If you have no legal defenses, they will most likely obtain a judgment. Not being able to pay back the debt is not a legal defense. If they obtain a judgment, they will most likely initiate post-judgment legal collection methods, such as wage or bank account garnishment, depending on your state's laws.
Also, they are not required to enter into a settlement with you. They may, but, as I said, they are not required to.
You may want to consult a debt settlement attorney or a bankruptcy attorney to see if that is a viable option for you. Best of luck.
This correspondence does not create an attorney-client relationship. It is not meant to provide legal advice in that capacity. You may wish to consult an attorney in your area.
Talk to a local attorney.
First, you can ask them questions as well. Keep in mind that ability to pay has no bearing on your case.
Second, if you have any defenses, raise them in your case or you may end up waiving them.
Third, whether you can protect property depends on state law. Creditors have to ask about it first, get a lien on it (no equity and a lien is worthless), and then act on that lien.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
To specifically answer your question, the law firm sent you questions called Interrogatories. If you answered them to the best of your ability, then you should be okay. Typically, the law firm will send you a letter detailing their view of the deficiencies in your answers. Then, if you do not respond or do not answer the questions to their satisfaction and within the law (there are discovery rules), then the law firm will file a Motion to Compel seeking a court order requiring you to answer the questions and/or be sanctioned.
You can also submit interrogatories to the law firm/credit card company and the same rules apply.
As the others indicated, there is no requirement that the creditor accept payments. I strongly advise against the debt settlement companies. A local bankruptcy attorney can give you some options.
By answering this question, general information is provided and no attorney-client relationship is established. For specific inquiries, you should consult with experienced counsel in your area.