Legal Question in Credit and Debt Law in Florida
I received a summons last week for a debt. I have been looking for my best options on dealing with it. About 2 years ago I stopped paying on a debt for a motorcycle. Long story short, I was scammed by a salesman at the dealership. He told me it was a 5 year loan at 200 a month. Even had me sign papers to that fact. Along with many others, which happened to be my real application for a revolving line of credit. I'm assuming he just threw the fakes out(I was young and didn't know what I was doing). Skip ahead over a year. I begin to notice that only about 200$ has come off the principal balance after paying 200$ a month. I called HSBC (who the loan was with) and the rep told me not to worry. That the interest is paid up front and it will begin to start taking most to principal. Skip ahead again about 8 months and still very little change. I call again. This new rep tells me that the last rep informed me incorrectly and I am told not only that this debt is not a loan but a revolving credit line (basically a CC) and that at 200 a month it would take me 36 years to pay off! I was furious. I called the dealership and was basically told that the individual who sold me the bike no longer works there and that they can't help me. So after making a few more payments I began having financial trouble. I had planned to start making higher payments to pay it down quickly but life happens. I called HSBC to try to work a deal but they refused to do anything. So I let it go. They came and repossessed the bike. Now 2 years later just recently gaining some ground financially and I get this summons. Ironically 5 days earlier I received a settlement offer of 5000$. The only time I had ever heard anything from anyone about it. Before I respond to the summons I called them and offered 2000 to settle. They are asking 16,0000. Above the original price of the loan. I paid over 5000 on the loan when I had it and they got 5700 for the bike. I find it absurd to ask much. They told me they would only settle for 8500. And that is where I'm at. The law firm handling it is almost 2 hours away so I could only call them. Now what I want to know is if I have any leverage in getting them lower.
1. According to Fl state statute 222.11I am exempt from wage garnishment and 4000$ in my bank account due to being head of household. I support my wife and daughter. I have no assets worth mentioning and I rent. Can this knowledge give me more bargaining power? I live paycheck to paycheck so I'm not rolling in the money. I could settle for the 5000 and make small payments and borrow the rest from family but I won't settle for more than 5000. If I basically explain that all they will be doing is scarring my credit would it be feasible to get them down? Like the old proverb you can't get blood from a stone.
2. If I do show up to court can the judge order me to sign the waiver or hold me in contempt if I refuse?
3. Being 2 hours away is it possible they may not show at all? If neither party shows up what happens? Do they still win by default?.
4. If I am exempt what can they expect to accomplish with a judgement?
5. Will they try to garnish my wages that day at court?
6. In its entirety, what is a basic breakdown process I am looking at once I respond to the summons with a notice to defend?
7. Any extra tips/advice would be greatly appreciated.
3 Answers from Attorneys
1. The creditor should negotiate down to your offer; if they don't, go to court
and refuse to pay them.
2. No and no. The Court can only issue an order which confirms the debt or a
different amount, or rules in your favor which is unlikely based on your facts.
3. They will likely show up; some are held by telephone now. If they don't show
up in any way, the court will not make a decision unless you admit liability.
4. They can search for assets to levy against; you should reduce your bank
accounts and make certain your wages are protected by the law.
5. No, they must take the court order, file it and request a writ of garnishment
which takes at least a couple weeks to process.
6. You will get a notice of a trial or hearing on a motion for summary judgment. If
you received a complaint, you should answer within 20 days.
7. Be firm in your offers to the creditor. Say take it or I will not be able to pay
any amount.
You should see a consumer lawyer in your area. Most charge a reasonable fee to evaluate what they can do and you may even find out you have a case against the creditor, etc. where they end paying the attorney's fees. Do not be stupid and handle this yourself. There are many ways to beat this. See www.ConsumerLawyerHelp.com
Mr. Martin was quite thorough in his response to you. I can only add that I would NOT pay them any amount until the produced all documents that stated what they sold the motorcycle for and produced the financing documents for the purchase of the bike. Sometimes they can not produce these documents and therefore can not proceed. Good Luck.
If you are in my area and need assistance, please contact my office for an appointment.
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