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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?

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Attorney answers 3


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.

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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.

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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.

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