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Expert: Regan Shinski - 5/7/2010


Question
Hello,
I have 23k in CC debt all from Chase which I stopped paying since February. I was left a summons at my door by the attorneys with a return date of 6/15. The summons included 2 pages that break down the balances owed on each card.   I will be unemployed as of 06/2010 and Severence thru mid July. After that will be all unemployment wages.    Not sure what the best action is at this point. I do own the debt but should I respond in court by asking for proof of the debt in order to buy time, or is it pointless?  Do I contact the attorneys or Chase themselves to try to work out a payment plan?  I could afford about $150 monthly.  Not sure if they would accept so little but I would threaten chapter 7 since I will be out of work.   
Thanks for the help

Answer
Hi Chris:

You are on the right track and I really can't answer this for you as it really is a personal decision.  Your options are to fight and delay it through court procedures and continuances, pay it, settle it (payment arrangement), or file bankruptcy.  i suppose you also could ignore it and get a judgement against you, but that is not recommended.

I believe you would have better luck trying to get a payment arrangement directly through Chase.  Although at this point they may just refer you to the attorney anyway.  Get any agreement in writing and make sure you get proof of the cancellation of the court date before 6/15 if they agree to terms.

I can't say if it is a waste of time to try and delay.  Chances are if they have taken you this far, they have a good case but you just don't know that.  However, most debtors lose in cases like this unless there is some underlying violation of the FCRA, FDCPA, HIPAA, or other financial legislation.

Good luck in whichever route you choose.

Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

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