Legal Question in Credit and Debt Law in Wisconsin
My son was going to an after school program for Taekwondo Academy, WI that does there bill through another service named Affiliated Acceptance Corp located in Mo. They wanted me to sign an agreement and asked for my SS#, I advised that I was uncomfortable, what if I lost my job or had to move? The owner of Taekwondo said he wouldn't have a problem letting out of any contract in this case and we agreed I offered and we agreed I would give a two week notice at if I had to. He said he was ripped off last year and lost thousands and apologized. I still felt uncomfortable and crossed of and initialed the part that I thought left me liable.
In January 15th 2009 week me and my husband both lost our jobs. At this time there were also some weird things going on there. My son was upset that Master Gosh had yell at him a few times, Gosh had a brand new baby that was left a few times crying and untended in his office while he was instructing , and I received a couple of concerned parent emails as well.
I had email notice of two weeks and sent a certified letter with the emails to Affiliated. The first of Feb/2009 was my child last day at Taekwondo (this was two week early of the notice), however I did send a check to more than cover the notice with emails from the owner advising that he will call Affiliated to try to straighten it out. The bill started out at 101.00 now they say there notice is given in accordance to Federal Law, the accelerated debt balance of 369.44. They added late fees, interest and still call. They say it didn't matter that I crossed off and initialed part of the contract there was a part if the contract that still allows them to do this. I have good credit and never didn't pay some thing how ever I don't think I should pay this on principal.
What can happen to my credit? Is there any thing I can do to stop this company short of paying them?
Sincerely,
Lori G.
10/7/09
1 Answer from Attorneys
Although I certainly would not recommend a bankruptcy over a $400 bill, I imagine that this is far from your only financial problem if both you and your husband lost your jobs. Bankruptcy, of course, is the "silver bullet" solution to all unsecured collection problems and, assuming that you retain an experienced lawyer who knows what he is doing, bankruptcy would not cause you to lose anything that you own unless you are unusually wealthy. Although your modification of the contract may (or may not) stand up in court, it may not be worth the trouble or expense required in order to find out in a fight over less than $400. Additionally, during that fight, the creditor could certainly damage your credit. The only way to cure that might be for you to first due the collection agency and request a declaratory judgment from the court to the effect that do not owe this money. Of course, they will counter sue for collection. Again, all this is simply not worth it over $400.00. My comments here are not intended as legal advice, not to create an attorney client relationship, although I would be more than happy to discuss possible representation with you via a private email.
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