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I'm being sued by Credit Card Company

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hunter0302

Guest
What is the name of your state? Arkansas

I have a delinquent account with Montgomery Ward with a balance of approximately $900.00. Before their bankruptcy my monthly minimum payment was about $50.00. After the bankruptcy I was contacted by a collection agency and was told that $50.00 a month would not be acceptable. I told them that was all I could pay and they would not agree to that. Now they are calling wanting to serve papers on me to take me to court and said they will tack on court costs and legal fees. Can they up my amount due each month because of their bankruptcy and if they take me to court and get a judgement against me, how much will the be able to garnish from my paycheck.
 


bigun

Senior Member
First of all, are you still making those $50 payments. If so, they'll more than likely leave you alone. They're just trying to see how far they can push. If you haven't been making those payments then, I'd say you have a problem and they're not bluffing. Who is the collection agency.
 

Ladynred

Senior Member
Here's a link to the Arkansas garnishment laws:

http://www.state.ar.us/labor/code.php?code=16-66-208

Yes, the CA CAN try to 'up' your payments, unfortunately. Yes, they can tack on legal fees. Interesting, my MonkeyWards account was bought out by Wal-Mart. The bankruptcy has nothing directly to do with they demand for a bigger payment, they just want the debt paid as fast as possible.

What do you mean they're calling and 'wanting to serve papers on you' ? DO they have papers, or is it a threat ? They cannot legally threaten you with a lawsuit unless they absolutely intend to do so. Next time they call, ask them for the exact date they're going to file papers. Read the Fair Debt Collections Practices Act (FDCPA), sounds like they've already violated it. Learn your rights and their limitations. You will find it here:

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#806

That section is on abuse, but read the whole thing.

Send them a letter, Certified RRR and offer them a payment plan you CAN afford. They'll probably reject it, but if you stick to your guns and keep saying you can't afford anything more, you may win. If not, you get to argue in court if they DO sue you and if you take your financial papers with you, showing that's all you can pay, you may win with the judge.
 

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