Please Advise Received Summons

[GLORIA150]

What is the name of your state? GEORGIA

I just received a summons to appear in the court, type of suit is account for $3,000.00

My records show that the last activity on this credit card was 08/2002 and i was informed that the Statue of limitations here in GA is 4yrs. I have less than 7 months. The credit card company sold my account to another party who is trying to get this payment and taking me to court. I am scared of the Judgement as i don't want my wages garnished because of this.

What would be the best option in this situation, should i contact the company that is taking me to court to make arrangement or contact the court. Do I still have time to contact the company trying to take me to court or Can i still dispute this as being an old account or simlpy make an arrangement to pay in installments so that they can drop the legal action. I want to buy a house next year.

Please help !!!

Thank You

[Debt Guy]

Q. What would be the best option in this situation, should i contact the company that is taking me to court to make arrangement or contact the court.

A. Contact the company. The court has no interest in negotiating with you.

Q. Do I still have time to contact the company trying to take me to court

A. Yes.

Q. or Can i still dispute this as being an old account

A. Dispute is meaningless at this point. You have already been sued. All disputes get resolved in front of the judge. Besides, "old" is relative. The debt is still within the statute of limitations for GA -- which, by the way, is 6 years for a written agreement -- I know. I know. Every internet expert says credit cards are not written agreements. Unfortunately, judges in most states are thinking they are written agreements. So, 6 years -- not 4 years. Makes no difference to you since you are still less than even the 4 years.

Q. or simlpy make an arrangement to pay in installments so that they can drop the legal action.

A. They may or may not allow you to pay in installments. Since you are in default, the creditor has the legal right to demand payment in full immediately.

Q. I want to buy a house next year.

A. Then you really don't want the judgment on your file. Your safest course of action is a lump sum payment/settlement that will result in a dismissal of the lawsuit. If you try to do a payment deal, the creditor will insist that you to stipulate to an agreed judgment -- which means the judgment goes on your record and will hurt the home loan process.

You need to make a deal with the attorney for the creditor or you need to file a response with the court and be prepared to present your defense.

Good luck to you.

[GLORIA150]

Hello Debt Guy,

I called the Attorney's office working this account and they agreed to take monthly installments (24 months) and will drop the legal action once i sign a new consent and send back to them and make payment. They will contact the court to update the Judge that i am going to make payments.

Thank you for your advise as you helped me by giving me the good advise and hope for a dream home

Peace

[Debt Guy]

Gloria,

I am not quite sure I understand what you and they are agreeing to do.

You need to ask to make sure you understand all the terminology and what it all means.

It sounds like you are "consenting" to a judgment. That could mean that you agree that the court will issue a judgment and they will not attempt to enforce the judgment so long as you are making the agreed payments.

That means the judgment will be on your credit report and could impact your ability to get a home loan.

It would be better if they agree to dismiss the lawsuit in exchange for (1) your payment agreement and (2) automatic entry of an agreed judgment in the event you default (but, not before you default). That way, you don't have the judgment on your credit report but they got a major hammer on you to make sure you keep up your payments.

Whatever the final deal, make sure they put it in writing before you start sending money.