The principal balance I owe on my cc is a little under $2800. Now, with interest added since 2007 when I last made payments, the balance is up to almost $4700. I was told by the creditor's attorney that if this is taken out to court, total amount I owe would be up to almost $7000. Could it possibly to be that high? Do you think I can ask the judge to let me make monthly payments for just the principal balance I owe? If they want the amount in full, what could I do? I barely make enough for rent.
No creditor/collection agency can garnish wages until they've served you a summons, taken you to court and won a judgement. The amount of garnishment varies from state to state. The federal maximum is 25%.

Wages cannot be garnished for credit card debt in these states: PA, TX, NC, SC and Florida (head of household).

Are you sure you're "really" speaking with an attorney. Debt collectors will often pretend that they are (or work for) attorneys to scare you into paying. If you have any doubts, ask for their alleged attorney’s full name and license # in the state bar association, then call your state bar association to verify the attorney's information. If they refuse to give this info to you, then the legal threat is bogus….
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Offer 20% and go from there:
- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.
- NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments.
-Paying back a charge-off won’t fix your credit rating. The charge-off notation will stay for 7 years…even if you settle or pay the entire amount back in full
I think they are BSing you. att. fees wouldnt be that high. forget the guy who says they wouldnt sue.
they can and do. ive been sued for less.
if it goes to court ask to see a breakdown of how they made up the amount they are suing for.
ive heard that in some states collectors cannot charge interest after chargoff.
make sure you show up. they base garnishment on ability to pay
take your paystubs and billing statements. everything you got.
if a garnishment puts you close to poverty level maybe the judge wont grant it.
Some people never show up for court, in that case they get a default judgement of up to 25% of your wages.
Don't make that mistake.
Show up for court.
Take a spreadsheet of what you bring in and subtract all your monthly expenses.
Also take backup (the bills) for as much as is listed.
Be prepared, neat, organized, and….
Plead, plead for 10% garnishment.
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It will never go to court, that is a scare tactic. It would cost them more in attorney fees, than what you owe to get your account to go to court. They are after larger balances than yours.
Next time be responsible with you card or just don't have a card.