What to include in my summons response?

[GVSU2003]

What is the name of your state? Michigan

I have recently received a summons regarding an outstanding credit card debt that I have. The debt is valid and I have not paid on it since 2003. The total amount is $8717.26, $4779.98 of which is interest. I have spoken with a lawyer who basically suggested bankruptcy right away. When I asked about other options, he told me that I was free to pursue them on my own. I would like to settle the debt in some way whether it be a payment plan or a lump sum, but I don't want my offer to be laughed at. What would be a good starting point? Also, should I contact the attorney for the Credit Card company before I send my response? Since I am typing the response to the summons myself, should I include in it that I would like to work out a settement? Is there any sample response to a summons or form letter that would be useful? Thank you for your time in responding.

 

[seniorjudge]

You may simply respond that you agree with everything in the summons and will allow the court to enter a judgment against you.

Payment plans have to be worked out with the creditor (not the court).

If you have a cash amount (that is, cash, not promises), then tell the creditor that you will pay that amount and want the rest on payments.

Will it work?

I don't know.

 

[GVSU2003]

Thank you. Should I contact the CCD's lawyer before submiting my response? If I don't and I have a judgement entered against me, will there be any way to negotiate a settlement before any wage garnishments would begin?

 

[seniorjudge]

Thank you. Should I contact the CCD's lawyer before submiting my response? If I don't and I have a judgement entered against me, will there be any way to negotiate a settlement before any wage garnishments would begin?

I don't know because I don't know the people you are dealing with.

What I do know is that the more money you give them up front, the easier they will be in negotiating payments on the balance.

 

[TigerD]

If you are negotiating to make payment arrangements you may want to offer a stipulation of judgment in exchange for payments.

If you search my user name you will find a short primer on negotiations and there has been quite a bit written about stipulation of judgments by Chien.

DC

 

[Chien]

Putting together what has been said by SJ and DC, I would suggest that you review DC’s negotiation tips and then contact the attorney as quickly as you’ve worked out what your proposal will be. Don’t be worried about being laughed at. While they may have another number than yours, the effort will be appreciated.

If you file a response admitting everything, you will have spent money that could go to them. If you file a response admitting everything, they will have to spend money to file a Motion for Summary Judgment to conclude the matter. That’s unproductive time and expense for both sides.

If you offer an acceptable lump sum or a down payment and installments that exceed what they could get from a wage garnishment, it makes sense for them to offer you cooperative arrangement, rather than try to enforce a judgment. It’s just easier and more cost-effective for them. For you, your preference should be to avoid a judgment and reach an agreement before your filing is due. If you settle after judgment is entered, once you’ve paid, there will still be a record of a paid judgment on your credit record, and that can continue to cost. If you settle before a response is due, the case can be put on hold until payments are made and then be dismissed. You have no judgment record.

Work out a plan. Call first but don’t miss your filing date. If you feel a need to file, I can point you to a simple response form that could be adapted to your state. Post back.

 

[GVSU2003]

Thank you everyone for your advice. Chein, if you could point me in the direction of that smaple response it wouold be appreciated. One last question, is there a response that I can file that will allow me more time to obtain the necessary funds the CCD company's lawyer is seeking? Meaning, will filling a response create a future court date that will allow me more time to get them thier money?

 

[GVSU2003]

Debt Collector. I was unable to find your re-cap on negotiations. Please let me know what thread it was posted in. I could not locate it in your postings history. Thank you.

 

[seniorjudge]

dc and chien...

If more people would follow your advice, they might get further.

Waiting till you're standing in front of the judge to complain about something is not good timing.

By then, the lawyers are irritable and snappish, often requiring a good cuffing by the judge.

Well...I mean, that's what I have heard.

 

[Chien]

OP –
Here’s DC’s post:
https://forum.freeadvice.com/showthread.php?t=300276

(I think it should be put in a sidebar in the debt collections forum.)

And here’s the one that I offered:
http://www.courtinfo.ca.gov/forms/documents/pld050.pdf

I said it would be very simple. If you adapt it and file it with the court, you can skip the 2nd page, but do serve a filed copy by mail on the attorneys. You can also omit that box mid-page that refers to CA law.
Now it’s a Denial. If you want to admit everything, change the wording. You’re not obliged to add Affirmative Defenses to your Answer but “fails to state a cause of action” seems to be one that everyone likes. It generally means virtually nothing. It’s hard to go that wrong, and you’re not expecting this to go forward anyway.

To answer your last question, yes, filing a Denial will cause the matter to move forward, but consider SJ’s funny-but-true observation and my prior suggestions. Nobody wants to do more work or spend more money than they have to. Making them cranky may make your negotiations harder, and the price will almost certainly go up. In my state, if you needed a bit more time to get your ducks lined up, I could give it to you and not default you immediately. It may be something to discuss with them. But, if you are given a continuance to file, get that agreement in writing.

 

[SillyPuddy]

Gvsu

The attorney's advice of filing for bankrupcy right away is what I think is your right move. The bankruptcy gives you protection or a forced partial repayment plan with your creditors.

There are a lot of myths about bankruptcy. For the real scoop, you can go here. This guy does a great job of explaining things

http://www.brian-wheeler.com/

 

[GVSU2003]

DC, SJ and Chien.

I spoke with the attorney's office for the CCD company this morning. They want me to put my initial offer in writing, include my personal situation and then sign it and fax it to them. I was ok up until they said that I have to sign it. Should I be concerned? Also, the amount that the law office said that I owed is different (less) than what the summons I recieved states. Why would that be?

Thank you for everyone's advice, I really appreciate it.

 

[Chien]

Speaking personally, I can’t see any reason for real concern. If that’s what they want to continue negotiating, it’s a small and safe concession that doesn’t tie you up further. They want you to “sign-off” on the proposal you’re making and on your representations about financial status. It doesn’t seem unreasonable to me.
I couldn’t tell you why their balance is lower than that alleged in the Complaint but, as long as it stays that way, that’s not a bad thing either.