Legal Question in Credit and Debt Law in Texas

arbitration for charged off acct

My dad received a notice of arbitration on a credit card account with the last payment being paid in jan 2005. He lives in texas owns his primary homestead. We do not want the collection agency to be awarded a judgment, and would rather offer a settlment before it goes to judgement. Question: is there a way to respond to the arbitration notice that will delay the judgment being awarded and buy us more time? or will they automatically win the judgment? What is a good starting point to offer on a lump sum settlement (charged off balance was $14000)? We assume our best negotiating point is before the arbitration hearing and definitely before the judgement is awarded.


Asked on 1/31/06, 10:38 pm

1 Answer from Attorneys
TC Langford Langford Law Office

Re: arbitration for charged off acct

First make sure that the arbitration does not go forward without your proper legal response. If you are unsure how to do this pay an attorney for a consultation, take the paperwork, and ask him/her to help you draft the response, and continuance. Then contact the attorney for the credit card. Many card accounts will settle for 50% of the outstanding debt. Some are more agreeable than others. Your fathers homestead is protected from any judgment, only non-exempt property is subject to garnishment for a judgment like this. TCL

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Answered on 2/01/06, 7:59 am


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