What's the right move from this stage?

smitty · 04-09-2007, 05:21 PM

Hello all.

My story, short and sweet...

I live in Michigan. Wife and I got into hardship and are about 20k in debt with collectors, not one good account is left. ALL debt is in my wife's name, nothing at all in mine. We want to and will pay off our debt. It's ours and we won't file or play games with it. BUT, I do want to make sure we don't get any more screwed than we are now. Walking the line is tough enough without the extra headaches.

So anyway, I am currently setting up payment arrangements with collectors as best as I can. I have learned, through reading this and many other forums that I have not been too smart about things regarding documentation and such. However, I am getting better at that and everything seems to be up n up.

Then this past Saturday comes along. A guy hands me a Summons and Complaint. It's from a creditor I know we owe, or should I say it is from a debt I know we owe, but I bet this creditor bought the debt.

So anyway, this freaked me out some. And while I am becoming more educated regarding debt collection, I think I made another big mistake. I called the firm's # they just happened to leave on my voicemail on Saturday as well and I set up a payment plan for this month and 6 more payments.

I am not interested in working on weasling out of this debt, I'll pay it at an amount we can afford.

The lady did tell me that as long as we make our payments, garnishment will not occur.

Questions...
1) Is that true regarding the wage garnishment?

2a) Being that I am not the defendant, nor am I on the debt in any way; is what they did in serving my wife through me legal?
2b) Is it legal for them to set all of this up with me and not my wife? I know for definate that she has never given them permission to speak with me.
2c) Is there anything I can do back at them?

3) How do I make certain we are not garnished?

4) The summons says I have "21 days to file a written answer with the court and serve a copy on the other party". What's the best method for that?

5) In doing some reading about answers, I have seen advice stating to neither accept or deny the debt in my answer. But having made payment arrangements, did I just screw that up?

I know this is not a legal forum per se; but if anyone can give me insight, I would be ever grateful!!!!

Thanks,
Smitty

direred · 04-09-2007, 05:53 PM

I know nothing about being sued for debt, but I wanted to say welcome, relax, pull up a couch, and I'm sure someone will be able to answer some of those pressing questions.

Pale Rider · 04-09-2007, 06:52 PM

Quote:

Originally Posted by smitty

The lady did tell me that as long as we make our payments, garnishment will not occur.

Questions...
1) Is that true regarding the wage garnishment?

Sort of. They have to have a judgment before they can garnish wages, and that is assuming wages can be garnished in your state.

Quote:

Originally Posted by smitty

2a) Being that I am not the defendant, nor am I on the debt in any way; is what they did in serving my wife through me legal?

Probably. In many states service is valid if left with a spouse or adult child. The answer is in your state statutes.

Quote:

Originally Posted by smitty

2b) Is it legal for them to set all of this up with me and not my wife? I know for definate that she has never given them permission to speak with me.

Maybe. If it is a community property state, you may owe even if everything was in her name. There is no violation of discussing a debt with a spouse in FDCPA.

Quote:

Originally Posted by smitty

2c) Is there anything I can do back at them?

Keep track of any violations and settle or sue them for damages.

Quote:

Originally Posted by smitty

3) How do I make certain we are not garnished?

Pay the debt and/or avoid judgment.

Quote:

Originally Posted by smitty

4) The summons says I have "21 days to file a written answer with the court and serve a copy on the other party". What's the best method for that?

5) In doing some reading about answers, I have seen advice stating to neither accept or deny the debt in my answer. But having made payment arrangements, did I just screw that up?

Others can help you better on these last two questions. I would add that you do not want to let them get a default judgment. Also, even if you settle the debt by making payments, you need to make absolutely sure they dismiss the case so you do not end up with a judgment on top of the other bad credit. Some of these collectors are sneaky, and will get you to make payments and file papers with the court that you settled. The court will enter the settlement as a judgment against you.

smitty · 04-09-2007, 07:06 PM

Thanks for your input!! I definately will be paying them according to the plan we set up today, but with over 5k with them alone, it'll take a while. I wouldn't know how to avoid judgement though.

But as I understand it, judgement is only one step prior to garnishment. So if I am making my payments, they would have no other reason to ask for garnishment other than just being pricks. Garnishment is allowed in Michigan and I think it's 25%, which would hurt us tremendously.

I will be filing an answer promptly so that we don't receive default judgement. I am looking for a good reference to utilize with the legal jargon as I have no idea what to really write.

On a side note, I wonder why some debtors have refused to talk with me about my wife's accounts if there's no violation to the FDCPA.

Thanks again!!

Smitty

Pale Rider · 04-09-2007, 09:54 PM

Quote:

Originally Posted by smitty

On a side note, I wonder why some debtors have refused to talk with me about my wife's accounts if there's no violation to the FDCPA.

There may be state laws that prohibit that. Or, they could be playing it safe from trigger happy people that advocate suing just for the fun of suing.