Collection Agency seeking judgement

[mo99]

What is the name of your state?Pennsylvania

Due to circumstances,I had to stop paying on a debt with MBNA about 2 years ago.They refused to work with me to lower my monthly payment and eventually charged off the account after attaching fees running it up from 4000.00 to 6000.00. Then the infamous CACV of Colorado bought the debt.After a period of extreme harrassment,they took it to the National Arbitration Forum and of course they ignored my side of the story because as I understand this agency is funded by the debt collectors and they always win.On Tuesday,I was served paperwork by the county sheriffs department stating I am being sued for judgement.I need to know what are my best options at this point and what exactly are they able to get from me after winning judgement.This has been worrying me day and night.Thank you.

 

[Ladynred]

Well, they're taking that arbitration 'award' and looking to turn it into a judgment. Since you say its only been 2 years since you stopped paying, it is still within the SOL (statute of limitations).

They cannot garnish wages in PA. They cannot place a lien on your home (if you have one) for credit card debt in PA. If you have a house and its deeded as 'tenancy by entirety', then it is exempt from the debts of 1 spouse. So, what that leaves them to go after is your bank account(s) and any non-exempt property you might have.

The PA exemptions are here:
http://www.bankruptcyaction.com/paexemptions.htm

 

[mo99]

What would now be my best plan of action.I would like to get this resolved.Are payments an option or do they expect payment in full?Do I need an attorney? I have 20 days to respond.Thanks.

 

[Ladynred]

If you are required to file an Answer to the Complaint then you MUST do so and do it within that 20 days. If you don't want to let them get a default judgment, then make your Answer a general denial and go to the court date.

You can contact the lawyer and see if they'll accept a payment arrangement, but be aware that if they do accept, they are likely to ask you to sign a 'consent to judgment'. What that means is that they will take your payments, but if you miss a payment or are even late (without telling them), then they can use all judgment enforcement means available to collect.

If you come to an agreement, get it in writing and make sure that you also get a letter of satisfaction when the debt is paid.

If you end up in court anyway, you will likely be offered the chance to come to a settlement or payment agreement anyway, just be prepared with an offer of your own IN WRITING.

 

[mo99]

Thankyou Ladynred for your prompt replies.I have one additional question,if you dont mind answering.I wish I wouldnt have taken the bad advice on another website to just walk away from the debt and nothing can happen.Do you feel it would be better to contact their lawyer or respond to the summons and have the court work out payments?I cant afford large payments but I would like to work this out.Thanks.

 

[Ladynred]

Actually, you can do both. Even if you decide to contact the lawyer to make arrangments, you should file your Answer to the lawsuit anyway. That will cover you legally, especially if the lawyer rejects your offer. There have been many accounts where people thought they had avoided court and a judgment because they 'made arrangments' with the lawyers, only to find out that the lawyer went ahead and got a default judgment against them anyway. In this case - C.Y.A. - all the way

 

[mo99]

Thanks again for the advice.As I was studying the documents to prepare my response I noticed they have the wrong middle initial of my name on all their documents.Does this technicality matter?Thanks.

 

[mo99]

I want to prepare my response in writing.What should be included in this letter?I had previously asked for written documentation from CACV to verify the amount of the outstanding debt.They never sent it to me,Also after reading threads in this forum I now realize CACV used many illegal tactics such as,threatening wage garishment which they cant in PA,they called my payroll dept at work,and even called my neighbor to inquire if I was working full time or layed off.They even talked to my wife after contacting me at work to tell her I said it was OK to give them my checking account number for payment which was a lie.Fortunately she didnt give it to them.I would have preferred to make arrangements to pay this off but in no way could I trust them.Should I have a lawyer write this or is it acceptable for me to do it and what should it include.Thanks.

 

[Ladynred]

You don't need a lawyer to prepare your Answer.

There is some great info on how to answer a complaint here:
http://www.legalhelp.org/answering_complaint.htm
http://www.legalhelp.org/affirmative_diffense.htm

Definitely read more of what's on that site, it should help a lot.

You can always file a cross-complaint against CACV for their heinous violations of the FDCPA. CACV is one of the worst and in your case they were certainly up to their worst tricks. You might want to contact that PA lawyer I sent you the link for and ask if he'd be willing to help you do that if you're not up to doing it yourself.

 

[mo99]

Thank you Ladynred for your helpful advice.Never being in this situation before,I was unaware of my rights when being harrassed by CACV bottom-feeders.They also ignored my request for documentation of said debt before going to their obviously biased National Arbitration Forum.I submitted my response but of course the NAF is a farce and awarded CACV.