QUESTION
How do I handle being sued in small claims court from a credit union?
Asked on Nov 05th, 2012 on Collections - Wisconsin
More details to this question:
I have fallen onto some hard times and was taking advantage of my credit unions 500 credit limit which they provided because I had direct deposit. I had been doing this for a good couple of years, so every paycheck I was already in the negative by at least 400.00. Well it had gotten to be too much and I just wanted a fresh start because the fees were killing me as I was paying them about 200 per month in fees only. I decided to open a new bank account to start fresh and get onto a solid budget. I intended on paying them in incriments for the negative balance until it was paid off but then my water heater busted, etc etc.. you know how it goes, one thing after another I never received anything else from them until I recvd the court papers to appear in small claims court, they will accept no less than 500.00 some dollars because of added fees now, i asked them to reduce some fees and they will not, and that even if i pay a small amount they will still sue me for the rest whatdo i do
1 ANSWER
If you cannot negotiate something acceptable, you could consider filing a petition with the courts under Wisconsin Statutes Chapter 128. This provides a means to stop all interest and other fees from continuing to accrue on the debt and a means to extend the time to pay the debt over a period of time. Contact your local clerk of courts at the county courthouse to see if they can provide you with any information on the Chapter 128 proceeding, as they may have some self-help material available to you.
Answered on Nov 30th, 2012 at 11:06 AM