Legal Question in Credit and Debt Law in Iowa

I have a judgment against me in Iowa regarding an old CITI card amount of @10,000. The lawyers office in Cedar Rapids brought the charges up to over 18K in the last 7 years. I have been paying 80 a month and now the balance is still over 12K. I am on unemployment (for 1 year now) and they refused a settlement of 7K last year. The card is charged off on my credit report, and I still have a score of over 700... what can I do?


Asked on 2/29/12, 9:15 am

1 Answer from Attorneys
Robert Luedeman solo practitioner

As a practical matter, not much. It sounds like the debt was sold off to a secondary recovery specialist by the original creditor. Since you've been making payments that tolls the statute of limitations. It depends on how valuable preserving your good credit is to you. If you don't care about that you can simply file bankruptcy and nip collection in the bud. I would suggest that you hire an attorney to negotiate with Mr. Litow's office as far as a settlement is concerned and you can argue that you're thinking seriously about taking bankruptcy. It would help to have representation, and the worst that could happen is you spend a few hundred bucks with an attorney and you're no worse off than before.

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Answered on 2/29/12, 1:19 pm


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