Spouse being sued by credit card company

[osade]

What is the name of your state? Texas

I've been reading through the forums and I have to say its like drinking water from a firehose. There's so many variables and I'm about as confused as it gets.

Here's the situation... My wife received a Civil Citation today (4/15) stating that she appear by filing a written answer to the Plaintiffs petition with the clerk of the court at or before 10:00am of the Monday next after the expiration of 10 days after the date of service from the citation.

Nature of demand by Plaintiff: Money owed in the amount of $3262 together with attorney's fees, cost of court, interest as provided by law and general relief.

This was a credit card my wife possessed prior to our marriage and has apparently been in collections / charged off for a couple years. We had her credit report pulled to get more details and this is what it showed for that account.

_____________________________
Charge Off as of Apr 2008, Mar 2008, Feb 2008, Jan 2008, Nov 2007, Oct 2007, Sep 2007, Aug 2007, Jul 2007, May 2007, Apr 2007, Mar 2007, Feb 2007, Jan 2007, Dec 2006, Nov 2006, Oct 2006, Sep 2006, Aug 2006, Jul 2006, Jun 2006, May 2006, Apr 2006, Mar 2006, Feb 2006, Dec 2005, Nov 2005, Oct 2005, Sep 2005, Aug 2005, Jul 2005, Jun 2005
180 days as of May 2005
150 days as of Apr 2005
120 days as of Mar 2005
90 days as of Feb 2005, Feb 2004
60 days as of Jan 2005, Jan 2004
30 days as of Dec 2004, Sep 2004, Jul 2004, May 2004, Dec 2003
_____________________________

She can't tell me the date she made a last payment so I'm not sure how to read this report we pulled. We tried calling the CC company just to have them refer me to the attorneys office.

What can I do to help? There were never any collection letters in that I was aware of and I can only hope my wife was being honest by saying she hasnt received a collection demand from them in over 2 years. We have moved 3 times since 2004 maybe this was the problem... not sure. Nevertheless I think my wife and I both agree that she owes money to the CC company. But the orginal amount of $1929 has now turned into a number ($3262) we can by no means afford to pay. Would a payment plan suffice? Is there anyway to pay an amount closer to the charge off balance?

I thank you in advance...

O

[Texas Pooh]

Look at the mctexas thread, as you are basically in the same boat.

You'll have to answer the complaint, and then request discovery to get the documents related to the account. However, it looks like the last payment was Nov. ' 04, so it doesn't look like the statute of limitations is an issue. But you should confirm this with discovery.

Be sure and file the answer, and to show up in court. Don't allow a default judgment.

You can certainly negotiate a payment plan with the lawyer for the credit company, and yes, it will be reduced amount and perhaps even payments. There are several threads on settlements you can read; the important thing is to do it in writing.

[osade]

Do you know of a general template to follow when answering? There are 23 plaintiffs requests for admissions. Also if we were to settle with the attorney/collectors would the civil citation become void?

Thank you again

[Texas Pooh]

In answering admissions, you retype the question, and then answer "admitted", "denied", "without sufficient information to answer" or "objection, calls for a legal conclusion". So, for example:

1. You signed the credit card agreement attached as Exhibit A.

ANSWER: denied (if you honestly don't remember) or admitted (if you did).

2. You owe $xxxx.

ANSWER: denied (if you contest any of the charges) or "without sufficient information to answer" (if you honestly can't verify the charges).

Remember, admissions are answered under oath.

If you settle before a judgment is entered, you will ask for the action to be dismissed with prejudice. Then the lawsuit will be over, without a judgment against you.

[Ladynred]

Based on the dates you posted, it would appear that the account was charged off in May of 2005 (180 days past due). That would mean that the last payment made on that account would have been approximately November of 2004. Look for a 'date of last activity' on her credit reports if there is one, that should be the date of the last payment.

You must file your Answer to the Complaint, but that does not preclude you from calling the attorney's office and see if you can negotiate a settlement and/or payment plan. You/she may have to agree to a stipulation of judgment if you can come to some agreement, but whatever you do, make sure you get all terms IN WRITING before you pay them anything. If they won't budge out of court, the court date will probably be your last chance to negotiate.

[osade]

If this happens to go as far as a court appearance, what advice can you offer? How would she initiate negotiations? Can I appear/speak in court with her? It seems a bit intimidating since I will not be able to afford a lawyer.

I wish I could just pay the $2000 Charge off Balance she racked up right now and get this behind us. Very frustrating especially with are current debt commitments.

Thank you for all your help in this matter. Your information is "Priceless" in our financial situation.

[Mr. Debt]

Since this account is already in legal action, there are only a few things that you may do. You can either:

1. Call the law firm that is taking you to court to see if you can negotiate with them and try to settle it once and for all. It may be wise for you to do a little bit of research on the Fair Debt Collection Practices Act (FDPCA) regarding your rights before calling them. It also usually helps if you can provide them with a legitimate reason of your wife's financial hardship at the time which made her go behind on her debt.

2. If the law firm should not want to negotiate then you may have to pay them off. Remember to ask for some sort of document which states that your debt is cleared before you pay them.

3. If you should not have the money then you may have to appear in court.

[osade]

Update - I've finally settled with the attorneys for a reasonable amount, approximately 60% of the collection. I have received a settlement letter signed and dated with the terms of payment which are within 30 days.

With this being said, I still have to answer to the court by next Monday morning. How should I respond to the allegations listed in the citations now that there has been a settlement agreement?

To everyone who assisted me in resolving this for my spouse, Thank You!

[Texas Pooh]

Just file a simple answer. You don't have to respond to the particular allegations. There is a sample at the Harris County clerk's office:

[url]http://www.cclerk.hctx.net/CCCOURT/d_forms.htm[/url]

You fill in "I deny the allegations of Plaintiff's petition and demand strict proof of same" in the answer section. Fill in the rest of the blanks with your case number, etc. Send a copy to the creditor.

That will prevent a default, and give you time to the settlement wrapped up.

Make sure the creditor files a "dismissal with prejudice" and that you get a copy of same.

Good job

[osade]

Originally Posted by Texas Pooh

Make sure the creditor files a "dismissal with prejudice" and that you get a copy of same.

Just to make sure...

Would I contact the attorney's office and simply request a "dismissal with prejudice" on the case?

Thanks!

[Texas Pooh]

It should be in the settlement letter (it may already be in there, in fact). It should say that upon you paying the settlement amount, Plaintiff will file a dismissal with prejudice with the court.

If its not in your settlement letter, send it back and request that the language be added. It's totally expected to be in the letter, so you should have no problems, but post if you do.