AMEX filing suit

[rockyroad]

I posted a few days ago wondering why the phones were so quiet? Seems like the collectors fell off the face of the earth..wondering what they were up to?
Well now I know what they were up to! Today AMEX attempted to serve me at my home. Checked online and sure enough they have filed with the court on 1/29/09 against myself and my DBA buisness name.
I stopped paying them 7/08, so I wasn't expecting a suit this soon to be honest. From what I read, I knew it was possible, however I was really not expecting action until right around the 12 month default period.
I know many of you have not seen action from AMEX so I'm wondering why they pounced so soon?

Just wondering if I should respond to the suit and what that does other than buy a little time to file BK?
I'm in Texas so no wage garnishment here and yes, I'm intending to file BK in the future but I need to wait a few more months....longer than the time that it will take them to get a judgement, I'm sure.

What are the consequences of having a judgement enforced prior to filing BK other than having to pay your attorney more money?

[magyar123]

While your wages may be safe from garnishment/theft in Texas, a judgment against you might contain a provision to freeze/rob you of your bank account.
Close those bank accounts, cash your checks.

[justbroke]

Just wondering if I should respond to the suit and what that does other than buy a little time to file BK?

After 180 days, you are on the chopping block. They waited exactly 180 days to pounce. Also, those who are usually not sued by AMEX owe less than $5K. You must owe more than I owed to AMEX.

What are the consequences of having a judgement enforced prior to filing BK other than having to pay your attorney more money?

If you have assets, beware. This includes, but is not limited to, real property and demand deposit accounts (as well as other financial instruments).

[treehugger1]

Magyar is correct. Protect your bank accounts. Be proactive. Even if you can string out a suit for a few weeks, you should start thinking about possible bank levies shold a judgment be obtained in the future.

Does AMEX know you have some type of "business?" This could be why they are having their legal assignment folks move forward.

[BigJohn]

My Amexican Express accounts were about $14,000 and they didn't sue me. We stopped aying them last March. We have a business also.

[optimistic1]

lol @ amexican express

[rockyroad]

I do owe AMEX alot of money (much more than 14,000) on my buisness account. I'm assuming they are looking for buisness assets.
There are no assets. Home has no equity and no other real property assets. I do have a demand deposit account for another business that is joint.
Am I safe just changing the account number?

[Bell30656]

This is your opportunity. File your answer citing every affirmative defense you can find whether it has merit or not. Then send your first interrogatories and ask for everything you can think of whether it pertains to the lawsuit or not. (I wouldn't count on them answering it.) Of course, this is all stall tactics. I was sued by a JDB in Superior Court (talk about overkill) who filed in Nov 2007 and then filed a second lawsuit (different debt) Feb 2008... Neither one of them ever got close to actually going to court. I filed bankruptcy in December 2008.

Getting to the judgment isn't an easy task.

[rockyroad]

I'm thinking one reason they are suing so quickly is because when viewing my credit report, clearly they can see I am still current on all other obligations including my home, cars, and min. payments on other small balance credit cards.
I can afford to pay all these things as I'm not overwhelmed with alot of consumer debt, but rather one very huge biz line of credit with AMEX.
Guess they assume I have plenty of income or significant assets as I don't appear to be in a downward spiral financially with anyone except for them!

The server was told I am out of town until a week from Mon. This gives me a little time to change my account numbers and think on this.
And true BigBoy...I have no valid defenses against this OC...I just cannot pay them!!

[StartingOver08]

You hit the nail on the head about why they went to suit so quickly - with you current on everything but their account it looks like you have the ability to pay. Its that simple.

[treehugger1]

A while back, I read an article related to some formula used by some creditors and probably CA's related to risk involved pursuing business debt. I'm guessing there is also a score related to consumers.

For me:

12+ charged off accounts
several judgments (not all being reported to the CRAs) (public records)
several collection accounts
a couple dozen or so closed accounts
a few open accounts
dozens of derrogatories

My current credit report looks like the aftermath of a major battle. The bodies are everywhere. The survivors have wounds (30 - 90 day lates.)

I have to believe that anyone pulling my reports sees that I am virtually on the edge of falling into a BK. I still have plenty of time to wait things out.

[rockyroad]

I have no lates and only the one charge off that was placed on my personal report from the biz.
But who owes $200k that can actually just pay that off? If I had any significant amount of money, I would have paid them a chunk of it already to prevent all this.
Isn't the writing on the wall that with a biz debt this high, I'm on my way to the Bankruptcy Court?
Guess they are pushing me into it sooner than later!

[CompTweaker]

BB, please go here http://www.debt-consolidation-credit...play.php?f=177

and get familiar with lawsuits. I dont have a lot of time to get into it right now, but just because they ask you questions in an interrogitory (not an answer to a complaint, thats what you file after receiving the summons and complaint, they make accusations in that, not ask questions).....but in the interrogatory, you dont have to give your bank account info, your work, or anything you own.....all of that would come later IF they won the lawsuit and you were in a debtor's exam.


Giving out personal information like your current bank account number is privileged info and has nothing to do with the debt in question of the lawsuit. I just want to make sure you realize that and dont run from potential default judgements especially if they're from a JDB. Just trying to help, not argue.

[2Bshinyandnew]

BB, please go here http://www.debt-consolidation-credit...play.php?f=177

and get familiar with lawsuits. I dont have a lot of time to get into it right now, but just because they ask you questions in an interrogitory (not an answer to a complaint, thats what you file after receiving the summons and complaint, they make accusations in that, not ask questions).....but in the interrogatory, you dont have to give your bank account info, your work, or anything you own.....all of that would come later IF they won the lawsuit and you were in a debtor's exam.


Giving out personal information like your current bank account number is privileged info and has nothing to do with the debt in question of the lawsuit. I just want to make sure you realize that and dont run from potential default judgements especially if they're from a JDB. Just trying to help, not argue.

I don't think you really understand what BB2U is saying, CompTweaker. The rules of civil procedure apply in any civil case, regardless of type.

If you have responded to a lawsuit you open yourself up to being asked questions about your assets/work/bank accounts. That does NOT come after the plaintiff has won the lawsuit. If you do not respond to an interrogatory, the moving party can file a motion to compel and you can be court ordered to answer those questions. If the questions are relevant to the case, you can bet your sweet bippy the judge is going to make you answer them.

Unless you are collection proof and have nothing a creditor can attach, you don't want to put yourself in the position of being vulnerable to being forced by the judge to answer those interrogatories. Again, Interrogatories are asked during the discovery phase of a case, NOT AFTER the plaintiff has "won"

This website explains this here:

http://www.ihatedebt.com/DealingWithYourCreditors/TheDebtCollectionProcess/LegalProblems.php

"# Interrogatories - Interrogatories are questions that are given to you in written form before


A Debtors Exam is a supplemental proceeding, done AFTER a judgment. Two entirely different actions.

[CompTweaker]

Yep, im tired with you too BB, because you always love to attempt to shut down anyone who chooses to fight a lawsuit and in EVERY single post, you make it personal. Well bud, Im not going there. I went that route with you before, and after I got down to your level, ....well you remember what happened.

Anyway, if YOUR state's specific rules are going to scare you away from fighting a lawsuit and you choose to settle for a default, I just feel that for the sake of disclosure, before you jump on people for asking questions or for advice about fighting lawsuits, that you state YOUR reasons in YOUR state for YOU! Instead of so widely generalizing like you and your state applies to everyone. I guess thats why we keep butting heads. I dont care why we butt heads, but I do care about sharing information that works. And what you share, well it doesnt work that way in my state, or along with many other states from what Ive gathered. Everything that Ive shared, along with the web site I linked, is full of proof with many stories and strategies THAT HAVE WORKED IN FIGHTING LAWSUITS! I'm 2 down with 1 to go and well on my way winning that one. So take it personal or whatever you want, I dont care. But expect me to chime in when you post information based on your states RCP and you try to force it down everyone else's throat, who may not be from your state, that comes here looking for help, and you're doing your best to discourage them!