Credit card sent to lawyer

What is the name of your state? Virginia I have tried to come to an arragement with visa. I am unemployed now but I offered to pay them 150 a month( money borrow from sister) on a balance that is now 12,000 because of late payment and other fees inclusing a change in the interest rate to 25%. I also offered to liq. my IRA and give them 5400. they would not talk to me and sent me to a lawyer who said I had 24 hours to find money. I have a lot of equidity in house but am unable to get home equity loan. tryed 4 times. I has a annunity. can they force me to lig. my retirement. what to do? I owe lots of taxes but few credit cards. I tried credit councling but they could not help with VISA

[Ladynred]

Your retirement fund, in most cases, is EXEMPT from siezure should they sue you. For 12K, Chase is likely to do that.
However, this 'lawyer' you're dealing with is likely just another debt collector and its also likely that his 'time limit' is bogus.. a pressure tactic to make you cave in.

I would NOT liquidate your IRA, you'll pay too much in penalties and lose what you've put into it for what.. a slimey debt collector !

How far behind are you, when did you last make a payment to Chase ?

If you want to negotiate a settlement, you're going to have to STOP talking on the phone and start writing letters. Anything over the phone is useless.. it bears no weight and they WILL renege on any 'arrangment' you think you made.

Offer them the most you can manage. Chase offered me a 35% settlement just before the debt went to charge-off. I was also unemployed and had no way to get even that much, but it just goes to show that they are likely to go that low.

Send any letters certified, RRR, and keep copies of everything.

problem started when my visa credit protection stopped making my payments in may 2002. I called, resent forms...I started work and started paying visa in nov 2002. In feb lost most of my income. sent individualized bank card services(VISA) certified letter in mar about my job lost and promisted to sent them 150. a month. I sent payments. In may they refused to except only150. I sent certified letter in May offering to pay 5400. to close account. they never acknowledge my letters and sold my account in june. lawyer says I need to pay him 12,000 in 24 hr or I will be sued as "uncoroperative" and I will lose my house or my retirement lawyer has called 5 times today wanted to know my answer

[Ladynred]

First of all, suing you for being 'uncooperative' if you have NO MONEY to pay what they want is stupid. You can't pay what you don't have.. and your IRA is OFF LIMITS ! He is trying to scare you and pressure you with illegal threats.

Its also highly unlikely that they can take your house and they can NOT take your retirement money, it IS exempt (I checked) !!

You say you have a lot of equity in your home... is it a lot more than 5K (the exemption) or more than the debt you owe ?
In order to take your home, they would first have to sue you and win. Then they would have to sell the home, pay off the mortgage holder, pay YOU the exemption amount, THEN they'd get what THEY want. So you can see, it may not be worth it for them to do that - its more likely they'd place a lien on your property.

Don't call the lawyer back, he's full of it with his 24 hr 'time limit'. IF you are sued, you would have the opportunity to settle and could probably get out from under for a LOT less than the 12K this slimeball is demanding.

You really should read the Fair Debt Collections Practices Act (FDCPA). It can help you to know your rights and to deal with these nasty collectors. Making threats of legal action they cannot or do not intend to take is a violation of the law !

[url]http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm[/url]

also read this lawyer's site:

[url]http://www.pennlawyer.com/fdcpa.htm[/url]