[ndl46]

My question involves collection proceedings in the State of: Virginia

First, many thanks to anyone who can provide me with some advice.

I had a revolving account with a personal loan company for a little over three years. The balance was about $8000.00 Earlier this year, I fell 3 months behind on payments, due to overwhelming medical bills. I called them in early June and explained that I would be able to bring the account up to date at the end of June, giving them a payment date and amount being paid. At that point, they said that the account had already been turned over to collections (a law firm) and that they would be proceeding with a lawsuit to win a judgement.

I asked the company if scheduling the payment to bring the account current would prevent the lawsuit from proceeding, they said nope. They then initiated a conference call with the law firm, and asked the firm if the suit had been filed yet. The firm said no. I went ahead and made the payment to bring the account current anyway, because I was trying to do the right thing. The law firm took my payment, and they asked if I could agree to a payment plan, which they proposed. I said yes, and in addition to the initial payment to bring the account current, I have made two subsequent payments in accordance with the agreement (July and August). Nevertheless, I received a summons to appear in court on Sept 1 (next Tues). Some questions:

--Did I make a mistake in making payments to the law firm without seeing any kind of assignment? The loan documents do not have an assignment clause in them, by the way. I still have not seen any proof of assignment.

--I plan on showing up in court, mostly to show the judge that I have agreed to their proposed payment plan, and have abided by it. Will the judge still grant the judgement, in spite of this?

--I asked the firm if they would consider dropping the suit since I agreed to the payment plan, and have made the payments as requested. They said they would check with the loan company, and get back to me. A couple of days later, they said the request was denied.

--I am desperate to avoid a judgement on my credit report. Should I ask the court for a continuance, to maybe give me some more time to possibly come up with a lump sum settlement amount?

Thank you in advance for your help

[Mr. Knowitall]

The company told you that the matter was in the hands of their law firm. The law firm has filed a lawsuit against you on behalf of its client. What more proof do you think you need that the law firm represents the company?

Agreeing to a payment plan won't prevent entry of a judgment. If you wish to avoid a judgment, the most obvious way would be to see if they'll dismiss their lawsuit in return for a lump sum settlement. You'll have to see if they'll settle for less than the full amount you owe. If you need a continuance to try to raise the money, you can ask if they'll stipulate to a continuance.