Legal Question in Credit and Debt Law in Georgia
Debt collection
I have been summoned to court for--name removed--civil action lawsuit for--name removed--debt through chase credit card.
I cannot afford to pay the full amount but my dad is willing to give me part of the money. They are asking for $1350 and the original debt was $487. My dad is giving me $500 to negotiate--name removed--one time lump sum payment.
How do I go about negotiating through court? What do I write in the negotiation paper? we have to answer back within 30 days.
I don't have money and I only work--name removed--few hours--name removed--week at minimum pay so wage garnishment will take--name removed--long time for them to collect the money.
Looking for advice on how to reply to the court in writing to negotiate down--name removed--little.
Thank you for the advice!
2 Answers from Attorneys
Re: Debt collection
Paying a partial payment like that creates an extra income tax liability later. While you can make an offer, be aware of that added cost to you, and be aware that any settleent must be in writing and that you need to answer the suit while you negotiate (before your 30 days runs).
If you owe other debts, a bankruptcy might be a better use of the $500 depending on your situation. See a lawyer to evaluate the options.
Re: Debt collection
Settlements are between you and the party, and not the court. It would be ridiculous to even consider bankruptcy for anywhere close to the amount you stated - more than you owe would go to the attorney. The tax liability for any settlement in that range is typically zero or a few dollars for most people -- again not even remotely close to a reason to consider bankruptcy. A (second) job, family loan, and written settlement are obviously the best choices. Either way, do not fail to answer the complaint, even if it likely delays the inevitable if you do not settle.
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