Expert: Regan Shinski - 10/26/2010

Question
In 2006 we bought a tire business from a friend who did not disclose all the problems with the business, we had to file for chapter 13 bk and was paying back 100% because of my husband's income we did not qualify for 7 bk. We recently stop paying because it got to much our bk was dismissed. We are now getting calls from Washington mutual for a credit card owing 11,000 some of which was used for the business. I ask them to send me a personal guarantee because we can't remember if this card was opened under the business. The only thing they sent us was a letter with 3 options which were high amounts. They have now started to call my husband's work. What can we do to make them stop and can they garnish my husband's pay. And by the way they have a Law firm calling on their behalf. Please Help! P.S. Do credit card companies usually take the time to go to court to sue.

Answer
Hi Chris:

You should send them a letter asking for debt validation under the FDCPA.  In the letter, you can state that you want all future communication to be in writing.  This should legally stop the calls.  They can garnish wages if they win a judgement and garnishing is allowed in your state.

The trend has been for credit card companies to sue, especially for these larger amounts.  There is no way to tell if they will.  you should do everything you can to avoid getting the judgement, it causes great troubles.  Delay, settle, countersue, even bankruptcy are often better options than a judgement.

you should be advised there are risks to attempting your own repair.  These can include limiting your options at repair down the line and even driving the creditor into legal action.  However, based on what you wrote, I think this first step of repair is needed and well worth the risk.  The concern then is doing it properly so you get results and don't limit your options in the future.  There is no "magic letter" I can put in this forum, just either be sure you REALLY know what you are putting the letter as it relates to the FDCPA or use a paid credit repair company.  The bottom line is nothing will change for the better if you do nothing, so it's worth the risk.  We can attempt the repair if you are interested.

Good luck in whatever path you choose.
Regan

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