Problems with Collections, and Served with a Lawsuit

neverdespair · #1 11-12-2008, 03:56 PM

My question involves collection proceedings in the State of: Illinois

Hello,

And thanks very much for your help right away.

In 2004-2005, I was introduced to Online Poker and developed a really bad gambling problem. I then proceeded to destroy my perfect credit. I had 4 credit cards with following limits:

Chase: $500
Capital One: $300
Juniper Bank: $450
Capital One: $500

As my life deteriorated and everything got out of control, I defaulted on all of them. I soon received collection letters which I ignored for about 1.5 years. Then in 2007, I collected all the bills, all the statements and made payments for about 7 months. Lowering my now crazy balances (Juniper Bank went from $450 to $2,777) by about 50%. I then lost my job and stopped making payments again. I am still self employed now, doing contracting work once in a while. I am looking for work. At the same time, I bounced a lot of checks and ended up with sever overdraft balances on 3 of my bank accounts, which got closed down, reported me to Chex Systems and put into collections. I now owe National City $1,500 and $803 on another account. They do not even mail me anymore. Some collections completely stopped mailing me or making any contacts with me (I never requested them to stop), what does it mean?

7 days ago as I was sleeping, my sister opened the door for someone and got server with papers from Capital One (a law firm they are represented by) and I need to appear in court on Nov. 20th, register or pay $692 which I don't have at the moment as I am struggling to pay bills and survive on my own.

This is the first lawsuit and I am on 3 other collections which I have not made contact with. What should I do regarding this lawsuit and regarding collections.

Please help me, thanks!

Mr. Knowitall · #2 11-15-2008, 07:13 AM

Answer the lawsuit, raising any affirmative defenses you have (if any), and appearing in court as necessary. You can try to settle the suit with the plaintiff's lawyer. You can do whatever you want with the other creditors - try to negotiate payments, ignore then and see what they do, etc.

neverdespair · #3 11-17-2008, 08:22 AM

Quoting Mr. Knowitall

Answer the lawsuit, raising any affirmative defenses you have (if any), and appearing in court as necessary. You can try to settle the suit with the plaintiff's lawyer. You can do whatever you want with the other creditors - try to negotiate payments, ignore then and see what they do, etc.

What happens if I don't show up in court? I do not have $200 to register like stated in the papers I was server with. The relief is for $692, plus costs. How much in costs can it be?

Betty3 · #4 11-17-2008, 06:24 PM

If you don't show up in court, they will get a default judgment against you.

divemedic · #5 11-17-2008, 07:55 PM

I have not ever heard of a court that requires you to pay to defend yourself from a lawsuit.

BOR · #6 11-18-2008, 03:29 AM

Quoting divemedic

I have not ever heard of a court that requires you to pay to defend yourself from a lawsuit.

Probably a bond/surety to cover or defray court costs if he looses.

BOR · #7 11-18-2008, 03:32 AM

Quoting neverdespair

What happens if I don't show up in court? I do not have $200 to register like stated in the papers I was server with. The relief is for $692, plus costs. How much in costs can it be?

You need to plead poverty if the court demands it up front. If I am correct about what it is, you won't loose the suit simply because you can not afford it.

neverdespair · #8 11-18-2008, 08:33 AM

People, thank you very much for all your input.

Here is what the ALIAS SUMMONS reads:

"THERE WILL BE A FEE TO FILE YOUR APPERANCE, IF CLAIM IS $1,500.00 OR LESS, FEES WILL BE $158.00 OVER $1,500.00 THE FEE WILL BE $168.00 OVER $15,000.000 THE FEE WILL BE $188.00."

They demand $692.00, plus court fees and interest.

I do not have $158 and nothing close to $692.

My biggest question is this. What can I say when I get to court? I did use the card and declined to pay for it. Also, what is this FEE of $158? If I do not have money, how can I make represent myself, because as I understand I need it. If judgment against me is entered, how much can I expect to owe, and if I do owe that amount, what can they do to me?

Please help because my court date is tomorrow at 9:30AM.

THANKS!

Betty3 · #9 11-18-2008, 02:19 PM

The $692.00 is apparently what they are suing for (balance you owe on card) plus the *court costs* - $158.00 (per your post/summons) + any other possible court cost fees & interest. You shouldn't have to pay anything when you show up. If they get a judgment against you, it will be for the balance you owe them on the card + the court costs fees & interest.

You tell the truth in court. If you had a defense to the summons, you would use it.

If they get a judgment against you, they can seize all non-exempt assets/income that is allowed in your state.

neverdespair · #10 11-19-2008, 09:16 AM

Quoting Betty3

The $692.00 is apparently what they are suing for (balance you owe on card) plus the *court costs* - $158.00 (per your post/summons) + any other possible court cost fees & interest. You shouldn't have to pay anything when you show up. If they get a judgment against you, it will be for the balance you owe them on the card + the court costs fees & interest.

You tell the truth in court. If you had a defense to the summons, you would use it.

If they get a judgment against you, they can seize all non-exempt assets/income that is allowed in your state.

Thanks very much! I called them, and arranged a payment plan, dismissing my court date.