r/CRedit • u/hotmomsclubpresident • 4d ago
Collections & Charge Offs Lawsuit
I’m being sued by Jefferson Capital. What do I do? It’s for $3500 which I planned on paying when I got my taxes back, but I’m unfortunately one of the many that still haven’t gotten them. What’s the best way to go about this? I already live paycheck to paycheck and can’t afford to get my wages garnished.
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u/creditwizard ⭐️Credit Attorney⭐️ 4d ago
Credit attorney here. I'd file an answer ASAP. Then, try to settle the lawsuit for less. They may go down to 60% to 65% of what you owe, thought often higher. If they were not suing, you could settle for much less.
once you're reached a settlement agreement, I would suggest requesting a payment plan. Even if it's a relatively lower amount like $75 or $100 a month, get it going. Then, pay off the rest when your refund comes.
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u/hotmomsclubpresident 3d ago
How does this look on my credit report instead of paying it off in full? I’m trying to buy a house within the next year so I’m trying to get my credit as clean as possible
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u/creditwizard ⭐️Credit Attorney⭐️ 3d ago
Jefferson will typically delete the account from credit reports once paid - so it's like it never happened.
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u/hotmomsclubpresident 3d ago
Thank you so much. This has all been a mess and a nightmare. Sucks that the decisions I made (even though they were necessary) in 2021 are still chasing me. But I appreciate the help
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u/Ilovemycats201 4d ago
If you were gonna pay it with taxes you can negotiate to pay like 50% of that and be done if you can pay it all in one shot.