Collections advise needed

[DM20]

I have rec'd a summons for an account that I defaulted on. The charges are way old - the account was not used for years and until a few months ago I was paying on it. Times got tough, I was stupid, robbing peter to pay paul and here I am. I owe about $5500. I have managed to scrape together about 2500 to send to them and would like to make payments on the balance. I was planning to send Money order initially along with a letter asking for payment arrangments on the balance and stating I am not employed, hard times etc. How does this sound?
Should I make the MO out to the lawyer or the original account, 'their client' which is listed as the plaintiff. BTW the suit is legit, on the county website, which also is NOT the county I actually live in, but the next one over about a mile down the road. Any help appreciated. Hubby does not know and would be livid! Thanks in advance.

[treehugger1]

You might try calling the attorney. You can ask if they would accept a payment arrangement. It is doubtful you will get small payments, so you might start by offering $200 - $500 per month.

They don't have to accept any payments and can demand the amount in full. And, since they are holding a judgment they can attempt other actions; auto lien, home lien, etc. Your state laws will specify what remedies they have available.

Best to you.

[DM20]

Thanks treehugger there's been no judgement yet - I still have a week or so before the deadline. I think I can probably make the $200-300 payments a month - I thought I would have a better chance negotiating if I sent them the large up front payment? Also, I need to know if I should make the initial payment to the original creditor listed on the summons or the attorney?? I don't want to talk to them until they get this payment. I am scared to death - and having problems thinking about much else. I was hoping they would want to work with me versus court stuff...Worst case scenario is that I ask my dad for the money, which would entail talking about my failings etc. I hate to do it...

[treehugger1]

Here is my opinion. Since you received a summons, there is a good possibility that if you do not reply, they will obtain a default judgment regardless of whether you pay them any money up front. The judgment is their protection. Is this a small claims case, or in a bigger court venue. If it si small claims, then you might file a denial and see if your small claims court makes use of mediation. This could also be the case in a larger court venue in your area.

I guess my point is that don't assume paying them money will shortcut the judgment. Since they have already filed, it won't cost them much to go forward with the suit. If you fail to answer and fail to show up in a courtroom, they will most likely get the default judgment.

In the perfect world, you should speak with your husband and explain the situation. But, this is not a perfect world. Somehow, we have managed to mix love and finances together. On the other hand, there is trust and respect. Sometimes these take a beating, but they can be strengthened and rebuilt. Only you can know and measure the need to share information with others. Again, just my opinions.

[treehugger1]

Here is my opinion. Since you received a summons, there is a good possibility that if you do not reply, they will obtain a default judgment regardless of whether you pay them any money up front. The judgment is their protection. Is this a small claims case, or in a bigger court venue. If it si small claims, then you might file a denial and see if your small claims court makes use of mediation. This could also be the case in a larger court venue in your area.

I guess my point is that don't assume paying them money will shortcut the judgment. Since they have already filed, it won't cost them much to go forward with the suit. If you fail to answer and fail to show up in a courtroom, they will most likely get the default judgment.

In the perfect world, you should speak with your husband and explain the situation. But, this is not a perfect world. Somehow, we have managed to mix love and finances together. On the other hand, there is trust and respect. Sometimes these take a beating, but they can be strengthened and rebuilt. Only you can know and measure the need to share information with others. Again, just my opinions.

[DM20]

Update - I sent them money orders and have not heard anything. This weekend I got a packet with Notice of Service of Combined Inter. request for production of Documents and Request for admissions. No notation of money's I sent - the whole balance is still listed. Any advice? Should I ignore? It was sent regular mail.

[BigJohn]

Did you send your letters by certified mail?

[DM20]

I sent them with Delivery confirmation and they were received.

[DM20]

correction - Priority Mail with DConfirmation.

[treehugger1]

Did you contact the attorney and work out an agreement and get it in writing? As I mentioned in the earlier post, they don't have to accept a partial payment, as far as I know.

[DM20]

I did not contact them. I am scared to call them, but it appears I have no other options. I sent them almost half of what I owe.
I am such a mess and I am almost unable to function and it's not that much money. I think I have some health problems too and I just want to crawl in a hole. I have not told anyone about any of this including my parents or my sister let alone my husband. My oldest is graduating this year and I feel like I wil ruin her life with health issues.
I mostly pent everything up inside and keep to myself.

[HHM]

Since it is already done, it doesn't make much difference now, but for others reading this post, sending money that would not full-pay the balance without any prearranged agreement was the WORST possible thing you could do.

First, by sending money you have essentially eliminated any possible defense you had to the suit and have fully acknowledged the debt. Second, they are now free to seek a default judgment and can tack on fees and costs.

[Tbornetun]

Is there any recourse because the suit was filed with the wrong court. It could buy some time. In my district, the creditor must file the suit in the county in which you live.

[DM20]

HHM -
Thanks for the advice - wish you would have responded earlier. I was assuming they would get a judgement anyway and am not trying to avoid the debt and in reality have no defense. It's not past the SOL and this firm has a reputation for following through on litigation. In my ignorance I was trying to prolong it and avoid confrontation. I truly am a mess. Thanks for kcking me when I am down. Much appreciated.

[HHM]

HHM -
Thanks for the advice - wish you would have responded earlier. I was assuming they would get a judgement anyway and am not trying to avoid the debt and in reality have no defense. It's not past the SOL and this firm has a reputation for following through on litigation. In my ignorance I was trying to prolong it and avoid confrontation. I truly am a mess. Thanks for kicking me when I am down. Much appreciated.

First off, being in debt and getting a judgment against you is by no means the end of the world. You will take it in stride like anything else.

Also, I did not say anything that was not already said in this thread. Treehugger already told you, do not send money without talking to them first. If you choose not to heed that advice, that is no you, not us. He also said that sending money would not delay the process, your questions were answered and you did the exact opposite. Good luck.