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Debt Collection

Asked about 3 years ago - Nashville, TN

We have an outstanding under 5000 dollar credit card debt that has gotten to the point in which it has gone from a collection agency to a lawyer's office ...who is now wanting to take us to court to collect. We don't have any idea of what to do.... Any suggestions?

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There are a lot of possibilities here. The first question is whether you have the ability to pay the
debt by obtaining a lump sum (borrowed from friends or family, or maybe payment on a bonus, or whatever)If you can, then you can offer a lump-sum settlement. Some creditors are willing to compromise the debt simply to get a quick payment.

If not, then can you make payments over time? If you can, then you can contact the attorney with a payment plan proposal. What the creditor is willing to accept? I suggest that if you can afford to make substantial regular payments, then call the other side to see what this creditor's requirements may be to make an agreement for payments.

If you can't afford payments, then your options are more limited. You may be limited to either allowing a judgment to be enterend against you or declaring bankruptcy. You may want to consult with a Bankruptcy lawyer to see what consequenses that having a judgment and filing bankruptcy may have for you in your state.

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Attorney answers (1)

Elliott M. Portman

Reputation Level 13

Answered about 3 years ago. Debt Collection Attorney in Bohemia, NY.

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If you owe the money, your best option is to work out a payment arrangement.

Perhaps you should work up a financial statement showing income and liabilities to show that attorney. Present it with your plan to liquidate the debt in a reasonable fashion.

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