Ok I'm very, very worried right now. I stopped paying my credit cards about one yr ago due to the fact that I dont have a job, and go to school full time. Recently, I just got contacted by a paralegal who works at a attorney's collection office. He started telling me on how much trouble I could get If I did not start paying at least 120/ a month. I owe 2,400. But there is no way I can pay. My plan was to finish my last yr of school and pay it next yr. My credit is already messed up, it sucks. But I need to finish school, and I can't work. He just scared me saying they can garnish my earnings ( which I don't have a job or savings) take away properties ( I don't have any) But my question here is what can they actually do???? Like I said I'm a Florida resident. What are the laws here when it comes to collection, and what can they actually do? I only owe about 4,000 in CC which I know I will pay as soon as I finish my career. Help!!
2007-11-16 07:52:27 · 6 answers · asked by marcela r 2 in Business & Finance ➔ Credit
I'm not a FL attorney. Here, in NC, they can take you to court and try to get a judgment against you. Usually they get a default judgment if you just don't answer the complaint. All you have to do is to file an answer to their complaint with the clerk and send a copy to the lawyer.
If you send an answer in, they will try to get summary judgment against you with an affidavit. If you write an opposing affidavit, they can't get summary judgment against you and have to take it to trial. It rarely gets to a trial. But, often they don't have the actual document you signed to get the credit card so they don't have the evidence against you.
However, it takes some smarts and time and learning to fight it. It might be easier to settle with them or to just let them get a judgment against you. You don't have any assets, so there is nothing for them to take from you. They can't put you in jail for owing a debt. There is no debtor's prison.
They aren't going to jump through too many hoops to get $2400 from you- it's just not that much money. That's why they are trying to set up a payment plan with you- it saves them the hassle of going to court and then getting a judgment that can't be satisfied.
You could try to settle with them for a lesser amount, say 60-75% of the $2400. But, you don't have that money anyway and they probably wouldn't accept a consent judgment for that amount.
They might not even sue you for the money because it's not that much, but if it's been referred to an attorney, instead of a collection agency, that probably means they will sue. They are just trying to settle with you to avoid a lawsuit.
Your credit will be bad for many years, but that is probably a good thing. Just wait until you have the cash to buy things. don't do any high interest loans for a car or anything. Just pay cash.
Stop worrying. If you don't want them to contact you, just write to them and they are supposed to stop contacting you, except legal papers necessary for any law suit. They can't put you in jail. You don't have any assets for them to collect. They are trying to scare you. Don't buy into it.
Best wishes for you.
2007-11-16 08:15:02 · answer #1 · answered by Ron L 4 · 1⤊ 0⤋
Your lucky.... You live in Flordia.
Both Texas and Flordia are haven states for bill evadors. Under most conditions they can't garnish your wages (unless child support or student loans) Note for student loans you CANNOT get out of it.
If you ignore the collections and they sue, if you have no assets they will not be able to collect. If you ever do gain assets after a few years the company will settle for around 10cents on the dollar and you can get it taken care of.
Of course the best solution would be to take care of your business. Find a debt assistance agency, declare bankruptcy etc.
2007-11-16 08:02:50 · answer #2 · answered by Jason G 3 · 0⤊ 0⤋
Even though you may have no assets to attach, you are trashing your credit record which will impact your ability to get employment (and even rent an apartment) when you do graduate. So you should try to arrange a repayment plan of some kind.
2007-11-16 08:04:33 · answer #3 · answered by npk 7 · 0⤊ 0⤋
There job is to scare you. There is not much they can do unless they take you to court and get a judgement against you. Until then they can call you. Just don't talk to them. Here is some info I put together so you can handle this yourself. http://getprequalified.com/article_list_debt_negotiation.php
You can also negotiate with them. Offer them $1000 and give them some hard luck story. They will probably just take it.
2007-11-16 16:01:09 · answer #4 · answered by Debt Free Dale 1 · 0⤊ 0⤋
IF you are the head of household you are 100% exempt from garnishment.
Florida state site that explains homestead and exemptions (including garnishment)
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0222/titl0222.htm&StatuteYear=2004&Title=%2D%3E2004%2D%3EChapter%20222
The Florida Bar explaining debtor rights
http://www.floridabar.org/TFB/TFBConsum.nsf/48e76203493b82ad852567090070c9b9/14e6210c7536af9d85256b2f006c54ed?OpenDocument
Florida credit laws
http://www.privacyrights.org/fs/fs27plus.htm#Florida
2007-11-16 08:21:26 · answer #5 · answered by echo 7 · 1⤊ 0⤋
If you have no income or assets...there is nothing they can take from you. They will say ANYTHING. They will harass, humiliate...etc. They are nasty folks that like to THINK they have power....but in reality they don't have much.
2007-11-16 10:10:41 · answer #6 · answered by Budlightgurl 4 · 0⤊ 0⤋