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  1. #1
    Join Date
    Sep 2012
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    Default Will a Credit Card Company Still Settle a Debt After They Sue to Collect the Money

    My question involves collection proceedings in the State of: Texas

    I did a lot of research when I was served with the court papers. I responded with Affirmative Defenses as suggested by online research and forums. They came back with a "First set of discovery requests". So I imagine they are going to see this thing through. The debt is more than a year from being out of time (forget what that is called- sorry).

    My concern is that if this goes to the point of wage garnishment I will lose my job.
    I was unemployed or underemployed for over 3 years. I used all of my savings, 401k, sold everything of value to me and overextended my credit cards to get through the hard times. But I was able to keep my house.
    In May I finally got a decent job.
    By Jan I will have caught up on my mortgage and planned to start paying off the rest of my debts. This was the arrangement I discussed with my credit card company all along (btw the credit card is the same company as the mortgage company but they don't appear to be aware of each other). They sold off the debt anyhow.
    The debt collector would not discuss any settlement that didn't start payment immediately. They were rude and dismissive.

    Now that I am able to pay- say $100 a month, should I make that offer? Will they make this arrangement and drop the suit completely? or is it too late?
    At this point I'd prefer not to go through the court proceedings. I have always intended to pay off all of my debts. Should I be more forceful with them to accept my circumstances and accept a small payment settlement (which is all I can afford right now).

  2. #2
    Join Date
    Sep 2005
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    Default Re: Will a Credit Card Company Still Settle a Debt After They Sue to Collect the Mone

    Quote Quoting amnotafish
    View Post
    They sold off the debt anyhow.
    If they sold the debt, they're out of the picture. You have to deal with the new owner of the debt.
    Quote Quoting amnotafish
    The debt collector would not discuss any settlement that didn't start payment immediately. They were rude and dismissive.
    They don't have to agree to a delay, and regrettably they are not required to be nice.
    Quote Quoting amnotafish
    Now that I am able to pay- say $100 a month, should I make that offer?
    That's up to you.
    Quote Quoting amnotafish
    Will they make this arrangement and drop the suit completely?
    If they have reached the point of filing an actual lawsuit, they would be foolish to do so. You might be able to enter into a consent judgment with payment terms; if I were them and agreed to a payment schedule, I would want an acceleration clause that would be triggered by any missed or late payments.
    Quote Quoting amnotafish
    or is it too late?
    Only the law firm representing the creditor can answer that question.
    Quote Quoting amnotafish
    Should I be more forceful with them to accept my circumstances and accept a small payment settlement (which is all I can afford right now).
    They're already on track to get a judgment. You don't want to create a context in which they see no gain in talking to you about possible settlements.

    Depending upon your other debt load, you still have the option of consulting a bankruptcy lawyer.

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