Being sued...

I'm in western Tennessee and I just got a letter from a credit repair agency saying that someone(Discovercard) has filled a lawsuit against me. I looked it up and it's true. I lost my job in june 03 and even continued to pay out of my savings (until November 03) hoping that I would get another job and never get into trouble. Well, no job and the savings ran out so I had to stop paying. Up until this point I had never missed a payment and never been late. I always paid double or tripple the minimum. Discovercard didn't offer any relief and soon turned it over to a CA. The first call the man asks me if I had $6,000.00(I owed $8,000.00). I said no, I'm out of work but I intended to get cought up as soon as I find work. He immeadiately responds,"did your mama and daddy know they raised a thief?" So I just stopped answering the phone. Next thing I know I get this letter. I haven't been served papers yet. I got the number of the lawyer reprsenting discovercard and called him. His CA said that they sent ONE letter to me in late august 04 about the debt. I get 1 letter and that's it? Shouldn't they have sent something certified? I am still out of work and have zero assets. I don't even have a computer. I would like to pay this off but I just cannot. What good is dragging me into court if I have nothing to give? What's a judge likely to say? Any advice or help would be greatly apprieciated. I cannot eat or sleep until I get this resolved! Thanks.

[JETX]

Originally Posted by mfolis

I'm in western Tennessee and I just got a letter from a credit repair agency

Though your post doesn't mention it, do NOT fall for ANY credit repair scam.... and most of them are just that... scams.

His CA said that they sent ONE letter to me in late august 04 about the debt. I get 1 letter and that's it?

There is no statutory 'minimum number of letters' that a creditor is required to send out before filing suit.

Shouldn't they have sent something certified?

There is no statutory obligation to send anything certified..... other than a possible notice of the lawsuit filing.
The requirements for service of a law summons in Tennessee is:
§ 4.04. Service Upon Defendants within the State
The plaintiff shall furnish the person making the service with such copies of the summons and complaint as are necessary. Service shall be made as follows:
(1) Upon an individual other than an unmarried infant or an incompetent person, by delivering a copy of the summons and of the complaint to the individual personally, or if he or she evades or attempts to evade service, by leaving copies thereof at the individual's dwelling house or usual place of abode with some person of suitable age and discretion then residing therein, whose name shall appear on the proof of service, or by delivering the copies to an agent authorized by appointment or by law to receive service on behalf of the individual served.
<snip>
(10) Service by mail of a summons and complaint upon a defendant may be made by the plaintiff, the plaintiff's attorney or by any person authorized by statute. After the complaint is filed, the clerk shall, upon request, furnish the original summons, a certified copy thereof and a copy of the filed complaint to the plaintiff, the plaintiff's attorney or other authorized person for service by mail. Such person shall send, postage prepaid, a certified copy of the summons and a copy of the complaint by registered return receipt or certified return receipt mail to the defendant. The original summons shall be used for return of service of process pursuant to Rule 4.03 (2). Service by mail shall not be the basis for the entry of a judgment by default unless the record contains a return receipt showing personal acceptance by the defendant or by persons designated by Rule 4.04 or statute. If service by mail is unsuccessful, it may be tried again or other methods authorized by these rules or by statute may be used.

What good is dragging me into court if I have nothing to give?

One 'benefit' is that the SOL (time allowed to pursue collection) is much longer for a judgment. For example, the SOL on an 'open account' (credit card debt) in TN, is 6 years, and a TN judgment is 10 years. Theoretically, if the creditor files the suit immediately prior to the 6 year date and gets a judgment, that would allow them to pursue you a total of SIXTEEN years.

What's a judge likely to say?

Unless you make appearance and have a pretty good defense against their claim, the judge is GOING to grant them a judgment against you.

re:Unless you make appearance and have a pretty good defense against their claim, the judge is GOING to grant them a judgment against you.

Okay, so what does this mean? I receive no check to garnish. When I get a job (hopefully soon) will the judge order me to pay then? How can they really make me pay a unsecured credit card when I'm under hardship right now. I feel bad to just walk away from this but if I'm going to loose anyhow, what good does making an appearance in court make? Just so the judge can chew me out for being unemployed and disregarding my responsibilities? Can I go to jail for not showing up/paying this? I'm sorry for all the questions but I really just don't know where to begin with all this. ManyThanks for any ideas!

[Ladynred]

Just so the judge can chew me out for being unemployed and disregarding my responsibilities? Can I go to jail for not showing up/paying this?

1 - The judge isn't going to chew you out for anything, they're too busy to care, they see hundreds of cases per month just like yours, you're not unique.

2 - You can NOT go to jail for not paying a debt. Debtors prisons were abolished in the last 1800's !!!

What good is going to court ?? You will probably be given the chance to settle for less than the full amount. Not that it will do you much good if you're not working.

Once they have a judgment, and once you get a new job, they CAN and likely will move to garnish your wages - 25% of your take home pay. However, in TN we can file a motion to ask the court to pay the judgment in payments in lieu of garnishment. You would probably want to do that because you would probably pay LESS than the 25% they'll take from your pay. You would take your financial statement with you to court and the JUDGE decides what your payment will be and your payments go thru the court. If you miss or you're even late, all agreements are off.

The judgment will sit there for 10 years like a troll under a bridge, just waiting for you to get a job or acquire assets. They can haul you into court or make you answer interrogatories repeatedly to find assets, etc. they can take to pay. So you see.. its not what you have NOW that they'll get, its what you get in the next 10 years that they'll be waiting for !!