Legal Question in Credit and Debt Law in New York

What is the worst case scenario?

Hello. I received a summons dated 12/03. I never responded to it bec i im afraid, and i havent been well. Its from a law firm, regarding an old cc debt of around $2000. They have been very threatening to me. Recently threatening a judgement, even though i was making monthly payments of $88.

I have made no payment this month, bec I have learned from them, that a process server was hired and a lawsuit started. (Also i have never officially received any document yet from the process server).

Im really scared. What is the worst thing that can happen here? I think worse case, that a judgement will be entered. But what happens to me then? Is that a terrible thing?

In a moment of weakness, i wrote a letter asking them if they would settle the account for an amount. They are willing to settle for $1300 by 2/27. I am thinking of borrowing the funds to pay them, but part of me thinks that is insane.

Any advice i really appreciate. Many thanks to you.


Asked on 2/17/04, 3:43 am

4 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: What is the worst case scenario?

Answer any legal papers or a default judgment wil be entered.

Ask if you can make partial payments for the 2000.00 until it is paid off, with them not charging interest. It all depends on who the their client is.

Good Luck.

RRG

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Answered on 2/17/04, 7:49 am
Eric Kochel The Law Office of Eric David Kochel, Esq., P.C.

Re: What is the worst case scenario?

For total peace of mind - you could file a Chapter 7 Bankruptcy. The judgment and debt could be wiped out and the creditor could never pursue the debt again - no wage garnishment and no repayment. Call my office at (212) 745-1373 for a free consultation to see if bankruptcy is right for you.

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Answered on 2/18/04, 5:42 pm
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: What is the worst case scenario?

You should not be afraid and go to court and tell the judge you are making the $88 payment. If they get a judgment (they will if you don't answer) they can garnish aprox 10% of your wages. The judgment hurts your credit standing as well.BUT, debt collectors are not allowed to harass you or verbally abuse you. They can threaten a lawsuit if it is their intention to bring one. You should tell them not to call you anymore.

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Answered on 2/17/04, 9:13 pm
Richard Roberts Richard A. Roberts, Esq.

Re: What is the worst case scenario?

First thing, don't be scared. The worst thing that is likely to happen is that your creditor will obtain a judgement against you. If they do they can attach your paycheck (for up to 10%) or attach any bank account or other asset you might have in any county in which this judgement is filed. This will likely have a negative impact upon your credit. If you are able pay this balance off without otherwise straining yourself financially, it's probably a good idea.

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Answered on 2/17/04, 10:18 pm


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