Wolves at the gates

[Shrike1070]

What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state? Colorado

To save a whole of lot time and spare you all a sob story, I'm going to get straight to the point. Currently, I have have about $56,000 in personal debt (federal student loans, credit cards, unpaid taxes, lines of credit at my bank, etc). I net about $34,00 a year in income at my current two jobs. I am single and am not supporting any children. At the moment, I am making good with most of my creditors via payment plans or regular (unforced) payments. However, about a year and a half ago, I defaulted on my Citi Bank card for the amount of approx. $12,000. This account has been sold to upmteen debt collectors with whom I have not been able to come to accomodation with yet (i.e. they won't accept a settle arrangement that is reasonable). Now this debt has risen to about $20,000 including whatever miserable charges each collector has passed on to the next.

Here is the problem now: I received a letter from an attorney's office representing the most recent collector threatening action if I do not pay the whole amount by next Friday (3/18/05). How serious is this? Should I get a lawyer for myself now? How long until they will file a lawsuit, and if so, how long will it take to receive a summons for judgement? How long after before they can seize my bank account or garnish my wages?

I ask because these time sensitive questions because I am required to travel frequently for my job, occasionally out of the country and the last thing I need is to miss a summons or have my bank account seize while I'm overseas and need the funds from home.

Any advice here, besides to file for BK?

Any and all answers much appreciated!
S

 

[Ladynred]

The deadline to demand that amount of money is ludicrous, but if this is a local attorney you may not want to dismiss it as just another collection tactic. Collectors use 'deadlines' like that to create a sense of urgency and to turn the screws. If the creditor has actually hired a local lawyer, it could be the last notice you get before they file a lawsuit. For that amount of money, I wouldn't blow it off.

IF they file suit, they must serve you the Summons and Complaint. You would be given a time frame for you to file an Answer to that Complaint, and if you don't file an Answer in time, they win a judgment by default, so you can't risk missing that. The time to Answer varies by state, it can be anywhere from 10-45 days (generally). If you do file an Answer, and make it a general denial, then you should be given a court date, but expect the attorney to ask for Summary Judgment anyway - they always go for this. How long before the court date depends on the load on the judge's dockets, could be days, could be months.

The point is, it will not happen overnight, but if it does, it WILL be time sensitive. IF this 'lawyer' is NOT LOCAL, then he's just acting as another debt collector and the threat, and the deadline, is less urgent.

 

[Shrike1070]

Thank you Ladynred, you are truly a font of knowledge around here - and wisdom.

The letter I received was indeed from a Colorado attorney representing an out-of-state collections agency. I am going to attempt a negotiation by phone tomorrow with the contact listed at the attorney's office. But given my past success with this account, I don't hold out much hope that they'll accept my offer. All of my cash assets as I mentioned above are wrapped up in other payment arrangements. Any hints on how I can go about the negotiations by phone, or do you suggest everything by mail and/or fax?

Thanks again!
S

 

[Ladynred]

You really should do everything in writing - you need the paper trail. IF by some chance you get them to agree verbally, then make sure you follow up the EXACT arrangement in writing and do not send them a DIME until you get a signed agreement in return. Chances are though they will renege on any 'verbal' agreement - they have very convenient amnesia. You could fax a written agreement, but follow it up with one by mail too - and send it certified.

 

[tamarack12]

I am not an attorney. that said, check carefully with your state laws. Credit card debts can be considered uncollectible if purchased by another individual. That does not stop them from trying. These "debts" are frequently sold for 3 to 6 or maybe 10 cents on the dollar. And the purchaser is obviously allowed to pay whatever they wish for a piece of paper. but that does not mean that they can collect on it.

 

[Shrike1070]

Thanks Tamarack. I'm not really sure of the laws regulating the collection of debts in my state. The header of the Right to Cure notice looked like it was from a law firm and I did do a 411 check on the address and phone number and indeed there is a firm about 40 minutes away with this name, phone number, and address. So, I did take the letter seriously. Incidently the most recent company to have bought the debt, and the one represented by this law firm, is Unifund CCR. Apparently they are one of the nastiest and dirtiest of all the ca's out there and they will go for the jugular everytime. So, I've suppose this thread is a moot point, as I have decided to file bankruptcy, probably Chapter 13 since I have a stable job and can pay off all of the creditors on a longer payment schedule at a fraction of the value. My credit is already so shot I don't know what I have to lose at this point.