Collectons sending to legal

[ChrissyF]

If a collection agency sends to an attorney, does the attorney try to setle with you before filing or does it go straight to court?

I am just nervous about a Cap One account I have. I have been trying to settle (instead of filing BK), but Cap One pretty much wont work with me and I was told it was going to go to an attorney. That was a few months back. I haven't heard anything. I owe $25K and am just wondering if they are going to put a lien on my house, since I have been unemployed and can't garnish wages.

If a judegement is put against you, if you file BK later on can that judgement be removed or does it stay?

[treehugger1]

I was sued by C1 on a $3000 C debt. It took about two years from time of last payment to suit. In the meantime, the debt was bounced between CA's and collection attorneys. I kept sending debt validation requests, and they kept shoving the account to a new CA/attorney. the account finally ended up with an attorney in my state and they sued. I didn't bother to answer the suit and they have a judgment. (I have many judgments against me.)

Along the way, noone seemed to be interested in a reasonable settlement plan, so I just sat back and waited for the suit.

If the debt is unsecured then you can have the amount owed on the judgment (to the judgment creditor/CA/??) included in your bankruptcy. If the judgment also resulted in a lien against real property, there is a bit more work that needs to be done. An attorney in YOUR state could help you in such a case.

The debt listed on the judgment can be discharged, but the record of the judgment stays on your credit report for 7 years. I don't think it is easy to get the judgment removed from your CR prior to 7 years. The judgment is a public record and was picked up via public record files.

[MSbklawyer]

If a collection agency sends to an attorney, does the attorney try to setle with you before filing . . . . .?

Never say never, but very rarely. Once it gets to the point that the case is referred to an attorney, especially a local attorney, the creditor has decided that suit needs to be filed. Now, sometimes the creditor will have a "law firm" with a big fancy sounding name and New York address write you a letter as though the case has been referred to them (when in reality it hasn't), the idea being that you will go: "Oh $hit!!!! They've retained this big New York law firm to sue me for everything I own!! I better settle -- or make a better offer!!! I hope it's not too late!!" The average person out there is about as afraid of getting sued as I am of a rattlesnake -- utterly terrified. The creditors know this and that is why they do it.

I am just nervous about a Cap One account I have. I have been trying to settle (instead of filing BK), but Cap One pretty much wont work with me and I was told it was going to go to an attorney. That was a few months back. I haven't heard anything. I owe $25K and am just wondering if they are going to put a lien on my house, since I have been unemployed and can't garnish wages.

If a judegement is put against you, if you file BK later on can that judgement be removed or does it stay?

Bankruptcy can avoid a judgment lien on your house to the extent you are able to exempt your house. But don't wait on that. It's extra work for your lawyer and he'll probably charge you more. If bankruptcy is unavoidable, go ahead and do it now.