Expert: Michael Brotherton - 6/12/2007

Question
QUESTION: I live in Connecticut and the law office that the creditor turned my account over to, is also in Connecticut.  I have read the other answers to questions similiar to mine.  I will ask again only because everyone's situation is slightly different.  Ok...My husband and I had a very bad financial situation last year due to new job/career.  We were unable to PAY ANY credit cards.  Well now we are back on our feet and one of the creditors turned over our account to a Law office.  The amount is for $7300.00.  I have made two $50.00 monthly payments with a note stating that's all I can do right now.  I also send another note saying the $50.00/mth then come March of 2008 and 2009 I will pay $2,000.  They are applying my $50.00 to the account.  I am worried I will be sued.  We had WINDOWS installed and that is what this is for.  I just mailed the letter about the 50.00/mth and then the $2,000.  What are my chances of being sued if I am continuing to make payments?

ANSWER: Most collection attorneys will look for assets and employment to determine whether they have a better chance of collecting their money by attaching your paycheck or other assets. However, each creditor and attorneys are different. AS hardcore collection attorney may opt to sue rather than take payments while a general practitioner may work with you. I am afraid you may have to play it by ear and wait and see how they respond to the payment proposal you made.

If the attorney files suit make sure you answer the complaint and dispute the debt or the balance they are claiming is due. If worse comes to worse and they get a judgment ask the judge to consider your financial situation and ask them to accept your $50 per month proposal. Make sure you complete a budget and list of creditors with your answer and proposal. If your budget shows a serious deficit they may go along with your proposal. If you need help send me a follow up email and I will be glad to help.

---------- FOLLOW-UP ----------

QUESTION: Hello I just received a summons served by a sheriff after I have been continuing to make payments and they cash the checks and also weren't sending anymore negative letters to me.  I assumed things were accepted.  They even cashed a check that I wrote in the memo "Payment Agreement."  This was after the summons was served.  The summons has a return date says I have to get an appearance form from the court house.  What is an "appearance" form for one and what happens next.  Like I said, It has NO court date just a return date.  Also there is a box checked at the top that says, X one of the following- Amount, legal interest or property in demand, exclusive of interest and costs is:  the box that is check is less than $2,500.00. What does this mean also.  And thirdly, what can I expect after I fill out the Appearance form?

Answer
Each state is different and there are different procedures for municipal and county courts. You may be required to answer the complaint and give them your defense before they give you a hearing. Call the courts and ask them about the process and the forms required. Follow the process or hire an attorney. The only problem is that without a defense an attorney is just going to cost you more money. However, it may be necessary to at least talk to a couple of attorneys. Don't throw good money after bad. I may be able to help. This is my line of work and I wont charge you an arm and a leg. You need someone to do an assessment and negotiate with the attorney. Let me know if you need my help.