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  1. #1
    Join Date
    Sep 2011
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    3

    Default Being Sued for Credit Card Debt - How to Prepare for Court

    My question involves collection proceedings in the State of: California

    I became unemployed in October of 2008 and was unable to make payments on a Credit Card I had with a balance of 8800.00. In January of 2009 I received a call from a collection agency and I attempted to make payment arrangements. I put forth a monthly payment amount that I could make being unemployed and was turned down because the amount was less than they were seeking. I was contacted twice again with the same results. I heard nothing after these exchanges until I was served a summons in March of 2010 to appear in court for a limited civil case related to the amount owed. I wrote an answer to the complaint within 30 days and again heard nothing until April of 2011 when I received an order to show cause RE: monetary sanctions (against the suing party, Hunt and Henriques not me). By this time I was living in Northern CA because of work. I wrote to the court stating that I was unable to attend due to distance and my work schedule. I letter was rejected by the court due to a lack of supporting paperwork and a court date was set for this month. Since then I have spoken with them and again proposed a payment plan which was denied. I have no assets or savings and at this point my questions are:
    -Should I state why I was unable to be at the order to show cause or does it not matter at this point?
    - I have read that the suing firm is unethical and a number of complaints have been filed against them. Does this figure in?
    -Does my repeated attempts to reach a mutually agreed upon payment schedule (show of good faith) help me in anyway?
    - Does California’s SOL related to CC debt come into play at all here?
    -What else should I be doing to prepare?
    Thank you for your time and attention, they are both greatly appreciated.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Being Sued for Credit Card Debt - How to Prepare for Court

    What matters in your case would be if the plaintiff has done something inappropriate in your case. Rumors about other cases are irrelevant.

    The plaintiff does not have to settle a case for less than what is owed.

    The dates you've given are well within the statute of limitations.

    The order to show cause is about what? Your failure to pay on a default judgment against you? Your failure to appear for a creditor's exam? Something else?

  3. #3
    Join Date
    Sep 2011
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    3

    Default Re: Being Sued for Credit Card Debt - How to Prepare for Court

    I was told by an attorney not involved in the case that the order to show cause was related to the fact that the suing party had not taken any action in a year and let the case just sit. At this point there has been no judgment for or against me. If there is a judgment against me there is a real possibility I will not be able to make the payments due to the fact that my budget is already very tight (after coming up from being unemployed for 2 years and a Apt fire last year). Is bankruptcy an option in a case like this one. Thanks again for your time, it helps more than you know.

  4. #4
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    Sep 2005
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    Default Re: Being Sued for Credit Card Debt - How to Prepare for Court

    The lawyer is correct - if it's a show cause order giving the other side a deadline to show cause why the action should not be dismissed, your best bet is to sit tight and hope for a dismissal.

    Bankruptcy is possible for credit card debt or a credit card judgment, but generally speaking you need to look at the big financial picture (your other debts and obligations) as it's a rare case in which a bankruptcy will be justified by a single debt to a single creditor.

  5. #5
    Join Date
    Sep 2011
    Posts
    3

    Default Re: Being Sued for Credit Card Debt - How to Prepare for Court

    Thank you again for your time and attention, it is truly appreciated. They did not dismiss the case and the judgment has gone against me for the full amount owed. It is important to say (and embarrassing to admit) that I was unable to be present at the trail do to my work schedule (the trial was on a Monday at 10am) and lack of funds to travel from Northern CA to Southern CA where the trial was held. I had attempted to communicate with the court regarding my relocating but the letter was rejected because of a lack of proper paperwork.

    At this point I am lost at what to do. If I am forced to pay at the rate they stipulated in the proposed settlement I will be unable to pay rent, by groceries, etc. which is what led me to the question of bankruptcy. Can a decision such as this be appealed and a reasonable payment plan be established? If so what is the proper method for doing so? I was really on my way to pulling myself out of 2 years of unemployment and this is a major set back. Thank you again, this really does help more than you know.

  6. #6

    Default Re: Being Sued for Credit Card Debt - How to Prepare for Court

    Do you have other unsecured debt? If so, perhaps seeing the advice of a bankruptcy attorney is the way to go. You cannot pay a debt on a credit card if it truly will mean you have no monies for food and rent. I would consider that as an option - and work with a bankruptcy attorney. After that, I'd possibly contact the judgment owner and discuss a settlement explaining that short of settling for something truly reasonable - like 20% of the debt, you will be forced to file for bankruptcy. Also, they may be much more willing to accept a settlement for this amount as opposed to accepting a minimal payment for the next 60 or 84 months.

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