Legal Question in Credit and Debt Law in California

I had a credit card with a balance of about $7000. Due to the financial circumstances I've been facing I have been unable to keep up with the payments. The credit card company recently sold the account to an asset management company. The asset management company are now suing me for the amount plus interest at the statutory rate of 10%. I have tried negotiating a payment plan with them, which they are refusing. They are requesting the amount plus interest paid in full. I cannot afford this. Could you please advise me on the other alternatives I have.


Asked on 9/02/09, 1:09 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Collection companies receive a percentage of the amount they collect, so they take a hard line. Often, though, debtors will receive a letter offering to discount the debt if paid in a lump sum.

There are companies that work with credit card companies to try to reduce the monthly payments and interest. Another alternative is bankruptcy if you qualify and have other debts as well.

Because the asset company is suing you, you might well be in a stronger bargaining position if you were to file an answer to the complaint within 30 days of being served. It would be preferable if you didn't have a default judgment against you. You also might raise defenses if applicable, including statute of limitations.

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Answered on 9/02/09, 3:24 pm


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