I recently received a summary judgment by mail from an attorney. I have received several different things from them, but never anything giving me an date for an hearing. I was wondering is that legal for them to have done that considering, I've sent two different responses to them disputing the amount I am being asked for. They now have added on an 8% annum as well as court costs. What can I do and should I just file bankruptcy?
I cannot comment on whether the law firm acted in accordance with the law. However, it is not uncommon for a creditor or a creditor's attorney to win a summary judgment against an individual. If you ever received a summons you should have done as it instructs! The summons provides information regarding the hearing. In the hearing, the judge will decide if the creditor should be allowed to collect the debt. If the debtor fails to appear, the judge has no choice but to decide on behalf of the creditor. It also common for the balance to accrue interest and fees over time, and reflect a higher amount.
One option you have is to contact the attorney representing the creditor and ask to arrange a payment plan to pay the debt off. Even with a judgment in place, the law firm must spend money to try to collect the debt. Getting a wage garnishment, levy, or lien takes time, and time to a law firm is money. The law firm may settle for a lump-sum payment. See "Debt Negotiation and Settlement Advice" before opening negotiations with a creditor. See "What Are My Debt Consolidation Options?" to learn more about your rights and options for resolving the debt. Bankruptcy is typically considered the last option.
Important! Get all settlement offers in writing before sending a check to the law firm or collection agent.
I encourage you to speak with a licensed bankruptcy attorney in your state to learn more about what your options are.
I hope this information helps you Find. Learn & Save.