Do I Need to Provide Employment Information to Settle A Credit Card Debt?

Full Question:

I am in negotiation with a legal collection agency regarding a credit card debt. They will not negotiate with me until they get my employment information. I have been served a summons and trying to settle out of court.I am out of time they will not lower the balance will accept 25% down and 25% monthly payments interest at 23% but I have to give them my employer info first. Do I gives this info or go to court?
12/21/2009   |   Category: Debts and Cr... ยป Credit Cards   |   State: California   |   #20144

Answer:

It will be a matter of personal judgment whether you wish to provide the employment information and agree to a settlement or proceed with the matter in court. Through the discovery process in court, the name and address of the employer may be requested to be given. If a judgment is obtained in court and remains unpaid, it is possible for the winning party to garnish wages.

It is important to file a proper response and/or motion after receiving a summons to avoid having a default judgment entered on your records. A "default judgment" may be rendered against a party if it is the result of a party's failure to take a necessary step in the action within the proper time; this generally means a failure to plead or otherwise defend within the time allowed. Since, under rules of procedure, allegations not specifically denied are deemed admitted, failure to file a responsive pleading will generally result in the entry of a default judgment against the defendant. When a complaint is filed and the defendant fails to file an answer within the applicable time period, a default judgment may be entered against the defendant. In such a case, the full amount requested in the complaint willbe due in a lump sum.

An answer is a legally sufficient response to the allegations that have been alleged against you in the complaint. The answer will generally either admit or deny each claim made by paragraph, or state an inability to admit or deny for lack of knowledge. Defenses may also be raised. A counterclaim or cross claim may also be asserted.

Once a judgment is obtained, the creditor will likely be unwilling to negotiate a settlement and may place liens on property, such as bank accounts, or garnish wages. In some cases, a debtor may be able to negotiate a settlement with the creditor, although this is more difficult once a suit has been filed. In some cases, the creditor may settle for a lesser amount if the debtor is insolvent, since a promise to pay something is better than collecting nothing. These types of agreements are called an accord and satisfaction. If it is possible, a debtor should get a release included in such an agreement so that the creditor may not pursue the full balance of the debt claimed or accelerate the payments to be due at once if a payment is missed.