I hope someone can assist me as I am unsure what my first course of action should be. I was served 5-29-02 with a summons from Jefferson Financial Recovery Group LLC, Assignee of Providian Bank. This regarding an Providian credit card account that has been reported as a chargeoff since 11/00 on TU and Equifax but as CA on Experian. The amount that the summons says I owe is 2535.68 while my credit report from last aug says 1647 on two reports and 1648 on another. My credit limit was only 1000.00. I have not had any correspondence with anyone other that the law office handling the acct now. They called my work once to get me to pay or they were taking me to court. I told them I couldn't pay. I am in Michigan. Can someone offer some sugestions? I would be most grateful. Thanks, Hockeymom
Could you possibly arrange for a payment plan? $100/month for 20 months or whatever? They may go for that... tell them to garnish your wages?
You are not in a consumer-friendly state. Just guessing, but is this the only debt you have defaulted on? If there are others, perhaps you should see a bankruptcy lawyer ASAP.
Why on earth would you tell them to garnish your wages? If they did that, then in addition to a charge-off, ca, and a judgment, you would also have a garnishment showing. All for 1 acct. I would say don't ever suggest such a thing.
Do you have any money to pay? Do you own a house? One strategy would be to send them a settlement offer. If they don't take it, you can go to court and show it to the judge. I can't see filing a bankruptcy for one account of $2,535.68. If you are working, they can garnish your wages but the have to win the judgment first. You are probably going to have to deal with this account sooner or later if you are working. The SOL in MI on judgments very long. Good luck.
Did you read my entire post, or only one sentence???? Asking for more information was the appropriate response -that's why I asked if this was the only debt or if there were others. Do you really think that someone who is not in trouble in general would have defaulted on a debt and ignored it for months? Chances are this person has other debts that are in default, and is only asking about the one that is causing the immediate scarey situation. People who are in serious trouble tend to also be in denial about the extent of the trouble they are in. The poster already said they didn't have any money - how would they settle?
I have one other cc, Capital One, which is also showing as a chargeoff. I have REALLY bad credit. A previous bankruptcy in 1996. I do own a home but refinancing is not an option due to credit history. I couldn't afford 100.00 a month for 20 mos even if I wanted to. IF I wanted to try for a settlement what should I be asking?
This one seems to be pretty reliable, and contains all the info in one "click." http://www.edebtnetwork.com/content/collection_laws.asp
Settlement requires a lump sum payment. It doesn't sound like you can do that. With a bk in 1996 looks like that is out of the question also. Don't think I'm judging you - that's not what this board is about. How did you get into this mess a second time? Is there a story behind this? Really, just based on what you're saying, you're about to get a judgment against you. Get your money out of the bank and stop all direct deposits.
Generally a settlement offer is to get the account paid. To do this you generally offer a lump sum. Because you don't have the money the only thing I can think of is to offer them 40% knowing they probably wont take it. Send them a letter certified mail return recite requested and make a photo copy of the original. When you get your green card back, staple it to the copy of the letter. When you go to court you can show the letter to the judge proving you made an effort to settle and hope for the best. Generally the least a CA will take is 60%. Question. Was the last bankruptcy a chapter 7? You have to wait 6 years to file another one so whether you can file one again will depend on the month you filed the last one. You can file a BK CH 7 your self to save money, but it is not recommended. The paperwork is extremely tedious.
Settlement letter example. ------------------------------------- Date: Creditor Address City, State, Zip Re: Account Number Dear Sirs: This letter is an offer to amicably settle the above account. It is not to be construed as an acknowledgment of my liability for this debt in any form. I will pay your company the amount of $____ as full settlement of this account. If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $______ in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business. If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above. Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor has any concrete written agreements been exchanged. Creditorâ??s Authorized Signature: _____________________________ Date:____________ Name Title : Sincerely, Do not sign or date letter (This is necessary to avoid renewing the debt, should the creditor refuse to agree.) Be sure to not use a personal check if they agree to pay. -------------------------------------
Very poor money management. I joined debtor's anon. last July and have been trying to get my financial house in order since that time little by little. I have no credit cards or outstanding balances on any others, just these two. I do not have my pay direct deposited so that is not an issue however I do use it to pay bills. I also have a joint savings account with my minor son, so I need to be concerned about that?
Erik, You keep advising her to make an offer of settlement. She already has said more than once, that she doesn't have the money to pay it. You say they probably won't accept the offer. But, what if they do? Then what does she do now that she has herself in deeper? I think your advice on this one is not very sound.
My last bankruptcy was 13. I don't want to file bk for 2500.00. What do you make of the discrepancy in the amount they are saying I owe and what is being reported to the 3 cb's? 40% would be 1000.00--and I don't have that much cash on hand. So, do I respond to the court regarding the summons? what do I say?
Sorry, I was just trying to help. You can go to court and just say you can't pay. Or you can not go to court in which case you will defiantly loose. Good luck.
Also someone mentioned garnishment of wages. Is this always the way they handle judgements? Does the court take into consideration what you are able to pay? I am willing to pay something, but I still need to eat, pay my mtg, utilities, etc.
Yes, you must respond or they will get a default judgment and then garnish your wages or attach anything else of value in order to satisfy it. I would suggest you call your local legal aid or lawyer referal service. They can usually get you with a lawyer for like $25 for a 1/2 hour consultation. The discrepancy is late fees and over the limit fees and interest that they most likely are legally able to charge.
Where is Jefferson Financial? Are you sure you were actually "served"? was there a court case #?This would be in small claims court unless they tacked on illegal fees to put it in District Court.Was there a date for you to file an answer? Don't worry about garnishment, unless you are making more than the Fed. exemption= 30X the min. wage NET.Mich is not consumer friendly, it has no homestead exemption,but unless you have big equity you don't have to worry.Make sure your son's name and ss# are primary on the account,they can't touch it then.Send them a validation letter, a STRONG one demanding proof you owe the debt in the amounts they say.
