Need advice of Lawyer!

My credit card debt was sold to a third party. Today I got a call saying I owe thousands of dollars by the end of the year (this year) and if I do not pay the whole amount I will get taken to court and my wages will be garnished. What the hell am I to do? I am currently a grad student broke as hell.

That the credit card owner is responsible for. I don't know who called you. I would call your card issuer in the morning and straighten this out. IMHO

What do you mean exactly?

runs up charges on it. It doesn't sound like that's what's being complained about. It sounds like the company that bought the credit card account is saying that everything is due now.

I have no idea what to do about that but calling your credit card company is a good idea.

Is there a student legal services attorney you could talk to? Or a non-profit credit counselling agency? Do that.

I floated the Counseling agency Idea and they said there was not enough time. Where they full of it?

creditors off your back. they often get excellent payment arrangements made for you.

just be prepared to give up the card to the agency, to hold or cut up. that is usually their terms.

i know the relief they bring, from experience.


peace!

If you care about your credit rating, do not use these services.

However, if you are beyond that and really behind, it won't make any difference as your credit rating is probably on the rocks anyway.

I figured my rating would be trashed however throughout my life I have kept a great rating so I will build up my credit again.

than defaults.

and the OP said there was only till the first. the only other option in that short a time is a bankruptcy lawyer, who will do exactly the same thing, but charge for the time.


peace

http://www.hud.gov/offices/hsg/sfh/hcc/states/missouri.txt

scroll down, for phone, address, etc., of CCCS, Consumer Credit Counseling Service.

wishing you best!


peace!

you wrote that you only have till the first, which means tomorrow and friday.

defaulting will hurt your credit more than going through a counselor will.

now, mind you, i say all this under the presumption that you have already called the credit card company in an attempt to make an arrangement with them yourself, and they would not help. i saw some here adivsed that. i hope you did try that first.

best of luck!


peace

And be sure to thank folks like Joe Biden for giving the credit card companies the right to screw you.

You have one option - pay the bill.

The CC companies have the power now. You have no choice.

nt

on my credit card yes. I thought I could skimp until I got a job well I was wrong. I accept full responsibility.

Let them know your situation, tell them that taking you to court would only drive you into bankrups.

What state do you live in... that has a lot to do with your courts, because it is a state court issue.

The rules have changed.

http://www.moga.mo.gov/statutes/C500-599/5250000030.HTM

You have no wages, so you have little to garnish at the moment.

My deal is what about getting a job with garnishment hanging over my head? I always have worked at top notch companies, and believe it or not my credit rating was always outstanding until now. Can companies reject me based on garnishment?

It is increasingly common in fact. People like Choicepoint have made a flourishing industry of providing every detail of one's past to prospective employers for a cost.

At least I thought so. . .a company simply can't discriminate in employment based on late credit card payments. For one thing, most people have been in the same position as this student - little income and using credit cards to make ends meet while in school. Even if he is WAY behind, he should be able to make some arrangements. It seems to me that some companies end up going to some legal firm which threatens you (this happened to me a few years ago over a stupid Sears account...which really pi*sed me off since it happened one day before they received a payment. They sent me a threatening legal letter - I called and made a payment arrangement and took care of the debt six months early.

You could call your creditor and explain that your income is very limited. If you are a graduate student and can show some of those expenses were directly related to school...AND you are already on approved student loans, you can perhaps find a way to submit an increased budget request for financial aid. You'll have to predict some expenses, like travel or conference that fall out of the normal budget for next semester, but you can often get approval if you submit details and some evidence of extra expenses.

I think this often happens to graduate students because the requirements of advanced degree programs are NEVER really covered by the institution's budget nor assistantship salaries.

then the fine print probably says they can call the whole amount (or a part of) due.

Which is why they are telling you that you owe it and they can take you to court.

If you don't have the money, tell them.

The worst case scenario is that they serve you with a lawsuit, you go to the courthouse and plead your case to the judge, and then the credit card company could win and get a judgment against you. You can pay off the judgement when you have the money (but it too accrues interest).

I know you were not judging me. I have a guilty concious!!

Many people have been down this road, and often out of necessity - not luxury. When my primary relationship was dissolving a few years ago, I found myself going back to school, in debt, and living somewhere without any kind of contacts. There was a lot of worry for me the first three years, and yes - it likely affects your credit, but card companies are hungry to suck in future wageearners for decades with these cards.

If the card has been closed, your maneuvering room is slight - however, most bank cards offer unemployment insurance programs which are required to make payments while you are unemployed. You may not be able to get one until you catch the bill up, but you can certainly offer to do so once you are caught up with payments.

Don't let them intimidate you. You may have made a mistake, but you aren't their indentured servant. If they start harassing you (phone calls with no one on the other end but call waiting points to their number) report them to the Attorney General's office. You should not have to repeat yourself every day when they call.

What matters is that this is a debt that you intended fully to repay. You aren't trying to skip out on this responsibility - you just didn't have the means to handle the situation. It seems to me that at times like this, mail them $5 a month before this happens and let them whine - but you are still making a payment.

:hug: I'm sorry. My dad had his number stolen too from identity theft. Luckily nothing like that happened and he was able to cancel and cut it up and buy a new one. :hug: I'm not a lawyer but my prayers and positive thoughts are with you. I know there's at least one lawyer here so hopefully they'll be able to help (I think they're a lawyer anyways).

check whether they have a free legal clinic where you can get advice. If not, check whether there is another free legal clinic for you to use in your community. The local Bar Association should be able to inform you.

In many of these cases you can set up a payment plan--you may even be able to make an offer--you'll pay them 65 or 70% of whatever is owed--can't squeeze blood, etc.

Make an offer--and try to make a payment before the end of the year to show good faith--even if the payment is nominal. You may need to use this as a whine later on: I had so litle money I had to eat pet food every other day, but I still tried to pay them something.

Where the free legal advice may help you--and some places may have a low cost credit counseling service--is in letting you know how much flexibility you may have before they get a judgment and garnish your wages.

Good luck!

Bud Hibbs Educates Americans About Debt Collectors
http://www.budhibbs.com/

NOLO Press Bankruptcy Page
(they've been around a long time, and they know their stuff)
http://www.nolo.com/resource.cfm/catID/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

Alternatives to Chapter 7 Bankruptcy
http://bankruptcy.findlaw.com/articles/1613.html

good luck . . .

Usually, old debt (outstanding/uncollected for years) is sold to these shark firms who then shake down the debtor in the way you described. I read something about this recently - depending on the state, there is a period after which the debt can't be collected (I think it's generally four years in most states). These companies know this and they still try to shake down the individual for debts they've paid pennies on the dollars for. You might want to check with Legal Services in your area and see if this debt is still collectable.

already removed from the equation because of the delinquency. So this company's reality is that you don't have the money to pay the debt. Writing a letter to them explaining it is to their advantantage to attempt to work with you because you would would like to pay your debt. Threats will not do anything except drive you to the options which you have since you have nothing to lose at this point anyway.

Your options are Chapter 11, which allows you a reorganization of your debts supervised by the court. They won't get their money any faster that way. A consumer credit counseling service will also attempt to negotiate on your behalf for lower interest or concessions from them. This doesn't gain them anything either.

Garnishment if ordered by a court, does not allow them to take all your wages either. The court will set the amount to leave you money for vital expenses. No gain there either.

Do not make your contact by phone, do it in writing certified mail. Also in the letter you want to advise them that they are not to contact you by any means other than mail also. This may already be in the hands of a collection agency who bought your debt. If that is the case, they have very strict rules they have to abide by once you notify them in writing not to contact you. They are liable for huge fines.

Once you get a written response, you can evaluate what their position is going to be and it is quite easy in your financial situation to find low cost or cost free legal representation. Even a community legal services organization have lawyers that sometimes work pro bono. And they will have something in writing. Phone calls to intimidate have no record trail and are often successful because people panic. You don't have to do that. They can't put you in jail.

My best advice is write a thoughtful letter as I stated and start making them realize you now have required them to respond in writing also. Finally, if this is an old debt as an earlier poster suggested, there is a statute of limitations after which time the debt is no longer collectable. When you write them the letter, tell them you want a full analysis of your debt, including interest changes, when they occured, any fees and a complete reconciliation of the amount they claim.

By forcing them to realize they are not going to scare you, you may find a different attitude. The key is your credit worthiness is not a factor at present anymore. So they have nothing to gain by threats. Good luck.

Look to the original contract under which you borrowed the money. This would be the original contract under which you started using the original credit card.

The terms of this contract are the ones you agreed to.

Have you been notified of any change in the terms? If no notice, then you should be able to continue with the terms you agreed to. A contract is a mutual thing. It is not meant to be unilaterally changed.

The above are just general principles.

Something stinks here. I don't know all the facts. But you really do need to consult a lawyer about the correspondence you've received saying you have to pay on an accelerated schedule. Call around until you find a lawyer who will consult with you for a reasonable price. Don't be afraid to ask the price on the phone. Furthermore, some lawyers will give a free initial consultation. Do it, it will probably save you money in the long run.