What should I do? I keep getting calls from the junk debt buyer Midland Funding LLC. I tried to call Midland Funding LLC but they gave me the number to their lawyer's office. I called their lawyer and tried to make a payment plan offer but they want $150 per month and after 6 months it will go to what they called a "review" where the payments will go up and they won't tell me by how much. I called back and talked to another person and she said it will probably go up to $325. That's more than I make in a week. I can't afford that.
About me: I was out of work and couldn't afford to pay Chase and now they've got a junk debt buyer calling me. I have a job now and I don't make much, but I would have to work over a week just to pay these people.
Midland Funding LLC is a junk debt buyer so they need proof of the debt. Do they have proof of the debt? What is the statue of limitations (last time you paid or promised to pay)? Have they made any other attempts to contact you?
When you say you are getting sued, does this mean you have actually received a summons and complaint? If so, you need to respond to this within 21 days, or you may need to appear in small claims court. If you don’t do this, you may be defaulted. If this happens, they can garnish your wages up to 25% under the Federal rules, attach your bank account, tax refunds and place liens against real estate you own now or in the future. You should challenge whether they even have proof that they own the debt. You may be able to file a motion to dismiss their case for a number of factors, or you can try to settle with them, (I would suggest no more then 25% of your salary, as they can’t do better in court) but again due to a law suit, you need to act in a timely manner.
If this is not your only debt, and have others, you may also want to consider filing for bankruptcy. Many attorneys like my office offer free consultations on debt relief and defense matters and it would be a good idea for you to set up such a consultation very quickly with a lawyer in your area.
I hope this perspective helps,
Mr. Rowe is on the right track here, but let me expound further. Unless you admit the debt, Midland Funding LLC cannot prove its case. I have yet to see a junk debt buyer's agreement that does not preclude the buyer from calling the seller/original creditor as a witness. As a junk debt buyer without a witness who can testify in court to the validity and amount of the claim, and authenticate the proper documents, they cannot prove their case. But you need to hire a lawyer to defend this case - you do not know the rules of evidence and may not be able to keep the proffered testimony out (note that the formal rues of evidence don't apply in Md. District Court on claims under $5000, but few courts will let a purported creditor get away with pure and utter hearsay).
Adding to Mr. Press' correct synopsis of District Court procedure, if -- after defending against Midland Funding LLC's lawsuit trying to prove that it may not have proof that it is the rightful holder of the debt and/or that you do not owe the debt to it (nor, perhaps, to the original creditor) -- you find that a judgment has been rendered against you, that judgment will place in jeopardy your wages, which could be garnished. At that point, you might consider the possibility of a bankruptcy case which would stop this creditor, and all others; protect your hard-earned future wages, and wipe out this obligation as well as other debts that you may also owe (as sometimes happens when individuals are unable to find employment).
This response is not a substitute for an in-person or telephone consultation about your specific legal issue. If you wish, please contact my office at 410-625-2300 or by email at firstname.lastname@example.org. I would be pleased to discuss with you any other questions you may have.