Summons for Credit Card Debt - What next?

[TR76]

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

I was served last night for a past due account with Chase. The court date is in just over a week. They are reporting a balance that is not correct, but I cannot locate the letter in which they show that almost an extra $1000 was added for legal fees by the law firm that was trying to collect (bad news for me, I know). I had called them to arrange for payments, but they refused to take anything that I could afford, and wanted me to settle and pay in three lump sum payments, which I cannot do since my husband lost his job.

What is the procedure for this? I have no idea what to expect, how to prepare. Do I call them now and try to arrange something before the court date or will they refuse me so they can get a judgement?

Any advice is appreciated. Thank you.

 

[Zigner]

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

I was served last night for a past due account with Chase. The court date is in just over a week. They are reporting a balance that is not correct, but I cannot locate the letter in which they show that almost an extra $1000 was added for legal fees by the law firm that was trying to collect (bad news for me, I know). I had called them to arrange for payments, but they refused to take anything that I could afford, and wanted me to settle and pay in three lump sum payments, which I cannot do since my husband lost his job.

What is the procedure for this? I have no idea what to expect, how to prepare. Do I call them now and try to arrange something before the court date or will they refuse me so they can get a judgement?

Any advice is appreciated. Thank you.

You should properly respond to the case. However, it honestly doesn't sound like you have anything resembling a defense, so I'm not sure if a proper response would even help.

As for calling them to arrange something...apparently you can't afford what they require in order to reach a settlement. It can't hurt to try, but unless you have the ability to pay what they want, then they have no reason NOT to take this to court.


ETA: OP - this doesn't apply to you...I've seen recently posts from folks claiming that Chase won't bother taking cases to court. Well, this post pretty much blows that theory out of the water!

 

[TR76]

What kind of defense could you have against a credit card debt that you actually incurred? That part of your response is somewhat confusing. I could understand if the debt wasn't mine, if someone else had used the card, etc.

So basically I need to just show up to court, with nothing but myself, and see what happens? Does the judge order payments, a one time sum paid in full, or will they allow a reduced amount? I have no idea what to expect with all of this. I am trying to find out if I can borrow from my retirement to pay it off but it's not looking likely at this point. Can they take a lien out against my home or property? The total amount, including their fees, is just over $3k, however, I only charged a little over $2k on the card.

 

[TigerD]

So basically I need to just show up to court, with nothing but myself, and see what happens? Does the judge order payments, a one time sum paid in full, or will they allow a reduced amount?

The judge will grant their judgment. Then they have to collect.

I have no idea what to expect with all of this. I am trying to find out if I can borrow from my retirement to pay it off but it's not looking likely at this point. Can they take a lien out against my home or property? The total amount, including their fees, is just over $3k, however, I only charged a little over $2k on the card.

Yes, they will most certainly file a lien against your home. Depending on the laws in your state, they could sell your home out from under you. They will drain your checking account. They may seize any non-exempt property you have and sell it at auction. They will make you answer a lot of personal questions under oath. They may call in your friends, family, employers and others into court to answer questions about you.

The process up to this point was gentle. For you, it is about to be rough with the potential of being very rough.

DC

 

[TR76]

So they would go to the trouble of selling my home or putting a lien against it for the amount I owe? If I agree to a payment arrangement, will they still do this?

 

[cosine]

So they would go to the trouble of selling my home or putting a lien against it for the amount I owe? If I agree to a payment arrangement, will they still do this?

If they didn't like the amount you were offering to pay before they sued, what do you think they would agree to after they get a judgment which gives them the power to take your entire bank account, garnish your wages, and maybe even seize property? Things will be going from bad to worse.

If they won't agree to a payment plan, either before or after a judgment, that you can actually afford to pay, then there is a process to force one on them. But that process also involves looking deeply at your finances to see exactly what you really can pay. It is called Chapter 13 Bankruptcy.

FYI, filing for BK before the judgment happens freezes the lawsuit.