Should I threaten collection lawyers with bankruptcy?

Question

Being sued by a credit card company for $2400. I'm a student and make $400 a month. They won't drop the suit even if I'm working out a payment plan with them. I can afford to pay back (eventually) $2400. I can't afford to pay back that amount plus lawyer fees and court costs (not to mention interest).

I met with a lawyer who suggested I file for Chapter 7 bankruptcy. I don't want to (it's such a permanent thing) but I'm not really seeing any choice since the credit card agency isn't working with me.

Would it be a bad idea to call the credit card companies lawyers and tell them either you drop the suit and work out a payment plan with me or I'm filing for bankruptcy?

Answer 1

Go with a Consumer Credit Counselor Service and take care of it that way. By law as long as the Credit card company accepts the proposal, they can not take any legal action, or hold your account in Collections. Most company's will take a offer from a CCCS. I think that would be the best option for you.

Answer 2

Do not file for bankruptcy over $2400!!! it will cost you around $1000 just to file it! And it will remain on your credit report for 12 years!! I know, I filed in 1996, finally my credit is back to excellent, thank goodness!

Answer 3

You could try, but since the lawsuit is in place, you still have to

show up in court and show judge yourbankruptcy papers.

Answer 4

ye swhy not you have nothing to loose

Answer 5

Tell them that you'll file AFTER the court case. That way they have more to lose. Plus, don't worry about going to court. Judges are usually pretty reasonable, as long as you don't get emotional, and they see the facts.

Answer 6

To them telling them you are declaring bankruptcy is not a threat.  To them they hear this every day and it has very little meaning.  As to bankruptcy if this is your only debt you defiantly do not want to declare bankruptcy.  Just the lawyer and filing fees will be almost as much as the debt is.

They only have a limited time to file a suit against you or they get blocked by the Statute of Limitations on the original debt which would keep them from prevailing in court.  But once you have a judgment depending on your state that Statute of Limitations is anywhere from about 7-20 years from the date of the judgment.  Since you are a student they see this as a real possibility that they can wait until you have the ability to repay it.

If you are able to make payment arrangements be sure to get it in writing before you send them any money.