I had previously been sued by a credit card company and I paid off the majority of the balance. I was unable to work for over 2 years after a serious injury and when I was not working I was unable to pay. Now they are saying that I owe them 3 times the balance on my account and have placed a lien on my checking account for twice what they are saying the balance is. In the state of IL is it legal to do this?? I have just started back to work and offered to make a payment arrangement until I can do better. They will only accept full payment is what they told me. Would it be better to file bankruptcy or to just go ahead and pay ?? If so who do I pay the bank or the creditor? I do have other bills that will also need to be paid and I dont have much money to work with.
2006-09-23 10:47:51 · 8 answers · asked by dollie480 2 in Business & Finance ➔ Credit
I was recieving workers compensation sporadically and with out steady income I had to pay basic bills first and couldnt pay them I sent in my doctors statements to them on a monthly basis and also sent them notices when I knew I would not be recieving any money from workers compensation. So I did pay something just not on a regular basis. I am also still disabled and on many work restrictions so I havent been able to get the best paying jobs again yet.
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2006-09-26 05:49:38 · answer #1 · answered by ken_voss12345 4 · 0⤊ 1⤋
When you sign up for a credit card, and you sign that application, you are signing a legally binding document. Basically, you enter into a contract to pay everything you charge, and pay in accordance with their fee schedules and interest rate charges. If you cannot pay anymore, the solution is NOT to stop paying. They will report you to the credit bureaus. Once your credit is blemished, it takes a near miracle to fix it...or 7-10 years AFTER the balance is paid to repair it. Nowadays you can't get cell phones, car insurance and even some jobs without having good credit. My suggestion is to call the credit card companies, tell them your situation. They may offer you a "settlement" or a "charge off". For them, some money is better than no money. If they really wanted to, they could take you to court for the goods you purchased and didn't pay for. I only know all of this because I ruined my credit when I was 18, I am 26 now, haven't been late on a bill since I was 18 and still have terrible credit. Be careful, and good luck
2016-03-27 04:48:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Illinois has a 9% interest rate on judgments.
You might talk to Legal Aid about the situation. Ask them if they think you may be able file for a hardship with the court to have the interest reduced.
If you had been in contact with the creditor about your situation while you were going through it, the judge may(?) look favorably on your hardship case. If you hadn't let the creditor know about what was going on, you may still try it - it's better to try than to file bankruptcy without even trying.
edit
I just saw your added details, if you have proof that you were in contact with the creditor on a monthly basis, that might work in your favor with the judge on a hardship case.
Having that proof will show the judge that you have not been willfully dodging the judgment orders.
2006-09-23 11:35:33 · answer #3 · answered by echo 7 · 1⤊ 0⤋
You can always open an account elsewhere.
They may find it eventually and put a lien on it too.
If you just use the account to cash checks and keep little money in it, they will be unable to get much and you can pay them when you can.
If you have a LOT of bills and little likelyhood of catching up, a bankruptcy might be the way to go.
2006-09-23 10:57:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would be willing to bet you didn't bother to let them know of your situation during the 2 years you weren't working, and now they won't work with you, they just want their money. Bankruptcy is not cheap, and will ruin your credit completely and will remain on your credit record for a very long time.
Contact one of the credit counseling places and see it they can help you work something out to get the amount owed lowered and paid off. Good luck.
(How did you support yourself for those two years? Is there no way you could have made some type of payment to the credit card company?)
Oh, by the way, there is probably no way to open another checking account. I'm sure they would find the court order and tell you no if you tried to do so.
2006-09-23 11:14:35 · answer #5 · answered by oklatom 7 · 1⤊ 3⤋
How much are we talking about? If less than $20K then pay it off. If over $20K then consider bankruptcy. I say that because ANYONE, and I mean ANYONE can pay off $20K... just get a 2nd job, negotiate with the CC company any reductions if possible, and PAY, PAY, PAY down each month.
2006-09-27 09:53:06 · answer #6 · answered by non_apologetic_american 4 · 1⤊ 0⤋
File a motion with the court requesting installment payments. Inform the judge about your past payment history and problems you have had, and assure that if allowed to may payments in installments you can satisfy the judgement. show that being forced to pay the entire amount at one time will impose a hardship on you.
But be warned, if you are allowed installment payments and you screw up again, the judge will not be happy.
Also demand that the creditor detail how they arrived at they amount they are now asking. Even at 9% it still seems excessive.
2006-09-24 06:10:05 · answer #7 · answered by Anonymous · 3⤊ 4⤋
If it's based on a court order, you are screwed.
2006-09-23 10:51:49 · answer #8 · answered by Anonymous · 0⤊ 3⤋