HELP!!Being sued by cc co. for old debt

[donnalpm]

What is the name of your state? Missouri (Western)

I am being sued by a collection agency on behalf of Providian. I had a Providian cc back when I was with my ex. So did he. Last time card was used was either in '99 or '00, not sure.

I do not know what to expect when appearing in court the first (only??) time. I would much rather have a mediator handle it. I am unable to pay this debt and currently on State Assistance.

You'll ask is the debt mine? Well, a certain amount of it is. My limit was like $500 or $600, but the suit is asking for $1618 + 23.99% per annum from Aug. '02. I TRIED to talk to them on the phone, but they wouldn't talk. They said I can put it in writing and then maybe they'll see. I didn't do this out of fear of 'starting the time' again. (Was I wrong??)

They are going to probably go after a lien on a house that I live in that is owned primarily by my mother. Meaning the loan is in her name only, but the deed is with me listed as a survivorship on it. She is UNAWARE of this court case.

What do I expect from the court appearance? What do I do? Does the judgement get made right then and there or do I have a right to a trial?

I'm sure there's more questions I have, just got to give my mind some time.

Thank you in advance.

Donna

 

[Ladynred]

Last time card was used was either in '99 or '00, not sure.

That is really not important, what IS important is when the last PAYMENT was made.

I do not know what to expect when appearing in court the first (only??) time

First, the lawyer for the creditor/collection agency that's suing will probably try to get you to settle before it even goes before a judge.

If you don't agree to their terms right then and there and wind up in front of a judge, you will most likely be asked if the debt is or is not yours. If you say its yours, the judge will render a judgment against you at that time. If you raise some kind of defense - like an expired statute of limitations or say "I don't know, I've never gotten anything from them, no proof its mine or not, etc." then its possible you could get another court date.

I TRIED to talk to them on the phone, but they wouldn't talk.

Yep, talking on the phone is completely pointless, if its not in writing, it never happened.

They are going to probably go after a lien on a house that I live in that is owned primarily by my mother. Meaning the loan is in her name only, but the deed is with me listed as a survivorship on it.

They may or may not be able to put a lien on it if you only get the house once your mother passes on. You would have to consult a lawyer on that one.

When, EXACTLY was the last payment on this account ?? Month AND year.

IF the last payment was made in 1999/2000 then this debt could very well be beyond the statute of limitations (SOL 5 years in MO) and you could use that as your affirmative defense in court to get the case tossed out. Check whatever records you have and pull your credit reports to find the date of last activity on the original Providian account.

 

[Debt Guy]

Q. Last time card was used was either in '99 or '00, not sure.

A. Statute of limitations for MO is either 6 years or 10 years depending on your interpretation of the written agreement/open account debate. Judges in different states are ruling different ways. I've not heard anything about MO

Q. I do not know what to expect when appearing in court the first (only??) time. I would much rather have a mediator handle it.

A. Then hire a lawyer to represent you. You only have three choices -- (1) do nothing, in which case the creditor will be awarded a default judgment, (2) hire an attorney, which will cost money you probably don't have, and (3) represent yourself, which will require some effort and study on your part.

Q. I am unable to pay this debt and currently on State Assistance.

A. Have you considered bankruptcy?

Q. You'll ask is the debt mine? Well, a certain amount of it is. My limit was like $500 or $600, but the suit is asking for $1618 + 23.99% per annum from Aug. '02.

A. Sorry. You owe it all (99.9% sure). Time and interest stops for no man. Albert Einstein said the most powerful force in the universe was compound interest.

Q. I TRIED to talk to them on the phone, but they wouldn't talk.

A. They are not required to negotiate with you.

Q. They said I can put it in writing and then maybe they'll see.

A. Not a bad idea.

Q. I didn't do this out of fear of 'starting the time' again. (Was I wrong??)

A. Talking will not in itself restart the SOL. Making a payment will almost always restart the debt. A written confession of the debt will sometimes restart the SOL.

Q. They are going to probably go after a lien on a house that I live in that is owned primarily by my mother. Meaning the loan is in her name only, but the deed is with me listed as a survivorship on it. She is UNAWARE of this court case.

A. Now you might have a problem. First, what do you mean by "survivorship"?. If you mean "joint tenants with right of survivorship" then you legally own the property just like mom does. If you mean you are a "beneficiary" then the answer could be different. In the first situation, a judgment against you can be attached to the property. In most states, they cannot foreclose on the property -- you really need to discuss this with an attorney. Even if they cannot foreclose, the lein will sit there forever and will have to be paid if you ever decide to sell the property (including all that powerful outrageous compound interest).

Q. What do I expect from the court appearance?

A. You may not actually have an appearance if you don't file a response.

Q. What do I do?

A. Either you deny the debt or you admit the debt. Those are about the only choices.

Q. Does the judgement get made right then and there

A. Yes.

Q. or do I have a right to a trial?

A. Yes. But, why would you want a trial? You must first deny that you owe the debt. Then you've got to be prepared to minimally demonstrate that they have the wrong person, etc.

I know that you are struggling with this. You owe the money. You think the fees and charges are outrageous. You can't pay. You don't want to put mom's home at risk. There is no simple answer. You really need competent local legal advice.

I know this is not what you want to hear -- in the grand scheme this is really a small amount of money. Perhaps you should discuss with mom and ask her to bail you out.