I recently recieved at Staement of Claim initiating a law suit for collection of approx. $5,702.
In '01 I moved tom AL from Virginia. I lost my new job about 3 weeks after due to a Company closure / bankruptsy filing.
Needless to say it has been a struggle ever since. I have worked various jobs and have had a spouse with serious medical issues (high risk preg. etc.) Over the past year I have seen my family very little because I have been traveling to wherever I could find decent employment, working diligently to pay off debts. My family lives with my brother-in-law. Our household effects are in storage. I have very little assets. (I have been doing the honorable thing to pay what I owe as an example to my children.)
It just so happens that this was the last hurdle to have been successfully paid and or settled for all my all debts! I was looking to re-establish my family and be able to see them every night in our own rental home. I have a son with cerebral palsy.
I called the credit card company that the origional $ 4,002 that was written off before I recieved the Statement of Claim. However, the debt was sold and resold. I found the company that owns the debt and they stated that I should contact thier collection Atty in my State it was just released to.
When I did so they stated that they had just filed a Statement of Claim for $5,702.10 with my local County Clerk/Court. Shortly thereafter we have recieved The Claim. I spoke with the the attorney and stated that I would like to settle the matter. I offered $1,500 (what I have) and they placed this before the Plantif which they have refused. Thier counter offer states that they would accept no less than $5,300.
The bankruptsy laws will change next month. This is almost all that I owe. I am facing a judgment most likely if I can not settle the account. If my wages are garnished I will loose my current job. It took me 6 weeks to gain a clearance for this position due to my recent credit problems.
My question is: Could I file Bankruptsy and prevent this old non-secured debt from becoming a real insurmountable burden? What are my options if any to proceed? Hopefully I can avoid a bankruptsy and a judgement! Since the debt was sold to others can these firms collect all of this interest fees & charges etc.?
In '01 I moved tom AL from Virginia. I lost my new job about 3 weeks after due to a Company closure / bankruptsy filing.
Needless to say it has been a struggle ever since. I have worked various jobs and have had a spouse with serious medical issues (high risk preg. etc.) Over the past year I have seen my family very little because I have been traveling to wherever I could find decent employment, working diligently to pay off debts. My family lives with my brother-in-law. Our household effects are in storage. I have very little assets. (I have been doing the honorable thing to pay what I owe as an example to my children.)
It just so happens that this was the last hurdle to have been successfully paid and or settled for all my all debts! I was looking to re-establish my family and be able to see them every night in our own rental home. I have a son with cerebral palsy.
I called the credit card company that the origional $ 4,002 that was written off before I recieved the Statement of Claim. However, the debt was sold and resold. I found the company that owns the debt and they stated that I should contact thier collection Atty in my State it was just released to.
When I did so they stated that they had just filed a Statement of Claim for $5,702.10 with my local County Clerk/Court. Shortly thereafter we have recieved The Claim. I spoke with the the attorney and stated that I would like to settle the matter. I offered $1,500 (what I have) and they placed this before the Plantif which they have refused. Thier counter offer states that they would accept no less than $5,300.
The bankruptsy laws will change next month. This is almost all that I owe. I am facing a judgment most likely if I can not settle the account. If my wages are garnished I will loose my current job. It took me 6 weeks to gain a clearance for this position due to my recent credit problems.
My question is: Could I file Bankruptsy and prevent this old non-secured debt from becoming a real insurmountable burden? What are my options if any to proceed? Hopefully I can avoid a bankruptsy and a judgement! Since the debt was sold to others can these firms collect all of this interest fees & charges etc.?
