Legal Question in Credit and Debt Law in Illinois

Credit Card Lawyer threatening to sue

Live in Illinois. Lost my job 2 years ago (had been making a good salary, just built a home, incurred debt which could have been paid had I not lost my job). Entered into a solid debt management program. We pay them one lump sum per month, they distribute funds to all companies. One of the cards was sold to another company; they will not uphold our original agreement with the debt management company. They are threatening to sue (have had lawyer call us). We were late on our last two payments ( I took a new job with a slightly higher salary BUT had some up front costs that put us behind). We are BACK ON TRACK;paid this month on time. Every intention of paying our debt, do not want to bail and file bankruptcy and leave the company high and dry. I can't believe in today's world with such a bad economy that the company wouldn't be THRILLED to have us paying our debt ($2900 on that card). They have offered to settle the debt for $2000 to be paid by the end of the week; we CANNOT pay that because we have NO additional money (check to check). They told us to ask friends and family which is not an option. Should we just let them take us to court because we have done everything in our power to make this right? HELP!


Asked on 10/16/08, 8:30 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Credit Card Lawyer threatening to sue

If you have a written agreement with the original creditor, it is likely the new company will be obligated to live with that agreement. If not, you might have a tougher time enforcing that agreement.

Another thing to look into is whether the attorney may have violated the Fair Debt Collection Practices Act, which could be a lot of fun for you. Be sure to document all conversations and correspondence.

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Answered on 10/17/08, 9:28 am
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Credit Card Lawyer threatening to sue

Go ahead and let them sue you, they cannot make you pay more than you have. It is strange that they wouldn't be willing to accept a payment plan, but if they sue you and you contest it, it is entirely possible you'd prevail since they may be unable to prove that they own the debt and how much the debt is. It probably wouldn't hurt to consult a local consumer law attorney. It certainly would not be worth filing bankruptcy over $2900.

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Answered on 10/18/08, 2:17 pm


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