Legal Question in Credit and Debt Law in Florida
I've been served with a summons for pretrial conference by Midland Funding who purchased my Home Depot/ Citibank debt.$4900.00. The lawyer hired by MFund called my after I was served.I told him I have been unemployed for over a year. My wife works part time$50- $100 a week. I do odd jobs $150- $200 a week and collect food stamps. We own a small house no mortgage 2 cars. one 11 yrs and one 24 yrs old that's it no ira, savings, bonds or anything. my debt is about $15,000. Wife $3,500.. Can't pay HD or Lowes $10,000 Current on the rest. We are 60 and 61 yrs old.. I told him my only option is bankruptcy. What will happen when I go for the hearing? Can I ask how much MFund paid for my account? I guessing 2 to 3 cents on the dollar, and argue unjust enrichment? Should I tell them if they put a lien on my house I'll file bankruptcy? Thanks
3 Answers from Attorneys
May a deal with them. When you are called up tell the Judge you would like to mediate the case. They will send you to a room to talk about it. Offer $1,000.00 at $25.00 per month. Tell them you are judgment proof (as you are) and its the best deal they will get. If they refuse don't worry, it may go on your credit report but you can not squeeze blood from a turnip.
They can't take your house under Florida's Homestead Act and they cannot take one of your cars - exemption law in Florida (because they would not sell outright for more than $1,000.00). The other is too old to deal with and would get less than you are offering.
If you admit that you owe the debt (the amount they say you owe is correct, and you actually owe the money), you may not get a chance to mediate the case with a mediator. Mediation is reserved for those cases where there an actual legal dispute. Not being able to pay the debt is not a legal dispute, nor is it a defense to the lawsuit. You will, however, probably have the opportunity to strike a payment deal with the attorney who represents Midland Funding.
The likelihood that they will take $1000 at $25/month on a $4900 debt is slim. If you can't do a deal, you can't do a deal. Midland will have judgment entered and then it becomes a question of them trying to collect from you. Doesn't sound like there's much there.
Two more things: Nothing can stop you from filing bankruptcy, so a threat of doing so is meaningless. It makes no difference at all what MF paid for your account. None.
See a consumer lawyer. Most of us have never lost a case against collection companies. See www.consumerlawyerhelp.com
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