credit card arbitration

[basslady13]

What is the name of your state?ar

I have an extreme amount of debt and I need some advice.
I went thru a bad divorce my ex filed bankruptsy but I didn't. I tried to pay my bills for a while but I changed jobs then had to start paying childsupport.
I have remarried he has debt and we made more debt together.
What I need help with is I have received a letter from one of the credit card companies that states National Arbitration Forum Claim. I cannot tell you the last time I made a payment its been atleast a year probably longer. Yes I did consult a BK lawyer it was to much money. If I had the money to pay for bk I could pay my bills. Plus the payment was more than I could make and still live. I pay my child support on time which is over 300.00 a month and I don't make enough to pay my credit cards and eat so what do I do.
This letter wants me to answer within 30 days.

 

[JETX]

Thank you for your wonderfully exciting post. It was a joy to read.... and had me literally on the edge of my seat.

Please write again next time..... oh, and if possible, please at least ask a question.....

 

[basslady13]

Tried to ask question

My question is what to do about the letter. Do I reply and tell them my circumstances or just wait for a court date?

P.S. I am glad you liked my letter

 

[HomeGuru]

My question is what to do about the letter. Do I reply and tell them my circumstances or just wait for a court date?

P.S. I am glad you liked my letter

**A: send a certified rrr letter of response within 30 days of the date of the letter.

 

[JETX]

Okay.... lets move on.

"My question is what to do about the letter. Do I reply and tell them my circumstances or just wait for a court date?"
*** Obviously, an answer to 'what to do' would require our reading the letter and seeing EXACTLY what they are offering (if anything) or suggesting. Some (most?) of the credit card companies included an 'arbitration clause' in their applications several years ago. This is NOT a consumer friendly tactic... in fact, has been shown to be very unfriendly to the debtors. There are lots of online articles about this process (see below).

If this is the case (that credit card includes the 'arbitration clause'), then you will need to read the agreement and see what, if anything, it says as to repercussions of their ignoring the request. Can they get an 'agreed judgment' against you?? Does ignoring or denying their arbitration request create a further obligation??

In summary, you need to read the letter AND the agreement you signed to see what obligations, if any, you have as to their letter.

http://www.bankrate.com/brm/news/cc/19990920.asp
http://www.citizen.org/congress/civjus/arbitration/articles.cfm?ID=7368
http://www.phil.frb.org/pcc/workshops/workshop12.pdf
http://www.bendover.com/gmtquestion.asp?faq=5&fldAuto=409

 

[basslady13]

ok read the letter

The letter states I have 3 options
1 written response in 30 days if I fail to do this an award may be entered against me.

2 Demand a document hearing

3 have other options attorney.

The cc agreement has an arbitration clause but what I get from that is I can't sue them or have a jury decide a case.

If I answer this letter. Whats the worse that can happen I get a judgement against me? I have no property.

 

[JETX]

"Whats the worse that can happen I get a judgement against me? I have no property."
*** Obviously, a judgment is the worst that could happen as we no longer allow debtor prisons.

An Arkansas judgment is good for 10 years, and accrues interest at the greater of 10% or the contract rate.
Though you claim 'no property', the judgment creditor can continue legal processes, including wage garnishment and seizing non-exempt assets until the judgment is paid in full.

 

[basslady13]

be patient

what are non exempt assets?

 

[HomeGuru]

what are non exempt assets?

**A: your ex's big butt.

 

[JETX]

Arkansas Post-Judgment Asset Exemptions

Homestead: A debtor must choose either option 1 or 2.
1. For head of family; real or personal property used as residence, to an unlimited value. Property cannot exceed 1/4-acre in city, town or village, or 80 acres elsewhere. If property is between 1/4- to 1 acre in city, town or village, and 80 to 160 acres elsewhere, up to $2,500; no homestead may exceed 1 acre in city, town or village, or 160 acres elsewhere. Husband and wife may not double the homestead exemption.
2. Real or personal property used as residence, to $800 if single, $1,250 if married.

Pensions and Retirement Benefits: Retirement plans for firefighters, police officers and school employees. IRA exemptions for conventional, Roth, SEP and SIMPLE plans. Limit of $500, and nondeductible contributions to a non-Roth IRA are not protected.

Insurance: Annuity contract. Disability benefits. Fraternal society benefits. Group life insurance. Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors. Life insurance proceeds or avails if beneficiary isn't the insured. Life, health, accident or disability cash value or proceeds paid or due (limited to the $500 exemption provided by section 9-1 and 9-2 of the Arkansas Constitution). Mutual assessments life or disability benefits to $1,000. Stipulated insurance premiums.

Personal Property: Burial plot to 5 acres. Clothing. Motor vehicle to $1,200. Wedding bands; any diamond can't exceed 1/2-carat.

Tools of Trade: Implements/books/tools up to $750.

Miscellaneous: Business partnership property.

Wages: 60 days' earned but unpaid wages if debtor's personal property plus such wages do not exceed constitutional maximum exemption. Minimum of $25 per week exempt.

Public Benefits: Unemployment compensation. Workers' Compensation. Aid to blind, aged, disabled. AFDC. Crime victim's compensation unless seeking to discharge debt for treatment of injury incurred during the crime.

Wild Card: $500 of any personal property if married or head of family; or else $200.
---------------------------

Anything not listed above.... is subject to seizure, levy and/or auction.

 

[basslady13]

assests

Thank you

I dont have but a few of the items you listed and nothing more. All I have are debts. I pay childsupport. Does the court take that into consideration if the cc company recieves a judgement?

 

[Ladynred]

Yes, it is a consideration, but you'll have to bring it up. Is the child support taken out of your wages as a garnishment ?

IF they do get an arbitration award, and they likley will anyway, the award in and of itself is about as good as TP. It only gets ugly if they trot the award down to the courthouse to turn it into a legal judgment.

 

[basslady13]

thanks

I am trying to find out what percentage of my wages can be taken from my check. Does anyone know. And yes I started a new section on this sorry

 

[JETX]

I am trying to find out what percentage of my wages can be taken from my check. Does anyone know.

*** Yes, and as noted in my post, your state does not stipulate a percentage of wages.

Your state has the following wage exemption:
"60 days' earned but unpaid wages if debtor's personal property plus such wages do not exceed constitutional maximum exemption. Minimum of $25 per week exempt."

This is covered under Arkansas statutes:
http://www.arkansas.gov/labor/code.php?code=16-66-208
and
http://www.arkansas.gov/labor/code.php?code=16-110-415

 

[basslady13]

not understanding

I know that you put that info up before but I don't exactly understand it. Can you explain it in laymans terms? Here's the deal I make 7.56 hour I get paid every 2 weeks I have 82.00 per week taken for child support. My question about how much could a cc company take on a garnishment. There are about 9 ccs out there. Some where from a long time ago before my divorce.