Legal process debt collection credit cards

What is the name of your state?What is the name of your state? Georgia

I have credit card debt and became unemployed 6 months ago. Prior to becoming unemployed, my credit score was above average.

I wrote to the credit card companies when I became unemployed advising that 1) I was unemployed, 2) I didn't intend to file bankruptcy, 3) requested that interest rates be lowered, 4) I couldn't make the minimum monthly payments while unemployed, 5) I would begin making payments when I got hired into a full-time position.

I have managed to make my mortgage payments but not on time.

My phone rang off the hook from the credit card companies initially, now the calls are coming from lawyers, collection people. I still make them aware I am gainfully seeking employment, which is true, but that the little freelance work I can get, is only enough to pay part of the mortgage payments (I've borrowed some money from a friend).

Each call has suggested that I seek to get another credit card to roll the debt over to. I ask, who is going to give me credit card when I don't have a job, I'm late on my mortgage payments, and my credit record has been reduced severely? I can't get a loan.

My questions are:

1) I didn't agree to work with the credit counseling service that contacted me because they were going to charge me money for making the payments, it didn't make sense. I couldn't agree to pay the credit counseling services, if I could have, I would have made the minimum monthly payments to the credit card companies.

Should I now try to work with a credit counseling company? If so, how does one decide which company to go with? What are the questions I should ask when deciding which company to sign up with?

2) Can I do something to stop the lawyers from calling my house? If so, how do I investigate how to initiate such action?

3) Will the credit card companies sue me? I own a home with some equity, but don't want to sell because I'll never get another home since my credit score has decreased. I am a single parent and sole provider for my daughter and myself.

4) I intend to pay the credit card companies. I do not want to be forced to file bankruptcy. The job market in my city is showing some inprovement and I've begun to pursue other career opportunities (real estate) since my profession is so competitive.

5) The lawyers are trying to reduce the paybacks down to 50%, or whatever if I can pay that much off. I can't do that, but if I could, would that still be a negative reflection on my credit? Perhaps the same as bankruptcy?

6) Can the credit card companies force me to sell my house to pay off the debt, or can they file a lien against the property?

What do you recommend I do to ask for more time to settle this debt? Hopefully, in a year I can pay the credit cards off entirely.

[JETX]

I am going to omit the questions that you have asked that are simply 'what about' questions that have NO issue in law. They can ONLY be answered by you after a complete and thorough review of your circumstances and wishes.

"2) Can I do something to stop the lawyers from calling my house? If so, how do I investigate how to initiate such action?"
*** If the 'callers' are the original creditor, no. If they are third party collectors, then you can simply send them a 'cease and desist' letter and that will force them to stop calling. However, the negative is that it push them to take legal action against you.

"3) Will the credit card companies sue me? I own a home with some equity, but don't want to sell because I'll never get another home since my credit score has decreased. I am a single parent and sole provider for my daughter and myself."
*** Nobody can tell you what someone else may or may not do. Some creditors are very aggressive and will sue at the 'drop of a hat'. Others are far more lenient and won't sue at all.

"5) The lawyers are trying to reduce the paybacks down to 50%, or whatever if I can pay that much off. I can't do that, but if I could, would that still be a negative reflection on my credit? Perhaps the same as bankruptcy?"
*** What may be reported to the CRA's is negotiated, just like the amount to pay.

"6) Can the credit card companies force me to sell my house to pay off the debt, or can they file a lien against the property?"
*** Yes, but only if they first obtain a judgment from a court. Then they can file a lien on your property (but unlikely to force you to sell).

Thank you for your reply.

Where can I find a copy of the Georgia Statute of Limitations on the web?

[JETX]

There are literally hundreds of sites. Simply 'google' with Georgia Statute limitations.

[bigun]

Here ya go:

[url]http://www.locate123.com/StateLaws.asp[/url]

CC's are open accounts.

Thank you for supplying the SOL address.

I'm attempting to buy time until I can negotiate with the creditors to restart a payment plan, or pay off the debt. I'm not sure which will come first.

I received these notices. Can you explain what this means?

The firm of Trauner, Cohen and Thomas is a law partnership representing financial institutions in the areas of creditors rights. In this regard, this office represents the above named BANK ONE FORMERLY FIRST USA who has placed this matter, in reference to an original account with WACHOVIA BANK CARD, for collection and such action as necesary to protect our client.

Please note that no attorney with this Firm has personally reviewed the particular circumstances of your account. However, if you fail to contact us, our client may consider additional remedies to recover the balance due.

Consumer Notice Pursuant to 15 U.S.C. Section 1692(g)
Your are herely given Notice of the following information concerning the above referenced debt.
1. Unless, within 30 days after receipt of this notice you dispute the validity of the debt, or any portion thereof, the debt will assumed to be valid by this Firm.
2. If yu notify us in writing within 30 days that the debt or any portion thereof is disputed. We will obtain verification of the debt, or a copy of any judgment against you, and we will mai such verification to you.
3. In addition, upon written request within said 30 days, this firm will provide the name and address of the original creditor if the original creditor is different from the current creditor.
4. This firm is attempting to collect a debt on behalf of the creditor and any information obtained will be used for that purpose.

YOUR RIGHT UNDER FEDERAL LAW TO REQUEST VERIFICATION OF YOUR OBLIGATION TO OUR CLIENT WITHIN 30 DAYS MUST BE ASSERTED IN WRITING AND IS NOT AFFECTED BY OUR REQUEST THAT YOU CONTACT OUR OFFICE BY TELEPHONE.

[JETX]

"I received these notices. Can you explain what this means?"
*** It simply means that a law firm has been hired to try to collect a debt. And yes, the law firm MUST also comply with the FDCPA.

Thank you.

1. Should I reply and request verification of the obligation? If so, should I follow the recommendation as outline at [url]http://www.locate123.com/StateLaws.asp[/url] which simply states to respond to the questions in the order they were asked?

2. Do you have any other recommendations at this point if I am trying to buy time until my financial situation turns around?

[JETX]

"Should I reply and request verification of the obligation?"
*** Yes. That is the FIRST step that is always recommended when dealing with 3rd party collectors.

"If so, should I follow the recommendation as outline at [url]http://www.locate123.com/StateLaws.asp[/url] which simply states to respond to the questions in the order they were asked?"
*** Your link provides nothing. I would suggest you use the 'validation' letter at [url]http://www.creditinfocenter.com/forms/[/url] and be sure to include the 'questionaire'.

"2. Do you have any other recommendations at this point if I am trying to buy time until my financial situation turns around?"
*** Yes, start reading the FDCPA (Fair Debt Collections Practices Act) at [url]http://www.ftc.gov/[/url]
and the information at:
[url]http://www.creditinfocenter.com[/url]
and
[url]http://www.fair-debt-collection.com/fair-debt-directory.html[/url]

Thanks again, JETX.

[JETX]

You're welcome.
Now that you have received a 'random act of kindness', pass it on!!

[Ladynred]

Just an FYI - Trauner, Cohen and Thomas are a bunch of real scumbags and while they may be a true law firm, they are primarily just another collection agency - one of the worst. They have a horrible reputation and they will trample the FDCPA with their manure-laden boots. Be prepared to document everything that happens with them, record phone conversations if you speak to them, and make a paper trail. These guys are bad news.

Thank you Ladynred. Yes, they are scumbags!