what if the credit card companies sue me?

[bk4sky]

ok, heres the deal, all my debt is in credit cards, about 40k, spread between alot of different cards. im trying to file chapter 7, but if i get pushed into a 13 im not doing it. So if i were to let the credit card companies continue their collections and some of them eventually tried to sue me, whats the worse that can happen? i dont own anything, and i live in PA, where they cant garnish your wages unless they get a court order. so if i had to go before a judge, whats most likely to happen? would they order a certain amount i had to pay back? ....or if i get stuck in the chapter 13 would it be better to just deal with it that way. thanks!

[AngelinaCat]

ok, heres the deal, all my debt is in credit cards, about 40k, spread between alot of different cards. im trying to file chapter 7, but if i get pushed into a 13 im not doing it. So if i were to let the credit card companies continue their collections and some of them eventually tried to sue me, whats the worse that can happen? i dont own anything, and i live in PA, where they cant garnish your wages unless they get a court order. so if i had to go before a judge, whats most likely to happen? would they order a certain amount i had to pay back? ....or if i get stuck in the chapter 13 would it be better to just deal with it that way. thanks!

Hi bk4sky: The worst these companies can do to you is to sue you for payment and get a judgment. If you are 'judgment proof' then they can't get a thing out of you. To try to get anything out of you, they will have to go to court and do a 'lis pendens' and try to sieze anything you might have.

The bad part about having a judgment on your name is that it will last 7 years, and the judgment holder can renew it two more time for a period of 21 years in which you will NEVER be able to own anything in your own name.

Good luck to you!

[pa308]

i dont own anything, and i live in PA, where they cant garnish your wages unless they get a court order.

In Pennsylvania I don't believe they can garnish your wages at all. I am no legal expert but that is what information was passed on to me.

[AngelinaCat]

In Pennsylvania I don't believe they can garnish your wages at all. I am no legal expert but that is what information was passed on to me.

Exactly. Once you file BK, these actions should be dead in the water, and once discharged, they are gone. Unless you have done something that will have a creditor file an Adversarial Protest Against Discharge. I didn't see anywhere in your post that you might have that looming.

Again, Good luck!

[BKParalegal]

I am not sure where Angelina got that you thought you were judgement proof,and in regards to the judgment attaching to you for 7 years before they have to renew it varies by state. It may be 7 in FL, but in CO it is 4 and TX it is 10. Just do a google search for your state regarding judgements. I am not sure about PA not being a garnishment state, but if it is, then most likely the loophole is they can levy your bank account after they get a judgement. The reason why is the law may say can't garnish wages, but once that money hits your bank account it is then fair game, since it is now just cash. If you are going to avoid BK, then you will need to go underground for awhile, but if you own a home, they can slap a lien on it at some point.

Good Luck

[bk4sky]

thanks for all the great advice so far, so im guessing that if i decided not to go through with the BK i should def close my bank accounts then.

[TEW]

I am not sure where Angelina got that you thought you were judgement proof,and in regards to the judgment attaching to you for 7 years before they have to renew it varies by state. It may be 7 in FL, but in CO it is 4 and TX it is 10. Just do a google search for your state regarding judgements. I am not sure about PA not being a garnishment state, but if it is, then most likely the loophole is they can levy your bank account after they get a judgement. The reason why is the law may say can't garnish wages, but once that money hits your bank account it is then fair game, since it is now just cash. If you are going to avoid BK, then you will need to go underground for awhile, but if you own a home, they can slap a lien on it at some point.

Good Luck

PA not a garnishment state but yes they can get into your bank accounts They can have the sheriff enter your home and take your property and sell it. I think I can safely say that no one on this forum is judgment proof.

[treehugger1]

Plenty of folks are judgment proof. While there is always the scare tactic that a sheriff will enter your home amd take your personal property, this can only occur if you fail to claim your exemptions under a seizure. If you have no wages, no bank accounts, and can claim all of your property exempt, under your state laws, then you are "judgment proof."

Judgment proof does not mean that one cannot get a judgment against you. It simply means that collecting on the judgment is virtually impossible. There are many folks who have judgments against them that a creditor or CA cannot collect on.

But, as always, it is up to the defendant to take the correct steps in protecting items exempt from judgment.

I would guess that many folks file for a BK 13 to protect assets that are above the exemptions allowed by their state. In addition, it is possible to have liens avoided and removed under federal and state BK laws.

It seems to me that BK is the ultimate judgment proofing method!

JMHO

[TEW]

Plenty of folks are judgment proof. While there is always the scare tactic that a sheriff will enter your home amd take your personal property, this can only occur if you fail to claim your exemptions under a seizure. If you have no wages, no bank accounts, and can claim all of your property exempt, under your state laws, then you are "judgment proof."

Judgment proof does not mean that one cannot get a judgment against you. It simply means that collecting on the judgment is virtually impossible. There are many folks who have judgments against them that a creditor or CA cannot collect on.

But, as always, it is up to the defendant to take the correct steps in protecting items exempt from judgment.

I would guess that many folks file for a BK 13 to protect assets that are above the exemptions allowed by their state. In addition, it is possible to have liens avoided and removed under federal and state BK laws.

It seems to me that BK is the ultimate judgment proofing method!

JMHO

Sure you can live is a grass hut and eat berries too.

[treehugger1]

TEW, What exactly is your point? I know of many folks who have declared BK 7 and/or 13, had liens removed and judgments vacated. A few years later their credit is doing quite fine. Is this what you mean by "living in grass huts and eating berries?"

I also know folks who have judgments and chose garnishment. They live on a general cash budget, have a great exempt retirement account, and have a great life, and don't care about their credit. Is this what you mean by "living in grass huts and eating berries?"

Thanks for any clarification you can provide.

[fltoo]

Chase has had a judgment against me for 7 months now. It will sit there for another 6 months until I declare BK. I am judgment proof.

Business associate has same judgment. It also sits there because she is judgment proof.

[fltoo]

PA not a garnishment state but yes they can get into your bank accounts They can have the sheriff enter your home and take your property and sell it. I think I can safely say that no one on this forum is judgment proof.

So, you cannot safely say.

[TEW]

So, you cannot safely say.

Sure I can. I think some of you really need to read up on judgment proofing yourself before thinking you are. Yes any judgments you had before BK are wiped out. But how about the 8 years following the discharge? Why do you think CC companies are so willing to give you credit?
How many here have 500K to setup and maintained off shore accounts in countries that do not have finical treaties with the US.

[HHM]

Being judgement proof is not really a solution. Being JP is usually temporary, and creates many hassles and future problems. Your credit will be trashed for a very long time (far worse than filing BK), and judgments have perpetual existence; as has already been pointed out, they last for several years, but just about EVERY state has a way to renew the judgment.

Being JP is not a solution because it doesn't bring finality to the problem. Being JP can be part of an overall plan for dealing with debt, it is a tool; but it is not a solution. Being JP buys you time if you need it. Plus, I think you are over-estimating the risk of being pushed into a chapter 13. Go see some BK lawyers and get an assessment. Keep in mind, if you really would be a candidate for a 13, then you really are NOT JP.

Again, schedule some BK consults, they are free and get some local advice.

[bk4sky]

Being judgement proof is not really a solution. Being JP is usually temporary, and creates many hassles and future problems. Your credit will be trashed for a very long time (far worse than filing BK), and judgments have perpetual existence; as has already been pointed out, they last for several years, but just about EVERY state has a way to renew the judgment.

Being JP is not a solution because it doesn't bring finality to the problem. Being JP can be part of an overall plan for dealing with debt, it is a tool; but it is not a solution. Being JP buys you time if you need it. Plus, I think you are over-estimating the risk of being pushed into a chapter 13. Go see some BK lawyers and get an assessment. Keep in mind, if you really would be a candidate for a 13, then you really are NOT JP.

Again, schedule some BK consults, they are free and get some local advice.

the reason im so worried about this is im up for a job promotion wich will increase my income, which is great! but after the past few years of struggling it would still be very hard to catch up on things. now i dont think the promotion will put my income above the income for chapter 7, im going to wait til they actually make me my offer, then ill call my lawyer. i already have a lawyer retained that i am paying. im just getting worried ahead of time...thinking of the "what ifs"