Dealing with a creditor when/if you're judgment proof
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- เผยแพร่เมื่อ 11 ต.ค. 2018
- You may believe that a lawsuit should not be answered because you don't have anything to pay. Once you have verified that any assets you own cannot be 'taken' by a creditor then you may just tell them. So you write them a letter and will that stop them you wonder? In this video Michelle goes through the options of what might happen and what you can expect if you reach out to a creditor to tell them that you are judgment proof.
Thank you for this information
Don't forget Under Federal Credit laws, The party claiming Payment MUST Provide full Documentation on Who Claimant is, When, & where , Contract Number and Amount Owed. Also IF Your ONLY living on S.S. they Can't touch you!!🤔 Also, they can ONLY contact you a certain amount of time a week or Month. Download Federal Credit Guidelines..
Thank you for this.
Thanks for you’re time and wisdom ❤❤
Thanks for watching!
Great info, thanks!
Thank you for the information that you have provided. You mentioned, either in this video or a prior one that there is more information on the website but I don't see it on the site.
HI @Alfredo and thank you for writing - tell me what state you are in and we can get the information out. The website had some problems and those are being fixed.
Thank you!
Great video. Easy to follow.
Thanks Diane!
Thanks so much for the video.
You're very welcome
Thanks
Thank you very much for producing this video. You answered several questions I had. I will share this with my Daughter, who has this credit issue ongoing in her life.
Good - you're very welcome @John
They said I was served I was in another state and I never received the paperwork or a court date they won by default was granted judgment and steal the sheriff has not serve the summons on me but yet the sheriff is threatening me to take my truck that I still owe $8000 on and take all my property for only $1700 I was never served never received the paperwork in the summons paperwork that the sheriff has has never reached me yet because I drive over the road I haven’t been able to get back to get any paperwork but yet still being threatened to come and take my property I have nothing for them to take everything I have is rent to own and owned by the bank so there again I was never served I was in another state the judgment summons by the sheriff still has not been servedBut yet receiving threatening phone calls by the sheriff
I was sued by a malicious woman who completely made up a story and the magistrate was obviously biased and gave her a judgment for a complete lie!now she is attempting to collect the judgment. I will never pay for a complete lie!!
How is your case evolving?
I’m in the same boat as you. Judge in my case never asked for proof of his claim that the vehicle he purchased from me broke down. As far as I know he’s still driving it when he told the judge the engine failed. Judge just took his word for all his claims and awarded him $2000.
In your case did the plaintiff take you back to court for non payment?
I’m trying to figure out what my rights are when the dam judge couldn’t even do his job!
I am in sc. Very good consumer protections here. But judgements are for 10 yrs.
Like I don't have income (of any kind) or assets, and a beyond negative bank account what are they gunna do? take my phone? LOL
people are the original creditors...banks and financial institutions don’t lend anything at all...IRS 1099A and 1099OID
Thats what I am thinking. I have a judgment against someone. I invoiced them 3x. I assume I can file the 1099 A and OID at this point.
I'm in KS. I am 58yo. My only income is SSDI ($1,700) and a small monthly pension ($300). I have a credit card debt of $25K. This amount is spread out over 5-6 cards. I am judgement proof. Some balances I can handle (under $1K) and some I cannot (over $4K). I have not paid on the larger balances for about 2-3 months now. Should I default on ALL of my cards or just the big balance ones? When should I send a 'judgement proof' letter? When the debt goes to collection agencies? Wait and see if I get sued and THEN send them the judgement proof letter? I don't answer unknown phone numbers. They are calling me, snail-mailing me, emailing me. I haven't read any of the former yet. Thank you. PS: I love your videos!
In 2018 I stopped paying all Credit Cards but Pen Fed.
Only Discover and Capital One sued me. I sent both of their attorney firms a judgement proof letter certified mail, and both dropped their lawsuits and dismissed the lawsuits.
Lawyers will not work for free
I was sued in small claims court over a vehicle the person claimed broke down after they purchased from me.
The judge not once asked for proof (receipts) of their claim of having to have it towed or a mechanic receipt which they also claimed one told them the vehicle needed a new engine. Nor did he offer the judge proof of the vehicle being seen by anyone at any time over the 8 months this person has had the vehicle.
The judge simply believed their lies and awarded them $2000.
I am a senior, not collecting SS yet and have a very small income which I am self employed at.
($700 month).
I do not own a home or own my vehicle, I have a vehicle payment. I live with my child, nor do I have any assets, nor savings account, only
$50 in checking
I’m writing a letter as the court requires telling them and the plaintiff why I’m not paying this judgement off in 30 days.
Can you tell me if they will end this here or will I be forced to go back to court explaining my finances further?
What are my rights when the judge FAILED at even finding out the facts / proof in this case?
Thank you very helpful. What I would like to know is, once a debt has been charged off and sold to a collection agency or debt buyer, is there a legal way to deal with them?🤔
Yes - will do a video this week and come back to share the link here.
If you have not heard from them in a year, and you call, does that not restart that date and make it stay longer on your report.
Statue of limitations please
Would a bankruptcy be an option for someone who is Judgement proof and will it prevent you from getting sued or a judgement proof debtor. I'm considered Judgement proof and only have exempt assets such as social security disability.
They can’t touch SSD!
I left at the mr burns chair turn lol wth
So I received a debt summons from the original credit via their lawyer and am not quite sure how I should respond if at all. I believe I a judgment proof as I don't have w-2 wages, I'm an independent contractor, but I would be vulnerable to bank levies but I can just get a new bank account. Should I answer the summons? even if I think I am judgement proof, and then send them a letter telling them I am?
Hi Romans - can't comment on your specific situation but whatever you decide to do please keep in mind all relevant time frames that apply. Here's another video that may help
th-cam.com/video/FzO_loX_Xko/w-d-xo.html
This is all super helpful! THXS!
If you are working with a debt settlement company, like I am since September, if you put that in your answer if you're sued along with the judgment proof, would that get them to back off and let the settlement company work with them?
There is no real need to be judgment proof, if you know your consumer rights.
Is it different for retirees (senior citizens) ?
Hi @Donna Good question! The rules are all the same- however a senior usually has social security and those funds are exempt so they cannot be taken by a creditor. That can give you additional help when trying to make a deal to resolve the debt.
Do not think I am judgement proof but my money is all from my La. state retirement . Under La. RS 13:3118 the money is uncollectable. This is a credit card debt.
Personally, I am judgment proof, and the moment these alleged creditors/debt collectors send me letters attempting to collect a debt, I let them know there will be paperwork with consequences in the US District court. I always take the first shot, and exercise my consumer rights.
I am going to court tomorrow. I have some money in the bank that does not belong to me. What can I do? Get it out and pay others first. ?
HI @Dave not sure what you are asking, but I will try. If you think a judgment will be entered against you and they will garnish your account- that does not happen immediately or during court unless you agree to a settlement and write them a check on the spot. Garnishment takes a couple of days for the papers to be filed and then served on the bank after a judgment is entered. Creditors will also try to work with you on a voluntary payment plan. If the creditor sends a garnishment to the bank that holds your accounts and there is not any money there then they won't get any. If the creditor sends the garnishment to the bank that holds your accounts and there is money there but it belongs to someone else then you will have to prove that to the court and if they agree that money will be released. To avoid undue stress and be sure you are making the best decisions - contact an attorney in your local area to help you even if it is just a 30 minute consultation. That would be money well spent.
Can you suggest a starting point? I am judgement proof. I rent a room, no car no income no assets. My debt is all old the 4 year statute passed on most of my debt, they informed me they won;t be suing me but will conitue to report to the credit agencies. That;s fine as I don;t intend to use credit unless I can buy a home someday ( years away) . I can live with a credit score of 12. One crditor did sue me for 20k ( collection agency attny from BOA) they got a default judgement 3 years ago. I offered them 40% 3 years ago they declined. problem is here... I want to go back to work and wages would be garnished? How much time before they do that? Is my info of 25% accurate ? So I would lose one paycheck per month. Ouch. Now that they have this default judgement I'm thinking they wont take a settlement amount and would demand full payment? Or can I get an attny to settle it for less? Where do I start? I called them they refuse $200 per month payments which would be all I could afford on minimum wage. I am 60 . Very confusing situation PS : I dont dispute the validity of the debt but resent being expected to show up in court during an emergency and bullied in this way for losing my income . Also, prefer NOT to file bankruptcy for 20k . thanks for the good info
Good for you for working on this Michael! Can't give anything but general information. A consultation with a local bankruptcy attorney would be worthwhile - some who are chapter 7 trustees take debtor cases and know all the ins and outs. Absent that check the dates of the judgments and see when they will become dormant or expired to decide what to do and when.
In some states they can't garnish anything out of your paycheck if you make minimum wage. Im helping someone with this in CA and that's what legal aid told me about my neighbor.
In California can they make a judgement on both parties?for wage garnishment
Creditors may sue whoever is on the account. A judgment can only be entered against a person who is sued. Hope this helps you.
if I am judgment proof, will a judgment still be entered against me and stay on my credit report for 7 years?
HI Al - good question. Being judgment proof is a way for you to not worry about harrassment and also as a means to deal with the creditor to have them pass you by. It is an evaluation that most creditors make or their attorneys make as to whether it is worth it for them to sue now or later. It is not a defense to a suit and so yes- regardless of your situation and whether you can pay- if the elements necessary for a court to find that a judgment should be entered are presented then a judgment will be entered.
@@latachia_2981 And your degree in law is from where?
What is "judgment-proof'??
Hi @viewer It means that there is nothing the creditor can take from you- no property to sell, no money in the bank, no earnings and no future earnings. Good question Thank you!
@@FinelyRevealed If I'm just filling back taxes, and owe money, will that have any effect on anything? Thx
@@FinelyRevealed
But does the term judgement proof only apply to someone BEFORE a legal judgement has been filed?
Or can a judge who’s made a judgement against someone deem that same person judgement proof after he learns their only income is SSI?
I like how you start your videos by turning your chair to face camera.
Thanks Dave
Little creepy LOL.