What are we supposed to do?

Question

We have a large balance on a credit card. We have every intention on paying it and are making monthly payments on it...they are small but its still better than nothing. We received a summons & complaint from an attorney who had the account turned over to him. The attorneys office wants a huge amount monthly to pay off the balance but we can not afford it.
The card is in my name. My husband is the only one that works. We have 2 children and for me to work and place them in daycare, would put us further in the red.
What are we supposed to do? Whats going to happen once it goes before a judge and a judgment is entered?

Answer 1

Call the credit card company - and ask for a Supervisor.
Do this right away.

Ask for help, if they will please talk to you.
If they speak with you, ask for intervention to help you with this challenge.

1. Ask for the lowest monthly payment possible.
2. Ask for the lowest interest rate possible.

3. Ask to be removed from the attorney's list - and tell them you want no further contact with the attorney.
4. Tell them you want to pay, and that you need to set up a schedule that is reasonable.
5. Ask them for immediate help.

Do not talk to the attorney and say you are tired of his harassment.

If you go before the Judge, the Judge will be tend to listen to your circumstances.

1. Make a list of your rent and utilities.
2. Make a list of all income.
3. Make a list of food and clothing for your children.
4. Make a list of school costs - including bus and other transportation.
5. Tell the Judge that you want to make an agreement to pay with lower monthly payments that are reasonable under the circumstances.

I believe the Judge will listen to you, especially if you state that you want to get out of debt, and you need THE JUDGE'S HELP TO MAKE GETTING OUT OF DEBT POSSIBLE.

My best prayers are with you. Don't give up.

GOD bless us one and all, always.

Answer 2

This sounds a little fishy to me. Who are you making payments to? The credit card company or a collections agency? Is the account still active with the credit card company? Did the credit card company turn this over to an attorney?

Usually it's pretty extreme for an account to go to a judge. I'd contact the credit card company and any others in this process to learn as much as you can about the situation so you're informed if/when it goes before a judge.

You may be able to secure a debt consolidation loan to pay off this card and then make small minimum monthly payments on the loan. Good luck!

Answer 3

True Dat's advice is pretty good although you may not like it.

Most people that are in over their heads are paying every month for a lot of things that are really and truly NOT necessary. They might seem like necessities to you but they are luxuries. A few years ago they were considered extravagant. Do you really have to have a cell phone? If its only for emergencies then get a plan that reflects that. Although I hear that even an unregistered cellphone can dial 911. Not sure about that. Cable TV - do without and watch the regular channels for a while. High speed Internet instead of low cost dial-up. Every single option on you phone service? A gas-guzzling SUV? Eating out every other night. If you have stuff that you can sell off to pay down the balance then do it.

The judge is going to make you pay. If you can show him that you are changing your lifestyle to take care of your responsibilities then you may get some leinency. Sorry but you are part of a growing group of Americans that are discovering that the easy credit that the govts policies foster are coming due. Just look at the growth of forclosures because people having been using their homes like ATM's.

Answer 4

Well as long as you are paying on the account I don't see what grounds they have to turn it over to a judge. You should call the company and talk to a supervisor. Tell them you have been making monthly payments and that you cannot afford to pay more. See if there is anything you can set up with them first! I'm suprised if they havent tried to call you all before now! What you got in the mail is like a form of a debt collector. It shouldnt go to court. After a few months with him it will go back to the company and they in turn will send it out to another debt collector. I was always told as long as you are paying $5.00 on an account and they are accepting it each month they cannot turn you over to a collector. You are trying to pay a loan. And I also was told if you sent them payments and they refused then you doctument it and take it to an attorney. Refuseal of accepting payments = Termination of contract! Meaning it is consdered paid in full! You should call them first though and record your conversation. Every computer has a sound recorder. Put the mic to the ear piece and talk normally. It will record. Try it before you make the call. Since they record their calls you should get that on the recording too. So you can use it in court if necessary! Good Luck!

Answer 5

Ask for a conference with the judge and lawyer. This will be a good opportunity to try to work out a settlement you can afford.

You can, if necessary, file bankruptcy in your own name. A threat of bankruptcy usually gets the creditor to pay attention. They would be more willing to get something than see your debt discharged.

SInce credit counseling is now mandatory, set up an appointment and see if the counselor can help you solver your problems.

Answer 6

I would say that you've got a fair amount of time to come up with the money that you borrowed (and/or to get current).

You need to either raise your income or lower your expenses.

Income ideas: second job, sell some stuff on Ebay, garage sale, work from home

Lower expense ideas: don't buy anything but necessities (clean out your pantry before your next trip up to the grocery store), get rid of that car payment (that's just a hunch i have).

Answer 7

Cancel your cell phones
Cancel your cable subscription
Cancel any monthly payment obligations that do not involve heat, water, electricity, rent. Do not buy anything from a store but food and children's essentials. You can get out of the hole you dug. Good luck!

Answer 8

they can`t get more then your able to pay,talk to the lawyer[usually they don`t want to go to court].i don`t understand if u r making payments on it y it would go to a lawyer. i have the same problem and after talking to the lawyers office they`re glad to get what i can afford .Good luck