[katabe3006]

I recently received a notice delivered to me in person indicating that i am being sued for old credit card debt. The original balance was $11,500 and has now escalated to $17,500. When I called the law firm to try and settle, the following options were given to me. Pay $14,500 in a lump sum, or make payments on the 17,500. I proceeded to tell them that i am not in a postition to make a lump sum payment of that amount nor do I want to pay the entire 17,500. I mentioned that my other option would be to claim bankruptcy if necessary. My gut feeling tells me they would prefer to accept a smaller offer rather than nothing if I were to claim.

Is this true? And what would be a good counteroffer? What is my best approach from this point forward?


Thanks for all your help in advance.

[aaron]

If you're being sued, make sure you don't default on the lawsuit.

[katabe3006]

Thank you Aaron for your reply.


I am taking the necessary steps to ensure that i do not default on this matter. I am going to speak with the attorney that is trying to settle the matter for the collection agency. I want to settle on the least amount possible.

In your experience, what is a fair offer on my part based on the owed amount and possibilities of me going into bankruptcy?

[aaron]

It depends on the facts. If I thought the defendant could pay most of the debt, I would want the defendant to pay most of the debt.

[katabe3006]

Is it usually sufficient to fax a formal response to the attorneys handling the account to avoid a default judgement? The clerk that is handling the case said it was. I have documentation but wanted advice on wether or not this would suffice.


Also, I have reason to believe based on our credit reports that another collections company is attempting to collect on the same account from my ex-wife. I asked the attorneys to provide me with proof of what we owe.

If this process runs into and further than the SOL allows in Texas, would it be a legitimate defense at that time?

Thank you

[RSB]

If a judgment is entered, they possibly might not be able to collect it, because Texas doesn't allow garnishment.

[aaron]

... Wage garnishment.

[katabe3006]

I recently asked the attorney to validate the debt that i am being sued for. Will this delay a court date until they have done so? If they cannot provide it within a 30 day period, what exactly does this imply?

thanks

[Mr. Knowitall]

You're being sued, and asking for validation under the FDCPA is irrelevant to court deadlines. You will probably be able ask for proof of the debt through your court system's discovery process.

[katabe3006]

Thank you Mr. Knowitall.....

Where can i find a letter sample of how to properly respond to the county clerk before i get a default judgement. I have searched the web and havent found one.

Any help would be greatly appreciated.