Bank in OH, Wages in SC-Discover threatens to sue

[corpuskristen]

Ok, First Post....

I owe Discover about 6,000 dollars and I just received a letter on the 23rd stating they will seek judgement if I do not contact them for a resolution by the 30th. I'm going to call them on Monday to see but I am concerned about my bank account being garnished. I know SC has no wage assignment but can Discover go after my checking account in OH? (I kept the acct in OH even after I moved b/c of loyalty,, etc)

I bought a few books and downloaded NOLO but I am FREAKING out right about now...does anyone have any links or answers, please?

Thanks,

Kristen

[GoingDown]

Ok, First Post....

I owe Discover about 6,000 dollars and I just received a letter on the 23rd stating they will seek judgement if I do not contact them for a resolution by the 30th. I'm going to call them on Monday to see but I am concerned about my bank account being garnished. I know SC has no wage assignment but can Discover go after my checking account in OH? (I kept the acct in OH even after I moved b/c of loyalty,, etc)

I bought a few books and downloaded NOLO but I am FREAKING out right about now...does anyone have any links or answers, please?

Thanks,

Kristen

AFTER they get a judgment against you, they can seize the money in your checking account.

If I was you, I would withdraw all of the money from your checking account and start using money orders and cash to pay for everything until you can file for bankruptcy. Keep receipts of everything you spend the cash on in case the trustee wants to see them.

[corpuskristen]

Thanks for the speedy reply. I am going to do this first thing Monday.

[lrprn]

Kristen, please share a little more about your financial situation so we can help you look at options better. You mentioned owing $6K on your Discover card - what other secured and unsecured debts do you have? Do you own a house? Cars? What state do you live in and have you lived there for the last two years? Are you above or below the median income for your state? http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

[poorme]

Good Morning Kristen.
Hope you get this before you dash off - Discover says they are "going to seek judgment against you" - First, they have to sue you in court - they can't get a judgment without that - so you WILL have an opportunity to go defend yourself. The main point here is you have time to negotiate a settlement plan with them, even if you pay only $15 a month - or at least you can provide a judge with enough information to hold them to a smaller settlement. If you make valid attempts to negotiate and they refuse...take that with you to court - judge will not look kindly on them refusing to work out a settlement that would have prevented them from taking his time in court.

[corpuskristen]

Thanks to all...I needed some love and attention even if it is a message board
In response to lrpn: In total I am roughly 12,000 in the hole-no assets (renter, drive an 89 Town Car) everything is in unsecured debts. Currently my salary is 1k over the median for my state but according to last year's W2 it is under. And I most likely will receive another promotion in the next month.

I have decided that I probably don't need to file bankruptcy if I can get my creditors to negotiate. Poorme thanks for the advice, Discover and Chase are working on agreements separately now. I was just SOOOO scared! I have always been awesome at financial planning but then I had to pay for my sister to go to rehab, got skin cancer that insurance wouldn't cover (preexisting condition), etc, etc.

But I do have another question if anyone will oblige...If I check my credit report and it states charged off but there is not a listing of the collection agency they sold it too--Who am I calling/writing checks to?
THank Thank Thank you for all the info on this board!

[CATCHMEIFYOUCAN]

Be careful when negotiating with those creditors. I heard any forgiven debt you are liable for taxes on it IF they report it to the IRS !

Best of Luck, CMIYC

[poorme]

That can be true - a 1099 may appear at some point. But generally, the amount of tax due on a reduced settlement amount is less than the 'forgiven' amount you would have paid. So she can also negotiate the terms of the settlement how the debt is reported and possibly avoid a 1099 - it's all in how the cc company categorizes the amount. At least that's my understanding from the past.

[corpuskristen]

uugh--Sorry I am having such a hard time finding this info, took a Klonopin...but I talked to Discover-made the collector look like an idiot but she was still unwilling to budge from a 10month payment plan for the full amt. I could afford to do that but then I won't be able to pay Chase who I am also in debt with for about the same amt. I don't want to be all "preferential." I know there was somewhere on here that talks about where they have to sue me...In the state I signed the cc contract, racked up the debt or the state I currently live in. Someone link me up Please

[lrprn]

Take a look at these two websites that discuss how a creditor sues a debtor and what the debtor can do:

http://www.pslegal.org/Publications/OweMoney/4-LawsuitsForMoney.htm

http://www.vtlawhelp.org/Home/PublicWeb/Pages/Consumer/DebtCollect

Hope these help shed some light on your situation, CK!