In debt, Judgement filed, need advice!!

iVillage Member
Registered: 08-14-2007
In debt, Judgement filed, need advice!!
3
Tue, 08-14-2007 - 2:30am

I'm not sure where to turn...I have no idea what to do and feel like I'm in way over my head. I could really use some advice if anyone knows about this stuff.

2 years ago I took out a capital one loan to cover some medical costs, the original loan was $8000. It was in DH's name as my credit is awful. I made one payment on it and then fell behind, I can't even tell you how often I replay those months in my head and kick myself for not being more responsible.

I tried to catch up by setting up automatic payment arrangements with them but I was short and a payment bounced. They then told me it was bad debt and they were handing it over to a collection agency. I tried to set up payment arrangements with the CA but they said they could only accept several large payments, all of which were more than I could make, so I did nothing.

Didn't hear from them for a while, then we got a letter asking for payment in full, which was now over $10,000 because of fees and interest I guess. Several months later we got a note from an Attorney's office requesting payment in full on their behalf, and now at least 6 months later we get a letter from the attorney saying they've filed a judgment against DH (since it's in his name)...

They sent us a certified copy of an "order of default judgment" against my DH and are asking for over $12,000 now which includes attourneys fees! What I don't get is that is says "the defendant having failed to appear or file an answer herein and more than 20 days having elapsed since the date of service of the Summons and Complaint herein...." I don't know what this means! This is the first we have heard of any judgment against us, but it sounds like we failed to show up to something, how could we if we didn't even know?!?

Should we have been served with something? We never were, never signed anything, the only thing we ever got from the attorney was a letter in the mail saying they were trying to collect the debt for the CA and we should send them the payment and now this letter in the mail. Is there anything we can do? I mean obviously we do owe the debt, and have been willing to make reasonable payment arrangements, but what will happen in court? Can they demand the full amount, which we just don't have?

We have other debt we've been working our way out of and our credit is bad, we don't own a house or have any savings outside of retirement, we do have a car that we're making payments on...but there is just no way we can pay this! DH and I both work, he's in school as well and we have 2 small kids at home, I'm so worried about what's going to happen.

Amber

iVillage Member
Registered: 03-17-2003
Tue, 08-14-2007 - 11:47am
Hi Amber.
iVillage Member
Registered: 08-14-2007
Tue, 08-14-2007 - 3:55pm

Wow Carolyn, thank you so much! This is great info. I thought it just didn't seem right.

Yes, they did file in our county so that was done correctly.

How do I go about getting copies of everything that was filed, do I just go down to the county courthouse? Is the "service" you're referring to basically what they should have served us prior to entering the judgment, and by getting it we will be able to prove that they never served us with it? I think I'm understanding this but I just wanted to clarify!

Whew, I hope I can do this right.

Thanks again for your help!

Amber

iVillage Member
Registered: 03-17-2003
Tue, 08-14-2007 - 4:51pm
Yes, go down to the county courthouse and tell them you want the file.