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credit card company is sueing

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LAFURY

Junior Member
What is the name of your state?What is the name of your state? Texas

In 2002 My husband lost his job and we did not have the money to continue to pay on my credit cards. The cards were in my name and the credit companies would not honor the credit protection that I purchased. The account continued to increase due to late payment charges. In 2004 the loan was sold to one collection company after another and ended up with a lawfirm who after one request for payment in full sent me a letter stating that they intended to sue. I called them immediately and asked about a re-payment program - they wanted a huge down payment or an unbelievable payment every month. I live paycheck to paycheck and do not have the kind of money they spoke about. I sent them $50 and promised to pay $50 every two weeks, however a couple of days later I received notice from them stating that they received my payment, but it would not be a satisfactory arrangement and I would need to contact their office to make adequate arrangements. I then received a statement from the lawfirm showing the original balance, my payment and finance charges of over $85, so my balance after the payment was more than the balance for this company had been for the last 4 years. This morning I was served lawsuit papers and now I am not sure what to do. Please help me - I am currently pregnant with my second child and am considered a high risk pregnancy and I am concerned about this stress - what should I do?
 


JETX

Senior Member
LAFURY said:
what should I do?
First thing you need to do is to decide if you have any defense (SOL, wrong amounts, wrong charges, etc.).
If none of the above apply.... then you might as well let them get a judgment against you.

However, if you want to challenge their lawsuit (and have a 'defense'), then you have to answer their lawsuit (usually within 10 days after the next Monday after service). Answer with a very short "General Denial of all claims". The court will then set a hearing for both of you to appear. On the scheduled day, some courts will order you to the hallway to 'mediate' your problem. If you are NOT able to negotiate a payment plan agreeable to both of you... then you return to court and the judge will hear both sides, then determine a 'winner' (who, how much, etc.).
Assuming that they get a judgment against you.... they have some additional 'tools' to try to force payment.
 

LAFURY

Junior Member
Just a little more information

I know that the SOL has not expired, so I can not fight it based upon that. I planned on answering the suit, but only because they amount that they are showing does not show my payment of $50 and therefore looks as though I made no attempt to pay at all. They are shown as "Assignee" of the original creditor and I read somewhere that they can not legally sue me in Texas - is that correct?

Also - if a judgement is put against me - what does that mean? Can they garnish my wages or freeze my bank accounts?
 

JETX

Senior Member
LAFURY said:
They are shown as "Assignee" of the original creditor and I read somewhere that they can not legally sue me in Texas - is that correct?
If they are in fact an 'assignee', then they cannot file the lawsuit in small claims court. However, if they get an attorney and sue in a higher court (Justice Court, County Court at Law, District Court, etc.) you can certainly challenge their right to sue. The problem that they normally have is that the plaintiff has to have 'personal knowledge' of the facts... and not just what someone else tells them (hearsay rule).

Also - if a judgement is put against me - what does that mean? Can they garnish my wages or freeze my bank accounts?
Texas exempts wages from garnishment, but they can file a lien on any real property you own and can take efforts to seize non-exempt assets, including bank accounts.
 

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