Possible lawsuit, should I offer a settlement?

[Fireclown]

What is the name of your state? NC

I owe about $4000 on a credit card that I am unable to pay. I got a letter from the credit card companies attorneys threatening to enforce the attorneys fees provision of the agreement (state law sets a 15% cap), ie threatening a lawsuit.

My state does not allow garnishments to satisfy personal debts. I don't have any significant assets and what I do have is well below the state exemptions. So I don't see anyway they can collect for the forseeable future.

I am wondering how I should proceed at this point? So far I figure my options are:

1. Do nothing
2. Send the attorney a letter advising I have no assets they can collect on and hope they don't do anything
3 . Send the attorney a letter advising I have no assets they can collect on and offer a settlement.

Thanks in advance for any help.

 

[Chien]

I'd consider #3.

The attorneys don't know that you may presently be be judgment proof.

A NC judgment, while not renewable, is good for 10 years. They probably are willing to gamble that you may have some non-exempt asset(s) in that time.

Creditors don't normally say, "Ah shucks, why waste the time and money? Just forget about it."

In your present circumstances, you may have a chance to negotiate for a very favorable settlement.

Beyond that, without knowing your age and prospects that present circumstances may change (and nobody needs to know), you're in the best position to determine final strategy.