Expert: John Hall - 6/11/2006

Question
Hi,

I quit paying on my credit card several years ago due to unemployment. Since then, I've gone to college in lieu of getting a job since decent jobs are difficult to find in my area unless one has a college degree. I've been living off of student loans, grants, and scholarships since then.

A few days ago, I got a letter from a local law firm which was retained by Unifund. They stated that I had one month to respond to them or they would file for a judgement.

I have no money in the bank, no vehicle, and very few personal items. The only thing I really own is my house which is "homestead-exempted" here in the state of Mississippi. From what I understand the house is untouchable.

I'll be in college for several more years, and will be living on an income much less than the federal poverty level.

I'm wondering what exactly will happen. As I've said, I have no money or assets (other than the house). Could you give me an idea of what I am in for.

The original debt was $16,000, and after attorney fees are added it is $26,000.

Thanks, and have a great day.


Answer
How a civil court judgment would or would not affect you would be much more easier to explain on the telephone.  If you call me I will not charge you just to talk on the phone.    661  492-2673    I could explain the process to you (what you could expect if you do nothing - even though you don't have any assets right now), and we can also talk about your present options.  I don't know what it is with Unifund lately, but they must be giving their attorneys marching orders to file lawsuits in almost every case they have for collection -  I have been seeing a lot of cases filed by them lately, sometimes against debtors that are judgment proof and sometimes against debtors for very small amounts (less than 2,000 dollars).  When the lawyer says he is going to sue, this time he may not be bluffing - but you have other options that will keep them from calling you and/or getting a judgment.  Call me if you like.