When a bank threatens a judgement. . .

[hnhlvr]

This isn't me. I'm still current (for now)! But, question, when a person is a month behind on a credit card bill and that bank calls and threatens a judgement, is that just a threat at that point or a good indication that IF the person does default on that loan, the person will get sued?

Oh, and if it helps, the bank is Bank of America.

[deafbroke]

They have to go to court to do it and you will recieve documentation with info on type of suit and court date. Once they do go to court they usually try to garnish wages first. Once you file, any garnishment and judgement stopped until either case is dismissed and they can continue garnishment, or until case is closed and they can't do antything.


DB

[hnhlvr]

So their main line of attack is wage garnishing? What if a person's income is low enough that after bills, etc., there isn't any disposable income left? Is there anything the bank can do then?

[TEW]

That is Illegal
807. False or misleading representations [15 USC 1962e]

http://www.fair-debt-collection.com/rules/fair-debt-collection-act.html#806

Try telling them that you wish only to be contacted by mail and do not call again and hang up

[jktrading]

That is Illegal
807. False or misleading representations [15 USC 1962e]

http://www.fair-debt-collection.com/rules/fair-debt-collection-act.html#806

Try telling them that you wish only to be contacted by mail and do not call again and hang up

I believe it is a little different when it's an original creditor. I think the FDCPA is all about collection agencies.

Personally, I would ignore all calls from the OC until they either force you into court, or go the collection route, in which then you could write a limited cease and decist letter, where they are told to only contact you by mail.

NEVER talk to these people on the phone in any case, NEVER. Get caller ID, turn off the ringer, or change your phone number. Nothing these people say are credible.

Of course a BK will stop all attempts at collection from the OC and collectors. You should have atleast a few months of no payments before anyone takes you to court. Perhaps 6 months to a year, to never actually. I'm sure there are exceptions, so don't 100% count on it.

[deafbroke]

So their main line of attack is wage garnishing? What if a person's income is low enough that after bills, etc., there isn't any disposable income left? Is there anything the bank can do then?

Yes, if garnishment isn't an option they will go after assets like your home. They will attache a lein to the property. They could also try to freeze your bank accounts but haven't heard of many doing that.

It will take time before it gets to garnishment. They will try to work something out first.

DB

[hnhlvr]

Yes, if garnishment isn't an option they will go after assets like your home. DB

Thanks I do not have a home for them to take, but I do have a bank account with another bank. FWIW, the creditor is my husband's and BOA called early this week with threats. The caller ID on his phone was marked as either "restricted" or "private," I cannot recall which, but in either case, he didn't realize it was a creditor. The BOA representative was horribly rude and threatened him with a judgement and when my husband asked for her name and told her she was "abusing" him, she suddenly settled down and tried to work out a repayment plan.

We were going to pay the bill this month - we missed last month - but are considing Ch. 7 instead since our combined debt probably won't ever let us see above water again. I'm still current on my CC bills and am fearing if I just stop paying them, we'll both end up with numerous judgements against us!

[deafbroke]

Thanks I do not have a home for them to take, but I do have a bank account with another bank. FWIW, the creditor is my husband's and BOA called early this week with threats. The caller ID on his phone was marked as either "restricted" or "private," I cannot recall which, but in either case, he didn't realize it was a creditor. The BOA representative was horribly rude and threatened him with a judgement and when my husband asked for her name and told her she was "abusing" him, she suddenly settled down and tried to work out a repayment plan.

We were going to pay the bill this month - we missed last month - but are considing Ch. 7 instead since our combined debt probably won't ever let us see above water again. I'm still current on my CC bills and am fearing if I just stop paying them, we'll both end up with numerous judgements against us!

If you are pretty sure you are going to file chapter 7 then see an attorney. They usually offer free initial consultations.
Also you can stop paying your CC bills. It will be a good 6 months before they get to any court threats. Court is a last resort and they know it usually pushes the person into bankruptcy so they try to work things out first, then send the account to a collector, then to an attorney if the collector doesn't work. So there won't be any immidiate court threats. Talk to a bankruptcy attorney about your situation and don't worry. It's not as bad as people say it is. But first things first. Make appointments for consultations with several bankruptcy attorneys, explain you are tinking of filing bankruptcy. They will help guide you through the process and give you quotes on their costs. See several as their fees can vary. Then come back here and update us and we'll go from there. good luck.

DB

[liz417]

If you are even thinking about filing, stop paying the credit cards and save for an attorney. Don't let them "bully" you into paying if you can not afford to at this time. I stopped paying my credit cards in Mid May and I have answered the creditor's calls (I don't want them to call family members or neigbhors). I told them I intend to file bk and gave them the # to my attorney.

Try not to stress about the calls, but definitely seek a few free consultations with local attorneys.

Good Luck!

[fltoo]

Each state has different wage garnishment laws and yes, they do address low income filers.

I have never seen BOA go for a judgment. Now, not saying they won't but historically the ones that go for the judgment are Chase and Citi.

The creditor will pull your credit report to see if you have a good paying job, any assets, etc. Filing a judgment cost them money and they want to be sure you have something for them to attach.

[liz417]

Fltoo, nice to know about BofA. I have two cards with them and once I told them that I was going to file bk, they backed off...now Chase on the other hand...they are relentless (I guess I've got to remember that I do OWE them)...