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Old 12-16-2010, 04:25 PM
CyntiaR CyntiaR is offline
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Location: new york NY
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Default Being taken to court over a debt 2yrs old

I'll admit it my fault. I took a couple of payday loans out when things were tough and unfortunately things haven't gotten better. They've gone to collections a while ago and I've been avoiding the phone calls and just acting as if they didn't exist... I planned on paying them but just not right now.
Now this company called Wheycor Capital Group has gotten all three in their possession and are now taking me to court. They've found out my new job and contacted me there (they did stop after i asked them to) called me on my new number. Not sure where they're getting their info but it's crazy. They seem to do everything by the book and are no nonsense. Wheycor filed suit within weeks and are looking for a judgement while also reporting the debts to the agencies thus affecting my credit rating. They also seem to have no desire to settle. I don't have that kind of money right now! What do I do when such a bulldog comes after you? I've never seen a collection agency come from all angles like this before. WHAT DO I DO?
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Old 12-16-2010, 05:27 PM
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DavidBibby DavidBibby is offline
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Default Re: Being taken to court over a debt 2yrs old

CyntiaR,

It's rather simple. You cannot win in court so let them obtain their judgment and then you pay them what you can, when you can.

The collection agency you're dealing with will do all sorts of things to scare you into paying your FOOD money over them.

Once a lawsuit is filed and if they obtain a judgement... you again start dealing with civilized people who will take PAYMENTS instead of demanding the full sum be paid immediately. They will only start garnishing your wages IF you don't start satisfying the payment arrangement you agree to after the judgment.

A judgment is a negative mark on your credit.. but it's NOT the end of the world and they can't do anything to you to hurt you or take away your freedoms. After they have their judgment and you are paying them according to the payment arrangement... they'll leave you alone.

If they DO garnish your wages...they can only take so much... they can't leave you destitute.

No matter what happens here.. they'll get their money and your debt will be paid eventually.

I hope the amount isn't astronomical.
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Old 12-16-2010, 06:53 PM
cjscully cjscully is offline
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Default Re: Being taken to court over a debt 2yrs old

There are a few things to consider in addition to what David said.

Disclaimer first: I am not a lawyer and the advice given here is not intended as legal advice.

I have known of people in situations similar to yours who have been able to buy a great deal of time by utilizing the court system to their advantage. They filed the appropriate answer to the lawsuit, requested alternative dispute resolution prior to trial (some courts mandate this kind of thing), etc. While all that was going on they were putting aside money to settle the suits.

Your biggest worry is wage garnishment. I'm not sure what New York's rules are. My state limits garnishment to 25% of your take home pay. You should contact your local legal aid and get some questions answered about this. What is the limit in your state? Are there exceptions? What are they? Once you have all your questions answered and know what your worst-case scenario will be here, you need to start budgeting for it.

If this collection agency is as tenacious as you say, they're likely to push the garnishment as fast as they can and you need to be prepared.
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