Legal Question in Credit and Debt Law in California

Small claims Court Hearing

I have a small claims hearing on Monday from a loan company called SOS Money Call. Due to extreme financial hardship, I am unable to pay the debt so I am with a Debt Settlement company called Global Debt Management. My hardship is due to the fact that I work for the JState of California and have to take to furlough days each month which causes my paycheck to be $300.oo less a month. And I might be getting miminum wage this summer is a budget is not signed in time. I am not running away from the debt, it just will take a little while to pay back. What are my chances of the planiff going along with me being with a debt settlement company. Should we both talk to a mediator before we go before the judge to discuss them agreeing to the debt settlement for them.

Asked on 5/08/09, 5:48 pm

2 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Small claims Court Hearing

You have a track record of making poor financial decisions. You took out a loan from "SOS Money Call" which I assume is one of these payday loan companies that charge 1000% interest. Then you signed up with a "debt settlement company," I assume they are doing nothing for you except taking your money and not paying your creditors. The fact that you are with some scam debt settlement outfit will impress the plaintiff not at all. I would consult a bankruptcy lawyer in your locality.

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Answered on 5/08/09, 5:58 pm

Robert F. Cohen Law Office of Robert F. Cohen

Re: Small claims Court Hearing

In addition to Mr. Stone's suggestion, you might also avail yourself of the small claims court's mediation program if it has one -- on the day of trial. I would suggest steering clear of most of those debt settlement firms.

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Answered on 5/08/09, 10:30 pm

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