Being Sued for $2553.55

[GulfBreeze]

Thanks for your responses. The summons was issued from our superior court. We're not disputing the amount. As of our last payment, that's what it was. I checked & for both CA & the issuing state, FL, the SOL is four years. When does the time frame for that begin & end? It seems if they're taking this action & saying the debt was incurred during the last four years, they would need to file before that period is up. Does the date of our last payment figure into this? I suppose, they could set arbitrary dates which would fit their purposes & not the actual situation. This, of course, would be dishonest & unethical & I would like to think we're dealing with attorneys who are more above board. Should we use the General Denial form & just say we believe the time has past, but, if it hasn't, we're willing to take responsibility(including the letter we've submitted to the plaintiff's attorney showing that's what we're trying to do)?

My husband's credit has improved & we don't want this to screw it up again. We'll pay, if that's how it's to be, but, we don't want it showing on the report that they had to go to court to get that result. It seems it would wipe out the good foundation we've built with one cc company we've been with for five years. Plus, we have a couple more companies(not cc)we're establishing a good record with.

There will be time to settle with them (eg...mediation or judgment) when it gets to that point if not past the SOL but for now...The FL rule is from the last activity...when you made last payment or charge. Not when it went deliquent, usually 30 days past due.

If its been a long time and getting close to the 7 years, don't worry about it affecting your credit score as it will not be reported on your credit report after that.

 

[GypsyButterfly]

We just looked at his credit report in the last week & that is no longer listed. If we do need to pay on this, it won't be reflected there(showing it has been taken care of)? The plaintiff should have records when we last paid. Hopefully, they wouldn't falsify that. I don't believe we have any more of their statements. Even if we do, not sure if it would prove anything.

At this point, what is our next step? We want to make an answer to the court before the 30days is up. We don't want this to be a default. Especially, if we don't actually owe. We're not disputing the amount. We're only contesting whether it's still within the timeframe they can collect on it.

 

[moburkes]

Stop referring back to the credit report.


What was the date of the last payment? Was it within the last 4 years?

 

[SHORTY LONG]

For what this is worth, I paid a $22.00 Florist unpaid bill to the Credit Bureau, that
was on my Mother's credit report, that my Dad had caused. It was 19 years old.

 

[moburkes]

For what this is worth, I paid a $22.00 Florist unpaid bill to the Credit Bureau, that
was on my Mother's credit report, that my Dad had caused. It was 19 years old.

Oh, no. While you did the right thing morally, you just allowed that collections to stay on her credit for several more years.

 

[SHORTY LONG]

Back in the late 60's my parents divorced, and a friend suggested we look into Mother's
Credit. And behold, the unpaid debt was there. So, I satisfied it, and she has had
exemplary credit thereafter.

 

[dcatz]

This is a fascinating thread. One wonders where it will come out.

There will be time to settle with them (eg...mediation or judgment) when it gets to that point if not past the SOL

If there is no response filed, the creditor will take judgment – irresponsible assumption. If a response is filed, defendants immediately do discovery, determine if the SOL defense is viable and select a final course of action. OP, the case is for 1/3 the jurisdictional limit in Small Claims. If you find the creditor has a provable case and expect a law firm to work for 6 months answering discovery and making statutory court appears and still accept $2,553.55, you will have a rude awakening. The firm will do discovery as well. If you are not prepared, it will file motions and seek sanctions. It is more realistic to believe that you will be subject to sanctions than to believe you have the time suggested.

The FL rule is from the last activity...when you made last payment or charge. Not when it went deliquent, usually 30 days past due.

Appropriate point but covered previously. Other than that, wrong state and, absent a response, irrelevant. No right to discovery.

If its been a long time and getting close to the 7 years, don't worry about it affecting your credit score as it will not be reported on your credit report after that.

Curious advice. A CA judgment is good for 10 years and is renewable. Per the FCRA, the new judgment record can be entered and maintained for the life of the judgment, potentially making it longer than the 7 years for the original debt and the 10 years for bankruptcies. Not irrelevant – dangerously misleading. Assumes facts not in evidence. The only way to avoid the adverse impact is to avoid the judgment.

Stop referring back to the credit report.
What was the date of the last payment? Was it within the last 4 years?

Spot on, moburkes!

Should we use the General Denial form & just say we believe the time has past, but, if it hasn't, we're willing to take responsibility?

And that would be an admission or a denial? As previously explained, you have the option of obtaining a pre-response payment agreement in writing but without ever knowing with certainty if the claim was time-barred. The other option is to file an unqualified denial and do discovery.

Carry on.

 

[dcatz]

If you find the creditor has a provable case and expect a law firm to work for 6 months answering discovery and making statutory court appears and still accept $2,553.55, you will have a rude awakening.

On refection, I would amend that. If you were already subject to - hypothetically, $1,000 in sanctions to carry your case forward - I would accept $2,553.55 in principal to settle. The ultimate cost to you would be not less than than $3,553.55 plus filing costs to either settle or lose. I think the firm could cost-justify that.

 

[GypsyButterfly]

I refer to the credit report, because, his credit has improved & looks like it will continue to. Which is why, we don't want this to wreak havoc on it. Plus, we'd like to know if we pay on it, it will be reflected in his report.

Will we be allowed to pay in installments? I know you can't give a definite answer to that, but, we can't even pay what the plaintiff says we owe, let alone anything else, without being able to do it that way. Even then, it will create a hardship. How is a situation like this normally handled?

As I have stated previously, it's been, at least six years since we've made any payment. If that's outside the time frame they can try to collect on it, then, that is what we'll dispute. How do we handle discovery? They would have the records of when we last paid. How do we find the information?

It was also mentioned about obtaining a pre-response payment agreement in writing. We get this from the plaintiff or their attorney? Would that be what we've done already, contacting them to try to work out a payment arrangement or is this something different? We're just concerned if we don't make some sort of answer to the court it will make matters worse. The plaintiff's attorney has all the time & resources to pursue this, we don't, especially the money part.

 

[GulfBreeze]

I refer to the credit report, because, his credit has improved & looks like it will continue to. Which is why, we don't want this to wreak havoc on it. Plus, we'd like to know if we pay on it, it will be reflected in his report.

Will we be allowed to pay in installments? I know you can't give a definite answer to that, but, we can't even pay what the plaintiff says we owe, let alone anything else, without being able to do it that way. Even then, it will create a hardship. How is a situation like this normally handled?

As I have stated previously, it's been, at least six years since we've made any payment. If that's outside the time frame they can try to collect on it, then, that is what we'll dispute. How do we handle discovery? They would have the records of when we last paid. How do we find the information?

It was also mentioned about obtaining a pre-response payment agreement in writing. We get this from the plaintiff or their attorney? Would that be what we've done already, contacting them to try to work out a payment arrangement or is this something different? We're just concerned if we don't make some sort of answer to the court it will make matters worse. The plaintiff's attorney has all the time & resources to pursue this, we don't, especially the money part.

Before I was rudely interupted, I was mentioning the 7 years as far as being able to report on a report...not judgment. Mediation was if this was to go to pretrial, not a response to the summons. A basic denial would all that would be needed at this time. It seems that its is past the SOL in both states. It will be up to this person if they want to do the moral thing or just fight it and win on SOL and not worry that it will affect his credit since it will not be allowed to remain on his credit score much longer if it was to pop up on it. Quit trying to twist my words around...But I am sure that the Great Clarifier will step in once again and have something to say....right?

 

[dcatz]

Est-ce que je suis le purificateur de Grear?

Nope.

The Creat Clarirfier is a bystander, fascinated by the development of the event but never disposed to rudely interrupt. The Great Clarifier trusts in the innate intelligence of Man.

Carry on.

 

[GulfBreeze]

Est-ce que je suis le purificateur de Grear?

Nope.

The Creat Clarirfier is a bystander, fascinated by the development of the event but never disposed to rudely interrupt. The Great Clarifier trusts in the innate intelligence of Man.

Carry on.

Non, juste quelqu'un qui pensent ils sont.

 

[dcatz]

That's garbled but true. However, this is about the OP's question. Neither I nor the Great Clarifier could make sense of the last advice. What is she to do?

(Who is twisting your words? And how does one interrupt a post? Did you not press "Submit Reply"? Is someone forcing you to send messages? I want to sit back and watch this develop but, if you need help, let people know.)

Carry on.

 

[GypsyButterfly]

Please let's not squabble, dear hearts We plan to send off the GD form tomorrow. Before doing so, though, I will direct your attention back to post #24, because, my questions weren't quite answered & I want to be sure everything is clear. Thanks for all the help. For example, we weren't even aware there could be an SOL on this.

 

[GypsyButterfly]

This isn't verbatim, but, what we will say on the GD form is, the SOL in CA is four years. The last time payment was made on this account & when this account was closed was 5-6 years ago, at least. If the debt started at that point, then, it is now outside the time frame. If, though, there is another reason we are still under obligation to pay this, we are more than willing to do so. We will also include the letter of such intent. That would be for the courts, as, we had already sent it to the plaintiff's attorney.

If we pay the first fee, is that an unwritten agreement we'll continue to do so? I ask, because, currently we're ICs(independent contractors)going through a slow period. We get paid 15-60 days after the completion of an assignment. What we earn each month varies. We've been living off what savings we have to supplement that. Which is what we'd need to include on the form. The concern is, the court will think, since we have a savings, even though it's to help with regular expenses not extras like this, we'd be able to afford it.

The plaintiff's attorney only has whatever records their client supplies them. If they withold anything or God forbid destroy anything, then, it's our word against theirs. I'm guessing, maybe wrongly, the ruling would be in their favor. Either, they're bringing this action because they know there isn't any supporting evidence, so, we don't have a leg to stand on or they know it's past the time to collect & have proof, but, think we'll be so terrified of being sued we won't question it or do any research.

If we need to pay, so be it. We just want to get it resolved before it goes any further. If it gets to the point where we come before a judge & they side with the plaintiff & the plaintiff wants all the money now, then what? Could they take our car, our home? Obviously those things are worth more than the amount owed, but, I don't know how this is handled. My husband says I go to the worst case scenario. I'm just trying to have us be prepared as possible.

I did notice attached to the summons was an ADR information sheet. At first I thought it was coming from the plaintiff, but, then I noticed it mentioned our county. It was stating that they recommend alternative methods, such as mediation, because they're less expensive & time consuming. Guess that's a good sign. The thing is, we're in Northern CA & the attorney is in Southern CA, so, I don't know how we'd be able to agree on an unbiased third party. Thanks again for your help.