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legalgems, Lawyer
Category: Legal
Satisfied Customers: 7062
Experience:  Just Answer consultant at Self employed
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I live in NJ had a business in Ga. HAd to close because no

Customer Question

I live in NJ had a business in Ga. HAd to close because no money to continue it. I had a vendor fronting me product for 3 years good with all my paybacks, unfortunately I left owing them 13,000.00 They settled with me for 6,000 but I only had 3 weeks to pay in full couldn't do it I had no money. They sent me to collections the fella told them I had assets after I told him I had none The then got a NJ lawyer who called me in March I told him I owed the money can they bring it to 6,000 and give me a payment plan, I never heard back and now I recieved notice they are suing me in Monmonth County.I called Plaintiff lawyer this morning, he was very rude and I offered a 5,000 settle that I would borrow money from family he said I don't thin they will accept that. What can I do I don't want this on my credit report since I'm seeking employment and how far can this go. I'm not denying that I owed I just have no means of paying. Been unemployed, have a high mortgage payment husband only gets Social security I'm also getting SS,but I can't make ends meet.
JA: OK. To minimize me, please click the down arrow at the top right corner of this box. Since estate law varies from place to place, can you tell me what state this is in? OK. To minimize me, please click the down arrow at the top right corner of this box. Have you talked to a lawyer yet?
Customer: No, can't pay a lawyer..Business incorportaed LLC in Ga. I we live in NJ
JA: Anything else you think the lawyer should know?
Customer: I have til August 5th to answer the claim, if I disagree with the claim. I don't disagree but they were very unfair from the beginning since Oct in giving me time or a payment plan, I have not heard from them since March.I actually though or assumed they were forgiving the debt since I had no means. Now they want 15,000.00 interest and legal fees.I offered back then to pay them 100.00 per month they said NO.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Lawyer about your situation and then connect you two.
Submitted: 3 months ago.
Category: Legal
Expert:  legalgems replied 3 months ago.

I am very sorry to hear this;

unfortunately if the underlying debt is valid and one is personally liable for it, then the lender can seek payment in full, plus attorney fees and costs.

They are not obligated to reach a settlement.

However, if one is completely unable to pay, they may wish to look into fresh start bankruptcy;

That is discussed here:

Chapter 7.

The problem is that the court won't look to see if one can afford it, rather they will determine if there is a debt and if so if the person is liable and if there are any affirmative defenses (ie statute of limitations). Then they will issue a judgment, and interest will be added.

SO if one truly is unable to pay, bankruptcy may be the best alternative.

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Expert:  legalgems replied 3 months ago.

While employers do run credit checks more often than in the past, many Americans are having to file for bankruptcy and still manage to obtain employment: