Being Sued

[krissykay0583]

What is the name of your state (only U.S. law)? Ohio

My fiance is being sued by Discover C/O DFS Services for $2,900. We are willing to work with them to pay off the debt, but they said we must pay $750 before they will even except payments. I think paying $100 to $200 a month should be acceptable, even this is going to be a huge struggle for us. What happens if they won't work with us and we have to go to court? I am so clueless about this stuff. Any advice/help is appreciated!!!!

-Kristen

[Wirelessany1]

Originally Posted by krissykay0583

What is the name of your state (only U.S. law)? Ohio

My fiance is being sued by Discover C/O DFS Services for $2,900. We are willing to work with them to pay off the debt, but they said we must pay $750 before they will even except payments. I think paying $100 to $200 a month should be acceptable, even this is going to be a huge struggle for us. What happens if they won't work with us and we have to go to court? I am so clueless about this stuff. Any advice/help is appreciated!!!!

-Kristen

It is unfortunate for your boyfriend could not keep his original promise to pay because now the creditor does not have to play nice. At this point they have no compassion for what you think is acceptable.

Tell your boyfriend to prepare to be sued, to lose in court, wages garnished, bank accounts levied and tanked FICO.

[krissykay0583]

Thank you for the reply..

We are both servers and don't even receive paychecks...maybe $15 a week. What does a levied bank account mean?

[Zigner]

Originally Posted by krissykay0583

Thank you for the reply..

We are both servers and don't even receive paychecks...maybe $15 a week. What does a levied bank account mean?

So, you work illegally, under the table...

[krissykay0583]

Excuse me!!! Absolutely Not!!! In most states tipped employees do not receive minimum wage. We get $3 an hour and the government then takes out a percentage of our sales, assuming we are tipped on all those sales. So even if some cheap person doesn't tip us the government takes that from our paychecks.

[Zigner]

Originally Posted by krissykay0583

Excuse me!!! Absolutely Not!!! In most states tipped employees do not receive minimum wage. We get $3 an hour and the government then takes out a percentage of our sales, assuming we are tipped on all those sales. So even if some cheap person doesn't tip us the government takes that from our paychecks.

My prior response was based on your earlier post:

Originally Posted by krissykay0583

We are both servers and don't even receive paychecks...maybe $15 a week. What does a levied bank account mean?

If you are now correcting yourself to say that you DO receive a paycheck, that is fine - but the attitude really isn't required.

[krissykay0583]

My prior response was based on your earlier post:


Quote:
Originally Posted by krissykay0583
We are both servers and don't even receive paychecks...maybe $15 a week. What does a levied bank account mean?


If you are now correcting yourself to say that you DO receive a paycheck, that is fine - but the attitude really isn't required.


What I meant was they are so small it's like not even getting a paycheck... about 15 bucks a week is what I said after that. I was not trying to have attitude with anyone, that was just a little offensive to me, but I can see where you would think that. My fault in the wording that I used.

[nrknlknek]

So, now to answer your questions...

Discover will sue and probably obtain a judgment for the principal balance plus fees and interest at the statutory level for your state. Remember interest on the uinpaid balnce keeps accruing until paid, so your judgment will likely be in the 4K range.

They will then proceed to post judgment collection. Judgment creditors have a wide array of remedies including garnishment (again at the state levels). As to your question around bank account levies. What they can and probably will do is obtain a writ of execution which allows them to freeze and sweep your checking, savings, brokerage or any other account that is in your name. The monies collected are applied towards the judgment.

My advice is to try like heck to come up with the $750 and term out the balance with them. Judgments are no laughing matter and can easily imperil your ability to get a job, insurance and credit.

[debtor2008]

levied bank account means: they freeze any and all your accts and take all your money from them until the judgement debt gets paid off

they can also do a sherrifs sale:
they come to your home take inventory of all your belongings and determine from that, what to auction off to get the judgement debt paid off.

wage garnishment:
they will take whatever they can from whatever your pay amount is after taxes.

the judgement WILL FOLLOW YOU until it gets paid off.

[debtcollector`]

Originally Posted by krissykay0583

Excuse me!!! Absolutely Not!!! In most states tipped employees do not receive minimum wage. We get $3 an hour and the government then takes out a percentage of our sales, assuming we are tipped on all those sales. So even if some cheap person doesn't tip us the government takes that from our paychecks.

Actually that isn't true. In every state a server must receive minimum wage after tips are accounted for. If you haven't, you should contact your state's department of labor.

As for the suit -- Discover doesn't often lose. Your boyfriend needs to handle his business quickly.

I will tell you that I wouldn't accept $100 or $200 a month on a $2,900 debt.
You need to planning payment arrangements that will retire the debt in less than 8 months and less than 6 months is preferable.

DC

[VeronicaLodge]

Originally Posted by krissykay0583

Thank you for the reply..

We are both servers and don't even receive paychecks...maybe $15 a week. What does a levied bank account mean?

then why did he rack up 2900 in debt he couldn't pay back?

[VeronicaLodge]

i also want to add, this is your boyfriends debt and problem, not yours, you should not worry about paying it for him!

[Seanscott]

Boyfriend's debt. Close all financial accounts and put them in your name.

[mmmagique]

Originally Posted by debtcollector`

Actually that isn't true. In every state a server must receive minimum wage after tips are accounted for. If you haven't, you should contact your state's department of labor.



DC

Actually, that is true. If a server gets paid 2.15 per hour (which is what I used to get paid), and works 30 to 40 hours, what is left on the check after the government takes their part is often nothing.

Now...as to what the server brings home...that is another matter and hardly proveable in court.

If you and your bf do not own property, or have money in checking/savings and/or other investments, it is verrrrry doubtful that anyone is going to be coming after your furniture and/or your car.

Just save up as much money as you can as fast as you can, and pay them off as soon as you can.

Or tell 'em to go ahead and garnish your wages; for the next 100 years...

[ecmst12]

DO NOT put any of bf's money in your name or your accounts. That is just asking for your accounts to be frozen and you will then have to prove what is yours and what is his. It's also illegal - known as fraudulent transfer.