Sued today for 3-4 year old credit card debt

[paralyzingdebt]

What is the name of your state? Texas

It's been over 3 years since I last made a payment to Discover card. They sold the debt and now an attorney in Georgia is sueing me for nearly $20,000. I'm a single mom with no child support, a car worth less than $1500 and live in a rental apartment. I have no savings and even my "regular" bank account has less than $100 in it right now. I've been living by the skin of my teeth.

I am hopeful that it having been over 3 years since I paid Discover that I have some hope? I do contract work (typing) so I don't get wages per se that could be garnished. If they take money out of my bank account I would be homeless or have to find a way to live without a bank account.

I just got the "Citation" today -- an "Original Petition" giving me until the Monday after 20 days since I received this Petition. It is April 26th and I guess that means I have until May 16 or May 23 to answer.

I was planning to move to Florida within the next year to help my son, who is graduating from high school this year, get residency there and go to the college of his choice and dreams. (He would have to delay college for a year and then still wait another year before it would lessen his tuition.) It will be impossible for him to go to the college of his choice unless I can get a parent loan for at least $14,500, and having bad credit I can only do that with a co-signer. If a judgment is made against me for $20,000-plus, will that affect my ability to borrow money for my son to go to college even with a co-signer? It seems like it would paralyze my ability to even help him that way. I feel so badly for him. He's such a good kid and it's not HIS fault his mom messed up!

Are we totally screwed? Anyone know anything I could do? I read on another thread that I may have a defense if it has been over 3 years since I paid the original creditor. I did not keep good records but my memory is certain that it has been just barely over 3 years since I last made a payment to Discover Card. I have asked my bank to send me my bank statements from January-August 2002. I know that once I stopped paying I stopped completely.

Thanks in advance, so much, to anyone who can advise me! I used to be a legal secretary so I could type up an Answer but I don't know what to say.


Michele (in Texas for over 15 years now)

[Ladynred]

First of all, wages can't be garnished in TX, so you're lucky to be in TX right now. However, they can sieze bank accounts. On top of that, as a contractor, all your income is considered receivables and as such they can take ALL of your money, not just the percentage that they'd get in a typcial wage garnishment.

Sounds like Discover has just beat the expiration of the statute of limitations They DO sue, I'm surprised they haven't done so before this for that amount of money.

If a judgment is made against me for $20,000-plus, will that affect my ability to borrow money for my son to go to college even with a co-signer?

Yes, it will be next to impossible to get any kind of loan with an outstanding judgment against you.

Can your son apply for financial aid on his own ? Once he's 18, he should be able to get student loans on his own.

As for what to put in your Answer, here's some info:
[url]http://www.legalhelp.org/public/answering_complaint.php[/url]

[paralyzingdebt]

Oh my. One question, though it's after the fact: what if I had refused the certified letter I got today? What would have happened? I almost didn't accept it, but since it was from a Constable I was afraid it would be illegal to refuse it.

Thanks for all your help. No matter how bad things get it is helpful to know what I'm facing. Fear of the unknown seems worse than the terrible consequences!

[paralyzingdebt]

Am I in luck?!

I just was able to access all my old bank statements online. I have only one bank account and only paid through that account, whether by check or debit card. I checked every single statement for 2001 and my very LAST payment to Discover was on 2/12/2001. That's 4 years, 2 months and 10-some-odd days.

Now what do I say in my Answer? THANK YOU SOOOOO MUCH FOR YOUR HELP!!!!!!!!

[paralyzingdebt]

I also checked all my 2002 statements, and 2003 as well, to make sure I didn't make any payments since then. None.

[Ladynred]

OK ! So the SOL ran out last month. Now you need to know what the exact filing date of that lawsuit was. If it was filed AFTER 3/12/05, you're golden

If it was filed AFTER 3/12, then this is what you'll need to do:

[url]http://whychat.5u.com/answer.html[/url]

The instructions there are very good and the applicable statutes are on that same site. The SOL is your affirmative defense, so you have to use it or lose it. Since you've got documentation to fall back on, that's a huge plus for you

[paralyzingdebt]

It was filed April 11th!!!!!!!!!!!!!!!!!!!

I just finished asking about this again on the website creditinfocenter and then saw you are a moderator there. Sorry about all the duplication!!!!