I am being taken to court by a law firm that bought a delinquent credit card account I had about 6 years ago.?

Question

and never paid it off. The law firm wants to garnish my wages if I go to court (I am trying to settle with them out of court). How much can they garnish my wages? I live pay check to pay check. All but about 300 dollars a month goes to things I need to live such as rent, elec., gas, phone, food, gas for car etc. Do you think if I submitted an itemized list of what my monthly expenses are to a judge he'd would allow them to take 25% of my wages? (The lawyers claim they will get 25% of my wages until it’s paid off) If they take 25% I will loose everything. To me it doesn’t make any sense that a judge would allow them to take so much of my money that it would cause me to become homeless and loose my job. If I loose my job then they don't get paid off. What should I do? Settle out of court? Or should take a chance that a judge will see that I am poor and don’t have the means to pay it off?

Answer 1

Y Nevin has it right. Check the statute of limitations in your state (this is assuming that there never was a judgment entered on this debt. If there was a judgment entered already, the statute of limitations is no longer relevant). In most states the statute of limitations is six years or less. That means a law suit must be commenced within that time. On debt like a credit card, the time begins to run from date the last payment was made. If the statute of limitations has run, that is an affirmative defense to a lawsuit, but you must raise it in your answer.
If there is no judgment and the statute of limitations has run, you can essentially inform the law firm of that fact and tell them to f*** off.
Even if there is a judgment already, you can still negotiate a settlement at a discount.
It is often possible to negotiate a settlement for a considerable discount to the total amount claimed due. The more you can pay at once, or the larger the payments over time, the better the deal you will get. HOWEVER, do not offer more than you can actually pay and do not miss a payment.
If there is a judgment and you negotiate a discount, the creditor will usually require you to sign a confession of judgment. That allows them to proceed on enforcement to collect the balance of the full amount, not the amount you agreed on, if you fail to make a timely payment, without having to go back into court.
With regard to wage garnishment, there is a statutory limit to how much they can take and if you make less than a certain amount, they can not garnish your wages. NOTE that this is state law and varies from state tot state, so it may be different where you live. Be prepared to document your income if it gets to that point in court.
If you can find an attorney that you can afford to help you, do it.
Pro se means that you are not represented by counsel. It is not an organization.
If you contact your local bar association and you qualify, you may be able to get some legal help "pro bono", which means for free.
Another alternative might be to contact a local law school to see if they have any sort of "clinic" that might help you. A law school clinic is a means by which law students get practical experience helping in communities under supervision of the law school. Common types of clinics deal with landlord-tenant matters, but there might be one for bankruptcy or credit matters.
Good luck.

Answer 2

LOTS of bad advice being thrown around here. You don't say how much the debt is. If it's worth going bankrupt, go do it. Talk to a bankruptcy lawyer. It's not the end of the world.

But the very first thing to do is check the statute of limitations in your state. If it has expired, you shouldn't even need a lawyer. Let them sue you, when you answer say "statute of limitations has run", go to court and say the same to the judge. By the way, this is NOT the same as the number of years something can stay on your credit report. The statute of limitations is as short as two or three years in some states, or many more in others.

If the statute of limitations has not run, then either try to settle with them, by threatening bankruptcy, or actually do the bankrupcty.

Answer 3

When they go about garnishing your wages, they have you prove you pay so much per month for "living expenses". You have to bring in bills, statements, and letters proving that you pay so much each month. They will look at your income, and will deal with you that way.

The reason they will not work with you now is that you let that go for so long and did nothing until they went ahead with court action. That costs them money, so they want it. You will be expected to pay back the debt plus court costs.

You will have to pay it back. That is the law. You signed the agreement when you received the credit card account, and agreed to pay it back. You are in breach of contract, so that alone will be against you enough to make the judge against you.

I would contact them and see if they will work something out. If you go to court, a judge is not going to be very sympathetic with you on your money situation (if you are so poor, why did you spend so much on your credit card?). They will more than likely produce the records for the credit purchases, and if they are for items not necessary for living, you might be looking at some harsh words. Try to settle before going to court. That would be in your best interest.

Good luck!

Answer 4

25% is the legal MAXIMUM they could garnish your wages. In the states that do allow wage garnishments, the judges usually have the discretion to reduce the amount if someone is living paycheck to paycheck. I just recently got a California client's garnishment reduced to $40 per month. They can't start a wage garnishment until after the start of they get a judgment and then you can follow local procedures to get the garnishment reduced.

You can either try to settle or you might be eligible for bankruptcy. Consult a local attorney for more complete advice.

Answer 5

Other than hiring an attorney of your own, the only thing you can do is to plead for the court's understanding of your situation and make it see that you are sincere in wanting to pay the money owed back.

Usually, before they actually take you to court, you will be given many chances to pay it off in schedules or settle out of court. By them taking you to court, they have decided, you need to be forced into a situation where payment is court mandated. Basically, you blew it.

Yes, making itemized list is a good idea. Show the court what your income is, what your necessary expense is, and what is left. Then tell the court, you'll use what is left to pay the creditor back.

It is always the best to settle out of court if possible. If you go to court, you can never predict what the judgment will be. Plus, if you lose, you will be paying the court cost and attorney's fees. By settling out of court, you will avoid both. Go to court only as a last resort.

Answer 6

That's now not authentic, the rule is on a credit judgement, if acquired by the creditor, can also be as much as 25% of the payroll examine. If they've already filed a declare towards you, ship a letter to the decide itemizing your fees and expenditures. Include the whole thing from automobile maint. To laundry soap. Medicines, deductable for medical insurance, etc. Exhibit that you don't have any assets you could promote or barrow against to pay the debt also. The collection company/legislation company just isn't on your aspect and most are unreasonable to work with. There objective is to get probably the most money for their client viable within the shortest period of time. As quickly as they file, send a letter to the decide, show up in court prepared to show your function with reciepts, asset expertise and so on. Excellent luck! Do not let the legislation corporation intimitate you, it is no longer that dangerous.

Answer 7

How much do you owe? The collection firm, prob not a lawyer yet will probably settle for some percent on the dollar. But if you go to court and deny some of the charges, not admit to them, you may be able to avoid a judgment since the law firm will have a hard time proving them up after 6 years. Not admitting to any debt and requiring proof may be enough to derail the judgment. If smaller amount they are not going to locate and bring in witnesses.

Answer 8

assuming you take home a thousand a month. 25% is $250 and that leaves you fifty bucks for the month. that is probably your thinking but you said it yourself . needs are needs seven hundred . the garnish will probably closer to fifty per month. if that is too much start bankruptcy and it stops them cold. but they are bull shitting you. this is what they will do. they will take you to small claims court and they will win. 28 days after the judgment they will send you a letter to pay up in full. at the same time they will also send a document of judgment to your bank and empty your account. the bank will hold the money for thirty days and send you a form to prove what your needs are. but they don't want to go to court anyway. it is more cost effective to settle this @ 50%.. if you can't, go bankrupt

Answer 9

That's no longer precise, the guideline is on a credit score judgement, if received by way of the creditor, can also be UP TO 25% of the payroll assess. If they've already filed a declare in opposition to you, ship a letter to the pass judgement on listing your charges and expenditures. Include the whole lot from auto maint. to laundry cleaning soap. Medications, deductable for scientific coverage, and so on. Show that you haven't any resources that you'll be able to promote or barrow in opposition to to pay the debt additionally. The assortment company/regulation corporation isn't to your part and such a lot are unreasonable to paintings with. There goal is to get essentially the most cash for his or her patron viable within the shortest interval of time. As quickly as they dossier, ship a letter to the pass judgement on, exhibit up in courtroom all set to end up your function with reciepts, asset knowledge and so on. Good Luck! Don't allow the regulation corporation intimitate you, it is not that unhealthy.

Answer 10

So lets see are you being sue or just being threaten of a lawsuit. Plus you say this is over 6 years ago that you stopped paying. You should check the statute of limitation. The statute of limitation prevents the party from bringing a lawsuit if too much time has passed.

I'm pretty certain he's only threatening to sue to get you to pay a fraction of what's owed.