A couple of weeks ago I had a small claims hearing set. I would have to had traveled 70 miles to the courthouse. My car decided it was not going to behave correctly, so I missed the hearing. The judge assigned a judgment. I could probably scream for appeal of the default under "failure to appear for a good cause," but the judgment will get taken care of by wage garnishment in 3 - 4 months. I'll have to live with this.
What I found interesting is that a couple of days ago I had yet another small claims mediation for an amount under $1000.00. I was totally open and honest with the plaintiffs representative and even shared that a judgment had been entered and my wages would be garnished. I have no money in bank accounts, no real property, my rental is furnished with personal property belonging to a roommate, and it could be 5 - 6 months before they would receive any garnishment money (they have to wait until the current writ will expire.) The representative totally "got" this. We wrote up a contract for six months of approximately 1/2 original payments and the debt will be settled and marked so in my credit report if I live up to my end of the deal. We (the plaintiff and me) were quite gracious to each other, and even chuckled a bit at how some folks have to figure out how to pay, or not pay their debt, when they are not prepared to file a BK 7 or 13.
I have the same mediator twice now and they don't make me watch any movies or sign anymore documents related to my understanding of the mediation process. I'm probably getting close to a first name basis with the clerks. LOL
I've heard that more and more folks are using their local courts mediation and/or arbitration processes to attempt to work around a BK 13. It is still a crap shoot, but once someone can see you have a judgment or perhaps several, and you have nothing but wages to attach, it is probably more of a crapshoot for the plaintiff to continure to trial and get a judgment AND then get in line for wages.
I have another small claim hearing next week. Another debt under $1K, but I sense we will work out an agreement similar to others.
There is something else I sense in my communications with plaintiffs in mediation. They have to know that I can file for a BK 13. In such a case, it could be months or maybe years before the trustee queues them up for their take. I don't know how trustees pay out in a BK 13. Can they really take 5 years to make small payments to a creditor that is owed less than $1 - $2K? Perhaps this is why the small claims mediations I've been through have worked out well. Thoughts?
What I found interesting is that a couple of days ago I had yet another small claims mediation for an amount under $1000.00. I was totally open and honest with the plaintiffs representative and even shared that a judgment had been entered and my wages would be garnished. I have no money in bank accounts, no real property, my rental is furnished with personal property belonging to a roommate, and it could be 5 - 6 months before they would receive any garnishment money (they have to wait until the current writ will expire.) The representative totally "got" this. We wrote up a contract for six months of approximately 1/2 original payments and the debt will be settled and marked so in my credit report if I live up to my end of the deal. We (the plaintiff and me) were quite gracious to each other, and even chuckled a bit at how some folks have to figure out how to pay, or not pay their debt, when they are not prepared to file a BK 7 or 13.
I have the same mediator twice now and they don't make me watch any movies or sign anymore documents related to my understanding of the mediation process. I'm probably getting close to a first name basis with the clerks. LOL
I've heard that more and more folks are using their local courts mediation and/or arbitration processes to attempt to work around a BK 13. It is still a crap shoot, but once someone can see you have a judgment or perhaps several, and you have nothing but wages to attach, it is probably more of a crapshoot for the plaintiff to continure to trial and get a judgment AND then get in line for wages.
I have another small claim hearing next week. Another debt under $1K, but I sense we will work out an agreement similar to others.
There is something else I sense in my communications with plaintiffs in mediation. They have to know that I can file for a BK 13. In such a case, it could be months or maybe years before the trustee queues them up for their take. I don't know how trustees pay out in a BK 13. Can they really take 5 years to make small payments to a creditor that is owed less than $1 - $2K? Perhaps this is why the small claims mediations I've been through have worked out well. Thoughts?