Legal Question in Civil Litigation in California

What can I do?

I had a credit card that I became delinquent on about 5 years ago. It went to collections and was transferred to an attorney who tried to sue me. I didn't want to have the judgement on my record, so I made an agreement with the attorney to pay $200 per month (after paying a $500 upfront payment). I have been making this payment since May of 2006. I was told at the beginning that if I defaulted on the agreement we would be back in court. I have no record of the payments other than my bank statements, as I do a payment over the phone. I believe I still owe about $5000 at this time. The original debt was $6000. I am now unemployed and I don't think I can keep making this payment. Should I let them take me back to court, file bankruptcy (I have some other bills but they aren't delinquent) or should I just keep paying for the next 4 years?!? Do I have any other options? I can't make a settlement offer at this time due to my financial circumstances. Thanks for any help.


Asked on 4/01/09, 12:45 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: What can I do?

In the nearly three years you should have been able to pay off about $7,000 but you state that you have reduced the debt by only $1,000. What interest rate are you paying? Are your figures correct? Demand a statemetn from the attorney as to what you have paid, what is owed, and what the interest rate and other charges are. if the credit card company sold the debt to a collectiion agency, I do not know if the usury laws would apply or not [do not apply as to credit crd company]; you should demand from the attorney his basis of claiming the usury laws do not apply. Is he employed by the collection agency or did he buy the debt from them?

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Answered on 4/01/09, 1:29 am


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