Family ran with credit card, I'm stuck with bill, Civil judgement

In 1995, I had excellent credit and my family members did not. As a kind (but foolish) jesture, I issued credit/charge cards to them where I was the primary cardholder. After several months of steady repayment, for whatever reason, they could no longer pay the debt. I could not pay the debt either, so the account was closed by the creditor, and I was stuck with the bill.

The original charges were $18,500, with penalties/interest it went up to about $21,000, and I began paying the debt through collection agencies. I currently owe $13,500. However, last week when I checked my credit report, I was informed that the creditor filed a civil suit and a judgement was made against me. I had no knowledge of this suit until now. The collection agency, that I made payment arrangements with, claims that they had no knowledge of the suit filed either.

Now that I know that the Civil Judgement was made, will I be stuck with a huge bill (for interest/legal charges) after I pay the $13,500 that the agency says that I still owe? Can I pursue a settlement with the credit agency (Hint: one of the collectors said that the debt, plus interest, is up to $38,000, and that I should settle the account at $12,000 at this time.)? Or am I stuck to pay this debt forever?

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by Ed1:
In 1995, I had excellent credit and my family members did not. As a kind (but foolish) jesture, I issued credit/charge cards to them where I was the primary cardholder. After several months of steady repayment, for whatever reason, they could no longer pay the debt. I could not pay the debt either, so the account was closed by the creditor, and I was stuck with the bill.

The original charges were $18,500, with penalties/interest it went up to about $21,000, and I began paying the debt through collection agencies. I currently owe $13,500. However, last week when I checked my credit report, I was informed that the creditor filed a civil suit and a judgement was made against me. I had no knowledge of this suit until now. The collection agency, that I made payment arrangements with, claims that they had no knowledge of the suit filed either.

Now that I know that the Civil Judgement was made, will I be stuck with a huge bill (for interest/legal charges) after I pay the $13,500 that the agency says that I still owe? Can I pursue a settlement with the credit agency (Hint: one of the collectors said that the debt, plus interest, is up to $38,000, and that I should settle the account at $12,000 at this time.)? Or am I stuck to pay this debt forever?<HR></BLOCKQUOTE>


My response:

Since you failed to tell us your State, we cannot tell you whether your Statute of Limitations has run out, in order for you to sue your relatives.

You might want to consider getting a free consultation with an attorney to determine whether you should consider Bankruptcy. You never said what your income was per year, or your debt to income ratio, so I can't help you to determine what your best course of action should be for your situation. So, see an attorney as soon as you can, and make a decision that's right for you.

IAAL


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[This message has been edited by I AM ALWAYS LIABLE (edited July 20, 2000).]

I do not want to sue my relatives. That is why I have taken ownership of the debt. My wife and I earn about $50,000 a year and have two children. We live in Massachusetts, but the Civil Judgement filed and made about two months after I moved from my former address in New York.

Correction: The Civil Suit was filed and Judgement was made approximately two months after I moved out of a former address in New York. I believe that the suit was filed without me being properly served with a summons to appear in court. Do I have any recourse to reopen this case since I had no knowledge of it at the time that it took place in New York? I live in Massachusetts now so I'm not sure what to do.