Can collections agencies file a judgment against you even if you offer to pay?

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Can collections agencies file a judgment against you even if you offer to pay?

I have been paying a certain amount on a credit card debt for the last six months (pre-authorized for 6 months). When the company called back to continue payments, I told them I am no longer afford it and needed to reduce my payment. They refused and said they would send me to an attorney. Is there anything I can do before filing for bankruptcy?

Asked on May 12, 2009 under Bankruptcy Law, California

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The credit card company is holding most of the cards here unfortunately.  The have the right to sue you for the nonpayment of fees owed, plus they get interest and attorney's fees if the contract permits it - which I am sure it does.  What you can do is offer to pay a compormised amount of money to close the account.  This will afect your credit however.  You will lose in court, so the idea is to either see if you can qualify for some type of hardship program that the company has or work out a settlement of the claim now.  If you get sued, you should hire a lawyer to negotiate a deal for you.


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