Asked in Bankruptcy, Consumer Law, Collections and Small Claims for Texas

Q: Not sure what to do. getting sued by LVNV FUNDING LLC. For the amount of $1456.73 for credit card debt.

Hello im getting sued by LVNV FUNDING LLC. For the amount of $1456.73 for credit card debt. I was wondering if i could settle the debt before going to court and if so how to go abour that. Ive never been sued so i have no idea what to even do or who to contact. My citation papers were served on 12.16.21 and i have 14 days to respond to the courts.

1 Lawyer Answer
Leslie Ann Werner
Leslie Ann Werner
  • Bankruptcy Lawyer
  • Victoria, TX
  • Licensed in Texas

A: It's extremely important for you to file an answer in a case like this, so they do not get a default judgment against you. For this amount of money, it's probably not cost-effective to hire an attorney, but if it was for a larger amount, definitely seek counsel.

And to specifically answer your question, yes, you can negotiate a lesser sum, but only after an answer has been filed. If you do this, you need to be aware that many debt collectors will send you a 1099 for the amount of money remaining after the settlement. Thus, you would be required to report this money as income on your tax return.

-Leslie A. Werner

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