Stopped paying...Court is calling...Credit card problems

[Annam]

Hello,

My name is Jess (from Ohio), I am currently unemployed because I have to take care of my 4 children while my husband is in his last year of medical school. None of us work and we dont own anything except for my husband and he has a car under his name. I owe ~$50,000 in credit cards and stopped paying them 7 months ago (yes til today I get around 30 calls/day from debt collectors) I had to disconnect the cable behind my phone for few hours per day to get some peace of mind. Recently i got a letter from court (CITI bank lawyers who is filing a complaint against me) amount is $9,000. I think and what i understood from the letter is to contact my local court to setup something. What is that? and what should i do? What happens if i a ignore the letters as well? PLease help me here and let me know what options i have. I am stupid when it comes to law. Never been in this much trouble. My husband has a VERY good credit and I wonder if this will affect him as well. Thank you,

Jess

[Debt Guy]

Q. Recently i got a letter from court (CITI bank lawyers who is filing a complaint against me) amount is $9,000. I think and what i understood from the letter is to contact my local court to setup something. What is that? and what should i do?

A. Well, maybe. You are being sued. Read the summons and do exactly what it says. It is possible that it instructs you to contact the courthouse for a schedule for responses, etc. You are not being asked to contact the court to work something out.

Q. What happens if i a ignore the letters as well?

A. The creditor will be awarded a default judgment. With a judgment they can garnish your wages and clean out your bank account. They can also attach certain assets that you own.

Q. PLease help me here and let me know what options i have. I am stupid when it comes to law. Never been in this much trouble.

A. OK. One option is to pay -- which sounds like you cannot do. Another option is to allow the judgment and then deal with the aftermath later -- which can be ugly and last a long time. Another option is to file bankruptcy -- which is ugly and will last a long time.

Q. My husband has a VERY good credit and I wonder if this will affect him as well.

A. Ohio is not a community property state. That means that they cannot attach any assets owned solely by your husband. If you are sure that he is not on any of the credit card accounts, then they cannot go after him for payment. His credit will not be affected.

If you wish to fight the judgment you must file a response with the court. You can file a general denial and begin to make the creditor prove everything. Or you can file a counterclaim if you have grounds for a counterclaim -- sounds like you do not as this is certainly within the statute of limitations.

Sounds like this is the first of many lawsuits to come. Bankruptcy may be the option that serves you best. Email me directly if you have personal questions.

[Annam]

Let me tell you what is happening. Few months before i decided to stop paying i started getting statments with interest rates that are unimaginable. At that time i was paying periodically and on time. So i call citi and tell them that the interest rate is too high and i asked them for help. I paid minimums of $250 and the interest is $320. They were very rude with me to the point that i told them that i will not pay a cent if my rate is not lowered. I stopped paying.

Well now since i got this letter i am little worried. As i have said Debt Guy, I DONT OWN ANYTHING on my name. SHOULD I RESPOND TO THE LETTER?what is the worst thing to happen if i dont respond. If i do respond what is next?

thanks

[Debt Guy]

Q. SHOULD I RESPOND TO THE LETTER?

A. I am confused. It is a letter or is it a summons? If it is a summons that means you are being sued.

Q. what is the worst thing to happen if i dont respond.

A. The creditor will be awarded a default judgment. If you ever have a job again, they will garnish your wages. If you have a bank account, they will clean it out. You won't be able to buy a home until the judgment is paid. It will hurt your credit for a long time.

Q. If i do respond what is next?

A. Jess, slow down just a bit and take a deep breath. Read the document carefully. What does it say?

Why don't you email me directly and I'll see if I can hold your hand on this. OK?

[bigun]

The House of Representatives will vote today or tommorow on bk reform legislation. It'll pass easily and will take affect within 180 days of being signed into law.
For that sort of money, I'd suggest you pay a visit to a bk lawyer and get all of your options explained. Most will give a free initial consultation.