Legal Question in Credit and Debt Law in Minnesota

CC debt has gone past collections and into legal...

My cc bill is way past due and this morning a lawyer representing the cc company called and said I have until 1:30 tomorrow to come up with the money that I owe or it'll be turned over to the courts. I barely have any money, and I don't know what to do. My debt is around $7000 and I only get about $500 a paycheck from my work which goes to pay for everthing else in my life. So, what can the courts do to me? I'm scared out of my mind.


Asked on 1/16/07, 2:06 pm

2 Answers from Attorneys
Sam Calvert Calvert Law Office

Re: CC debt has gone past collections and into legal...

First off, Minnesota abolished debtors prison in 1858, so there's no jail involved. Minnesota law lets you keep 3/4 of your paycheck, or 40 x the minimum wage, whichever is more for you. If this is your only debt, consulting a reputable consumer credit counseling agency (e.g., Family Means, the Village, Lutheran Social Services) might be a good start. You will also want to investigate filing bankruptcy (ch. 7 or ch. 13). You did not say if you have any defenses to the claim. You should investigate those, too.

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Answered on 1/17/07, 5:34 am
David Anderson Anderson Business Law LLC

Re: CC debt has gone past collections and into legal...

Call me to discuss. You may have an action under the Federal FDCPA for damages. You can countersue or negotiate.

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Answered on 1/16/07, 2:22 pm


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