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Thread: Credit card debt, being sued, what do I do?

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    God/dess LoveyDovey's Avatar
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    Default Credit card debt, being sued, what do I do?

    OK. I am in a shitload of credit card debt. There was a situation in my family, and I had to open up several accounts to get cash and help them out. I'm in debt over $75,000.

    I've gone through credit counseling, where they negotiate with your credit card companies to decrease your interest rate, and they disperse one monthly payment to all the creditors you owe to. That worked for about a year. Then it became too overwhelming to make the payments.

    I haven't been able to pay any more, and now I have a letter here that says I am being sued by one of my creditors. I have 30 days to file a written response with the court downtown.

    So do I...
    Call the suing creditor and try to work something out?

    Call all my creditors and try too work something out?

    File for bankruptcy?

    Debt consolidation?

    I rent my home and have a car. I have been paying my rent/car payments with money orders and I do most of my transactions in cash. I dance 3-4 days a week. It's hard to do more than that.

    Please help. I don't want to do anything shady. I just want to get this shit paid off and over with.
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    God/dess Paris's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    File bankruptcy is my knee jerk reaction. It is unsecured debt, you should qualify for bankruptcy.


    Promote yourself and earn more money! This is a business that is owned by strippers for strippers. Let's make that money!


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    God/dess LoveyDovey's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    Chapter 7 or 13??
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    ^^^ depends on your own income compared to the 'median' income for the area in which you live.

    In this case I agree that filing for bankruptcy is likely to be the only realistic option.

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    Default Re: Credit card debt, being sued, what do I do?

    1. are you being sued by the actual creditor( issued the credit card) or a debt buyer?
    if it is a debt buyer you need to make them prove that you owe them, claim you have no recollection of this debt in your answer and ask them to provide you with a contract you signed, canceled checks showing you paid n this account, how they calculated what you owe, a full payment history of this account. They most likely wont have this stuff and you may win a dismissal.
    2. how old is this debt? is the statute of limitations still valid on this debt?
    depending on your state the statute of limitation on this debt may be expired, depending on how old the debt is and the last time yo paid on this account or made arrangements to pay. Do not make any arrangements or payments until you can figure out if the SOL is still valid and doing so also gives them more evidence against you. SOL is an affirmative defense and must be used in your answer or you lose the ability to use it at trial
    3. do you have provable income like a regular job or assets to your name?
    If you are unemployed or have no provable income thus have no ability to pay the debt you may be "judgment proof". This means that even if they get a judgment against you they can not collect so why bother?
    whatever you do talk to attorney fist and file your answer in time and always show up in court least they get a default against you.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    I will also throw out a 'new wrinkle' that seems to be developing in regard to 'high dollar' bankruptcy filings ...

    Many state and local governments are now running big deficits - thus they are anxious to come up with as many additional tax dollars as possible. One way to do this is to increase the collection of income taxes. Also, tax debts are not subject to bankruptcy protection.

    Some states have figured out that bankruptcy filings provide a ready source of financial data without the state tax agency having to expend much effort. Some states have also figured out that they can 'insert' their own claim for back taxes which takes priority over any judge's ruling in regard to Chapter 13 repayment plan formulations etc. (so that back taxes will get repaid before creditors get repaid). Thus people with fairly high incomes filing for bankrupcy protection involving large amounts of money ( perhaps > $50,000) should now expect that the past earnings data they provide to the bankruptcy court may also be reviewed by the state tax agency.

    This matter came to my attention in regard to a New York dancer who recently filed for bankruptcy. NY state and city tax agencies decided that she had under-reported her past income in order to have been able to obtain the credit and buy the condo / car she was attempting to seek bankruptcy protection for. The state and city tax agencies then leveed a charge for estimated back taxes and penalties which went right to the top of the judge's creditor's list. Thus the girl's Chapter 13 bankruptcy repayment plan won't even begin until she has first paid off something like $25,000 in back taxes and penalties that she didn't even consider when she decided to file for bankruptcy !

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    Default Re: Credit card debt, being sued, what do I do?


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    Senior Member Butrcup98's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    How about asking your family for some money to help pay back some of that debt. After all, it is their debt. You just acquired it for them.

    Bankruptcy does seem like your best option. But, as a taxpayer, I'd like to ask.....Is there no possible way for you too modify your existing lifestyle to give you the extra cash needed to pay your debt? Unless you have multiple children, I don't understand how you can't make enough in 3-4 nights to pay something.

    I'm not trying to sound judgmental or bitchy. I just worry when I hear stories like this, because in the long run, taxpayers are going to pay for it.

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    Featured Member mild2wild's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    Quote Originally Posted by Butrcup98 View Post
    How about asking your family for some money to help pay back some of that debt. After all, it is their debt. You just acquired it for them.

    Bankruptcy does seem like your best option. But, as a taxpayer, I'd like to ask.....Is there no possible way for you too modify your existing lifestyle to give you the extra cash needed to pay your debt? Unless you have multiple children, I don't understand how you can't make enough in 3-4 nights to pay something.

    I'm not trying to sound judgmental or bitchy. I just worry when I hear stories like this, because in the long run, taxpayers are going to pay for it.

    On top of doing an extra nights work and putting that whole extra nights work income into paying off more of your debt??

    Are you studying? If so, have you thought about deferring your study and working your ass off and getting the debt under control ??

    I would only consider bankruptcy if it is the last option you can think of

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    Default Re: Credit card debt, being sued, what do I do?

    Single mother here. Can only work so much.

    And I wasn't just looking into Bankruptcy. I was looking into other options too.
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Senior Member Butrcup98's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    If you've already tried debt consolidation, then your last resort is bankruptcy.

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    Default Re: Credit card debt, being sued, what do I do?

    I am going for debt settlement through a company I found through the BBB. It's my last resort before bankruptcy.
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

  13. #13
    AudreyLeigh
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    Default Re: Credit card debt, being sued, what do I do?

    Debt settlement is just as bad (if not worse) to companies as a bankruptcy... just wanted to throw that out there. Also, go here... creditboards.com and post in the 'bankruptcy' and 'money management' and ' ive been served' areas for good info...

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    Default Re: Credit card debt, being sued, what do I do?

    ^^ Why is it just as bad?

    Thank you for the link. Off I go!
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    from the standpoint of a lender, entering into credit counseling carries most of the 'bad' aspects of a bankruptcy ... i.e. the lenders will take losses (albeit via voluntary settlement rather than court ordered cram-down), some new 'bad' aspects ... i.e. the lender cannot immediately write off the bad debt and must therefore carry it as a non-performing loan, and essentially no 'good' aspects ... i.e. anti-redlining laws for bankruptcy filers being denied future credit do not apply !

    I would also point out that, as the result of the 'subprime' bank meltdown, a whole lot of lenders are now requiring a 680 or 700 credit score in order to even think about approving a new loan at a 'reasonable' interest rate. With a 5 year debt counseling plan, it will take someone in credit counseling at least 8 years to rebuild their credit score to those levels even if they never miss a payment. In comparison, if the same person is able to file a Chapter 7 bankruptcy, thanks to anti-redlining laws for bankruptcy filers it is technically possible to achieve a 680-700 credit score within perhaps 3 years after their bankruptcy filing is finalized.

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    God/dess LoveyDovey's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    Thanks for the info ladies.
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

  17. #17
    AudreyLeigh
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    Default Re: Credit card debt, being sued, what do I do?

    Mel is right on. Its been three years since my bk and my scores are hovering between 650-680. If I got some of my debt down it'd most likely be up between 680-700.

    And her explination of what happens with credit councling it right on. Also, your credit will be shot even once youre done paying the debt. So, youre going to start with a ton of lates, settlements, judgments, etc etc etc whereas with a bk youre starting fresh....

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    God/dess LoveyDovey's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    Audrey I know you have to "qualify" to file Bk. I'm looking into Ch 7. What are these "qualifications"?
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    ^^^ to file Chapter 7, in general your past years' income level must be below the 'median' income for your state / region. Your current income level must be low enough that there would essentially be no money left to pay creditors after first paying for rent / car / utilities / food etc.

  20. #20
    AudreyLeigh
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    Default Re: Credit card debt, being sued, what do I do?

    Your best bet would be to meet with a bk attorney and see what they say. Consultations should be free.

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    God/dess LoveyDovey's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    Quote Originally Posted by Melonie View Post
    ^^^ to file Chapter 7, in general your past years' income level must be below the 'median' income for your state / region. Your current income level must be low enough that there would essentially be no money left to pay creditors after first paying for rent / car / utilities / food etc.
    I'll most likely be able to qualify then.
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Default Re: Credit card debt, being sued, what do I do?

    OK, here is another Q...what if I plan on getting married soon, what would be the better option? How would this affect my partner?
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    ^^^ if you file for Chapter 7 bankruptcy and the bankruptcy is finalized before you get married, odds are that your partner's credit will not be affected at all. However, be aware that once you are married, it may no longer be possible for you to qualify for a Chapter 7 bankruptcy.

    But if you decide to go the credit counseling route or file Chapter 13 bankruptcy, and you get married before the (typically 5 year) repayment period is complete, it IS technically possible that your creditors may move to 'renegotiate'. This would be based on the possibility that they may be able to glom onto a portion of your new husband's income in order to satisfy your debts, based on your new husband's contribution to 'household income' making more of your own income available to satisfy your debts without risking non-payment of rent / car / utilities / grocery bills.

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    Default Re: Credit card debt, being sued, what do I do?

    Melonie, How long do you think it typically takes to finalize a Ch 7?
    Quote Originally Posted by We had a rabbit like you View Post
    And I'm over here like "fuck you, pay me". No non sense, sorry.

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    Banned Melonie's Avatar
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    Default Re: Credit card debt, being sued, what do I do?

    ^^^ depends on your state's court calendars and how many cases will be 'in line' ahead of you !

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