Asked about 1 year ago - Corona, CA
FlagI am being sued by a credit card company. How do I go about and this not going to the courts and trying to settle with them.
Start with the first video on the home page of my web site, which describes your six options, each of which may merit your consideration, before you decide to focus on one or two of the options. My blog posting, below, also discusses your next steps and how to make the most of this situation and applicable deadlines. Call an experienced collection lawsuit defense attorney to review the specifics of your case.
Robert Stempler (please see DISCLAIMER below)
www.StopCollectionLawsuits.com
Twitter: @RStempler
Your communications with the debt collector should be in writing. Anyone who calls you on the phone will not have sufficient authority to resolve the matter satisfactorily. Do not believe anything that a debt collector tells you on the phone. If you communicate a proposal in writing, it will be forwarded to someone who can make a decision. There may be some back-and-forth negotiations.
If you are served with Summons and Complaint, there is a time limit to file your responding papers with the court. A letter to the debt collector does not extend anything unless the plaintiff's attorney tells you, in writing, that you have an extension.
I strongly suggest that you sit down with a lawyer to review your case and your circumstances. Often, the best time to negotiate is after you have filed an Answer to the lawsuit. An attorney can negotiate better than you can. And, any settlement should be confirmed in writing, and should include the substance and manner of credit reporting, whether a 1099-C form will be sent to you, and other matters. Meet with a lawyer.
To answer the question posed, what can happen?, you have a specific time frame within which to file a response to the Complaint. If you do not file a response to the Complaint, the plaintiff can proceed without you, by way of default. Assuming you never make an appearance in the lawsuit, the plaintiff can obtain a default judgment against you. Once the judgment is entered, the plaintiff will then have the ability to garnish your wages or levy against your bank accounts. The worst thing to do is to do nothing. You should contact an attorney immediately to assist you in responding to the Complaint and asserting your legal defenses. Then, the attorney can help you in negotiating a settlement with the credit card company.
I suggest you file your Answer before you negotiate settlement. Plaintiff may trick you into "settling," then obtain a default judgment when you don't file an Answer on time.
If the summons and complaint were "personally served" on you (i.e., handed to you), then the deadline to file your Answer is 30 days from date of service. If the summons and complaint were handed to another person in your household or workplace, then the deadline to file your Answer is 40 days from the date that plaintiff mailed you a copy of the summons and complaint. If you don't file your Answer on time, then plaintiff can file with the court a very simple form, asking the court clerk to enter default against you. Once the default is entered, you are prohibited from filing your Answer.
When/If you settle, make sure the plaintiff itself (not just plaintiff's attorneys) sign a WRITTEN settlement agreement. The agreement should include a provision for mutual release of claims.
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