Being Sued

Ruthanne

Ruthanne

SF VIP
Location
Midwest
Found out last week I am being sued by a bank that owns a charge company for a charge I was unable to pay because the payments got so high. They demanded the full amount of the bill and I did not have it then and do not have it now so they have taken me to court. I called their attorney to try and made some arrangements to make a payment I can afford and they told me that amount was not acceptable but that I could send it. I called back later and told them I would only send the amount I said if they stopped going through with the judgement and they told me they would not do that. I also asked them to stop adding interest and they wouldn't agree to that either. Well, I found out they cannot attach my bank account as I am on SSI. I don't have any property accept a really old car not worth much.

This charge company constantly sent me emails and mail with advertisements of specials to buy, constantly! I couldn't resist and spend quite a bit. Then they raised my credit limit a few times, too. So, I have a bill with them that I cannot pay. The only thing I am concerned about now is losing my old car. I really need it for doctors visits and visits to the Vets, too, and shopping. It gets really cold here and a person needs a car when doing things.

An attorney looked through public records and saw the lawsuit against me and offered to file bankruptcy for me, sent me a letter today. I haven't called him. I really don't have the money to that. Also don't know if he is legit. I know sometimes they are on a payment plan.
 

Ruthanne said:
Found out last week I am being sued by a bank that owns a charge company for a charge I was unable to pay because the payments got so high. They demanded the full amount of the bill and I did not have it then and do not have it now so they have taken me to court. I called their attorney to try and made some arrangements to make a payment I can afford and they told me that amount was not acceptable but that I could send it. I called back later and told them I would only send the amount I said if they stopped going through with the judgement and they told me they would not do that. I also asked them to stop adding interest and they wouldn't agree to that either. Well, I found out they cannot attach my bank account as I am on SSI. I don't have any property accept a really old car not worth much.

This charge company constantly sent me emails and mail with advertisements of specials to buy, constantly! I couldn't resist and spend quite a bit. Then they raised my credit limit a few times, too. So, I have a bill with them that I cannot pay. The only thing I am concerned about now is losing my old car. I really need it for doctors visits and visits to the Vets, too, and shopping. It gets really cold here and a person needs a car when doing things.

An attorney looked through public records and saw the lawsuit against me and offered to file bankruptcy for me, sent me a letter today. I haven't called him. I really don't have the money to that. Also don't know if he is legit. I know sometimes they are on a payment plan.
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You say an attorney looked through public records and found the lawsuit? Is that how you found out? A process server should have served you in-person with a written court document, if in fact you were being sued.
 
RuthAnne, Just curious. How were you informed of this lawsuit? I always thought they sent these things to collections. Perhaps in your state it is different. Maybe you can check with the bar assoc. in your state to see if there might be someone affordable for you. I would try finding someone and not go with a troller reviewing public records. Not to say he is unqualified, he could be trying to gain experience, but I would feel better talking to someone else before making that decision. Sorry for you having to deal with this, they all try to suck us in. Especially with those store cards. I pay no interest or any other charges with my major credit card and I pay it off each month. Have one. Period. Good luck.
 

I don't think it is fair of you to blame the credit card company for allowing you to spend more money than you can afford to pay back. As Judge Judy would say "You ate the steak..."

Not sure how these things work where you live. In my area the credit card company would check to see if you had a bank account and attach the balance, garnish your wages or more likely just charge off the balance and put a judgment against you, hoping to collect in the event that you come into any money in the future.

Good luck!
 
This couldn't have just appeared out of the blue. Surely there were letters of demand and phone calls before hand.
I am not even close to a lawyer,but seems to me you need to be served before you can be sued. From this point forward I would refuse to speak to anyone on the phone and insist all communication be through certified mail.

How late are you? Most bills do not get sent to collections until they are at least 180 days old. Make sure you are not being scammed, find out who is actually doing the collection. As Gemma said its likely at this point your account has been sold and any collection agency is lucky to get anything. If it is legal in your state record any conversation with the collection agency.
 
They CAN NOT attach your SSI, you can 'homestead' the car in Ohio - Motor Vehicle. $3,674 equity in one motor vehicle. You need to notify the bank that you are exempting your SSI from garnishment via form. You can keep up to 2 months SSI in the bank when it goes over that they can attach the excess. Any other deposits you make will be subject to attachment. Periodically they can call you for 'Discovery' if they suspect you have gained any assets. If you are signed/listed on anyone else's accounts they can attach those. A judgment lasts 10 years if they go to that extreme and that can be renewed as many times as they want. DO NOT make any settlement agreement with a collection agency, unless you get a signed copy verified by a lawyer. Remember, 'if it ain't written it didn't happen!' How long ago did you make your last payment 6 years in Ohio if it's older than that you can go to the judgment hearing and claim 'Zombie' debt. Any payments you make will redate the account. A chap 7 bankruptcy will clear the debt.

Has the bank sent you a 1099C for the principal, if they have you should have listed it on your tax return as other income unless you were insolvent at the time. Read up on those. If the bank hasn't sent one then when the Statute of Limitations expire (6 years) you should list it on your 1040. The collection agency can't issue a 1099C since their primary business is not lending money. They would be in violation of IRS rules. You still should list the income to avoid any problems with the IRS. If the bank issued a 1099C with a code 'G' then the debt is no longer collectible by the bank, if it was code 'H' then the bank can still sell, dun or try to collect until the SOL expires.
 
Ruthanne - So sorry to hear about your legal issues. Nothing says Merry Christmas like a law suit, I guess. I can't give you any legal advise, since I'm not a lawyer. All I can offer is moral support! Hang in there, kiddo.
 
Carla said:
RuthAnne, Just curious. How were you informed of this lawsuit? I always thought they sent these things to collections. Perhaps in your state it is different. Maybe you can check with the bar assoc. in your state to see if there might be someone affordable for you. I would try finding someone and not go with a troller reviewing public records. Not to say he is unqualified, he could be trying to gain experience, but I would feel better talking to someone else before making that decision. Sorry for you having to deal with this, they all try to suck us in. Especially with those store cards. I pay no interest or any other charges with my major credit card and I pay it off each month. Have one. Period. Good luck.
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I was informed by registered mail.
 
Aunt Bea said:
I don't think it is fair of you to blame the credit card company for allowing you to spend more money than you can afford to pay back. As Judge Judy would say "You ate the steak..."

Not sure how these things work where you live. In my area the credit card company would check to see if you had a bank account and attach the balance, garnish your wages or more likely just charge off the balance and put a judgment against you, hoping to collect in the event that you come into any money in the future.

Good luck!
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I didn't blame the credit company for allowing me to spend more than I can afford to make and it makes me angry that you would write this to me at this time I am so upset in. I said they constantly sent me ads and emails encouraging me to spend a lot but I did not say I was not responsible! They cannot attach my bank account because I am disabled and receive a govt. check of SSI and it is against the law to attach that! I am not working. There is always someone wanting to pull you down further isn't there. Talk about what is fair!!
 
Robusta said:
This couldn't have just appeared out of the blue. Surely there were letters of demand and phone calls before hand.
I am not even close to a lawyer,but seems to me you need to be served before you can be sued. From this point forward I would refuse to speak to anyone on the phone and insist all communication be through certified mail.

How late are you? Most bills do not get sent to collections until they are at least 180 days old. Make sure you are not being scammed, find out who is actually doing the collection. As Gemma said its likely at this point your account has been sold and any collection agency is lucky to get anything. If it is legal in your state record any conversation with the collection agency.
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I was given a registered letter from the court of my city on Saturday.
 
Son_of_Perdition said:
They CAN NOT attach your SSI, you can 'homestead' the car in Ohio - Motor Vehicle. $3,674 equity in one motor vehicle. You need to notify the bank that you are exempting your SSI from garnishment via form. You can keep up to 2 months SSI in the bank when it goes over that they can attach the excess. Any other deposits you make will be subject to attachment. Periodically they can call you for 'Discovery' if they suspect you have gained any assets. If you are signed/listed on anyone else's accounts they can attach those. A judgment lasts 10 years if they go to that extreme and that can be renewed as many times as they want. DO NOT make any settlement agreement with a collection agency, unless you get a signed copy verified by a lawyer. Remember, 'if it ain't written it didn't happen!' How long ago did you make your last payment 6 years in Ohio if it's older than that you can go to the judgment hearing and claim 'Zombie' debt. Any payments you make will redate the account. A chap 7 bankruptcy will clear the debt.

Has the bank sent you a 1099C for the principal, if they have you should have listed it on your tax return as other income unless you were insolvent at the time. Read up on those. If the bank hasn't sent one then when the Statute of Limitations expire (6 years) you should list it on your 1040. The collection agency can't issue a 1099C since their primary business is not lending money. They would be in violation of IRS rules. You still should list the income to avoid any problems with the IRS. If the bank issued a 1099C with a code 'G' then the debt is no longer collectible by the bank, if it was code 'H' then the bank can still sell, dun or try to collect until the SOL expires.
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I am totally exempt from paying taxes since SSI is my only income. Thank you for all that information.
 
Hoot N Annie said:
Ruthanne - So sorry to hear about your legal issues. Nothing says Merry Christmas like a law suit, I guess. I can't give you any legal advise, since I'm not a lawyer. All I can offer is moral support! Hang in there, kiddo.
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Thank you, your support means a lot. And I was thinking the same exact thing "nothing says Merry Christmas like a law suit" :(
 
Warrigal said:
Could you approach the court to ask for some free legal advice from a duty attorney?
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We only have that if you are in a court trial but thanks anyways. My brother is actually an attorney. I don't want to bother him, though, he was an attorney for 30 years and retired being thoroughly sick of it.
 
Son_of_Perdition said:
They CAN NOT attach your SSI, you can 'homestead' the car in Ohio - Motor Vehicle. $3,674 equity in one motor vehicle. You need to notify the bank that you are exempting your SSI from garnishment via form. You can keep up to 2 months SSI in the bank when it goes over that they can attach the excess. Any other deposits you make will be subject to attachment. Periodically they can call you for 'Discovery' if they suspect you have gained any assets. If you are signed/listed on anyone else's accounts they can attach those. A judgment lasts 10 years if they go to that extreme and that can be renewed as many times as they want. DO NOT make any settlement agreement with a collection agency, unless you get a signed copy verified by a lawyer. Remember, 'if it ain't written it didn't happen!' How long ago did you make your last payment 6 years in Ohio if it's older than that you can go to the judgment hearing and claim 'Zombie' debt. Any payments you make will redate the account. A chap 7 bankruptcy will clear the debt.

Has the bank sent you a 1099C for the principal, if they have you should have listed it on your tax return as other income unless you were insolvent at the time. Read up on those. If the bank hasn't sent one then when the Statute of Limitations expire (6 years) you should list it on your 1040. The collection agency can't issue a 1099C since their primary business is not lending money. They would be in violation of IRS rules. You still should list the income to avoid any problems with the IRS. If the bank issued a 1099C with a code 'G' then the debt is no longer collectible by the bank, if it was code 'H' then the bank can still sell, dun or try to collect until the SOL expires.
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How do I do this "homesteading?" How do I go about it? My car is probably worth $500.00
 
I don't have any advice for you except to find some free legal help. Cyber hugs. I hope they won't take your car.
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Ruthanne said:
We only have that if you are in a court trial but thanks anyways. My brother is actually an attorney. I don't want to bother him, though, he was an attorney for 30 years and retired being thoroughly sick of it.
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Family is family. Seek his advice which I'm confident that he will be only too willing to give. He could possibly help you to represent yourself.

If you don't allow yourself to be spooked by the summons into somehow paying up, you may find that the summons is withdrawn before you are due to appear in court. It may not be financially worthwhile to pursue you all the way down the line. If you can get some mediation, your brother by your side would be an asset and he will feel good that he could use his skills to help his sister.
Talk to him.
 
Warrigal said:
Family is family. Seek his advice which I'm confident that he will be only too willing to give. He could possibly help you to represent yourself.

If you don't allow yourself to be spooked by the summons into somehow paying up, you may find that the summons is withdrawn before you are due to appear in court. It may not be financially worthwhile to pursue you all the way down the line. If you can get some mediation, your brother by your side would be an asset and he will feel good that he could use his skills to help his sister.
Talk to him.
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I agree about asking your brother. It doesn't mean he would necessarily have to get all involved, but he could easily answer a few questions like those about your car and at least point you in the right direction. I'm not a lawyer but I seriously doubt any bank would come after a $500 car or even a $1000 one. There are usually state laws that would protect you from some of those things. Your brother would likely be able to answer those questions in a couple minutes.

Setting up whatever you can afford to pay per month will at least get you started in paying off your debt will at least get you started. You don't want to let it sit there and accrue a bunch of interest.
 
Ruthanne, I'm sorry for your trouble. DO talk to your brother or another lawyer in your state and it is important to not just ignore the summons. It's more than worth the investment to get some quick advice. You need to find out what the procedures are IN YOUR STATE to protect your car and whatever assets you have.
 
Ruthanne, first I totally understand your pain. Believe me, you don't need to suffer so much. I believe the charge company is going past legal boundaries. You should look locally and see if there is an organization that offers free legal help to seniors. They can't take your car, none of that stuff. Maybe you could consider changing your phone number, or blocking them on your phone. That's what I've done in the past. My understanding is that they can NOT sue you if you're on Social Security or SSI.
 
Ruthanne--Most suits or litigation of the type you are referencing is normally sent via registered mail here in PA, as well. I certainly do not know much regarding civil issues of this nature, but I believe here in PA it is usually highly unlikely credit companies collecting back debt will come to your house and take any personal belongings, such as an older used automobile. They want c-a-s-h.

There's really nothing much to do. You owe a bunch of money, you have no cash, equities or property, so like the old saying goes, "You can't get blood out of a turnip," pretty much applies here. I know there is a federal law in place now for harassing phone calls during certain hours and also the number of calls they make are limited. If you feel that they are harassing you, please contact the FTC.

Also, I believe if you communicate with the debt collector via letter (USPS) and tell them in the letter that you are unable to pay due to lack of funds or income and that your only income is SSI, the debt collector must cease their attempts to contact you.
 


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