I Need Help, I have a credit card court case this Thursday!!?

Back in 2003, I was 23 and made the mistake by getting a credit card with a $3,000 a limit. I lost my job, my car, my apartment. Took me about 4 years to get my feet back on the ground, finish school and get a job starting at 30k. Now the CC is suing me for $6,000 – $3,000 of it interest/attorney fees. I offered the lawyer $1,500 lumpsum. They won’t take it. I can’t afford to pay the whole $3,000. I barely can pay rent at $600 a month, with food,car insurance, and just started a new job in June? Will they garnish? I don’t have any assets and another cc is trying to sue me for $5,000? Any suggestions?

Nice Catch Echo!

Definately look into whether this debt is beyond the statute of limitations. If so, you CAN still present this to the court, even on the court date.

In your case I do not recommend filing bankruptcy (as OC suggests) because you simply do not have a large enough debt. It’s going to cost you about $1000 just to file it.

My suggestion (if you can’t use the SOL) is look to see if your state allows the judge to order installment payments. Come to court with proof showing your income and expenses, and explain that a garnishment would put a hardship on you, and you would not be able to afford it. You could, however, afford. Garnishment will take about $150 from you each week. The judge may order something like $75/week or less…..just present him with your payment proposal and see if he agrees.

Don’t get crazy and request $50 a month….they are not going to wait 15 years to collect this debt! He will probably order a minimum of $100.

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