In Deep, What Will Happen to Me

My question involves collection proceedings in the State of: mississippi


I did it to myself. I have 5 cc's with about 17,000 in debt. 2,000 of which is a business card for a company that never even existed. They sent me an app asking if I wanted a cc for my business and I took it. I am three months behind on that card and didn't make last months payments on the other 4. Late fees and over limit charges are adding up. Calls are coming in but I refuse to answer. I cannot pay my bills each month if I pay the cc bills. I also owe my dentist about 400. I am at the point where I think I will just stop paying everyone. If so, what is going to happen to me? What procedures will the cc companies go through?

Thanks,

mrdummy

You need to consider bankruptcy.

If you continue not paying on the credit cards, eventually the creditors will sue you & get judgments against you.

In you case, I agree that bankruptcy is probably the best option for you.

Talk to a bk attorney.

Thanks guys. I was hoping to avoid bankruptcy. What about a debt management program? Is that a legit way to go or a scam? It seems like a way to avoid the interest and late fees.

If you use a legitimate one & if you believe you can afford those monthly payments.

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Quoting mrdummy

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........a business card for a company that never even existed......

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This could very well lead to criminal proceedings. Big-time serious criminal proceedings!!! I'm no bankruptcy expert, BUT, methinks you have to make declarations at some point in the process and this instance of fraudulent misrepresentation may come to light.

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Quoting souperdave

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This could very well lead to criminal proceedings. Big-time serious criminal proceedings!!! I'm no bankruptcy expert, BUT, methinks you have to make declarations at some point in the process and this instance of fraudulent misrepresentation may come to light.

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More on that. I had a web site at one time and sold stuff on it. I wasn't incorporated or anything like that. I did have a state tax certificate that I let expire. About two years after this I got an offer from capital one to get a card for my "business". I don't know how they got my info as I never used cc's for any sales. Just money orders. I don't recall ever even saying I had a business when I accepted the card. It seemed like they didn't even care if I had a business. That it was just another way to give someone a cc and make money. I still get these kind of offers in the mail. They ask for no proof of having a business. Not even a letterhead.


Betty3: I would like to pay my debt if possible. But as it is I have screwed myself. I have some chronic diseases and right now don't have the money to buy meds to get me through the month. These next two weeks are going to be brutal for me physically because of this. I draw a disability retirement check and only get paid once a month.

I have been on the net a lot these last few days looking into my options. It seems some cc companies will sue people for much less that what I owe. Not a pretty picture. Some experts say "Don't pay and then later negotiate with the collection agency". Others say to not even pay the collection agency.

My head just spins with fear and doubt.

Don't bet the farm on a CA not suing over small amounts. That alone is not a bar to being sued.

CA attorneys generally work for dozens of CA's, OC's, hospitals, etc. Accordingly, on any given week, they can have dozens of cases in a single community. They batch their cases by date and location so that on a given day in court, they are litigating a number of claims; not just yours.

If you look at the court docket, you'll likely find that attorney's name on it for a dozen or so cases, possibly for that many different clients.

Your first appearance in court is usually an answer hearing, though in some instances you may have filed a written answer and not need to appear in person (check your rules).

The judge will begin with the first case on the docket "#CV 026 Asset v. Mr. Smith" The plaintiff's attorney will make their presence known and the judge will ask if Mr. Smith is present. (Unless you've filed a written answer, in which case the plaintiff's attorney will notify the judge that an answer has been filed and request a conference or trial date.) If you're answering in person, you acknowledge your presence. The judge will ask you if you wish to deny the allegations or confess judgment.

If you deny the allegations, the judge will let you know you have x number of days to file a written answer. He may or may not set a pre-trial conference date at that time. If you confess judgment, a judgment will be entered and likely the judge will request you stay until after he completes the docket call so you can meet with plaintiff's counsel to make payment arrangements. Usually it's no more than 30 minutes to an hour that you have to wait.

Your answer hearing takes all of about a minute. So, in 15-30 minutes that one CA attorney will have made an appearance for 10-20 claims. 95% of which the defendant doesn't appear for or ever answer, and a default judgment is entered. Of the 5% that do appear, 90% of those will confess judgment.

Afterwards, the attorney will make the hour drive to the next county and repeat the process. Believe it or not, many county courts stagger the days and times for these types of cases to accommodate these "road show" attorneys.

So never consider the distance or the amount of the claim as a hindrance to the plaintiff. They're probably going to be there anyway, and since they count on the default judgment, it doesn't really matter if it's for $100 or $10,000.

This is also why it's a good idea to fight a claim. They don't want to eventually waste an hour appearing at trial for a $500 suit when they could spend that hour getting 10 default judgments. If you put up any kind of a defense, even a frivolous one, the odds are in your favor they will simply dismiss their claim.

The actual procedures will vary by state, but it's generally along these lines.

These "road show" attorneys are usually fresh out of law school and have limited or no trial experience. For the most part they are paid a salary, not a percentage (the firm gets the percentage). They are often only in it for a year or two until they have gained some courtroom experience and can get a real job. Though there are exceptions and those that get a percentage can make some big bucks.

Since this is a business card, you will probably not have the protections of the FDCPA and other consumer protection laws. Bankruptcy is probably your best bet here, and believe it or not, it is better than suffering through the hassles of dealing with CAs and with junk paper buyers. I would never intentionally deal with a CA, or allow a debt to go to one. As far as debt settlement companies, the VAST majority of them are simply there to take your money. They are VERY lucrative, and they will trash your credit as effectively as a BK.

You said in your one post you would like to avoid bankruptcy. However; after reading your additional post since that one, I do still believe bankruptcy is your best option. That is a decision you will have to make.

divemedic Thank you for that information on how things will go down in court. I can see there is no easy way out and no matter what I do it will be painful. One question I have is about fighting a claim. Can I fight a claim even if it is legit? If so, how would I go about it? Meaning, what would I base the defense on if the claim is legit?