set up within the next 60 days, contact the attorneys office again about a continuance of the MSJ for 60 days.  Maybe they will agree, maybe not, and maybe they will just put you on the phone with someone who has absolutely no power to enforce that.  If the last option, find out if you are already on their 60 day list.  If so, file a motion for a 60 day continuance for the MSJ on the grounds the attorney's office put you on a 60 day no collect list.  If they do not object, you will probably get a 60 day continuance.  If they do object, you have to fight the MSJ, and probably lose.  

Second, you need to follow up with PRA and find out if anything has happened with your hardship application.  Note that the discussions with PRA are separate from whatever you do with the law firm.  They probably won't talk to each other unless your hardship is approved.  

Third, in case you lose the case, you need to figure out what you can do to be "judgment proof".  I can't tell you what will happen with the deed.  I am not a lawyer, and not in SC.  If you are "judgment proof", you may be able to get a much better settlement after the fact.  

In a nutshell, they don't HAVE to negotiate with you.  And maybe they won't.  But you can try, and maybe it will work.  

 

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I called the court and they said the hearing for MSJ has not been set and it will be next year when they do. They also said that the judge will not automatically place judgement and we will definitely have to go to hearing. It also shows on the court docs online that they sent me via US First class mail for certificate of service for this motion . I have not received anything to date on this.  So are you saying wait til I hear from the court on a hearing date before I respond to anything?  It sounds like I’m out of luck for a permanent hardship. Should I call Portfolio now to ask them the status of my application?  Will it even matter at this point?  Why would they offer a hardship program if they wanted to proceed with the lawsuit? I did email a consumer debt attorney that is a hour away from me , but he has not responded as of yet.  

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2 hours ago, MLH said:

Should I call Portfolio now to ask them the status of my application?

YES.

2 hours ago, MLH said:

I did email a consumer debt attorney that is a hour away from me , but he has not responded as of yet.  

DO NOT email.  Most of those "contact us" mail boxes are not monitored.  CALL.

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Does anyone know if there is a timeline statue in South Carolina in which the plaintiff must mail a copy of the motion for summary judgement to the defendant. I just received the copy in mail of the motion of summary judgement which was dated November 22, 2021 but the post mark on the envelope is dated November 30, 2021.  I tried to Google it and I called the courthouse but the clerk said that info would be considered a advice of law and she can’t say. Now I’m wondering if there is a timeline that I would have to meet to be able to respond to the motion of summary judgement. And if I missed it. Ty in advance. 

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4 hours ago, MLH said:

Does anyone know if there is a timeline statue in South Carolina in which the plaintiff must mail a copy of the motion for summary judgement to the defendant. I just received the copy in mail of the motion of summary judgement which was dated November 22, 2021 but the post mark on the envelope is dated November 30, 2021.  I tried to Google it and I called the courthouse but the clerk said that info would be considered a advice of law and she can’t say. Now I’m wondering if there is a timeline that I would have to meet to be able to respond to the motion of summary judgement. And if I missed it. Ty in advance. 

Rule 6(d)

(d) For Motions--Affidavits. A written motion other than one which may be heard ex parte, and notice of the hearing thereof, shall be served not later than ten days before the time specified for the hearing, unless a different period is fixed by these rules or by an order of the court.

 

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Thank you for that, I’ve called n called many debt attorneys in South Carolina, I’ve yet to find one that says they handle in my defense. Can anyone tell me if they know of one that would be able to tell me at this point any motions or what I should do. Portfolio Recovery n Scott n Associates seem to holding me on a string with saying I should wait for something in the mail. And I’m trying to find out if they do get a judgement on me, will they go as far as partition my property that my mother n I are deeded to as joint tenants with survivorship n not tenants in common? I read it costs like $5,000.00 for them to do this and the amount in court is $1,600.00  Does anyone know how they put a lien on a home in this category?  So many things to have to know. I’m way over my head. That’s why I’m looking to get a consultation but can’t find one that will do it. Ty in advance.

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I don't know about South Carolina, but what I have seen of judgment liens in Ohio, they simply file a certificate of judgment lien, here, with the common pleas court.  The judgment creditor gets the certificate from the muni court.  If they are only suing for $1600, they won't do anything like trying to foreclose.  The judgment lien just sits there until the debt is paid off or the property is sold.   If they tried to force a sale to collect $1600, they would probably lose money.  There are the costs of forcing a sale, then a mortgage holder would have to be paid, then your equity under the state's homestead exemption laws (I don't know the amount for your state), then any senior (older) liens, then they get their money.  And the property would have to be sold at auction, in other words, a distressed sale, which means it won't sell for as much as if it were on the open market.  

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Adding more thoughts:  it is very unlikely that a JDB would spend $5000 to collect $1600.  They have thousands of these judgments, that are like a portfolio of investments.  Some percentage of them will pay off every year, as houses are sold.  And the judgments earn interest.  They just wait until the property is sold, then they can collect their money.

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Thank you for your answer.  That gives me hope. I received in the mail today the 2nd hardship application from them. The same exact one they sent me the first time . I answer the first one with supporting documents and mailed it Certified. In which I have the green card for. Are they trying to trick me up? I guess I will just photo copy what I sent them before n do it all over again. It’s says 90 day stop collection n that would bring my ADR date in court. But now the attorney did a motion for summary judgement as well. It’s a lot of back n forth of the same thing. 

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