If someone is judgement proof what are the advantages not filing Chapter 7 and then just waiting to be sued? I have heard that after 3 years the debt is not collectable. Would I want them to sue me to find out if I am judgement proof? Could I use this as a tool to get the OC to negotiate down my balance to like .20 on the dollar by telling them I am judgement proof? If I do have a judgement can this be discharged in Chapter 7? Also how do you know you are judgement proof? Anyone who went this route please let me know. What are the odds that Amex, MBNA, Chase and USBank, HomeDepot and Kohls all would negotiate to .20 on the dollar where I could avoid bankruptcy? All my debt is credit cards with these companies. I owe only on my house and have minimal assets. I am below the median in Kansas.
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Judgment proof?
Well maybe you can negotiate for .20 on the dollar like all those adds say but what are you going to do when you turn all that debt into non dischargeable tax debt?
Just file BK and save yourself a ton of grief.Chapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008 -
My understanding is that NO ONE is actually "Judgement proof". Creditors can sue you and get judgments and those can be on record for up to 20 years (depends on your state law).Originally posted by Kansas1960 View Post
What you could be is "uncollectible".
While we were in that position, our reasoning was this:
Do we want to stay in this "prison" of being under this judgment - forever, always looking behind our shoulder, or worrying that our bank acount would be garnished if we happened to get some money - feeling that we could not try to improve our financial situation without fear that the judgment creditor would come and take whatever we were able to earn or accumulate?
NO! We realized that we would be entrapped forever in this cycle - thus we decided to do a Chapter 7, so we could be free to start again and rebuild our life!
And we did get sued. We lost - ran out of money to fight really. Its not fun. Its VERY stressful. Some here have negotiated the debt down. We tried without success to do that. But some have.Filed Ch 7 -- July 9, 2008
341 mtg ---- August 14, 2008
Discharged ---- October 17, 2008
Closed --------- December 11, 2009!Comment
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Donald Trump, Bill Gates are Judgment proof I am willing to bet they have money outside US court jurisdictionOriginally posted by PoorGrammyinBK7 View PostChapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Very good advice from both of you. Thanks so much. I did not think about the tax consequenses or the length of the "prison". I think I will just plan my Chapter 7 for sometime this Summer or Fall. I am wanting to get some time between HELOC payoff and CA and purchases done in September.Comment
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How many times do you think the collectors on the other end of the phone have heard...
"If that is how its going to be, I will file BK"
"Go ahead, sue me; I am judgment proof"
Excuse my french, but they could give a shit. It does not lengthen or shorten their timeline or in anyway effect their decision making or collection process.
This questions gets asked a lot...and frankly, I would put it back on you, are there and disadvantages to filing BK. I suppose if you don't value certainty, don't value your credit, and just don't care about the future; then doing nothing and being "judgment proof" is for you. However, if not, then file BK and bring some resolution and certainty to your financial life. FFS.
Also, keep this in mind...if you actually have the money available (or can save to get it) to pay a settlement (even .20 on the dollar), then you are not judgment proof (unless you are going to get the money from a relative.).Last edited by HHM; 12-28-2008, 08:49 PM.Comment
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More great advice. Thank you so much!Comment
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