Debt collector sues

[Csthreatt]

What is the name of your state? California

I need some fast advice. I received a summons to appear in court for credit collections 7/17/03. Today is the last day to respond to the summons. I called the Credit Bureau( the one suing)to try and make payment arrangements. They said 30% of total I owe for downpayment and then payments after that. If I pay the downpayment and agree to the payments will I still have to appear in court? For some reason the credit bureau doesn't want me to make the payment. They told me," well the paper work is already drawn up so what are you going to do?" How are you going to pay?

Should I pay the downpayment and make the payments if I can? Or should I go to court to let them know I don't have the money and don't own the house. They're probably suing because I have a house. But, I don't make the notes. My parents live in the house and make the payments. I don't work, Im a full time student right on the edge of graduation.

What to do?

[bigun]

Nothing like waiting until the last minute!
I'd suggest you respond to the summons with a general denial of all the allegations. This'll buy you some time to figure out what's next.
When did you last pay the orginal creditor? Have you demanded validation?

[Csthreatt]

Well, there is one hospital bill that was 612.55 that was given to the agency for collection on 9/9/99. I paid that one down to 232.55 last payment was received on 4/17/01. There are 3 other bills that I should ask for validation. I wanted to pay the payoff amount but they said no payoff amt just what they say I owe, no less. Which this amt includes a so called principal, interest, attorneys fees, and court fees (they say).

Should I pay the downpayment and then send the response. If I pay the downpayment dont I have to sign something stating I own the entire amt?

[bigun]

You'd better respond to the lawsuit within the time frame allowed or, it won't matter what you do. The ca will be awarded a default judgment.

Keep in mind a CA may not charge you for "attorney's fees" unless they actually retain an attorney and sue. Only a court can award attorney's fees. Unless you plan on getting raked over the coals on BS fees, I suggest you read the FDCPA. You can find it here:

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

I realize they are filing a lawsuit, but attorney's fees are not your responsibility unless a court says they are. Negotiate an amount that you can afford. Never pay by check. Never let them know what/how many assets you have. Never give them any idea what you have in your account (unless you're cleaverly using that information to your advantage). If you want to pay them and avoid a suit, send a letter with verbage that indicates you are willing to pay the amount you owe, plus interest. Make note in a separate paragraph that attorney's fees will only be paid if they choose to litigate. Don't give them an option.

These scumbags have a way of making you feel like they are God Almighty and will make your life miserable if you don't bow down to their every demand. The fact of the matter is that they are governed by the FDCPA, and what they say and do is controlled. If they get out of line, you can sue THEM. Keep records of everything they send you. Don't talk to them on the phone - you'll want everything they say in written form in case you should need to litigate somewhere down the line.

Since they've already decided to litigate, you may want to let them know (in writing) what a mistake it was. You have no assets, only liabilities. Also, don't ever let them know that you care about your credit rating - they'll use that one against you for sure.

[JETX]

"I realize they are filing a lawsuit, but attorney's fees are not your responsibility unless a court says they are"
*** Not necessarily true. Most lender agreements allow them to recover expenses that they incur in trying to collect the debt. And if they have to pay the attorney fees and it is settled before a judgment, those fees WOULD be recoverable.

"Never let them know what/how many assets you have. Never give them any idea what you have in your account (unless you're cleaverly using that information to your advantage)."
*** Again, not necessarily true. If the creditor gets a judgment, they have the right to demand that you provide specific information.

"I realize they are filing a lawsuit, but attorney's fees are not your responsibility unless a court says they are"
*** Not necessarily true. Most lender agreements allow them to recover expenses that they incur in trying to collect the debt. And if they have to pay the attorney fees and it is settled before a judgment, those fees WOULD be recoverable.

**** Writer, check the agreement you received (or will receive) from validation... you know, the one you signed. See if there's a provision for recovery of collection/pre-litigation costs.

"Never let them know what/how many assets you have. Never give them any idea what you have in your account (unless you're cleaverly using that information to your advantage)."
*** Again, not necessarily true. If the creditor gets a judgment, they have the right to demand that you provide specific information.

**** I agree, _IF_ they get the judgment

[Csthreatt]

Thank you all sooooo very much for the advice.

I have responded to the summons. Im waiting for a court date now.
Im afraid of a lien. I dont know how they found out, but I have a home that was quick deeded to my mother a few years back. They sent a letter just before the summons that said somthing like "we are going to put a lien on your home" or something to that affect. My mom pays the notes every month and I dont want her to have to suffer for this. Question: Because I dont have a job or any income except for financial aid from college will the judge make me pay all of it? Im going to get free legal help Thur. and I need to have my question ready.

Thanks again lots of good information.

[bigun]

OK, so the mortgage is still in your name but, you transferred ownership to your mother? That's likely what they saw on the credit report-an open mortgage paid on time and don't know you don't own the home any longer. Ask legal aid if everything concerning the quit claim was done correctly. If so, and it happened several years ago I'd be surprised if they could place a lein on the home.
How much money are they suing for?

[JETX]

"will the judge make me pay all of it?"
*** No. The judge won't order you to pay or set up a payment plan. The court will only determine if you own the debt and if so, will give a judgment against you. As for your assets, a California judgment is valid for 10 years and is renewable. It also accrues interest. So, if you don't pay it off or manage to resolve it, you will owe this judgment for a LONG time..... well after you are out of school and making a living.