citation for cc debt

[lonestar1]

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

Hi. I've been reading and learning from some of the questions and replies on this site, and they are very informative.
My question relates to a summons for a credit card debt. I had two cards with the same company. The last time I made a payment on this particular debt was last year. This is , unfortunately one of many cc payments I fell behind on, and in desperation, I attempted to enlist the help of debt consolidation, but was refused by one company, and another wanted higher payments than I could possibly afford. I then considered a home equity loan, but at the time had a tax judgement against my property, so that option was out. Finally, I enrolled with a debt settlement compay.
Now I'm being sued by one creditor,(for the two accounts) others are most likely standing in line. I recieved a summons from this creditor, so I filed an answer within the specified time. I replied to each question with an affirmitive( if I believed it was true), or with a "lack knowledge of the truth" ( if the information was in question, such as the dollar amount of the debt, which I have no idea if it is correct after inflated interest rates and late charges and overlimit fees are tacked on). I also filed a Notice of Appearance and Certificate of Service.
The tax judgement has been cleared and I am close to a position now where I could possibly obtain a home equity loan (my home is free and clear)and pay this debt and the others also. The only problem is, i must raise my credit score just a little bit before I can be considered for a loan.
The cc's lawyer has offered a settlement of 80% of the balance of the lower amount owed payable in two equal installments, or a monthly payment on the full (lower) balance. Is this a trap? I have not recieved any communication about the higher balance, and I believe I could come up with the first settlement payment, but not the second right away. Also, I could not afford to pay much more per month than their offer (and there are TWO accounts). Plus I am paying the settlement company and saving a little money each month according to their guidelines to pay off the other debtors.
I have communicated with the debt settlement company and let them know that I have a modest amount of cash saved to pay a creditor, and this will probably raise my credit score enough to obtain the home equity loan.( I only need a few points.)
My question after all this is.....should I accept the montly payment option offered to buy some more time? (This would give me a chance to raise my credit score enough to hopefully get the loan.) Is it possible that if I accept will they turn around and slam me with a settlement offer/monthly payment offer for the higher balance? Who's in line to sue me next??? Arghhhhhh! If I do end up in court will they work with me or am I dead meat? I feel like I'm in credit HELL.
I realize there are variables involved and there are no mind readers out there to know exactly who will do what. But based on someones experience and expertise, I would appreciate any replies. (advice...suggestions...xanax...)
I believe in Texas that homesteads are exempt from judgements? I own other property. In case none of this works out, is there any way to exempt it?

 

[Ladynred]

You are correct, in TX they cannot touch a homestead.

You say you want to raise your scores just a few points. You seem to think that paying off collections and charge-offs will raise your score. I have bad news for you - paying collections and charge-offs will NOT raise your score. 'paid charge-off' or 'paid collection' or 'settled for less than full' are ALL BAD. In the general FICO calcs, these will not raise your scores one bit. If the debt settlement company told you it would they either lied or they're completely clueless.

Have you even looked at your reports lately ? If not, I suggest you do so. The debt settlement company is doing you NO favors, they're just costing you money.

As for the lawsuit, 80% is a lousy 'deal', but typical for a debt that is only a year old. What was the charge-off date and who is the creditor ?
You CAN try to negotiate them down to 50% or so, its not too late.

 

[lonestar1]

Thank you for your reply, Ladynred.
No, I have not seen my credit reports, but am taking your advice and looking. I'm not sure of the charge off date. The creditor is Citibank.
In regards to negotiation, what would be the first step?

 

[lonestar1]

OK...I wrote a letter to the Citibank's lawyer whose name was on the summons and made a settlement offer of 50% on both accounts. I have not received a reply, although I did notice two calls from this attorneys office on caller ID, but was not home to answer, and not sure if I should have anyway... (Everything in writing!) About two days later I received a notice from the county clerk's office that the amount of the claim exceeds the jurisdiction of a county court and was dismissed. What does this mean? That if they won't settle it will go to a higher court...as in district court? What would the next step in this mess be? Should I write Citibank themselves and make the same offer? I can get the cash for the 50% settlement if they will accept it ( but probably not much more than that). And I noticed in the citation that they are asking 4 thousand or so dollars in attorneys fees......Yikes! If they agree to settle, woud I be responsible for that still? Thank you in advance for any replies.

 

[Ladynred]

If the claim was originally filed in small claims court, your state's equivalent, then the notice is saying that the amount they're suing you for is too high to be handled in small claims and must be re-filed in a higher court. If District court is the next level up, then that is where it'll have to be re-filed.

They might still settle for 50% of the total, which includes the legal fees. The attorney is now handling your account since its reached this phase. If you write to Citibank, they will likely just direct you to the attorney anyway.

 

[lonestar1]

Thank you Ladynred for replying.... and oh hells bells...is it too late to request a validation of the account?