Jonathan wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

Amex is horrible. Apparently they are suing me for 15k.

Long story short; got behind on my Amex bill 60/90 days in Nov 08, they sent me to third party collector (Allied Interstate). In Nov I called Amex trying to pay them, they wouldn’t work with me at all. Setup DMP with CareOne, who sent Allied 3 checks as part of their DMP proposal, all checks were returned and the plan was refused. Amex then took the debt back from Allied and it is now with an Attorney who is now taking me to court. I have no other option now but to hire an Attorney of my own – correct?

Jonathan”

The Answer:

Dear Jonathan,

You say Amex is horrible? I’d have to go with ‘hell yes’ at this point.

Getting your own legal representation is always a good idea. I would never discourage that.

Consider this fact, you originally did have an agreement to repay Amex and for whatever reason you are unable to do so.

You have made attempts to repay them through CareOne but that didn’t work out. Your best shot is going to be to take all your evidence of your attempts to repay American Express to court with you. The judge will either tell the Amex lawyer to work out a payment plan with you or the judge will award the case to the Amex lawyer simply as a matter of law; you were unable to honor the agreement.

Even if you lose, that’s not the end. You could always go bankrupt to eliminate your obligation to repay that debt if American Express tries to garnish your wages or get a judgment against you.

Let me know what you decide to do.

Steve