contempt?

[pmac123]

I'm new here and will try to make this as short as possible.
In 2007 I lost everything (some would say gave it away). My home from a previous marriage, my husband, my job...everything.
I was a mess and really not sure how to go forward. My creditors were relentless! I saw a BK lawyer and was going to go that route until I saw that my credit score wasn't so bad. I have been trying to fix this since...my ex filed for BK and his credit score is better than mine...oh well the 20/20 thing!
Discover took me to court and I agreed to pay $50 for several months then starting in July $150. In October and November of 2009 I could only pay $50 but since then I have paid $150 every month. Two weeks ago I get a knock on my door and it's the sheriff. Discover card is bringing me to court for contempt. I'm so angry I could scream!!! It took two years to get child support to feed my kids but Discover can harrass me for this??? Try to do the right thing and this is what you get...if I had to do over I would have filed!!
Court is on Thursday. My question is, is there anyone out there that has gone through this and can advise me on what might happen? They have also attached aprox. $500 worth of extra charges. What are my chances of getting those removed?
Any advice would be appreciated!
P

[ByeByeCCs]

Do the BK now.

[pmac123]

Thanks, thinking about it but I've done a pretty good job of cleaning up this mess so far. Not sure I have enough debt to file?

[Bell30656]

Make absolutely certainnyou show up for court! That said, tell Discover that you have decided to now consult with a bankruptcy attorney because you tried "in good faith" to work with them and they elected to strong-arm you. Slow pay is better than no pay to them.

If you have a bumch of other debts bankruptcy is one avenue. That contempt being so old, I don't see a judge going to bananas over that one. He/she may order you to pay the $200 and the fees but I think when you tell Discover that you have realized this debt puts you at the point that you see bankruptcy as the best approach they will suddenly become much more willing to work with you.

*Note*. You do not have to disclose to Discover how much or how little debt you actually have. Just tell them you are exploring chapter seven as a possible avenue.

[ByeByeCCs]

I am presuming that this was the result of a settlement agreement from a previous lawsuit. Try to do some quick research into the consequences of being found in contempt and the time line in your jurisdiction. You don't want to find out that they can start garnishing your wages and levy your bank account after your court date.

[catleg]

Discover is a pain in the butt, they generally don't sell their bad debts, they sue people, it's kind of a subprime credit card if you know what I mean.

I would give serious thought to BK. Chances are your credit is already shot, might as well formalize that and get a fresh start.

[pmac123]

Thanks for all the help! I really was trying to do the "right" thing and have found that I have turned into a martyr. I have paid so much $ to these credit card collection people thinking I'm all set only to find out they've sold my account and I have to start over. I am going to look into BK again. I'm certin of one thing...my credit score is not going to get better going this route!!

[free2breathe]

I just thought I'd share that the "right" thing sometimes is bankruptcy. I avoided it too, thinking it wasn't the "right" thing to do. I've since come to understand that filing bankruptcy truly is a solid financial decision for many. Though the bankruptcy stays on your credit record for 10 years (if filing chapter 7), your actual credit score will likely be much better much quicker going that route. Sure, it will say "bankruptcy" on the record, but then, if you do things the right way, it will also show a steady increase in your credit score. In my opinion, this says, "I had to face facts and change my life. The bankruptcy was the catalyst, and the rebuilding afterwards shows that I learned my lesson and took control of my finances from that point forward."

[pmac123]

Thank you all so much. What a feeling to know I'm not the only one out there going through this!!

[frogger]

Thanks for all the help! I really was trying to do the "right" thing and have found that I have turned into a martyr.

The "right" thing is to take care of you and your family. If that includes filing for bk, then so be it. Right is not always paying the credit card companies. They should get paid LAST when figuring your budget.