Help, an attorney representing a collection agency has sent me a "notice prior to suit". Apparently MBNA has sold the debt to the collection agency. My question is, should I be concerned? Are they likely to file suit? Interestingly, the letter from the attorney office is signed by a legal assistant. The only debt that I have is 100K in unsecured credit card debt which I accumulated trying to start my own business. I am pretty much judgment proof, no assets except for a 10 year old car, consulting - so no wages to garnish. However, I am also concerned that this may impact my future employment prospects. I really would prefer not to file BK if at all possible. I signed up with one of the credit repair companies, and it appears to have caused the creditors to begin contacting me again.
That is a standard CA line. It doesn't mean anything. First, don't assume that it is from a real lawyer. Demand his/her credentials. Demand their state bar Assoc. membership number so that you can confirm their license to practice law in your state. Be sure to check this information out. Call the Bar Assoc in your state capital and check up on the guy. If it turns out they are not a lawyer, they broke the law and you can sue them. If it is a lawyer, demand to speak in person to them. They have to take your call and know of the debt. If not, sue them. Second, wait 20 days from receipt of the letter and dispute the debt. The lawyer will have to halt collection efforts until they furish proof. If they are going to sue, they will sue. Stop trying to second guess them. They want you to stress out. Don't give them the pleasure. You can always settle before before judgement. If you can't, you can't. What else are you going to do?
Thanks, I verified that it is a legit attorney. I just sent them a validation letter. The amount that they claim I owe them is under 7K. If I can't settle, is BK better than a judgment? I have retained a BK attorney, and he is pushing for me to file or negotiate a settlement. Unfortunately, I don't have the funds to pay any type of settlement. Thanks.
I normally don't agree with bk, but in you're situation, it might not be a bad idea. Are you having a lot of trouble paying you're other cc's? If you are defaulting on you're other debts, or you think you might, I would definitely consider BK. One judgement is better than BK, but it sounds like you might have a lot more trouble later on. What sort of income do you make?
Do exactly what the Lizard King advised. An attorney representing a collector must follow the FDCPA. Sending the validation letter was a good start. If you stick to the validation method and they dont valdate withing a reasonable period of time, this will work against them. Most of these attorneys have very lilttle trial experience with defendants who actually pursue the matter. They may never take you to court and more than likely they will never be able to verify the debt. If they dont respond to your first communication for validation within 30 plus 5 business days, send out a second letter demanding that the account is to be removed from any credit reporting agencies. There are plenty of great validation letters to use. If you need one, just email me.......
