Legal Question in Credit and Debt Law in Michigan

Debt Question

Unfortunately, my wife was compelled to use her corporate American Express card (in her name) to pay bills when I was laid off a year ago. Recently we joined GreenPath Credit Counselors who began sending AmEx $295 a month to spend down the debt. The problem is AmEx will not agree to a credit plan for corporate accounts.

Yesterday a debt collector (NCO) called my wife at work and said if we didn�t come up with the money by Monday ($14,000) they would sue her company for the debt. The questions are: Can they do that? What, if any, recourse do we have?

Thanks so much.


Asked on 10/09/08, 12:25 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Debt Question

Yes, they can sue, but, as a third party collector, but usually collectors are going to be willing t negotiate what the total amount is. If they sue your wife and get a judgment, the most they can get is by garnishing her wages. Unless you have $14,000 (or whatever the judgment amount ultimately winds up being) in a bank account somewhere, there isn't really any way for them to get that much money out of you in one lump sum. If they sue you, you should force them to prove it with a trial, do not ignore the summons, but do what you can to contest it. A lot of collection agencies bank on the person they are suing failing to respond.

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Answered on 10/09/08, 2:30 pm


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