Ok i don't know if anyone could help but i really dont know anyone else that can give me advice. here is my story: got 2 credit cards at age 18 (1998). ran into some situations, (new transmission, root canal, etc) and managed to charge around $3000 on each card. managed minimum until i went back to school in 01. became unemployed and stopped paying on both cards. also managed to have my car repo'd in 3/02 and owe a $4500 deficiency. thought i could live in denial until today. a few days ago i was issued a civil action summons(date of hearing 7/15) that states the following: "plaintiff is seeking payment for unpaid credit card services provided by citibank.this account was purchased by Remit Corp. all rights thereto have been assigned to Remit Corp. the principle balance on this account is 3480.92. interest of 1087.30 has acrued at te rate of 24.99%. the last payment received on this account was on 12/10/2001. plaintiff requests judgement in te amoutn of $4568.22 plus court costs and continuing interest at a rate of 24.99%" I intend to go to the hearing. Can i delay the hearing in anyway? i dont know what i could possibly say in my defense. I haven't responded to any of their prior letters, until i got the summons then i sent the 1st validation letter, which may have been useless. There is slim to none chance I will be able to pay any lump settlement sum. I work retail full time, and will graduate college in august, when my $25,000 in student loans will go into the 6 mos grace period. Hopefully i will get a better job and fully intend to put all effort into my student loans. I havent heard anything from the other creditors (car, and other card) for a while, but that may not last. I have been doing some research to see my options. My parents/family help is not an option, I live alone and pay all my bills, rent, etc from my job. I have no assets (a car worth less than $1500) Is bankruptcy a reasonable option for a 24yr old soon to be graduate? My total debt in collections, not including my student loans, according to my TU report is around $12,000. I live in PA, and I know they can't garnish my wages if they win the judgement. SOL on open accnts is 4yrs. sol in PA for everything seems to be 5 yrs or less. Any help is greatly apprectiated. I have learned immensely from my foolishness.
You will need to find your CC agreement asap. You need to see whether or not the CC agreement provides for interest once the account has been charged off, if not, then they can only demand the interest which the state allows. You will want to demand that they provide proof that everything which they are demanding is legal under state and federal law, and under the FDCPA, interest and fees are only legal if they are allowed for by the original contract, and they are not prohibited under federal law. You will want to print out a copy of the Fair Debts Collection Practices Act, to show how if the interest they are requesting is not allowed by the original contract, they can not charge it, and are breaking the law if they do, and you have a right to demand that they produce the original contract which makes that interest legal. If this is any higher than your local district magistrates office, you should seriously consider getting legal assistance of some type, not sure whether your county legal assistance department would be able to assist you or not, there is a chance that your income is above their limits.
Good advice from Jam, and I personally would NOT recommend BK. It sounds like you can fight this in court, which you should do, and are safe from garnishment so you'll be able to make payment arrangements on this. Had you considered attempting to make payment arrangements prior to this surfacing in court? If they get an idea that you are savvy and that they will not win all those bloated charges in court, they might be willing to make an agreement. After all, they still have the court option in their back pocket, in case your arrangement doesn't work out.
Here is a key question... How far are you from the town where they are located at (yes, I know the town, but I wouldn't put it in type. just refer to it as their town...)
thank you all so much for replying. i will look into everything as recommended. "their town" is approx 3-4 hrs from mine.
if its at a magistrates office, be sure to notify them that you intend to appear, asap. 3-4 hours will be an entire day of traveling for them, round trip, for them to appear, when they receive the Defendent's Intent To Appear, be looking for a continuence to be requested for them, especially if the hearing is early, or late in the day.
