Legal Question in Credit and Debt Law in Michigan
I recently received a second summons for debt collection. I did not receive the first one and am I little confused and unsure of what to do since I recieved this summons on 5/30 and it expired on 5/24. They are asking for $5515.51. I am hoping to settle outside of court as to not have my wages garnished, especially since I do not earn a traditional wage. How can I avoid a third summons or a judgement? I am not a complete lost for what to do.
1 Answer from Attorneys
It's really tough to settle these types of cases in the traditional sense because you don't have a lot of bargaining room - they can simply garnish your wages and/or your bank account. If they cannot do that, they could have a sheriff come over and seize property at some point. That being said, there are ordinarily two ways to handle this before resorting to a bankruptcy filing.
1. Call the law firm up and offer to make payments on the debt that you can afford.
OR
2. If you have 30 to 40% of the debt amounts, try to negotiate for a lump sum amount to lower the total you pay. Make sure you get the deal in writing, and also understand that whatever debt is forgiven may be taxable as debt forgiveness. Why does this help? Some creditors are willing to give up a percentage of the debt if they know they can be paid a lump sum right away. So time can be a bargaining chip.
If neither of these are an option, and you owe the debt, you could file a Chapter 7 or 13 bankruptcy to resolve the issue.
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