Writ of Execution - What is my best option?
I was sued by a credit card company for $2700. A writ of execution has been issued.
For information purposes, prior to the credit card company suing me, I have already contacted a debt solutions company to handle my debts ( 6 total credit cards). I'm paying them monthly from my bank account. I was not sued at that time (when I hired the debt solutions co.). To date, they have settled 4 out of six debts. My concern is that one of the 2 remaining credit card companies suing me.
When I received a noticed that I was being sued I immediately emailed a copy to my debt solutions representative and according to them they sent a noticed to the credit card company that they are representing me. I thought that this will end here. But a judgement against me was issued (copy forwarded to my representative). When I called my representative they said they are still waiting for the credit company 's response to their offer.
After a month here comes the writ of execution, my rep said they are still waiting for response (again) and worst case scenario is that the credit card company will take money from my paycheck (25%) until my debt is paid off.
Currently, I can pay the whole amount $2700 plus sheriff's fee (if any) from my wife loaned money.
My question is, what is the best thing that i should do?
Do I just call the credit company and settle this myself? But I'm afraid that the debt solutions company will continue to deduct the same amount monthly from my bank.
Do I just leave this up to the debt solutions company? And wait?
Or do I give the money ($2700) to the debt solution company so they can expedite settlement of this case? What if I give them the money and the case is not settled and sheriff will still come get whatever they can get from me? We don't have a lot really. Two cars, 1 lease, 1 not paid off yet. House still with mortgage.
Or do I just wait for the sheriff's visit and write them a check once they arrive?
Reply from DebtCollectionAnswers.com
Anytime you enter into a debt settlement program, there is a risk you will be sued. The longer it takes to settle debts, the greater your risk of a lawsuit. In addition, there are a few creditors who refuse to work with these companies and so they will proceed to sue anyway.
Since we don’t have all the facts, we are hesitant to provide any kind of specific advice. But here are a couple of things to keep in mind:
First, it sounds like you are borrowing money to resolve this debt. That’s a possible sign that your financial problems far from being resolved. We understand that you are trying to do the best you can with limited resources.
Just try to make sure that you can actually put this behind you soon and that you are not just dragging things out longer. We say that because sometimes bankruptcy really can be the best option for someone with overwhelming debt. You probably feel you are beyond that point, but if your remaining debt is very large and you don’t have much saved with which to settle it, it may still remain your best option.
Secondly. this is now a matter with the court and the best person to give you advice is an attorney qualified to practice law in your state. We are a concerned by the fact that the settlement firm did not instruct you to consult with an attorney when you were being sued. Being sued is a legal matter, and a settlement program should not be a substitute for legal advice.
You really need to talk with an attorney to find out what the judgment creditor can and cannot do to collect at this point. Keep in mind that with a judgment their ability to collect from you is much greater and it may be harder to settle (though some judgment creditors will settle because they know it can be hard to collect settlements.) We simply can’t predict how likely the creditor will be to settle at this point, but it can’t hurt for you to try directly. (Also talk to your debt solutions company. Are they going to charge a fee or commission for “settling” this debt even though it went to court? That doesn’t sound appropriate to us.)
You talk about the monthly payment that the debt solutions firm is collecting. It’s not a monthly payment in the traditional sense. They are trying to build up a fund with enough funds to settle. If they collect less money from you, it may take longer for them to settle the remaining debt, and you risk being sued for that one too.
We wish we could tell you exactly what to do but there is no one-size-fits-all answer here. It’s one of the reasons we tell our readers to always consult a bankruptcy attorney if they are considering debt settlement, so they understand all of their options and have a plan B in place.
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