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Advice on Court Summons for Debt - The Bills.com Blog
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Advice on Court Summons for Debt
Monday, Mar 9, 2009
Question: I received a court summons for approx. $1400. I am willing to work out a payment plan/settlement so I can avoid getting a judgment and not going to court. They will only settle for $1200. I was wondering, is that logical? I tried contacting the original creditor and they said that it isn't with them anymore it's with the law office that served me the summons. I once settled a $4000 credit card for $1100, so I don't understand how this particular agency won't (maybe can't?) go any lower.
Answer: First of all, I am not an attorney, so I cannot provide you with legal advice. You may want to consult with an attorney in your area regarding this legal matter. However, I will provide you with some general information that may help you in resolving this matter.The civil suit papers or court summons you refer to in your question are frequently called a Summons and Complaint. The summons, which should be the first page of the documents you received from the court, should state the time period in which you have to file a response to the complaint with your local courts. If you decide that you would like to respond to the complaint, the court clerk should be able to provide you with the necessary forms.
I would recommend that you attempt
to resolve this debt with the creditor or the creditor’s attorney before they take any further collection action. If you obtain a fairly sizeable portion of the balance, the creditor may be willing to settle the debt. For example, if you can offer 60% of the outstanding balance in a lump sum payment, the creditor may be willing to forgive the remaining balance and dismiss the court case. Contact the creditor’s attorney to discuss settlement of the debt and keep trying to negotiate. If you come to a dead-end there, you have the option to set up a payment plan.
If you cannot access a lump sum to settle the debt, the creditor may be willing to accept monthly payments to stop further collection activity, but will probably not dismiss the case against you. The creditor will want to obtain a judgment against you just in case you do not make your scheduled monthly payments. Again,
If you cannot access a lump sum to settle the debt, the creditor may be willing to accept monthly payments to stop further collection activity, but will probably not dismiss the case against you. The creditor will want to obtain a judgment against you just in case you do not make your scheduled monthly payments. Again,
contact the creditor’s attorney to discuss possible repayment plans and ask them about a stipulated judgment payment plan.
If you do not resolve this matter, the creditor will likely obtain a judgment and proceed to attempt to collect on the judgment. Depending on the state you live in, judgment execution could include wage garnishment, bank levies, and property liens, and other actions. I encourage you to speak with an attorney licensed in your area to discuss the implications of a judgment against you, and what is the best course of action to resolve the account. You can review your own state's collection laws and statutes of limitations here: http://www.bills.com/collection-laws/
For more information about debt, and for debt help resources, I encourage you to visit the Bills.com Debt Help page at http://www.bills.com/debt-help/ I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
If you do not resolve this matter, the creditor will likely obtain a judgment and proceed to attempt to collect on the judgment. Depending on the state you live in, judgment execution could include wage garnishment, bank levies, and property liens, and other actions. I encourage you to speak with an attorney licensed in your area to discuss the implications of a judgment against you, and what is the best course of action to resolve the account. You can review your own state's collection laws and statutes of limitations here: http://www.bills.com/collection-laws/
For more information about debt, and for debt help resources, I encourage you to visit the Bills.com Debt Help page at http://www.bills.com/debt-help/ I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Angelica on Friday 17th April 2009 00:49
If I filed for Bancruptcy in late 2004 but find myself in a worse financial situation now, my home was foreclosed and I could owe deficiencies on our home and debt from the 2nd mortgage and credit card debt...can I still file for bancruptcy? I don't have any way to pay lumpsum payments for a recent $7,000 credit card summons...what can i do to prevent creditors from garnishing my wages?
2. Posted by Nathan on Monday 20th April 2009 08:48
Depending on the type of bankruptcy you filed for in 2004, you may or may not be able to file for it again. You should check with a bankruptcy attorney to see if you qualify. About the summons, you still have time to reach some sort of a payment arrangement with the creditors, but you should also not ignore the summons. You need to present yourself in court and explain your situation to the judge. If you do not go, then a default judgment will be passed against you for which the creditor might get the court to order wage garnishments.