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I need advise on a judgment filed against me from Discover Card... please advise?
I defaulted on a Discover card contract in 2003. The date of the last payment was in June 2003. I’ve read in several places that the Statue of Limitations for Georgia is 4 years after the date of the last payment for credit card/contract accounts. I was served papers by a deputy sheriff since the collection agency is attempting to obtain a judgment against me. The court date is approaching, and I’m currently unemployed. The only thing registered in my name is my vehicle (which is worth less than $4,000)
I read on an article that the statue of limitations begins 6 months after the last payment… if that’s correct; the statue of limitations began in January of 2004. Four years from Jan-2004 is January 2008. It’s now September 2008.
Do I have any recourse? Should I go to court and (first hope a representative from the debt collector isn’t there) tell the judge that the statue of limitations has expired on the debt?
I’ve never been in a situation like this before and I need all the advise that I can get. What should I expect to happen in court? Will they demand payment in full right away? Will I be forced to sign a payment plan?
Don't worry about the representative from the debt collector -- he WILL be there and he will probably be an attorney.
If you have had any contact with Discover or the debt collection agency and made any promises to pay, that could start the statute of limitations clock running all over again. And if you did not dispute the bill, you can't claim you don't owe the money.
If the judge doesn't throw the case out because of the statute of limitations, the judge will surely grant a judgment against you.
If you have an outstanding judgment, you can probably forget about getting financing if you need to replace your car, so be careful what you do here. You would be well advised to try to settle the debt before you go to court. Most settlements are pretty "generous" and you could probably knock your debt down to $1,000 with a payment plan. But if you default, the debt will be restored to the full $4,000. So, don't commit to pay what you can't pay.
I don't know what else you owe, but you should probably see an attorney and consider bankruptcy. That will probably cost you close to $1,000, so you're damned if you do and damned if you don't. Your best bet is to settle with the debt collector and make a payment agreement you can keep. And you can try to get the collector to withdraw his reports to the credit rating agencies.
The debt collector isn't going to demand payment in full right away. They've already done that. I'm sure you've gotten more than one demand letter and you didn't pay. Work this out to minimize the damage to your credit rating. Bad debts and judgments hang around for a long time.