Urgent! Can a creditor refuse payment in full prior to court?

[ManchesterMommy]

What is the name of your state (only U.S. law)? Tennessee

I have a couple of urgent questions regarding a pending general sessions court date 2 days from now….. I defaulted on a $679.00 credit card debit with Lowes/GE Capital Retail Bank which was sold to Portfolio Recovery Associates. The debt is now being handled by McLemore & Edington, PLLC. in Knoxville, TN. The debt is now $852.33, and I have been served a summons to appear in court regarding the debt. I do not dispute the debt, but I would like to avoid a judgment. I have tried contacting McLemore & Edington and can not get a hold of a live person. I called 21 times today to try and make payment so to avoid the judgement, every single time I got a recording. I know that sounds crazy to call that many times, but I am starting to get very worried. Since I couldn’t get a hold of anyone, I tried calling PRA to see if they would take the payment directly. I spoke to a regular rep and a supervisor and both said they couldn’t take the payment and I needed to call the lawyers office. I tried explaining I could not reach a live person, but that didn't seem to matter. I am not sure how to proceed??

Can someone sue you and then refuse to take payment? What if I can not get through to the lawyers office tomorrow? If I end up having to go to court can I avoid a judgement or is it to late? Upon searching different sites I seem to get conflicting information. I have seen sites say that you can settle up to the last moment; then I have also read that it is true, but that it will still be considered a judgement. Any help you can offer is greatly appreciated!

 

[Proserpina]

What is the name of your state (only U.S. law)? Tennessee

I have a couple of urgent questions regarding a pending general sessions court date 2 days from now….. I defaulted on a $679.00 credit card debit with Lowes/GE Capital Retail Bank which was sold to Portfolio Recovery Associates. The debt is now being handled by McLemore & Edington, PLLC. in Knoxville, TN. The debt is now $852.33, and I have been served a summons to appear in court regarding the debt. I do not dispute the debt, but I would like to avoid a judgment. I have tried contacting McLemore & Edington and can not get a hold of a live person. I called 21 times today to try and make payment so to avoid the judgement, every single time I got a recording. I know that sounds crazy to call that many times, but I am starting to get very worried. Since I couldn’t get a hold of anyone, I tried calling PRA to see if they would take the payment directly. I spoke to a regular rep and a supervisor and both said they couldn’t take the payment and I needed to call the lawyers office. I tried explaining I could not reach a live person, but that didn't seem to matter. I am not sure how to proceed??

Can someone sue you and then refuse to take payment? What if I can not get through to the lawyers office tomorrow? If I end up having to go to court can I avoid a judgement or is it to late? Upon searching different sites I seem to get conflicting information. I have seen sites say that you can settle up to the last moment; then I have also read that it is true, but that it will still be considered a judgement. Any help you can offer is greatly appreciated!

Yes, they can - they've already had to incur more costs because they had to sue you.

They can still negotiate with you, but there's no incentive for them to do so. A judgment is, at least in part, something of a guarantee that they'll get paid.

 

[ManchesterMommy]

Yes, they can - they've already had to incur more costs because they had to sue you.

They can still negotiate with you, but there's no incentive for them to do so. A judgment is, at least in part, something of a guarantee that they'll get paid.

I am not sure if this will have any bearing on your reply, but the $852.33 from what I have been told is reflecting their fees. Now I am sure that will increase after a court appearance. Again I was trying to avoid court all together, and pay full amount plus fees. I would just like to avoid a judgement. As for guarantee, even with a judgement there is no guarantee.... Correct? Now they just have a legally enforceable order to collect monies (i.e., garnishment, bank acct, lien on property). Whereas accepting money from me prior to court date by certified funds would be a guarantee would it not? I guess I am hoping for advice on how I make payment when I can't even speak to someone from the law office...

 

[Proserpina]

I am not sure if this will have any bearing on your reply, but the $852.33 from what I have been told is reflecting their fees. Now I am sure that will increase after a court appearance. Again I was trying to avoid court all together, and pay full amount plus fees. I would just like to avoid a judgement. As for guarantee, even with a judgement there is no guarantee.... Correct? Now they just have a legally enforceable order to collect monies (i.e., garnishment, bank acct, lien on property). Whereas accepting money from me prior to court date by certified funds would be a guarantee would it not? I guess I am hoping for advice on how I make payment when I can't even speak to someone from the law office...

We really can't help you too much unfortunately. It's going to fall directly on whether or not they'll accept what it is you have to offer.

The good news is that at least a regular creditor can't get your license revoked, or your tax refund intercepted. But yes, they can (and likely will if they go ahead) get a garnishment order, and they're commonly done in the same hearing. They'll also likely get a judgment lien on real property. Bank levies are also up for grabs.

The bad news is that these judgments last a LONG time and can be renewed.

Suffice it to say that TN is heavily in favor of the creditor.

 

[ManchesterMommy]

We really can't help you too much unfortunately. It's going to fall directly on whether or not they'll accept what it is you have to offer.

The good news is that at least a regular creditor can't get your license revoked, or your tax refund intercepted. But yes, they can (and likely will if they go ahead) get a garnishment order, and they're commonly done in the same hearing. They'll also likely get a judgment lien on real property. Bank levies are also up for grabs.

The bad news is that these judgments last a LONG time and can be renewed.

Suffice it to say that TN is heavily in favor of the creditor.

Thank you for the response.
I would like to say I feel somewhat put off by your response.... I am unemployed, do not have any equity in my home actually I am behind 3 months on mortgage (making agreed payments), have 4 kids, and the money in my account that can be exempt (under $4,000). I have no assets... I believe I am what they call judgement proof??? As for tax interception that is not correct, only money owed the IRS, for government loans, child support and such can be taken to fulfill a debt. I will not have to worry about a long judgement as I am prepared to pay immediately, and I do know it will still remain on credit!

I came to seek advice from the community on possible options, not to be judged... Again, I owe the money and I am willing to pay it. I know it is up to them to communicate with me or not.... I just wasn't sure if I had any other options.

 

[Proserpina]

Thank you for the response.
I would like to say I feel somewhat put off by your response.... I am unemployed, do not have any equity in my home actually I am behind 3 months on mortgage (making agreed payments), have 4 kids, and the money in my account that can be exempt (under $4,000). I have no assets... I believe I am what they call judgement proof??? As for tax interception that is not correct, only money owed the IRS, for government loans, child support and such can be taken to fulfill a debt. I will not have to worry about a long judgement as I am prepared to pay immediately, and I do know it will still remain on credit!

I came to seek advice from the community on possible options, not to be judged... Again, I owe the money and I am willing to pay it. I know it is up to them to communicate with me or not.... I just wasn't sure if I had any other options.

Re-read what I actually wrote.

Thanks.

 

[ManchesterMommy]

I stand corrected... I misread the comment on tax interception and I apologize.

 

[justalayman]

continue to try to call them. Leave a message you are prepared to pay in full prior to court with certified funds.

What does the complaint say regarding what is being sought?

Is this an actual trial scheduled or is it some sort of pre-trial hearing?

Did you respond to the complaint and summons? How did you respond; liable or not?

the point is to show up to court with enough in certified funds for what you know is owed and, since there is an unknown amount for fees an/or costs, have enough cash on hand to be able to pay that prior to the trial. You would want to approach the attorneys prior to trial and pay them on the spot. If they rebuff you, you walk into court and tell the judge you attempted to pay the attorneys the full amount that would be awarded them prior to the trial so as to avoid a judgment on your credit record and they refused to accept it. At that point, the judge should actually dismiss the claim as if they refuse certified funds and/or cash, it is equivalent to them saying you do not owe anything. More likely the judge will ask them if you did that and if you are still willing to pay and hopefully actually admonish them for wasting the courts time and tell them to accept the money and be done with this.

I would call the court clerks office and ask them if they can assist you in determining what court costs would be involved so you can include that in your certified check or cash on hand. The only thing remaining would be any legal fees they might be able to claim.

 

[Proserpina]

continue to try to call them. Leave a message you are prepared to pay in full prior to court with certified funds.

What does the complaint say regarding what is being sought?

Is this an actual trial scheduled or is it some sort of pre-trial hearing?

Did you respond to the complaint and summons? How did you respond; liable or not?

the point is to show up to court with enough in certified funds for what you know is owed and, since there is an unknown amount for fees an/or costs, have enough cash on hand to be able to pay that prior to the trial. You would want to approach the attorneys prior to trial and pay them on the spot. If they rebuff you, you walk into court and tell the judge you attempted to pay the attorneys the full amount that would be awarded them prior to the trial so as to avoid a judgment on your credit record and they refused to accept it. At that point, the judge should actually dismiss the claim as if they refuse certified funds and/or cash, it is equivalent to them saying you do not owe anything. More likely the judge will ask them if you did that and if you are still willing to pay and hopefully actually admonish them for wasting the courts time and tell them to accept the money and be done with this.

I would call the court clerks office and ask them if they can assist you in determining what court costs would be involved so you can include that in your certified check or cash on hand. The only thing remaining would be any legal fees they might be able to claim.

The time to negotiate was long before OP was sued. The creditor is absolutely not required to accept payment before the hearing.

I can agree though, that if they're decent, it should be negotiable before the case is heard. But leaving it until the absolute last minute is not in OP's favor at all and quite honestly they shouldn't be admonished for protecting themselves.

 

[Proserpina]

I stand corrected... I misread the comment on tax interception and I apologize.

That's ok - it's early anyway and I for one am nowhere near caffeinated enough

 

[justalayman]

Proserpina;3256662]The time to negotiate was long before OP was sued. The creditor is absolutely not required to accept payment before the hearing.

OP is not negotiating. OP is attempting to pay in full prior to court. Yes, they are required to accept payment in full prior to a hearing.

I can agree though, that if they're decent, it should be negotiable before the case is heard. But leaving it until the absolute last minute is not in OP's favor at all and quite honestly they shouldn't be admonished for protecting themselves.

this has nothing to do with being decent. If they refuse payment in full, the debt should be considered voided. That is the only amount a creditor ever has to accept but they do have to accept it. Continuing a suit after payment in full is tendered is an abuse of the system and could actually be seen as malicious prosecution. Any lawyer refusing payment in full prior to actually showing up in court should be reported to their state's Bar for unethical behavior.

 

[ManchesterMommy]

continue to try to call them. Leave a message you are prepared to pay in full prior to court with certified funds.

What does the complaint say regarding what is being sought?

Is this an actual trial scheduled or is it some sort of pre-trial hearing?

Did you respond to the complaint and summons? How did you respond; liable or not?

the point is to show up to court with enough in certified funds for what you know is owed and, since there is an unknown amount for fees an/or costs, have enough cash on hand to be able to pay that prior to the trial. You would want to approach the attorneys prior to trial and pay them on the spot. If they rebuff you, you walk into court and tell the judge you attempted to pay the attorneys the full amount that would be awarded them prior to the trial so as to avoid a judgment on your credit record and they refused to accept it. At that point, the judge should actually dismiss the claim as if they refuse certified funds and/or cash, it is equivalent to them saying you do not owe anything. More likely the judge will ask them if you did that and if you are still willing to pay and hopefully actually admonish them for wasting the courts time and tell them to accept the money and be done with this.

I would call the court clerks office and ask them if they can assist you in determining what court costs would be involved so you can include that in your certified check or cash on hand. The only thing remaining would be any legal fees they might be able to claim.

Thank you for the response!
I was served a civil warrant/summons by the county general sessions court. It states they are suing me for monies not paid $678.83 with post-judgment interest & the costs of the action (summarized). I did not respond; from what I understand the general sessions court is slightly informal and responses are not given until court. It is not a trial. I hope that makes sense I planned to visit the county clerk's office today see if they could offer assistance and of course continue to try the attorneys. In letters from the attorneys office the amount is $852.33 which is to include their fees, and is dated after their filing of the suit.

If do not get the matter resolved with todays efforts, I will come prepared with funds as you have suggested. I am so very appreciative for your advice, I feel like I have some options to hopefully get this debt resolved without judgement. Thank you!

 

[Proserpina]

OP is not negotiating. OP is attempting to pay in full prior to court. Yes, they are required to accept payment in full prior to a hearing.

this has nothing to do with being decent. If they refuse payment in full, the debt should be considered voided. That is the only amount a creditor ever has to accept but they do have to accept it. Continuing a suit after payment in full is tendered is an abuse of the system and could actually be seen as malicious prosecution. Any lawyer refusing payment in full prior to actually showing up in court should be reported to their state's Bar for unethical behavior.

I can't see anything in the TN code requiring the creditor to accept payment and nothing about refusal leading to the debt being voided.

Help me out here.

 

[ManchesterMommy]

I can't see anything in the TN code requiring the creditor to accept payment and nothing about refusal leading to the debt being voided.

Help me out here.

If I may ask... this part in which you both disagree is what I could not understand?? Is it not the point of a judgement for the plaintiff/creditor to be able to collect money owed to them. If I have tried to pay them cash/cashiers check prior to court and they refuse how is that legal=judgement?? I will get punished for something essentially I had no power to fix? Nowhere on the summons does it state that I have a limited time to pay the debt.... it only states that I am being sued for failure to pay and that I am to appear court. Well thats not true, I am trying! Actually as I said in the initial post I spoke to the creditor Portfolio Recovery and they refused a payment in full... They told me to keep trying attorneys.... When I asked the supervisor for assistance in getting a hold of them he said he couldn't do anything.

Proserpina- I understand what you are saying... but at what point can creditors stop accepting money? Is it 30days, 90days, after debt has been sold? I understand their right to collect monies owed to them including fees, court costs and such; but to refuse payment in full just does not make sense. I have already been punished for not paying on time... late fees, interest increase, collection fees, attorneys tacked on to original amount borrowed. I also have an adverse credit report. I feel like if they can get away with not accepting payment if full, what else could you call it except malicious.

 

[justalayman]

I can't see anything in the TN code requiring the creditor to accept payment and nothing about refusal leading to the debt being voided.

Help me out here.

mind you, I am not talking about just the underlying debt. I am speaking to the entire amount the plaintiff would be awarded should it proceed to court.

If there is law on the matter it will be in the UCC or the state's version of the UCC. Other than that, it is a matter of common law.


Think of it this way;

If I owe you money, I attempt to hand you every single penny I owe you and you refuse, just how in any logical mind could you refuse and then demand I show up in court after that asking for exactly what I attempted to pay you? You don't think a judge is going to be a bit peeved that the lawyer continued on to court when there was absolutely no reason to do so?

The only reason to continue the suit would be to punish the defendant. The court is the only entity that has a right to punish a defendant and punitive damages would not be available in a simple debt situation. If a judge is worth his salt, he is going to educate the plaintiff's lawyer on how valuable the courts time is and their presence given the defendant's offer is nothing more than an attempt to punish the defendant. Hopefully he will go on and inform the lawyer only he gets to mete out punishment in the court system and given the lawyer doesn't understand what "ethical" means, lay some form of punishment on the lawyer.