Legal Question in Credit and Debt Law in California

Hi, my name is Alvin and i have a question because a week ago i recieved letters that my credit card company is suing. Now what i dont understand is that we had an agreement/settlement about one year ago, i spoke to one of their agents from the collections department and we came to term that i would pay them $100 each month until i am able to pay the whole lumpsum which is about 70% of $5000. Sure enough they were withdrawing money out of my checking account everymonth, but then about six months after that they stopped taking the money and now they sent me notices say that they're suing me for $5100. I tried to call the credit card company up and tried to find out what's going, they said that they don't have my account information anymore and saying that all my info was sent out to the Law firm that's suing me right now. So i tried to call the law firm and now they're saying that i have to make a lumpsum for 3 payments for $5100 or 36 mos of $146, and they said that's what the credit card company want, if i cant do that they will still continue file the charges against me. Can they do that? Isn't a Breach of Contract or Settlement? Please advise me how should i go about that. Thank you!


Asked on 3/04/11, 3:23 pm

1 Answer from Attorneys
Asaph Abrams Law Office of Asaph Abrams

It's difficult to enforce an agremeent if it was not written and signed. What you describe is the reality of the collection process, which can be fairly ruthless; creditors want their money and they want it now. There are no qualms about reneging on prior commitments. Depending on the amount of other debt you may have, a common, fast and cost-effective approach to eliminating debt conclusively, swiftly and comprehensively is through filing of a voluntary bankruptcy petition with the federal court. Then the dark clouds of lawsuits, garnishments and all other manner of unpleasantess will recede.

This answer (as well as our Web site) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon; it creates no attorney-client relationship. Contact us for more information on whether you are eligible to file for bankruptcy relief.

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Answered on 3/04/11, 3:55 pm


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