Help I have debt problem

illNana · #1 04-24-2007, 12:52 PM

I know its off topic but I need some advice.

I'm being taken to court for default on loan payments. Total loan was 4k given to me a number of years ago from one of my credit cards, now they want 4k plus 3k ongoing interest in addition to the court fees. The court advises me to try to make a settlement with them first.

What can they do if they get a judgement against me? I do not own anything, unemployed (play poker for a living), and everything I own such as car, apt, is under someone elses name.

I probably sound like a dead beat. Please don't judge me, I just want advice.

Most likely I'm going to call and try to work something out with them. I need advice on this as I'm a bad negotiater. Just a few months ago they offered me a settlement of around 2k in one lump payment and I ignored it. Can I still get them to give me that deal or is it too late for that now?

Thanks in advance for any advice I get.

mtgordon · #2 04-24-2007, 01:08 PM

They can garnish your wages until the get their money or I'm pretty sure they can throw you in jail if you have no intentions of getting a job.

Well, they can probably put you in jail no matter what but that doesn't do anything for them so they'll either settle or garnish your wages. If you laugh at them and say that you don't have any income so they don't get anything that's probably when they'll throw you in jail.

BradleyT · #3 04-24-2007, 01:19 PM

If you haven't been to court yet (which it sounds like) look up your states Statute of Limitations for collecting debt.

http://www.cardreport.com/laws/statu...mitations.html

BradleyT · #4 04-24-2007, 01:26 PM

[ QUOTE ]
They can garnish your wages until the get their money or I'm pretty sure they can throw you in jail if you have no intentions of getting a job.

Well, they can probably put you in jail no matter what but that doesn't do anything for them so they'll either settle or garnish your wages. If you laugh at them and say that you don't have any income so they don't get anything that's probably when they'll throw you in jail.

[/ QUOTE ]

Why do people give such bad advice instead of keeping their mouth shut?

Can I Go To Jail For Not Paying A Debt?

No! The only debts that you can normally be jailed for are failure to pay taxes and, in some cases, child support and alimony. You cannot be jailed for not paying a consumer debt, and it is illegal for a creditor or collection agency to threaten to have you jailed.

Debtors' prisons were eliminated in the United States by 1850.

nineinchal · #5 04-24-2007, 03:10 PM

What state are you in?

If you are in a big city, generally the civil courts are too tied up with bigger cases. The Judges in these cases are generally pissed at the banks for issuing debt to folks who can't afford to pay money back at 20% interest and clogging up the court calendar with this sort of crap.

If this is the case, you can offer the bank say $20 a month at 0% interest. If they refuse, go to trial. The judge will ask you are you sure you can afford to pay back $20 a month? The lawyer for the bank will generally be pissed and will grumble, but if they don't take your offer, the judge will get more pissed for the banks wasting his court time again. The judge will get cuter and say something like are you sure you can afford to pay $20 a month, maybe you can only afford $10? By then the banks attorney will have his attitude adjusted pretty quickly. He will then offer you a stipulation of settlement, whereby you must repay the loan at $20/month for 200 months, which both the plaintiff and defendant will both sign. The judge will then explain that you must pay the $20/ month by the stipulation date, or it will automatically go into default. In which case the entire sum becomes due immediately with interest again. If you make your payments on time you will be ok.

Remember no interest! No negotiating with the bank's attorneys!! Just tell him that you can't afford more than $20 a month right now and definitely can never repay if you are charged interest since you are unemployed and looking for a job. Throw in that you have a alcohol or drug problem and are totally broke to make it look good. You will prevail.

Just one other thing, you must SHOW UP ON TIME FOR YOUR COURT DATE. If you are late or fail to show, the judge just grants automatic judgements against the defendants since they have the appearance of being total deadbeats. You are not a TOTAL deadbeat.

claimsguy · #6 04-24-2007, 06:45 PM

Try here, they may be better able to help

2+2 for debtors.

prohornblower · #7 04-24-2007, 06:45 PM

[ QUOTE ]
Just a few months ago they offered me a settlement of around 2k in one lump payment and I ignored it. Can I still get them to give me that deal or is it too late for that now?

[/ QUOTE ]

Would you take this deal? I'm no expert, but it sounds like a pretty good deal. Keep the courts out of it. Do you have $2K? Can you get $2K? I'm sure the deal is still on the table, I don't see why the bank would want to go to court over a few K.

I'd probably see if you can GET IT IN WRITING. Make sure there is nothing funny on it, and agree to it. KEEP RECORD OF THE SETTLEMENT TERMS FOR THE REST OF YOUR LIFE. I've heard cases where the bank will come back in 10 years and STILL try to collect.

illNana · #8 04-24-2007, 09:18 PM

I may not be able to pay it all in 1 payment, but I will try to get them to allow me 4 payments of 500 each perhaps.

Thanks to everyone for their advice.

maxtower · #9 04-24-2007, 11:37 PM

Can't you just declare bankruptcy and get out of the whole thing. I am sure your credit already sucks. You might as well eliminate the amount you have to repay.

prohornblower · #10 04-25-2007, 08:58 AM

[ QUOTE ]
I may not be able to pay it all in 1 payment, but I will try to get them to allow me 4 payments of 500 each perhaps.

Thanks to everyone for their advice.

[/ QUOTE ]

Ehhh, I don't think so. If they're gonna let you off the hook for 50% of the debt, years later, I'm pretty sure they want the lump now. Scratch 2k together and give them a call.