Timing of Filing and Being Sued--FEAR

[eddiep]

They don't have to get a judgement against you, they will just foreclose. A mortgage is a secured debt and they will take your house. credit cards are unsecured so they have to get a judgement to garnish your wages or put a lien on your assets.

[debtmonster]

Will I get a judgment against me for not paying my mortgage for the past 4 months? How long does it take? Do they have to sell the house first or can they get a judgment on me right now?

[lrprn]

I thought that all you had to do was go fight that so they couldn't get the default judgment?

If you haven't filed bankruptcy by the court date, then you absolutely should go to court. However if you do owe the debt and have no compelling reason why you haven't paid it as agreed for a long time, then you are going to get a judgment against you whether you are there or not. In some courts a compelling reason (job loss, divorce, major medical, etc) won't even matter.

This is why filing bk before the judgment happens is the best way to go.

[debtmonster]

I suspect it is largely a cost-benefits analysis. If they can get a default judgement for less than $50 they probably feel it's worth their time. After all, I've had some of the banks send UPS overnight or 2nd day air letters just to see if they've got my address right.

I thought that all you had to do was go fight that so they couldn't get the default judgment?

[catleg]

I suspect it is largely a cost-benefits analysis. If they can get a default judgement for less than $50 they probably feel it's worth their time. After all, I've had some of the banks send UPS overnight or 2nd day air letters just to see if they've got my address right.

[debtmonster]

I stopped paying my CCs in May '08 (Chase is the largest owed @ over 25k alone) and still haven't been sued....knocking on wood as I write this... As everyone has stated, it all really depends on your creditor.

P.S. I'm a homeowner too.

For $25k, I'm surprised they haven't done anything.

I've never gone that high on a credit card. All of the ones I've ever not paid one were usually $1500-2000. Could that be why nobody has bothered to come after me or have lots of people with low balances owed been taken to court?

[liz417]

I stopped paying my CCs in May '08 (Chase is the largest owed @ over 25k alone) and still haven't been sued....knocking on wood as I write this... As everyone has stated, it all really depends on your creditor.

P.S. I'm a homeowner too.

[debtmonster]

A judgement is no big deal, don't worry. bkrupty will take care of it. You are not alone, I worried about 341 meeting and it was over so fast no big deal. good luck

That's the kind of info we all need to hear!

[Floridagail]

I was sued by capone after about 18mos, ( I do not own a home) I owed 7000. I had 5 other ccs with higher balances. They never sued, I stopped paying for 27 mos before filing. I can say my friend was sued by capone for 2000 balance after 18mos, she went to court to try to make aggmts , they would not work with her. after getting judgement in aug against her they still have not garnished her wages. So she has not filed bkruptcy. They are sending her letters now wanting payments, she said forget it. If you pay it will be tax 1099 now. So she just stopped direct deposits and chgd banks. A judgement is no big deal, don't worry. bkrupty will take care of it. You are not alone, I worried about 341 meeting and it was over so fast no big deal. good luck

[debtmonster]

I think that if you don't own a house it's unlikely that you will be sued.

Not true. I own a home and have over 60 people that are coming after me for money and the only time since 1992 that I ever got sued was for foreclosing the house. Capital One, Chase, HSBC... all of the famous ones and nobody has ever knocked on my door to serve me in all this time.

I don't think owning a home or not has anything to do with it. They must have some kind of formula to know whether or not you're worth going after.

[EricaCallaha]

We had 3 separate Chase accounts and checking and savings with them. We didn't pay any of the cards for 6 months and we hadn't even been charged off yet. When we filed our 13 they took the attorney information and never called back. In checking our claims in the bankruptcy...Chase has only filed for 1 out of the three and for the smallest one ($165). Go figure.

Good luck and start planning now.

[pookieny]

I think you're are not judgement free from cc lawsuits if you have a bank account, job, or own a home. However, there are some states where they can't garnish for cc judgements, N & S Carolina, PA, Tx, don't remember the others.

[pookieny]

Capitol One sues about a year after defaulting on your payments.

[Fresh]

Willbe and Catleg,

You both helped a lot. I appreciate your comments. I do not own a house.

Thanks again

[catleg]

I think that if you don't own a house it's unlikely that you will be sued.

Reason I say that is, my wife and I have quite a variety of credit card debt which is about 4-5 months past due, and the only one who has threatened to sue us so far is Chase. They have only threatened my wife, because the house is in her name. I have four cards with Chase with the same delinquency and haven't gotten the threat to sue from their in house legal group yet. Also, the only cards we've gotten the threat to sue on have been under 15k, because here in NJ they can sue in "special civil part" for under 15k which costs them a lot less (filing fee around $30 vs $300). Chase actually does sue here, and in both regular civil court and special civil. I've checked the civil motions calendar. But the cases in regular civil take about a year longer than special civil part.

Also, for what it's worth, Chase's letter lists the names of their in house lawyers and their states. They have names for the following states: California, Illinois, New York, Florida, and New Jersey. Not sure what that means for those of you in other places. :-)
I believe Virginia is considered an easy-to-sue state, however.

Just one opinion and data point for you, hope it helps.