Discover credit card is late – what can they do to me?
I have a debt with Discover in the amount of $2400.00. My last payment was in August of 2010. This has been more than 180 days which is usually the charge off number of days prior to a charge off. They are threatening to place a judgment against me if I do not make some satisfactory arrangements before April 29, 2011.
Can Discover do both a charge off and place a judgment against me?
Charge off is a simple accounting principle where a lender must recognize a loan or credit card as a non performing asset when it has gone unpaid long enough. A charge off event does not limit the creditor from continuing to collect or even sue you in an attempt to collect. Discover can charge off the credit card debt and send the account to a debt collection attorney to sue you.
You would first have to be sued prior to any judgment being entered against you. If Discover sued to collect on the credit card, and the matter goes uncontested or you lose in your efforts to defend the suit, Discover gets a judgment that can then be collected on.
Working out payments or settling your Discover Card.
What is your ability to make some type of payment towards the debt? Is your income stable enough to commit to a set lower monthly payment?
Discover does offer hardship plans prior to charge off. They may only last 6 or 12 months, but that may be the time you need to get back on your feet financially. Have you talked with them about a payment plan?
What type of money can you come up with in order to offer a lump sum settlement to Discover? Can you come up with 50% of the overdue balance?
Please post your answers in the comment section below, and I can perhaps provide more feedback.