Lawsuit Against Me By Former Employer
Good day all. I posted here as a noob a few years ago.
I was a 1099 and received a draw if I did not make my commissions. It was an extremely small amount per year (less than 20K) and got smaller as I started in 2007 and endured the crash. I flushed out and had a draw balance of $2400 that I technically owe the company, which is a relatively small independent firm.
They have recently hired an attorney to collect the due balance. I am pretty much broke and cannot afford any kind of payment plan they may or may not be willing to put me on. They are threatening to move against me, which I assume is a lawsuit.
Are they likely to go forth and bring this to trial? Is this sum of money negotiable? At what point does it hit my credit? Is it possible this is just a threat before they write it off? I have 30 days to contest whether the debt is legit, it is.
Obviously, I should get legal advice, which I can't afford. I am employed making a small wage. Any tips or advice would be greatly appreciated. I have had no contact with them so far.
When I left MSSB I made 24k a year. They sued me for 42k of training cost. I settled a year later for 2k. Who ever is representing the firm, I would send them a letter and offer $500. See what happens than. If you want to proove you have no money, eventually send them a copy of your statemtns. You can' bleed a rock.
For that amount they will sue you in small claims court if at all. If it is a collections attorney, they work on contingency most likely... and for that amount, they want to put no time into it. Offering to settle is your best bet. Doing nothing and hoping it goes away is your worst bet... they have hired an attorney (if you are sure it is an attorney and not a collections agency). Make sure that is you do settle, you get a settlement agreement and negotiated that they will not report to a credit agency... unless your credit is already so screwed up you don't care. I am surprised they are even wasting their time unless it is to prove a point to you or their other people. If you can prove poverty... provide them with that info as well. The attorney will not waste his time on a dead end.
Yes....a true professional on here unlike half of the garbage that is typically posted.