What should I do about being sued for credit card debt

Seeking Advice
1

I got a notice from the court saying Discover is suing me for $10k in credit card debt. It says I need to tell them if I’m going to the hearing. Do I have to go? Do I need a lawyer? And how am I even supposed to afford one? I’m panicking right now. Any advice would help.

2

I used to work as a debt collector and now I’m a paralegal. Most lawyers offer free consultations, so you can take your court papers and get advice without paying anything upfront. Considering the amount you owe, I’d strongly suggest doing that.

3

@Lael
Alright, calm down there expert.

4

Oakley said:
@Lael
Alright, calm down there expert.

So upset someone wants actual legal advice instead of listening to your nonsense, huh?

5

I owed Discover $16k, and they sent me a letter saying they’d hand my case over to a law firm. I responded quickly and settled the debt within 30 minutes. They were nice to deal with and set up a payment plan I could handle. I suggest calling Discover directly and asking about repayment options.

6

@Avery
What amount did you settle for?

7

Oakley said:
@Avery
What amount did you settle for?

I settled for $8k with no additional interest or fees. I’m actually about to make my final payment. Originally, the debt would’ve ballooned to $22k with all the penalties.

8

@Avery
What exactly does settling mean? Does it lower the debt based on what you can afford? And do you have to be behind on payments to do this?

9

Jess said:
@Avery
What exactly does settling mean? Does it lower the debt based on what you can afford? And do you have to be behind on payments to do this?

If you go bankrupt under Chapter 7, you can be free of the debt in about 18 months and start fresh.

10

@Oakley
I don’t think settling and Chapter 7 are the same thing.

11

Jess said:
@Oakley
I don’t think settling and Chapter 7 are the same thing.

I believe Chapter 13 is the one that works more like settling, but it still hits your credit hard.

12

@Oakley
This happened to me with Discover. They wouldn’t settle for less than $3,500. I ended up filing for bankruptcy for $1,800, and it was handled. Got a new credit card six months later.

13

@Avery
How much did your credit score drop after that? I’m about to face the same situation.

14

Rin said:
@Avery
How much did your credit score drop after that? I’m about to face the same situation.

Your credit score will drop significantly—200 points or more. But if your score is already bad because of the debt, that shouldn’t be your main concern. Focus on protecting your income and paying for essentials first.

15

You need to communicate with Discover. Ignoring them will only make things worse. They garnished my MIL’s bank account when she didn’t respond to them. If you act now, you might be able to avoid court by setting up a payment plan.

16

@Vesper
How much did she owe?

17

@Vesper
[deleted]

18

Rin said:
@Vesper
[deleted]

I had a large balance with them years ago but eventually paid it off. Now they’re offering me a credit card again, saying, ‘We miss you.’ It’s wild.

19

You absolutely have to go to the hearing. If you don’t, they’ll win by default and get a judgment against you. You can use services like SoloSuit to respond, but definitely check your state’s statute of limitations first to see if the debt is even collectible.