Hi. I live in Orange County. I have over the last 18 months been unable due to a bout with breast cancer to pay four of my nine credit card companies. The others reduced interest rates and I am now current or in an agreed 5 year payoff will them. The four that didn't sent me to collections. All wanted immediate payoff at various discounts. I have zero cash saved and no family to borrow from so reducing 9,000 owed to 3,000 was as good as nothing to me. I have now been served a Summons from one of the law firms, this one representing Cap One and their claim for 6,000. I'm sure given amount approching 8-15,000 owed the others (w/fees and 30% interest) they will be serving me soon. I have returned to work and feel healthy again, thank God. But since I make a good living of over 5,000 per month they will go after my wages, I again have little to no assets other than household items to seize. I sold all to pay medical bills. The IRS collects and will for another 4+ years 20% of my take home which leaves me with what the IRS says is the basic amount to live per month since they don't count credit cards. (seems like everyone froces you to BK instead of working to help). My questions are: 1. If I answer the summons myself or get an attorney will it do any good. I owe the debt. Will the judge step in to work out a payment plan at my request if I can show no assets to take? 2. Is there a limit on the wage garnishments? With the tax guys in the front will the creditors be forced to realize they can't attach my wages to zero and have no recourse for 4+ years? 3. For the others can CCCS step in and help or is it too late? Will that effect my accounts in good standing? I have over ten of those left. I want to pay everybody off and not skip. I have resisted BK, but they seem to want all or nothing instead of agreeing to a $100 per month until that can increase. I'm very upset and if anyone can help with some good advice or experience I would thank you so much -- Jamie.
Of course, you're upset - anyone who has been through all you've endured would be! First, plan on answering the Summons because they'll be counting on a default judgment. If you can, and I recommend it, get to a FCRA attorney ASAP but *definitely* plan on answering the Summons. Answering the Summons will buy you time and that's what you need right now. Don't affirm the debt with anyone on the telephone or in writing - even if you think you owe it. (How do you know what the CA is claiming *is* accurate and true? You don't.) Credit card debt - and medical debt - can be negotiated down and you'd do better with a FCRA attorney than CCCS. Plan on answering the Summons, getting an attorney because you've got hints of a complex situation but you also need some real pros. Go to www.debtorboards.com and look for http://debtorboards.com/smf/index.php?board=2.0 If you want to fight, these are the folks who can help and they'll take you step-by-step. In fact, "Flyingifr" was in a medical crisis, just like you, and that led him to his credit repair journey. There are lots of people who've been where you are now and they'll be more than willing to share their experience. That board is worth your time. Look for "Flyingifr" or any of the global moderators. This is just a shot in the dark, and I'm no IRS expert nor should you reveal your tax situation details, *but* is it possible that you might be eligible for some kind of "exception" or consideration due to your illness? Never hurts to ask a professional.
