2 credit cards going to court..

[yuppicide0138]

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

I have 2 credit cards I did not pay and let go. Maybe $600 or so. Probably around $1200 for both of them or less.

A month ago the owner of my company announced he's retiring. I'll be out of a job the end of this month. The good thing is he's old and closing the business, so not only will I get a letter of recommendation, but also a letter stating they closed.

Within that time frame I received a notice in the mail from the court in my county. There's a date of 06/15 on it and a lawyer's name and address. Two of them one for each credit card. They're both from the same lawyer.

What are my options here?

They're not going to be able to garnish my wages, as I won't have any after this month. Obviously I don't intend to sit around, I hope to get another job, but at the moment who knows.

They're not going to be able to take any personal belongings, because I own nothing. I have a car loan. Other than that I live with a relative and own nothing.

Do I call the lawyer? If I do what shall I try and say to them? I wouldn't mind making a deal, but I'm not going to be able to pay much every month until I get a job.

or

Do I let it go to court? I'm not going to make the court date as I am still working currently. Do I try to push the court date back further?

Obviously I have no money right now. I will also not have money in two weeks because I have bills and need to pick up a suit to go on interviews.

 

[quincy]

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

I have 2 credit cards I did not pay and let go. Maybe $600 or so. Probably around $1200 for both of them or less.

A month ago the owner of my company announced he's retiring. I'll be out of a job the end of this month. The good thing is he's old and closing the business, so not only will I get a letter of recommendation, but also a letter stating they closed.

Within that time frame I received a notice in the mail from the court in my county. There's a date of 06/15 on it and a lawyer's name and address. Two of them one for each credit card. They're both from the same lawyer.

What are my options here?

They're not going to be able to garnish my wages, as I won't have any after this month. Obviously I don't intend to sit around, I hope to get another job, but at the moment who knows.

They're not going to be able to take any personal belongings, because I own nothing. I have a car loan. Other than that I live with a relative and own nothing.

Do I call the lawyer? If I do what shall I try and say to them? I wouldn't mind making a deal, but I'm not going to be able to pay much every month until I get a job.

or

Do I let it go to court? I'm not going to make the court date as I am still working currently. Do I try to push the court date back further?

Obviously I have no money right now. I will also not have money in two weeks because I have bills and need to pick up a suit to go on interviews.

You can try to settle (see the "sticky thread" on negotiations at the head of the Debt Collection forum) or you can wait to be sued.

If you do not attend the court hearing or you do not have it rescheduled, there will be a default judgment entered against you. Once the debt collector has a judgment, it can be renewed. Even if you are unemployed and have no assets to attach now, any future wages or acquisitions are vulnerable.

It is generally better for you to work out a payment arrangement with your creditor rather than having a judgment against you. If you make payment arrangements, however, you need to actually make the payments as agreed.

All of the above is said with the assumption that the debts are legitimately yours and you have no defense available (e.g., statute of limitations).

 

[yuppicide0138]

Thanks for the sticky and thanks for the reply.

Yes, they're legitamately mine. I would never deny that. Anyway, I'll try to call them tomorrow.

You can try to settle (see the "sticky thread" on negotiations at the head of the Debt Collection forum) or you can wait to be sued.

If you do not attend the court hearing or you do not have it rescheduled, there will be a default judgment entered against you. Once the debt collector has a judgment, it can be renewed. Even if you are unemployed and have no assets to attach now, any future wages or acquisitions are vulnerable.

It is generally better for you to work out a payment arrangement with your creditor rather than having a judgment against you. If you make payment arrangements, however, you need to actually make the payments as agreed.

All of the above is said with the assumption that the debts are legitimately yours and you have no defense available (e.g., statute of limitations).

 

[quincy]

Thanks for the sticky and thanks for the reply.

Yes, they're legitamately mine. I would never deny that. Anyway, I'll try to call them tomorrow.

The sticky thread, as a note, was written by a former debt collector who is now an attorney. It has good tips on negotiation.

I appreciate the thanks, yuppicide0138, so thanks. Good luck with the negotiating and good luck in your job search.