what can they do?

[markumn]

What is the name of your state? Tennessee

I was injured at work in May of 2003. I was fired from my job in June of 2003. I continued to pay my credit card limit until (my money ran out) October of 2003. I had surgery due to my work injury in August of 2003. In January of 2004, I did get a job. I had to quit that job after 2 weeks due to my work injury. I owe about $1500.00 on my credit card.

I am about to begin a workers' comp lawsuit. I told the credit card company that I could either pay them with part of my settlement or with part of my next income tax return. That was not good enough for them. They have been calling once every other day. Tonight I got a call from them telling me that I need to be looking for an attorney. If I can't afford to pay them, what makes them think that I can hire an attorney.

Can I go to jail?

 

[Ladynred]

Who is the creditor and who is calling you ? Is it the creditor or a collection agency ??

NO, you cannot go to jail, debtors prison was abolished in the US in the late 1800's !!

The threat of 'you better get a lawyer' is likely just that - a threat and a scare tactic. If the account hasn't been charged-off yet, then a lawsuit is not likely. Unless the creditor is Discover, its BS too. Discover WILL sue after charge-off and for any amount.

 

[markumn]

Who is the creditor and who is calling you ? Is it the creditor or a collection agency ??

NO, you cannot go to jail, debtors prison was abolished in the US in the late 1800's !!

The threat of 'you better get a lawyer' is likely just that - a threat and a scare tactic. If the account hasn't been charged-off yet, then a lawsuit is not likely. Unless the creditor is Discover, its BS too. Discover WILL sue after charge-off and for any amount.

The credit card company is Capitol One. The collection ageny that keeps calling me is Aliance One. What does the term "charged off" mean?

 

[Shay-Pari'e]

This refers to a loan that has been removed from lender's list of performing loans. It is usually a seriously delinquent loan and is generally referred to a collection firm or legal firm for management and disposition.

 

[markumn]

This refers to a loan that has been removed from lender's list of performing loans. It is usually a seriously delinquent loan and is generally referred to a collection firm or legal firm for management and disposition.

Thank you for setting me straight on that.

 

[Ladynred]

To add to that, a charge-off happens at 180 days of non or insufficient payment. Some creditors will charge-off sooner, but the 'norm' is 180 days.

Crap1 ? Alliance One ? Alliance, I believe, is Crap1's collection arm and I've got bad news for you, Crap1 does sue.

 

[markumn]

To add to that, a charge-off happens at 180 days of non or insufficient payment. Some creditors will charge-off sooner, but the 'norm' is 180 days.

Crap1 ? Alliance One ? Alliance, I believe, is Crap1's collection arm and I've got bad news for you, Crap1 does sue.

If Crap1 does sue me, what will most likely happen since I don't own anything? I don't own or rent a home or apartment, I don't pay for utilities, I am barely able to make my car and insurance payments. I am scared because if they do sue, I won't be able to hire an attorney.

 

[Tayla]

Answer the summons if you do recieve one. Appear at the court hearing. Judgement will be decided. Worse case is they win a judgement. The court cant force you to pay up on the spot. The judgement is a declaration that the amount is due to the winning party. The plaintiff then can use liens, garnishments if such state law permits it. Personally til it goes to trial you'll probably have the needed funds to pay it, if what you say earlier is true.

 

[Ladynred]

Garnishment is allowed in TN - 25% of your net pay. However, IF it goes that far, in TN you can file a motion to request that you be able to make payments on the judgment in lieu of garnishment. You then have an arrangment with the court and if you miss a payment, they will go forward with garnishment. If 25% is too much, you can also appeal the garnishment and get it reduced or stopped if it causes you undue hardship.

Aside from your financed car, it doesn't sound as if you have any assets that could be siezed, so wages would likely be their prime target.

You'll just have to wait it out, they may not be anywhere near a lawsuit yet and are just trying to scare you.

 

[markumn]

Garnishment is allowed in TN - 25% of your net pay. However, IF it goes that far, in TN you can file a motion to request that you be able to make payments on the judgment in lieu of garnishment. You then have an arrangment with the court and if you miss a payment, they will go forward with garnishment. If 25% is too much, you can also appeal the garnishment and get it reduced or stopped if it causes you undue hardship.

Aside from your financed car, it doesn't sound as if you have any assets that could be siezed, so wages would likely be their prime target.

You'll just have to wait it out, they may not be anywhere near a lawsuit yet and are just trying to scare you.

What if I am unemployed?

 

[markumn]

Answer the summons if you do recieve one. Appear at the court hearing. Judgement will be decided. Worse case is they win a judgement. The court cant force you to pay up on the spot. The judgement is a declaration that the amount is due to the winning party. The plaintiff then can use liens, garnishments if such state law permits it. Personally til it goes to trial you'll probably have the needed funds to pay it, if what you say earlier is true.

Thank you.
I do plan to pay what I owe. In the past two years, I have paid off 2 of 3 credit cards. I was planning on making the minimum payments on this last card and then paying it off completely with my income tax refund. What I didn't plan on was getting hurt at work then being fired 3 weeks later. I have never had a debt go unpaid. I have been a single mom for 15 years and I have never been unable to work in order to support me and my daughter. Hopefully all of this will end soon.