sued by citibank

[dlindholm]

I have been sued by Citibank for 2 credit cards totally 5550.10 and 2647.00. My husband and sold our house and planned on using part of the profit to pay these off in full. Due to an unexpected medical problem (mine) we had $13,000 out of pocket expenses, ($10,000 was paid in cash and still paying off the rest). I also lost income for about a year because of this. I have been paying as much as I can every month but not enough to get rid of them. I called the attorneys office and spoke with and aide. He suggested I write a letter of hardship and offer an amount to pay off both bills. Currently I could only offer between $2000-$3000 for both. I also have copies of the medical bills with the dates and amounts owed/paid. Could anyone advise me on this matter?

 

[bobidlewild]

If you are indeed being sued that is one matter...if you're only being THREATENED a lawsuit, that's a horse of a different color. Generally speaking, you can expect to be able to settle for something in the neighborhood of 40-50% of the total balance due, but you can make any kind of reasonable offer. They may or may not be agreeable, but at least you've made an effort. If you don't have 40-50%, they may also offer to let you pay your $2000-3000, and set up the rest on a payment plan...but be careful, because they'll likely set you up in a way that will foul you up if you miss a payment...that is, the original balance may be reinstated if you're late on a payment plan.

 

[dlindholm]

Thanks for the feedback. I did send a letter with an offer, explained my medical situation with doctor bills attached. I did get served papers, so I'm sure it has been filed and is on my credit report as a judgement. I would like this to be resolved. Thanks again.

 

[seniorjudge]

Did you not show up for court when you were sued?

 

[dlindholm]

No, First I called the attorney's office (who filed the papers) to ask what my options were. They told me to make regular payments to their office and didn't say anything about going to court. This was in 2005. A man gave me the papers at my home, but he wasn't a police officer.

 

[seniorjudge]

No, First I called the attorney's office (who filed the papers) to ask what my options were. They told me to make regular payments to their office and didn't say anything about going to court. This was in 2005. A man gave me the papers at my home, but he wasn't a police officer.

Since you gave up your rights to show up in court, I'd suggest you get the biggest pile of money (not promises) that you can possibly get.

Then you call these folks and say, "I will give you $(1/2 pile) right now to settle this thing."

That's the way the negotiations start.

 

[dlindholm]

Unfortunatley I wasn't aware that I had to appear in court and no one lead me to believe that I needed to. I didn't really understand the whole process.

 

[Duranie]

Have you considered seeing a bankruptcy attorney? Now that citibank probably has a judgement against you, they can start placing leins, attaching wages and seizing bank accounts.

 

[dlindholm]

I'm hoping that since I have been making regular payments and working with them, that it won't get to that. I am still waiting on their answer to the offer I made them last week.