Debt Settlement

[maurand]

What is the name of your state? Wyoming

Hello. I'm new to this site and I'm here because I'm nervous about my debt situation. I have(had) four credit card accounts that I could no longer keep up with due to medical/dental expenses. I enrolled in a debt settlement program with a company called Homeland Financial out of Santa Ana, CA. They have helped me settle one of the debts for less than I owed, but now, another one of the collection lawyers has just sent me a Summons to reply to or I will lose by default. Homeland is helping me with a reply. The orginal debt was for about $1400 and is now up to $2500 due to interest and late fees. How common is this summons for such a relatively low debt and what happens next? Thank you!!

 

[boogybanga]

reply, reply

I'm not a lawyer. Just some one going through the same thing. Make sure you reply and file the documents you need to file with the courts.
They are counting on you not to reply so they can win a judgement. This does not guarrantee a victory in the case if it goes that far, but it does buy you some time.

 

[Ladynred]

Yes, the summons is common. Not all creditors will sue for that small an amount, obviously this one is. Discover will sue you for pennies I think.

What happens next ?? You MUST file the answer to their Complaint. The lawyer for the creditor will probably file a motion asking the court for a summary judgment if your Answer is not a general denial of all their allegations. If the court grants the summary judgement, you lose. They can then go after your wages, your bank account and any non-exempt assets you may have.

Debt settlement companies are 99.9% BAD NEWS... they get people sued and they drive people into bankruptcy sooner than they may have gotten there without them.

 

[PolarBearWY]

I also went through a matter about 13 years ago with some credit cards. I had always heard that they cannot go after you until you tell them you don't plan on paying them.

13 years later, they have never taken a penny from me... and I never answered their mail or calls. The problem has since cleared itself.

Understand I am not recommending this line of action. I'm simply stating my experience. Would a court allow garnished wages if you are living in poverty or working a $7/hr job? People won't usually take you to court unless they think they'll get money from you.