Received summons for lawsuit. Need help with a couple of questions.

[kramerlike]

I was served a summons for credit card debt for about $14K two days ago. I called a bankruptcy attorney and explained my financial status (over 60, no income, name not on any property, $90 total in 3 separate checking account, a small brokerage account, a 1994 SUV in my name and we live on my spouse's soc. security check). I also owe another $9K to 3 other credit cards (2 of which I recently had to quit paying). Last year I had $65K of cc debt I managed to get settled to around $23, but this one cc wouldn't take the same settlement offer I could offer at the time. The attorney said I was basically judgment proof and he said I shouldn't hire an attorney just to answer this summons. My questions are:

1) Should I even answer the summons? I know it's my debt and they provided a statement in the summons. What could I possibly say to defend this and avoid a judgment? I read so many things and some say to avoid a judgment and others seem to believe it's not as critical as others say.

2) This one possible judgment may push me into filing for bankruptcy, but since I don't have any wages to garnish or property to place a lien on, is it really in my best interest to file before a judgment is granted........or could I wait 1, 2 or 3 years before filing if my financial situation doesn't change?

3) I have one joint checking account with my husband and two other checking accounts in my name only. I have very small amounts in these and wonder if it's best to close the accounts completely or just maintain small amounts in them? Do I have to worry about banks charging me fees for a levy, etc.?

Any insight, advice or opinions will be greatly appreciated.

[Bell30656]

My personal opinion? Heck yes you answer the lawsuit. You are in Georgia, the same as I am. There are no fees associated with answering the debt except a simple 45¢ stamp. Prior to my filing bankruptcy in December of 2008, I was served with three lawsuits. The first was served November 2007, the second February 2008 and the last November 2008. None of them had made it to court prior to my filing bankruptcy.

I am not a lawyer and I didn't use a lawyer to answer the lawsuit. It sounds like you may be retired and have some time on your hands any way. I ran down to my local courthouse and simply looked up other lawsuits filed by the same plaintiff. Then I found one with an answer prepared by a high priced attorney. I paid a couple dimes for photocopies went home and changed the information to fit my case. (Names, case number, etc.)

Basically my answer said something like: I admit allegations 1, 2 and 3 but deny 4 through 12. Allegations 1-3 were all pretty simple, my name, address and that I was in the jurisdiction. On the very last day that I had to answer I went to the courthouse gave the clerk three copies, she stamped them and kept one. I mailed one first class to the plaintiff.

Later, they sent me interrogatories. Those were fun. Again, I went to the courthouse and figured out that I really don't have to answer them. Oh, you file an answer but you don't answer any of them. Your answers are simply word games. When they say that they want you to produce documents (that will be in the interrogatories) your answer is "This is a document that is apparently more readily accessible to the plaintiff and should be in the plaintiff's files.". I spent a total of maybe three days dealing with it the first time. One day here and one day there.

Don't forget you get to ask interrogatories and production of documents. Heck, I asked for the JDB's cell phone records for a certain month. Of course, just as I evaded answering his interrogatories, he avoided mine too. I did get a few documents and I did find out specifically what he paid for the debt.

For the second lawsuit, I simply used the documents from the first with editing. The third, I filed chapter 7 and that was my answer to the lawsuit.

[tobee43]

or just a suggestion...don't bother if you are actually going to file bk.

even if they do get the judgments which will take a bit, you can file motions to vacate the judgments after the bk is closed and discharged. it will cost you a few dollars to file the motions but the judgments will go away.

like Bell points out tho, if you want to answer them you can, even go to court if you want if the date comes up prior to your bk. however, you have to chose your battles and where you want your energy to go. i'm just saying it certainly is up to you.

on the petition for the bk there is a section to list all court summons and suits etc. so they are all notified and everything stops dead in it's tracks ...but again it depends on when you are going to file.

we had a few summons, i never answered one.

[GoingDown]

(over 60, no income, name not on any property, $90 total in 3 separate checking account, a small brokerage account, a 1994 SUV in my name and we live on my spouse's soc. security check).

The attorney said I was basically judgment proof and he said I shouldn't hire an attorney just to answer this summons. My questions are:





3) I have one joint checking account with my husband and two other checking accounts in my name only. I have very small amounts in these and wonder if it's best to close the accounts completely or just maintain small amounts in them? Do I have to worry about banks charging me fees for a levy, etc.?

.

Close the joint checking account. You don't want them getting their grubby little hands on your husband's money.

Close the other accounts in your name also because you don't want the banks charging you fees for responding to a judgment creditor.

If the brokerage account is in your name, they might get to it. I would drain the money out of it and close it just to be on the safe side.

They don't care about the old car. It's worthless to them.

You don't seem to have any real estate in your name, so there's nothing for them to put a lien on.

There really isn't a whole lot they can do to you after you close those accounts.

One thing I would do is stop talking to them. Don't give them any information to turn around and use against you.

And if it doesn't cost any more than a 45 cent stamp to respond to the lawsuit, and if you want to waste some time screwing around with them, it might be fun to do what Bell suggested.


Read this entire thread for more information about keeping money safe from creditors...

http://www.bkforum.com/showthread.php?67251-Exempt-funds

I personally learned a lot from it.

[kramerlike]

Thanks so much for your very informative replies. If I decide not to file for bankruptcy now or find I never need to, is it more beneficial to take the time to answer the lawsuit now or just accept the fact I'll eventually get a judgment against me anyway and deal with it later? This is a lawsuit placed by the original creditor and I'm assuming once they find out I have nothing, they'll eventually write me off. Are judgments collectible until I die? I don't much care if they collect after my death (doubt I'll have much), but the only inconvenience is to not have a checking account.

Has anyone ever had a relative open a checking account and put you as an authorized user? I'm also considering opening a Delaware checking account since the article claims Delaware checking accounts are levy proof. Which of these two options would you consider safer?

[bcohen]

1) Yes you should answer. In most jurisdictions, the filing fee ranges from $100 to $200. If the plaintiff is a Junk Debt Buyer (JDB) such as Asset Acceptance or Midland, merely answering the suit may result in the plaintiff dismissing the case, as long as you did not admit their allegations in the answer. There are several ways to defeat a JDB lawsuit, such as denying everything and making the plaintiff prove that the debt is valid, and that they have standing to collect on it. They will attempt to prove this by producing bogus "affidavits" from people who supposedly handled the account, but by attacking the validity of these "affidavits" and the chain of custody of the account (the history of who owned the account starting with whoever bought it from the original creditor), you can prevail.

Even if it really is the OC suing, you can still challenge the validity and amount of the debt. It is possible that the amount which they are legally entitled to is significantly lower than the amount they are suing for. Also, if the company was bought out several times since you opened the account, such as First USA merging with Bank One which merged with Chase, it is possible that the records have been lost.

2) If you are truly collection-proof, then you should wait to file for bankruptcy. If you incur any other debt, such as medical bills, you can then add those debts to your eventual bankruptcy filing.

3) It is imperitive that you close any and all joint accounts ASAP. Otherwise, the judgment creditor can and will empty those accounts via a bank levy. Even worse, once the account is levied, the bank will most likely bring the balance negative with fees, and refuse to let you close the account until you reimburse the fees, which can be hundreds of dollars.

[tobee43]

however, bcohen, if one ends up filing bk it's all mote. it's an exercise in futility, so it's not needed at all except for expending one's energy on something that one could have used up on something far more important than a suit that was going to be dismissed anyway. that's just the point here.

closing account is always an important issue when one is in a state that can garnish wages and bank accounts. however, to get a bank levy one is FULLY warned prior to it happening, that's the law in all states.

[AngelinaCat]

If you don't answer the lawsuit, the creditor WILL get a default judgment. That judgment can last for up to ten years, and be renewed for another ten year period, depending on where you are. That means that you can never own anything in your own name--including a newer car, when the current one dies--because if the creditor is mean enough, he can file papers and seize anything that you own in your name to satisfy that judgment.

You state that you are 60 years old. That is a young age, this day in time. Do you really want this albatross hanging over your head?

[tobee43]

yes, they will. i agree, however, the judgment PROVIDED one files BK can be vacated after the discharge and the close of the bk.

we never answered any of our summons, but what was so important is our filing of the bk. had we NOT filed, that judgment would have been with us forever and a day as you have so astutely point out.

ps...miss YOU and HUB!!!

[kramerlike]

Thanks very much for all your comments. For the time being, I've decided to answer the summons and will close all bank accounts in my name. If they happen to win a judgment against me, I will file for bankruptcy when the attorney I finally hire tells me when it's a good time. I've learned so much from this site and I hope someday to help someone else with my experiences. By the way, it's Capital One who has filed a lawsuit against me. They were the first ones to raise my interest rate to over 29%.....even though I'd never been late with a payment. I entered a debt management program and could no longer make the high payments. I made partial payments to some of my accounts for as long as I could and was able to settle 3 of my higher credit cards for 20% to 25% of what I owed. I stayed current on 3 of the other credit cards until this past February because their interest rates were low and the payments were manageable.......and they didn't jack up my interest rates like Citi and Capital One did. I borrowed the money from a relative to settle the 3 cards. In hindsight, I definitely should have filed for bankruptcy last year........I'd now be free and clear of this ongoing mess. Sure wish I would have found this site earlier.

[tobee43]

that is absolutely one way to do it. it hurts nothing to answer, if when and if they get a judgement you can deal with then, just make certain you do.

[Floridagail]

Cap One also sued me, I was judgement proof also, 62, Attorney recommended I not file. I was ready for all the judgements If they came. No problem. However Capital One requested the judgement, then they requested thru the court my financial records including bank, pension etc. I did not want them to see my info. It was all protected My only income is ss and pension. I did not want to give them the info, So I ended up filing anyway after the judgement. I am glad I did now 3 yrs later I have my credit back to 700 and freshstart was what I needed. However My hubby 64 stopped paying cc 2 yrs ago and no judgements yet. (He doesnt have cap one) We keep waiting for one for him, We are letting the house go also. So not sure why he has not been sued yet.
Good luck with what every you decide to do. (just to mention my credit union cancelled my debt card when I filed so open a new bank acct, (not wells fargo or wacovia) I opened a account with sun trust b4 filing they did not do anything to my account when I filed.

[catleg]

I hate to argue for the dark side, but you're really just wasting everyone's time by fighting a lawsuit by an original creditor.
Do you really want to spend many hours doing research and paperwork to defend a case you cannot (and should not) win?
No matter how wronged you feel, the usurious interest rates, the collection calls hounding you, two wrongs don't make a right.
I would recommend you just file your BK and move on with your life, the sooner you do it the sooner you will feel free.
P.S. This makes you wonder why you settled with those other cards doesn't it? You might have protected that money by an exemption, or spent it on something they couldn't take.

[Bell30656]

Catleg, I respectfully disagree with you. Also being from Georgia, I know that there is NO filing fee for a defendant to file an answer, file interrogatories or other motions. In Georgia we have the Writ of FiFa. The last thing the OP wants to deal with is some JDB that bought the judgement showing up at his house with a deputy especially if that JDB is local. Sure most of his personal property is exempt. Can he prove that within a ten day period?

The county courthouse has every case on computer. You can view every case against this plaintiff and find one that was written by a high priced attorney. Adjust this to your case specifics and you have your answer. Quick and easy. The answer is basically admitting that your name, address and court jurisdiction is correct... Then simply putting that you deny remaining accusation in the complaint. It's quick and easy.

I've known two people that were on the wrong end of a Writ of FiFa in Gwinnett County, Georgia. The first was over a eviction debt, the second was to satisfy a deficiency on a repossessed vehicle. On the first the property seized was his pickup truck which he used for work. He barely got all his tools off of the truck before it was loaded up on the flatbed. The second, they took personal items. Things like his computer, a couple televisions and other items from his home. All while he sat in the back of a patrol car watching.

Gwinnett County has a seized property auction the first Tuesday of every month. You would be shocked at the quantity of household goods sold there. There are flat screen televisions, jewelry, computers, tools, etc. There are cars and even real estate. All sold to the highest bidder in quick fashion.

Gwinnett County Sheriff Personal Property Levy

In addition, here in Walton County there is a small loan company that does those high interest personal loans secured by household goods that uses the Writ of FiFa and the Sheriff's Dept regularly. They go to Magistrate Court get a Default Judgement then their fun begins.

Collection of a judgement is just too easy in Georgia to roll over. Like another poster said, if you answer this summons there is a good chance that the plaintiff may not take any further action causing this to later die for lack of prosecution. They may move for a summary judgement, which you will file a simple objection to or they may send you interrogatories but I doubt the case ever makes it to a court.

[tobee43]

bell, cat and i come from another planet when it comes to summons and judgments...aka new jersey.

judgements are issued with out proper service...judgements are issued because one was never provided with a court date. even if you did answer a summon it's was most likely just dropped in a bucket somewhere and put out with the trash.

truth be told when i was working i can't count how many clients would call and say how can these people get a judgment i wasn't even served, or i answered the summons but was never notified of a date...and or i went to court and the judge wouldn't even let me speak. why? because nj is a pro creditor state and that is just what it is, sad but true.

i would tell some of my family members that are in the legal system in another state, some of the stories (and one is a judge) and they just couldn't' or wouldn't believe what i actually saw happen to people in the nj court system.

we were served a few in nj, never answered, as i stated, they never rec'd a judgment because we filed bk before they could do anything, but we did have to AP's and one old one we had removed after the close of our bk. this was one of the reasons we waited to file in florida as opposed to filing in nj. i just felt even though it was a Federal court system it was still IN NJ!!!