Legal Question in Consumer Law in Illinois

Delenquent Credit Cards

I went to a legal settelment group. They sold me on a settlement plan in march 2008. I've paid 700 a month being escrowed to be used in negotiations with the creditors. The minimum payment on the credit cards was over 1400 a month. 1st creditor is taking me to court 30 Oct 08. I Now understand that until the creditor accepts the plan I am viewed as delinquent? In the event of a judgement, what can the creditors take. I live in central Illinois.


Asked on 10/14/08, 8:21 pm

2 Answers from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Delenquent Credit Cards

This is why I don't advise clients to go with debt settlement companies. Your creditors do not have to agree to accept anything fromt his company, and you are paying this money which isn't accomplishing anything. I would recommend seeing a local consumer law attorney as soon as possible. If they get a judgment against you, they can garnish your wages and bank account and put liens on any assets you have. One thing you need to do is go to the court date, and contest it. If you go and admit to the debt a judgment will be granted right there and then. If you request a trial, then you make your creditor prove the debt. You can probably work out a settlement without the debt settlement company, directly with the creditor.

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Answered on 10/18/08, 2:29 pm
Thomas Moens Moens Law Offices, Chartered

Re: Delenquent Credit Cards

Sure. Just because you agreed with someone that you would only pay $700 per month does not change your obligation to the credit card company. The creditor probably will not take anything, but you may not be able to buy or sell real estate until it is paid, and the judgment will appear on your credit report.

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Answered on 10/15/08, 2:57 pm


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