Skip to main content

Entered into a payment plan with Amex over credit card debt. I cannot pay, now what?

Brooklyn, NY |

I owed AMEX $42,000. The sent me a lawsuit that was never served properly. It was just mailed to me. I entered into a payment plan of $1000/month. I paid every month until January when a death in the family had a negative impact on my finances. At the same time i rececived a letter that some points had not be properly credited to my account. I called them & was told that my interest was miscalculated & that I would be given a credit for the miscalculation.
I have not paid them since i recieved the letter about the interest. My perception is that when I signed an agreement for what i owed them that the burden to prove what i owed was on them. Thus, when i recieve a letter that says they miscalculated the agreement is null. Now they want to enter a default judgement. What could happen?

+ Read More

Attorney answers 3

Posted

Bring the agreement to an attorney to review it. You can possibly fight the agreement. They may file a lawsuit against you. At the end of the day you need to come up with a plan. Bankruptcy either chapter 7 or 13 may be an option. You also may have other creditors that you need to think about.

If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or www.mynewyorkcitylawyer.com.

Posted

If they get a default judgment they can go after your assets. If you did not agree that service was proper in the agreement you can move to dismiss due to bad service and make them start over. Review the affidavit of service in the court file. I bet they claim they did something besides mailing it.

I am a former federal and State prosecutor and have been doing criminal defense work for over 16 years. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012 and 2013. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. Martindale-Hubbell has given me its highest rating - AV Preeminent - in the areas of Criminal Law, Personal Injury, and Litigation. According to Martindale-Hubbell”AV Preeminent is a significant rating accomplishment - a testament to the fact that a lawyer's peers rank him or her at the highest level of professional excellence." Fewer than 8% of attorneys achieve an AV Preeminent rating. I also have the highest ranking – “superb” – on Avvo. The above answer, and any follow up comments or emails is for informational purposes only and not meant as legal advice.

Posted

The terms of the agreement hold the key. If you consented to the entry of judgment at that time or upon default you will be at the mercy of the law firm to renegotiate the terms of the stipulation.

I do NOT know you. I am NOT your lawyer. This answer is provided for the general public who may have similar queries. The answer provided is NOT definitive. I do NOT know all of the facts of your case and NO attorney-client relationship is established. Please do not use my answer to tell your lawyer what to do. Free advise is worth exactly what you are paying. Trust the lawyer who is charging you for his/her time and expertise. If you can no longer trust your lawyer, then hire someone else. I am always interested in new clients and business opportunities and would welcome your call or email to discuss matters further. For more information, please feel free to visit my website or schedule an appointment.