We don't have money to spare. We have 3 kids, mortgage and bills.He couldn't keep making payments to the credit card CO.He's got a job, but hi got cut on hrs. His got to go to court and we don't have a lawyer(we can't afford one) what can he do? Is there a solution to our situation? our debt is $6,000.dl What paper work does he needs to file? I'm desperate. Please some advice. Thanks
2007-02-27 05:04:53 · 7 answers · asked by star 2 in Business & Finance ➔ Credit
Make sure you are actually being sued, first off. If you haven't been summoned, you aren't being sued. So many collection company's blatantly violate the fair credit act, and misrepresent themselves as "liaisons to lawyers."
Look up your local BBB, and find a reputable debt counseling service. (They should be non-profit. By Design is who my mother used.)
OR
Find a *lawyer and have them negotiate the debt. Most CC companies will settle for MUCH less then what is owed.
Most importantly, don't let them bully you. If you get harassing phone calls, letters, misrepresentation, or they are speaking to an unauthorized person about your debt, go after them like there is no tomorrow. Contact the FTC, your state attorney generals office, and the office of the controller of currency and file complaints with all of them.
The people in this industry, generally, are nasty and underhanded. They do not care if they break federal trade laws, so make sure you call them on it!
*If you can't afford a lawyer, go down to your local law school and they will help you, if not set you up with a student lawyer.
And don't take it out of your 401K. The IRS will have you by the balls if you do.
2007-02-27 06:03:08 · answer #1 · answered by isisrocca82 3 · 0⤊ 0⤋
If you are to the point of actually being sued, then you haven't sent them any money for a long long time. You've let this go for too long to resolve it easily.
I don't recommend credit counselors often but in your case, it may help in keeping you from getting a judgment against you. It will be WAY better for you long term to get this straightened out without going to court. However, if the court date is tomorrow or something, he better go. Not going at all would be even worse. But if it goes to court, you're just going to get attorney's fees and court costs tacked on to what you already owe.
Get some help. I've posted a couple links below. The first is the department of justice approved credit counselors for bankruptcy. This doesn't mean you are filing for bankruptcy. It's just some reputable counselors by state that you can call. I've also posted a link to Consumer Credit Counseling. They've been around a long time and have a pretty good reputation. Call someone. Get some help.
2007-02-27 05:30:04 · answer #2 · answered by Faye H 6 · 0⤊ 0⤋
Settling isn't a bad idea but you need a money source for the settlement whether it be your tax return, borrow from a 401k , or tap into your home's equity. I recommend a cash out refinance of the home to get a better rate , payoff debts, and possibly lower your payment since you are so strapped for cash. I also recommend Hamlin Mortgage as they have helped many folks out in the past. You can contact them via the online evaluation form at
www.totaldebtsolutionsllc.com
Good luck.
2007-02-27 05:57:23 · answer #3 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
Immediately contact this debt settlement company
http://www.debtfreeafterall.com
They were very helpful in my debt situation.
This debt settlement company will negotiate with collection agencies and law firms too. They will negotiate for the reduction of your principal balance by around 30% to 70%depending on your credit cards. You can make minimum monthly payments and get out of debt within 24 months.
So act quickly and get more information from the debt settlement company that i suggested.
Good Luck
2007-02-27 08:23:07 · answer #4 · answered by Hima K 2 · 0⤊ 0⤋
First of all don't let the credit card company bully you. Your debt is small. Put them off....dont pick up the phone when you see a number that you dont recognize. They are not by law able to call your relatives or contact you at work. Know your rights....they are not allowed to harass you. Every week put a little money aside. 20 bucks even. Eventually they will contact you give you a settling amount. This is usually half of what you owe. If Your debt is 6,000 they will probably settle for 3,000. But you have to let them know that you dont have the money....they can not attach your pay check. Or put a lean on your house. If you dont have money for a lawyer, thats o.k, just put money aside so you can eventually get them off your back for a cheaper amount.In the mean time..get rid of your credit cards!!! If you dont have the cash to buy something.dont buy it.
2007-02-27 05:24:56 · answer #5 · answered by Inspiremebit 1 · 1⤊ 2⤋
Wow, your debt is only $6000 that's great. Most people are so much worse than you are. Since it sounds like you own your home and cars since your debt is so low, I'm sure you could work something out w/the creditor. You and your husband can get a partime job to pay them off. Ask for a settlement.
2007-02-27 05:15:41 · answer #6 · answered by Yvonne 4 · 0⤊ 0⤋
The Congress of the United States, in the declaration of purpose of the Legal Services Corporation Act, found that "there is a need to provide equal access to the system of justice in our Nation for individuals who seek redress of grievances;" that "there is a need to provide high quality legal assistance to those who would be otherwise unable to afford adequate legal counsel;" and that "providing legal assistance to those who face an economic barrier to adequate legal counsel will serve best the ends of justice and assist in improving opportunities for low-income persons." In keeping with this mandate, the Legal Services Corporation (LSC) establishes as our mission:
To promote equal access to justice in our Nation and to provide high quality civil legal assistance to low-income persons.
2007-02-27 07:29:07 · answer #7 · answered by ? 7 · 0⤊ 0⤋