Summary Judgement on Old Credit Card Debt

[Spikespeaks]

My jurisdiction is: Colorado, Douglas County

I have a plethora of questions and through online research haven't really gotten any answers that put me at ease.

A very nasty law firm received a summary judgement against me for an old credit card debt that was in the $9,000 when I lost my ability to pay it. They have now tacked on an additional $9,000 in interest and lawyer fees. I called when I received a notice to appear in court on May 6, 2009 which requires that I provide them all kinds of financial information for the past 3 years. I called and was told by some flunky that they would be willing to settle with me for under $12,000 if I could find a way to pay the debt off within two months and that the $9/day interest would then cease. I told them that I could make payments of $1,000/month they scoffed at that, I realize the interest monthly is approximately $300, so I would be making a dent in the debt and would have it paid off in the course of approximately 2 years.

This person told me to speak with my husband and see if we could come up with the settlement money and then call him back within a day or two. I called back and said I would try to borrow the money in order to pay him off when he informed me that they were just going to start garnishment proceedings and garnish my wages. It seemed as if they were just being as spiteful as possible. He also said if I didn't show up in court there would be a warrant issued for my arrest and I'd go to jail.

They have apparently been able to place a lien on my home although this was unsecured debt, the debt is well over 3 years in arrears and it's my understanding (I'm an accountant not a lawyer) that if it's that old they cannot legally collect it in Colorado, is this true?

I'm finally in a job where I am making decent money and although I have read the rules for Colorado which I understand follows the federal statutes, I am confused about just how much they can take. Do medical insurance premiums and cafeteria plans qualify as items that are legally required to be withheld?

We nearly lost our house to foreclosure 3 years ago and have worked really hard to try to get out of the mess of the "American Dream", can they try to take money out of my joint checking account thus making it impossible to pay my mortgage? If they garnish my wages do they have a legal right to also garnish my bank accounts?

I'm scared to death and so embarrassed that I might have my wages garnished can they just refuse to let me make payments? Is that legal?

I was hoping to refinance our home now that the interest rates are better but have been warned that if I do that they could try to get a piece of the house is this true?

Should I contact the credit card company and try to make arrangements with them? I ironically bank with them.

What can I do legally about the harrassing phone calls, they have me on an auto dialer which I requested they take me off of and right after the request I got another call from them and saved the message?

Any advice would be greatly appreciated, I'm a nervouse wreck right now and my basement is flooded.

Someone please help!

 

[sfitz]

I think that you will either have to pay them or file for bankruptcy. Maybe you could consult with a bankruptcy attorney. About the phone--maybe change the number.

 

[Michael Wechsler]

They have apparently been able to place a lien on my home although this was unsecured debt, the debt is well over 3 years in arrears and it's my understanding (I'm an accountant not a lawyer) that if it's that old they cannot legally collect it in Colorado, is this true?

If you're talking about the statute of limitations, I'd say you aren't close to reaching the statute of limitations on executing on a judgment. You're already past the point of even filing of a case.

I'm finally in a job where I am making decent money and although I have read the rules for Colorado which I understand follows the federal statutes, I am confused about just how much they can take. Do medical insurance premiums and cafeteria plans qualify as items that are legally required to be withheld?

You don't have to worry about many of the basic life necessities. But do understand this - while you think the law firm is nasty, think about what the creditor feels towards you. He/she is thinking "I'm happy for you that now you're making decent money but why is it fine for you to simply not pay me?"

We nearly lost our house to foreclosure 3 years ago and have worked really hard to try to get out of the mess of the "American Dream", can they try to take money out of my joint checking account thus making it impossible to pay my mortgage? If they garnish my wages do they have a legal right to also garnish my bank accounts?

They have a right to collect several items concurrently - plus add any costs collection fees.

I'm scared to death and so embarrassed that I might have my wages garnished can they just refuse to let me make payments? Is that legal? I was hoping to refinance our home now that the interest rates are better but have been warned that if I do that they could try to get a piece of the house is this true?

Don't be scared, calm down, it will all be alright. The problem is with your thinking - if you didn't pay for something, it's not yours. If you want to refinance your house, you have to give up something more to get something.

Should I contact the credit card company and try to make arrangements with them? I ironically bank with them. What can I do legally about the harrassing phone calls, they have me on an auto dialer which I requested they take me off of and right after the request I got another call from them and saved the message?

What kind of calls are you getting? I thought your account was in judgment.

Any advice would be greatly appreciated, I'm a nervouse wreck right now and my basement is flooded. Someone please help!

Can't help you with the basement but I think you have it handled. The bottom line is you owe money. You will need funds to make a settlement agreement with the law firm - and you probably should think about this. You owe the money. This will follow you and not go away. If you can come up with at least 50%, you've got something to start with but you'll need to pay something reasonable based upon what you borrowed. If you need to change your lifestyle, that is what you must do. You'll still be fine... just take care of what your obligation.

 

[Spikespeaks]

Thanks for your input

I have tried to settle the debt with them and offered to give them my bonus check that I received at the end of March and them make payments. They won't budge they want to continue to collect 19.26% on the outstanding balance until paid in full, they are already getting nearly $8k in accumulated interest and $1,000 for legal fees. I tried to get them to settle with me but they apparently want full access to my financial records so they can see just how "rich" I am (NOT).

My friend happened to be the former controller of this law firm which she quit because of the unethical behaviour of said Legal Assistance.

I tried to work out payments with Wells Fargo (who I still bank with personally) years ago they weren't willing to take $100/month until we were in a better position to pay them more quickly.

They have dialing machines that dial my home using different phone numbers including one that is a "Wells Fargo" number, I reached out to a personal banker at Wells Fargo and was told that number was not one of theirs. My account is in judgement but they continue to call although I've requested that they stop and indicated that contacting me at my place of employment was unacceptable.

I've spent years trying to dig out of the hole we got into being over extended when I was working and attending graduate school full time. We are not deadbeats by any stretch of the imagination, we just fell on some very rough times a couple of years ago when for health reasons I had to leave public accounting and go into industry, which just doesn't pay as well in many cases.

If I go before a judge and offer to make reasonable payments of $1,000 a month would the judge listen or would the judge simply let them garnish my wages?

These people are being very vindictive towards me and I feel it is very unwarranted.

I'm off to finish photo copying the last three years of my life. The threat at the end of the summons reads:

PLEASE TAKE NOTICE THAT:

YOUR WILLFULL FAILURE TO PRODUCE ANY OF THE ABOVE REQUESTED ITEMS MAY RESULT IN THE PLAINTIFF REQUESTING THAT THE COURT LEVY APPROPRIATE SANCTIONS AGAINST YOU.

Guess I will get in trouble for not having canceled checks because I haven't received those in years. I think I might have written a dozen checks over the past 3 years for oil changes and DMV fees. So perhaps they will be understanding that I do all my banking on line.

I'm surprised they didn't request my first born with the laundry list they had most of which doesn't apply to me. They wanted me to defer my student loans in order to free up $1,000 more a month to pay them.

We do not live a lavish lifestyle, the credit card debt was incurred to pay for college tuition and books which if you purchased any text books you know can be ridiculously expensive.

I believe that in Colorado if they are successful at garnishing my wages they cannot also garnish my bank account. I have a message in to a local attorney on this matter.

 

[Michael Wechsler]

The problem is that these loans are at a ridiculously high interest rate that I can't imagine anyone can pay off. Loan sharking might be easier. I'm with you there.

The challenge is this - you voluntarily took those loans and now they want you to pay them back. Perhaps you can get the interest rate reduced to at least paying back the principal with some reasonable interest - let's say that's in order - would you be able to pay? A creditor somewhere is out their principal too... I think you see the problem.

With regard to a local attorney, what can that attorney do for you? You will be paying the attorney to handle a debt which you agree you owe and just not happy about the interest rate.

The problem I've had with the American Dream is that it is exactly that - a dream. And people were extended loans for nice things that they had no business buying. Beautiful homes that seemed in reach and now many of us who were prudent watched our money go out the window and paying the homes helping these "victims" of foreclosure of their own making keep their homes. I don't know what to tell you but others live in small homes that are cramped but it's what they can afford. I'm not saying you're a deadbeat or even in a home that is beyond your means, but that's the best that can be done here IMHO. Your problem isn't a legal one, but a problem of paying the bills.

What's a reasonable tactic here - making sure that you have a reasonable offer to the bank to make them go away for a while. If it will take a dozen plus years just to pay back the principal at $100 a month, then you need to think about the mind of the creditor - they will think it's worth it to go after you. You need to make them believe they can't get blood from a stone. Every dollar you have will go into taking care of your children so it's either get something that promises payoff in X years or keep spending money coming after you for 20 years. Make sense?

Best of luck to you and I hope I didn't sound too harsh.

 

[Spikespeaks]

Court last week actually went well, after agonizing over not having cancelled check stubs and organizing a binder full of three years worth of financial information they didn't even take the documents from me. They vacated the Summary Judgement and not being a lawyer I don't understand what that means, I should have asked the judge to clarify. I agreed to make payments ($1,000/month) and will try to negotiate with them on the interest. The man who kept calling my house/cell phone and harrassing me was fired last week (poetic justice I say). The judge said I could go and I didn't have a single piece of paper from either the attorney or the court, I thought court houses were paper mills?

In my accountants mind if the judgement was vacated I assume that makes it no longer valid? Am I correct in my assumption? I only had 2 semesters of business law back in the day and though I did enjoy it, all the legal jargon I admit has me baffled.

Your input is greatly appreciated. It's good to know that there are resources out there that don't cost an arm and a leg (and my first born).