Validation of debt

[Amyoung4]

What is the name of your state? OH
TO make a long story short, I defaulted on a Providian card, they sold to Portfolio recovery - I was making pmts ($1400 so far) and had some money troubles and need to miss a pmt.I never intended to welch on paying this. Now they want a chunk down to resume my pmts and I dont have it....They got their lawyers involved and I received a complaint filed in court that I have 30 days to respond with an answer to the attorney and file a copy in the court. At this time, it is to late to file a validation of debt? Should this be what I send in response? I had this long letter typed out but I dont want to give any ammunition to them. Please lt me know someone as I cant afford an attorney!! Thanks

[Ladynred]

it is to late to file a validation of debt?

Way, WAY, too late. You've already admitted the debt by making payments, you're on the hook. What you SHOULD have done was let the creeps at Palisade know that you would miss a payment, you MIGHT have been able to work that out. Too late now.

Should this be what I send in response?

Absolutely not. You need to respond to each one of the allegations in the Complaint with one of 3 answers "affirm", "deny", "lack sufficient knowledge".
Writing a long rambling letter will only make things worse. Just stick to the FACTS. They don't care about your financial or life situation, they ONLY care that you owe a debt and they're going after you to pay.

[Amyoung4]

I did call Portfolio and asked to miss a pmt in June and was told I would have to make a double pmt the next month and I couldn't. There are like 5 things listed on the court papers. I never stopped contact. Every time I got A letter I responded and tried to work something out and was told no from the lawyer and Portfolio, without atleast 600 down and I dont have it. The lawyer contacted me the other day at work, 5 days AFTER I got the court papers and was real nice this time, of course. He wants me to fax my check stubs so he can contact Providian-the original creditor- and see if something can be worked out. I dont feel real comfy doin that. Why is it to late to do the Validation of debt even if Ive made pmts. Isnt that only questioning the debts validity?

[Ladynred]

Validation is asking them to produce proof that the debt is yours. Since you've been paying them, you've ADMITTED the debt is yours, so validation at this point is just not going to get you anywhere.

Portfolio Recovery BUYS bad debts, Providian doesn't own your account any more, PRS does, the're NOT 'checking with Providian' at all, that's BS.

Do NOT fax them your paystubs, you're only giving them additional information to aid them in garnishing your wages once they win the judgment - and they probably will.

Get your answer filed with the court and PRS before the 30 days runs out. If the court doesn't just grant them a summary judgment and you get a court date, you'll be able to negotiate further.

[Amyoung4]

I take it PRS usually takes it all the way? Have you heard of them putting liens on house? Or is their main thing garnishing wages? One more quick question. My husbad and I have a joint checking, can they latch on to that for an individual debt in OH? I fhtey can better get his individual account going huh.

[Ladynred]

PRS DOES sue and they will pursue payment. Once they have a judgment, they can place a lien on your home. They can also sieze that joint account, so get your name OFF any joint accounts ASAP !

[Amyoung4]

Ladynred...I already ordered checks today for the account that has my husbands name on it only. Our joint account has enough left for checks to clear then I will close the account. They can not attach a bank account prior to going to court and getting a judgement against me, can they?
Also, would doing a quit claim deed right now do any good, or would the court call this deceptive?

[Ladynred]

They can not attach a bank account prior to going to court and getting a judgement against me, can they?

No, not in your state.

, would doing a quit claim deed right now do any good, or would the court call this deceptive?

It would be considered a fraudulent transfer and voided by the court. So no point in doing it.

[Amyoung4]

So, I guess I wait to see what the court says after I respond to their claim against me. Once they would get a judgement, I can still set up payments without wage garnishment if they'll accept it, cant I? I have forms to file with the court within 5 days if a garnishment is ordered to be started. They state I am disputing the garnishment and for what reasons. I would say I repeatedly tried to make payment arrangements but without a lump sum down they would not let me resume payments. Which is true. I also have a form "payment to avoid garnishment". I understand none of this pertains unless they proceed with a garnishment.