Received summons - DISCOVER CARD (Weltman, Weinberg & Reis Co.)

[HipHop]

I received a summons yesterday. I called Weltman, Weinberg today (who I have just made the last of 4 payments for a settled Chase debt @ 30% on a $17,000 balance). I asked them to settle the debt @ 25% and they called back 40 minutes later saying Discover will only settle my debt ($12,400...original credit limit was $10,900) for 60%. I told the rep I couldn't afford that and she said that it will just have to take it's course in court then.

Is that all I can do with them? Should I just take the 60% offer, or will they come back before they try get wage garnishment (i don't own anything btw)? I'm afraid that if I don't take this offer that I will owe the full $12,400 through wage garnishment.

Any advice is appreciated.

Also, is this appropriate to send back to the courts and Weltman in response to the summons?

-------------------------------

STOW MUNICIPAL COURT
Summit County, Ohio
Case no: xxxxxx
COMPLAINT & ANSWER

DISCOVER BANK
6500 NEW ALBANY ROAD
NEW ALBANY, OH 43054

Plaintiff
vs.

My Name
My Street
My City and zip
My number

Defendant

1. The Defendant applied for a DISCOVER CARD CHARGE account with the Plaintiff.
ANSWER: lack of knowledge to fully answer

2. By use of the account, the Defendant became bound by the terms in the DISCOVER CARD agreement. Copies of the AGREEMENT & STATEMENT are attached as exhibits A & B.
ANSWER: lack of knowledge to fully answer

3. The Defendant defaulted under the terms of the Agreement. The Plaintiff has exercised its rights pursuant to the terms of said Agreement to accelerate the time for payment of the entire balance due and owing by the Defendant to the Plaintiff.
ANSWER: lack of knowledge to fully answer

4. The principal amount now due and owing is $12304.46
ANSWER: lack of knowledge to fully answer

5. Although demand has been made upon the Defendant to liquidate the balance due and owing, the Defendant failed to do so.
ANSWER: lack of knowledge to fully answer

[GoingDown]

Oh Weltman, weinberg, and reis! I have had several charged off credit cards get sold to junk debt buyers, and then end up in their hands. They never sued me.

I wonder what tipped them off to sue you? Most likely they found out that you had a job.

That seems to be the #1 priority when they are trying to figure out whether to sue someone or not--- does the debtor have a job? If yes, then sue. Because they are likely to get paid.

If not, then move on to someone else more likely to pay.



If you the have extra money just lying around to pay 60% of that debt, then you might be able to settle it out of court and avoid wage garnishment. But that's a lot of money.

Remember, you must get the settlement agreement in WRITING before you pay them anything.

Otherwise they will take your money and then turn around and sue you for the rest of the debt, and pretend like they never agreed to settle with you at all.

When you do send them the money, make sure you don't use your checking account, and they might drain it.

Use a money order or a cashier's check. They will say that it has to be done today over the phone by a debit card or checking account number, but they are lying. The written settlement offer will list a certain date by which it must be paid, and as long as you send it in by certified mail before that date, you will have proof that you paid it in time to meet the settlement agreement.

Contrary to what they might say, they are usually still willing to settle on judgments as well. In other words, even after they get the judgment, they will usually be willing to accept far less than the total amount of the judgment.

And if you file BK, the judgment will become worthless and wage garnishment will stop.

[catleg]

It's pretty tough to beat an original creditor in court.

Plus having settled another card, they're thinking, he's got access to money.

Not sure what to tell you. Discover is a pain. My wife got sued by them, but not me. Don't know why their computer model decided to do that.

No matter what you answer, the next move on their part will be a motion for summary judgment. You have to find some issue of material fact that is in controversy to defeat that one. It will require another answer, so you have to plan ahead to answer the SJ motion and then you get the answer to the complaint for free.

Identity theft, disputed charges, defective goods or services purchased. Think what an "honest citizen" would get hauled into court over, besides just not paying the bill.

[jwmc1]

They sued me...small amount...if you can settle do it...if not you should file for BK, why kill yourself with a garnishment?

[HipHop]

Does anyone have any advice on the answer letter I am planning on sending to the courts?

Thanks!

[WhatMoney]

Does anyone have any advice on the answer letter I am planning on sending to the courts?

Thanks!

Honestly, it's pretty useless.
You have no defenses. And given that it is the OC, you appear to have no defense to bring up after a summary judgment request. If you fail to appear they will probably get a default judgment. If you appear they will say there is no further issues of merit to the case and ask for a Summary Judgment. Since you listed no defenses in your answer, the judge might issue the SJ immediately, or give you time to respond to the SJ. But again, you have no defense I can think of. Short of Discover's attorneys not showing up for the hearing, you will get a judgment.

Your choices then are attempt to negotiate a payment plan you can afford, accept a 25% wage garnishment, or file for bankruptcy.

[jwmc1]

Honestly, it's pretty useless.
You have no defenses. And given that it is the OC, you appear to have no defense to bring up after a summary judgment request. If you fail to appear they will probably get a default judgment. If you appear they will say there is no further issues of merit to the case and ask for a Summary Judgment. Since you listed no defenses in your answer, the judge might issue the SJ immediately, or give you time to respond to the SJ. But again, you have no defense I can think of. Short of Discover's attorneys not showing up for the hearing, you will get a judgment.

Your choices then are attempt to negotiate a payment plan you can afford, accept a 25% wage garnishment, or file for bankruptcy.

yep...

[HipHop]

Okay, so if Weltman is offering the 60% settlement which I can make over 4 - 6 payments, I should take that?

I was really hoping for something closer to 30%, but it's better than nothing right?

My income is good...I make $84,000/year at my W2 job...and I will probably make $30,000 or more for my new computer business.

I'm working on settling about $140,000 of debt instead of filing for bankruptcy. So far I have paid off around $23,000 of debt in 4 months going this route.

If all goes well, I will have the rest paid off in 18 months. A much better option for me over Chapter 13.

[WhatMoney]

Okay, so if Weltman is offering the 60% settlement which I can make over 4 - 6 payments, I should take that?

$7,440 is less than $12,400 plus court costs and attorney fees they will get from wage garnishment, if they will still give you an extended payment plan. If I were them and knew your income, I'd just go for the judgment and wage garnishment.

[jwmc1]

Take the deal or file for bk

[catleg]

Reminds me of the movie Kelly's Heroes:

[the lone obstacle to the sought-after gold is a solitary tank guarding the bank]
Crapgame: Then make a DEAL!
Big Joe: What kind of deal?
Crapgame: A DEAL, deal! Maybe the guy's a Republican. "Business is business," right?

[catleg]

Reminds me of the movie Kelly's Heroes:

[the lone obstacle to the sought-after gold is a solitary tank guarding the bank]
Crapgame: Then make a DEAL!
Big Joe: What kind of deal?
Crapgame: A DEAL, deal! Maybe the guy's a Republican. "Business is business," right?

http://www.youtube.com/watch#!v=pykD8UkUABQ