Court Summons

iVillage Member
Registered: 06-20-2005
Court Summons
8
Mon, 06-20-2005 - 6:15pm

Hello all, I have been a long time lurker here. Let me just say that you are a wonderful group of people and that I enjoy coming to this board and reading all the posts for support.

I have a problem with an old cc that was charged off and now the collection agency is suing me. I talked to someone in their lawyers office and they are willing to settle for $935 and dismiss the case or pay $101 a month for 12 months and I would have to sign a consent judgment. The settlement is good for a month but am having a hard time deciding what to do because I don't like the idea of saving up the money in one month and then give it all away the next day. What if something happens and I am without money? I am so confused. I don't know which option would be best. What do you guys think?

Thanks for listening and I look forward to reading your replies.

HelloKitty




Edited 6/20/2005 7:36 pm ET ET by mom_hellokitty
iVillage Member
Registered: 03-31-2003
Tue, 06-21-2005 - 10:21am

Hello mom_hellokitty,

If it were me, and I had the $935, I would pay them. It's so freeing to get that debt off your conscious, it's worth it!

If I didn't have $935, I would pay the $101/month. I don't know anything about a consent judgement though, so I'd probably go over to the debt Q&A or find one of those free lawyers.

Good luck!

Lee Ann

Lee Ann

www.werenotafraid.com

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 06-21-2005 - 10:31am
I agree with weddingdance that I would pay the smaller one-shot-only amount if I was able to save that much money in the time allowed.

All my best,
Danni

iVillage Member
Registered: 03-27-2003
Tue, 06-21-2005 - 10:58am

Don't forget that you may owe taxes on the difference between the amount you owe and the amount you actually pay. So if it's a huge difference, you may want also to look into the tax implications--it would really stink to pay off the debt and then get stuck with an unexpected tax bill too.

Good luck and let us know what happens!

Heather

iVillage Member
Registered: 02-14-2004
Tue, 06-21-2005 - 12:09pm
Hmmmm, that's a tough one. you may want to call a credit counselor at a consumer credit counseling agency and ask which one would look worse on your credit report. The consent judgement, does that mean a judgement will appear on your credit report? I would think the settlement would do less damage but honestly I'm not sure.
iVillage Member
Registered: 07-10-2001
Tue, 06-21-2005 - 2:08pm

Am I missing something here?

CC debt is unsecured (in most cases).

How can you be sued for it?

Something smells fishy here...at least to me.

iVillage Member
Registered: 06-20-2005
Tue, 06-21-2005 - 3:38pm

Thank you all for the replies. I will be paying the settlement amount and they will dismiss the case. They will report as settled/paid in full. If I were to make the payments then the consent judgment would appear on my credit report as a separate tradeline under the public records section.

az tbone, it does not matter whether it is unsecured or not, they can sue and if they get a judgment against me then they can garnish my wages or empty my bank account (if they know my account number or find out) in order to satisfy that judgment. I could fight this in court but it is my debt and I want to pay it and it is still under the SOL for my state.

mom_HelloKitty

iVillage Member
Registered: 02-14-2004
Tue, 06-21-2005 - 9:43pm
Sounds like you have made an informed decision. I hope this gives you some relief!
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 06-21-2005 - 9:51pm
az-tbone - unsecured debt means that you have not secured it with anything like your house or car or other form of collateral.

All my best,
Danni