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Old 11-17-2013, 11:43 PM
 
4 posts, read 25,332 times
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I was served with a court summons for a credit card today. I do take responsibility for it. I just forgot I even had that CC and have never been notified about it. I owe $1,306.

- First, I am upset because instead of the 20-30 days most get to answer, I have a week.
- Second, I have a barcode sticker on it( like the barcode from a store). I am evaluating if the document is ever legit.

Do you think I can settle the debt by calling them? Maybe work out a payment plan? I can afford to pay 500 a month or in 3 installments. I know to get it in writing before I consent to anything because they can try to mess me over and sue anyway.

What are my options?
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Old 11-18-2013, 05:10 AM
 
894 posts, read 942,079 times
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Your only option is likely to just go to court. In Indiana, these case are usually done this way: The CC debt has already been sold to a collection company. The collection company has then hired an attorney to file a small claims against you. In a lot of cases, you will find the attorney, or the attorney's spouse, owns the collection company. This is likely what has happened, as the CC company has likely charged off the debt and sold it to the collection company for $100, if not less. You likely can't deal with them anymore, as they likely don't own the debt, unless your state has some very different laws government collections. You will need to work with whoever owns the debt, but I doubt they will bend. Half the reason the attorneys here in Indiana buy the debt is because they get to add on fees for their legal services. So they add anywhere from $100 to $300 to the debt for "legal fees" that it costs to get the debt.
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Old 11-18-2013, 05:19 AM
 
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The company that I'm being sued by is Cavalry SPV, I LLC. I am unsure but I've read somewhere that the plaintiff must file in a circuit court and allow the defendant 30 days to give answer. I've am on being allowed although it was filed on Oct. 21. I'm very unsure why they waited nearly a month to even serve me the papers.

I am a student and a nanny. I don't own a home, car or have any other debts. I get payed in cash so I doubt they will get anything from me right? I will be contacting a lawyer to see all of my options.
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Old 11-18-2013, 09:10 AM
 
Location: 23.7 million to 162 million miles North of Venus
1,418 posts, read 1,925,750 times
Reputation: 1310
Quote:
Originally Posted by Roger45 View Post
I was served with a court summons for a credit card today. I do take responsibility for it. I just forgot I even had that CC and have never been notified about it. I owe $1,306.

- First, I am upset because instead of the 20-30 days most get to answer, I have a week.
- Second, I have a barcode sticker on it( like the barcode from a store). I am evaluating if the document is ever legit.

Do you think I can settle the debt by calling them? Maybe work out a payment plan? I can afford to pay 500 a month or in 3 installments. I know to get it in writing before I consent to anything because they can try to mess me over and sue anyway.

What are my options?
The time limit on answering a summons is not from the date that the suit was filed, or from the date that the summons was issued. The time limit to answer begins on the date you, or someone in your household, had received the summons.

If you're unsure whether it is a true summons or not then call the court clerk in the county the summons was issued (which should be the county you live in) and ask them if there is anything filed in your name .. it's a good idea to do that no matter if you think the summons is true or not.

Yes you can try to settle before it goes to court. Many times when a debtor is at the hearing the judge will give the two parties time to come to a payment agreement, but it would be better if you tried to do that before the hearing.

If you try to settle before the hearing you need to include in your settlement papers that they will cease action on the suit while you are making the payments and that once you have completely lived up to your agreement then they will drop the suit (that way you won't have a judgment against you) - you need to have that in writing and signed by them and, if they agree, you need to make the agreed upon payments at the agreed upon time schedule or they will reopen the suit.
If they agree to it and give you a signed agreement statement, you should file that with the court clerk so that it's in your case file (so the judge will be aware of it) and if there is a court date you need to show up and defend your position regarding your agreement with them. Do not listen to the collector if they tell you that you don't have to show up - they pull that 'don't bother to show up' trick on people then they go in and get a default judgment because the debtor is not there!!

Even if you make an agreement with them you still need to answer the summons. You might go to creditboards.com and post in the Credit Forum. It's a free site and you will be able to find info about how to answer a summons, how to write up an agreement with the collector, etc., etc.

Judgments in Illinois last for 20 years, just because you don't have anything now doesn't mean you won't have anything in the next 20 years.

Have you always lived in Illinois while you had that credit card and defaulted on it? Or did you default on it while living in another state and then move to Illinois? The reason I ask is that Illinois has a 5 year SOL on credit cards, which it sounds like yours is still in SOL, but Illinois also has a borrowing statute where if you defaulted in a state with a shorter SOL and that SOL has passed then you can use the shorter SOL states statute to claim SOL.
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Old 11-18-2013, 09:21 AM
 
Location: Long Neck,De
4,306 posts, read 2,790,443 times
Reputation: 3995
Quote:
Originally Posted by Roger45 View Post
I was served with a court summons for a credit card today. I do take responsibility for it. I just forgot I even had that CC and have never been notified about it. I owe $1,306.

- First, I am upset because instead of the 20-30 days most get to answer, I have a week.
- Second, I have a barcode sticker on it( like the barcode from a store). I am evaluating if the document is ever legit.

Do you think I can settle the debt by calling them? Maybe work out a payment plan? I can afford to pay 500 a month or in 3 installments. I know to get it in writing before I consent to anything because they can try to mess me over and sue anyway.

What are my options?
If there is any doubt I would look up the number for the court and call and ask if this is legit. I would not just use the court's phone number on the mail you received. If it is not legit the court would be interested.
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Old 11-18-2013, 09:37 AM
 
Location: 23.7 million to 162 million miles North of Venus
1,418 posts, read 1,925,750 times
Reputation: 1310
Quote:
Originally Posted by indy_317 View Post
Your only option is likely to just go to court. In Indiana, these case are usually done this way: The CC debt has already been sold to a collection company. The collection company has then hired an attorney to file a small claims against you. In a lot of cases, you will find the attorney, or the attorney's spouse, owns the collection company. This is likely what has happened, as the CC company has likely charged off the debt and sold it to the collection company for $100, if not less. You likely can't deal with them anymore, as they likely don't own the debt, unless your state has some very different laws government collections. You will need to work with whoever owns the debt, but I doubt they will bend.
I disagree. If the collector owns the debt then they can deal with the debtor outright. If the debt was assigned to the collector then the collector can still deal with the debtor, acting as a go between with the debtor, the debt owner (whether it's the original creditor or another collector) and themselves. If the collector does not own the debt or it wasn't assigned to them then they have no legal standing in filing suit.

Quote:
Half the reason the attorneys here in Indiana buy the debt is because they get to add on fees for their legal services. So they add anywhere from $100 to $300 to the debt for "legal fees" that it costs to get the debt.
An attorney cannot willy nilly add fees. When/if it goes to court the attorney has to request their fee amount from the judge. It's up to the judge in how much the attorney would be allowed to receive. Indiana is no different than any other state in that respect.
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Old 11-18-2013, 10:08 AM
 
Location: Long Neck,De
4,306 posts, read 2,790,443 times
Reputation: 3995
Quote:
Originally Posted by berdee View Post

An attorney cannot willy nilly add fees. When/if it goes to court the attorney has to request their fee amount from the judge. It's up to the judge in how much the attorney would be allowed to receive. Indiana is no different than any other state in that respect.
I am a little confused here.Years ago we had some rental houses. One time for an eviction I used a lawyer because the tenant were to lack a better word far out. We of course got a judgement for back rent and possession.. There was never any discussion with the Judge about fees. We certainly did not expect to collect back rent. There was nothing to go after. We just wanted our house.
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Old 11-18-2013, 10:29 AM
 
Location: 23.7 million to 162 million miles North of Venus
1,418 posts, read 1,925,750 times
Reputation: 1310
Quote:
Originally Posted by longnecker View Post
I am a little confused here.Years ago we had some rental houses. One time for an eviction I used a lawyer because the tenant were to lack a better word far out. We of course got a judgement for back rent and possession.. There was never any discussion with the Judge about fees. We certainly did not expect to collect back rent. There was nothing to go after. We just wanted our house.
Sorry if my comment sounds incomplete or a little misleading. Requesting the fee is as simple as adding the legal fees to the amount that is being sued for. If the judge considers the fee excessive (according to state law or the bar assoc.) then the judge may reduce the fee amount.

edited to add .. During regular collections, the collector cannot include lawyer fees (or collection fees for that matter) unless those types of fees are included in the original agreement with the original creditor.

Last edited by berdee; 11-18-2013 at 10:43 AM..
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Old 11-18-2013, 11:03 AM
 
4 posts, read 25,332 times
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I am not sure what to do. I hear that there are ways to win because mom collection companies are banking on you to be a no show. They have no real proof of the actual contract and many have won on that defense. I am not sure if I should contact a lawyer or just call and try settling?
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Old 11-18-2013, 12:07 PM
 
Location: 23.7 million to 162 million miles North of Venus
1,418 posts, read 1,925,750 times
Reputation: 1310
Quote:
Originally Posted by Roger45 View Post
I am not sure what to do. I hear that there are ways to win because mom collection companies are banking on you to be a no show. They have no real proof of the actual contract and many have won on that defense. I am not sure if I should contact a lawyer or just call and try settling?
How do you know that they have no proof of the contract?
Did they include an Affidavit of Debt along with the summons? If so, then it's possible that they don't have the original contract. If they included an Affidavit of Debt then, along with your answer, you should file an objection to the affidavit and request that it stricken. If there was no contract included with the summons and complaint then you would have to file a Discovery requesting a copy of it. Depending on your states Rules of Civil Procedure, the collector may only have to produce a contract and not the exact contract that you signed. But, any contract that they provide must have a print date that is the same date of the contract that you did sign (the same year you opened the credit card account, or possibly earlier but not later than)
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