How do I answer a Summons and Complaint for credit card debt that I admit I owe but cannot pay?

Question

I recieved the Summons and Complaint (State of Michigan) from an attorney for the credit card company for past debt of $20,000.00. I am technically bankrupt now , although I have not filed for it .....yet anyway. Paying any payment or amount at this time would be an extreme financial hardship on my family. I did offer them a payment of $55.00 a month a while ago , but they did not respond.( I do not believe they know my financial situation.). I am trying to work out paying my large IRS debt. Should I send them, and the court, my collection information statement that the IRS has. Or should I not give out all that very detailed information?

Thanks in advance for any help if I am unable to respond.

Answer 1

When you file your Chapter 7 bankruptcy it will stop your creditors from taking legal action against you, and your credit card debts will be discharged.  If your IRS tax debts are more than 3 years old, they also can be discharged in your bankruptcy.  Michigan uses the federal bankruptcy exemptions, so there should be no problem with you protecting your TVs, furniture, computer, etc. under the 11 U.S.C. Section 522(d)(3) exemption for household goods.  It doesn't matter if your wife is half owner of these items - you list the property as owned jointly and exempt half the value.  This will fully protect your equity in the property.  Your bankruptcy attorney can explain the exemptions to you in more detail.

Answer 2

Has the court date came yet?

If it did not yet come Make sure you do go and explain the situation

If you do not go the judge will give them what they ask for.

and you will have a judgment which means any money you may get and put in a bank they can take it If you own anything they can take it until the judgment is paid off

Frankly I went through this when I became disabled and just never went to court i contacted the lawyer when i finally had the money and told them i could pay part of it and they accepted it and closed the judgment so that is a option to but than I did not own anything and had no accounts in my name

Just make sure NEVER to have a bank account in your name or house or you can kiss it bye bye A judgment lasts on your credit for about 10 years than it falls off UNLESS the company asks to have it reinstated Frankly most if they have not gotten it by then do not pursue it any longer

Each state has a statue of limitations on debts so some google searches on credit and judgments and debt collection can teach you a lot I taught myself by online searching and reading

Answer 3

gakare, I found a large online list of Michigan credit card resources. http://www.howtofindcreditcard.com/Michi... Try calling a local company and they can answer your questions.

Answer 4

Theres normally nothing you can do once the summons has arrived.its already in states hands  ..(how far behind are you?)you have to pay it off before you have court date then you dont have to go.

but if not theres been a lot of argument over this lately because judges normally go along with the company you owe the money to 99 percent of the time.(even on todayor gma show there was a mix up with someones name and the person didnt even owe the money and the judge ordered her to pay..ridiculous if you ask me)

good luck...

couldnt email you because you have it closed.

but if you have anymore credit debt you can file bankruptcy or go to credit counselor to have them work it out to one monthly low payment.(because if you are over certain salary even if irs has garnished wages/payments they still make you pay it back the creditors back so bankruptcy ruins you for 10 yrs yr bankruptcy lawyer just gets your salary released and makes it all into one payment. he charges arm and leg to do this7,000) in the state of fla....at least the lawyer i spoke to.(thats to remove a tax lein and file bankruptcy)

Answer 5

Let me recommend you read this message board (free)  titled "Help, I've been served!"

There's articles from those who have been there and done that, and show you how to survive it.

Good luck to you.

http://creditboards.com/forums/index.php...

Answer 6

file bankruptcy and attempt to get what they call an "order to vacate or avoid lien" (i am not sure if you can do it in MI).  you can visit these sites to see if you can get help in your area, from my experience, lawyers are expensive.

www.michiganlegalaid.org

www.michbar.org/public_resources/legal...

Answer 7

File the bankruptcy paperwork and get them off all off your back as soon as possible but get an attorney to help you first.  You are trying to answer them when all they are trying to do is get information out of you so they can use that information to hurt you.

You need a lawyer.  If you can't afford one call your local legal aid office and get them to refer you to one.  If you can't figure out how to find your local legal aid office then post a new question on this answer board that includes what state you are in that reads like this "I am in (name of state).  I need to file for bankruptcy.  Where do I find the legal aid office in my state that will help me?'.  Within an hour someone will give you the information you need.  I can't give you the information here now as part of this answer because I don't know what state you are in.