Being Sued by Creditors

What is the name of your state? Massachusetts

When I was 18 I went hog wild getting credit cards left and right. Now that I am 30 I am forced to pick up the pieces of my mis-spent youth. One of my creditors sent me a notice that they were going to sue me, so I called them and worked out a deal to pay them $100 a month, which I did until my husband and I hit some serious financial problems and were unable to put money on unneccesary ( i.e. anything but rent ) bills. I recently recieved a notice from the same creditor that they have set a court date.
I'm not sure what to do at this point. Should I call them and offer to give them a lump sum of money, which is probably about half of what I owed them before we worked the deal out, or should I get a lawyer and go to court?
I am a full time student and only work 16 hours a week, but my husband works full time and I'm afraid they will nail him with all my debt.
What should my next move be?
Thanks in advance.

[Alex02]

Try to work out a settlement. I would start LOW an go higher so maybe a good palce to start off would be 50% of what you owe them NOW? Just try to work SOMETHING out. but since you only work 16hrs they really cant get much from you if they sue and get a judgement against you. Pinning the debt on your husband is something i dont know about, maybe they can since you join your income by being married

[Ladynred]

They cannot nail your husband with your debt, MA is NOT a community property state.

Your joint bank account is at risk if they get a judgment, however.

If your debts are that old, how old is this debt you're being sued for ? How long ago did you pay the ORIGINAL creditor ?? You may not have had to pay ANYTHING if the SOL had run out. Further, in some states even paying a CA does NOT restart the SOL !! It takes a new contract, signed by both parties to reset the SOL clock, and you may yet be able to stop this if that law applies in your state.

Whatever you do, you're not going to get ANYWHERE unless you do everything in writing only and send all letters certified RRR mail. Don't even pay another dime on a settlement w/o getting it in writing. If the debt is THAT old, I'd start at 20%, the heck with 50%, they got the debt for pennies on the dollar, start low and give yourself some negotiation room.

Thank you for your advice.
I did call the creditor, who referred me to the lawyer handling the case. I offered him a lump sum, telling him I could give it to him THAT day. He said thet they would not allow him to settle for that amount and insisted that I give him $430.00 dollars more than what I offered. Since I did not have $430.00 dollars more, he basically told me that he'd see me in court.
Now, the money that I offered him is gone, spent on Christmas expenses and I have nothing to offer. My question is this: Why didn't they just take the money when I had it instead of going the expensive and unnecessary route of meeting in court?
I find this whole thing ridiculous.
Also - how much can they garnish my wages if I only work 2 days a week? AND - should my husband open his own account so he is not at risk of losing his hard earned money to my 10 year old debts? ( we have a joint account right now )
Thanking you in advance for your valuable advice.

[JETX]

Ladynred.... sorry, again.

In one place you said, "Further, in some states even paying a CA does NOT restart the SOL !! It takes a new contract, signed by both parties to reset the SOL clock, and you may yet be able to stop this if that law applies in your state."

Two problems.... last first.
1) Later in your same post, you said, " they got the debt for pennies on the dollar". If they purchased the debt, they are the creditor and ANY payment to them would reset the SOL clock.
2) Where did you get the idea that a payment to a debt collector doesn't resset the SOL clock?? In what states?? Can you provide some statute or support for that claim?? Reason is, I don't think it is true (I don't know ALL the state laws, but I have never seen that one).

[JETX]

Q1) "Why didn't they just take the money when I had it instead of going the expensive and unnecessary route of meeting in court?"
A1) I can't answer as to why they didn't accept your amount, but I can say that once they have taken the time and cost of filing, the rest is easy. And doesn't cost them anything, since their costs are added to your debt.

Q2) "Also - how much can they garnish my wages if I only work 2 days a week?"
A2) Massacchusetts exempts the first $125 per week of earnings, so your entire wages would likely be exempt. However, the courts can consider the total income (including your husbands).

Q3) "AND - should my husband open his own account so he is not at risk of losing his hard earned money to my 10 year old debts?"
A3) Again, that might not save the bank funds. The creditor could simply garnish the account and then force both of you to prove that the income was not derived from your wages.

And, follow me, here is the problem.
Lets say that you make $50 per week and he makes $500 per week. Even if your funds are in separate accounts, your $50 income allows him to 'avoid' $50 in debt that his funds would have paid. So, in essence, your separate funds ARE used jointly. The 'extra' $50 in his account is due to YOUR income. I have successfully argued this issue many times when enforcing my judgments.

Thank you for your reply.
Not that it matters, but we have only been married for 6 months.
Also - Does it make any difference that I am a full time student?

I must note that I am not trying to get out of paying a debt. I offered them a fair amount and they refused it. My main concern now is that this will affect my husband's earnings as it is that money that we depend on to live, obviosly my working 2 days a week doesn't add too much to our income.

Thank you for your help

[Ladynred]

Halket,

I'll review the statutes of which I spoke and post the references. There truly are some states where simply making a payment on an out of statute debt does not restart the SOL clock, there must be a written agreement with sigs of both parties. Believe me, I wouldn't make that one up

As for my 'they got the debt for pennies'.. IF they bought it, and we don't know that, then you're right, but its probably still just an assignment.

I personally have caught a CA in a blatant lie, and its in writing too ! On letter they say they 'purchased' the debt, and on the very next letter they list themselves as 'assignee of xxxxxx'.. so I don't trust them one iota with ANY statement.

[JETX]

"Thank you for your reply.
Not that it matters, but we have only been married for 6 months."
**Correct. The duration of the marriage does not matter.

"Also - Does it make any difference that I am a full time student?"
** Nope.

"I must note that I am not trying to get out of paying a debt. I offered them a fair amount and they refused it."
** Not meaning to argue symantics, but the determination of 'fair amount' would only be correct if both parties agreed. Obviously, they did not think it was fair.

"My main concern now is that this will affect my husband's earnings as it is that money that we depend on to live, obviosly my working 2 days a week doesn't add too much to our income."
** As noted in my post, it won't affect his direct earnings, since his wages can't be garnished. However, it is likely that (if done) the seizure of your non-exempt assets will likely affect his also.

"Thank you for your help"
** Your're welcome!