Legal Question in Credit and Debt Law in California
Received a Summons for Credit Card Debt
While in college I opened a credit card account with Citibank. They were kind enough to give a student with next to no income and no credit history a $3000 limit. I promptly maxed out the card and after college financial hardships and my own irresponsibility kept me from paying off the amount owed. Back in September a collection agency contacted me and I agreed to a payment plan telling them I could pay $200-300 a month. They told me it would have to be $300 and that I had to make an immediate payment to them which I agreed to. I emptied my bank account and sent them $500 to start. Over the past 4 months I have made all of the payments except in Nov. I was only able to pay $250 and in Dec. I had to date the check 1 day after the due date. Last week I received a summons saying that Citibank was suing me. I already live paycheck to paycheck and can not afford any legal fees. By taking me to court they are only going to make it even more difficult for me to pay them back. I really want to pay this money off and have paid every cent I could. What is my best course of action at this point? I really want to avoid court. Thanks so much for your time and consideration.
2 Answers from Attorneys
Re: Received a Summons for Credit Card Debt
Do -not- ignore the lawsuit. File with the court your answer within the 30 days after you were served. Form answers can be found on the court's web site, and there are document preparers who can help you get it filled out to file with the court. Make sure the amount that they request in the lawsuit is the amount you owe. Otherwise, make sure you state as an affirmative defense in your answer that the "amount claimed owed, if any, is overstated." After you get the answer on file, then you might call the attorney representing Citibank, explain the situation, that you were faithful in your payments, and would like to work out a payment schedule. They might discount it. Frankly, I don't know why they filed the lawsuit since you were paying and the debt was relatively small. Good luck to you.
Re: Received a Summons for Credit Card Debt
Your options are:
(1) Do nothing, in which case they will get a judgment and garnish your wages. The maximum they can get is 25% of your take home pay.
(2) Work out a settlement with them now -- in othere words, get a payment arrangement you can live with.
(3) Through various legal means, delay the lawsuit for a few months. By then, your financial situation may have improved enough to start making payments they will accept.
Douglas A. Crowder
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