Collections becoming judgements

[Lexy1969]

So I havent been able to afford my attorney fees and filing fees. I have the paperwork and I would be able to file a chapter 7. Question is???

The collectors are starting to be local attorneys. I assume that is so they can file a judgement locally and try to garnish wages. What is my best course of action against this? I cant file with my attorney until I pay him.

Also has anyone dealt with CashCall out of California? They are less than 45 days past due and very agressively calling me and my list of references. They are stating they will start procedures to garnish my wages tomorrow if I cant pay them.

Also. What happens to judgements granted before a bk filing? Do they get excluded?

Thanks for the help.

[keepmine]

Nobody can garnish anything until they sue you and win and, that'll take some time. If you get sued prior to filing, try and drag it out as long as possible. Respond to the summons with denials/no recollections and demand they prove their allegations.
A judgment may be included and discharged in the bk. But, it's still a public record and you'll have another set of legal fees getting it vacated post bk.
I'd try and hustle and file. Stop paying all debts you wish to discharge. Put that money toward legal fees. Could you borrow some money from friends and family? If it won't mess up the means test, I'd work parttime for a month or so at a fast food rest. or WalMart and dedicate the paycheck to legal fees.

[CATCHMEIFYOUCAN]

Yeah, stall them for as long as you can, pay them SOMETHING, $5, $10 just to keep them at bay. Before I filed I paid my cc's SOMETHING, even below the minimal. Fortunately I never got an creditor calls just friendly reminder letters. I kept them at bay until I could finally file. Bk is stressful especially when you realize you got to come up with $2000-$3000 to file in the first place. All the money that you put towards paying the minimal (depending on how much you owe) should be sent to the lawyer/filing fees etc!

Best of Luck, Catchmeifyoucan

[sofarindebt]

Are you referring to a payday loan company?

The garnishment they are talking about is a "wage assignment" which you voluntarily signed in your loan agreement. Go speak with your payroll immediately and tell them that you have already paid them and to not take any money out of your checks as it is not a court-ordered garnishment. Then fax or mail a letter stating you wish to revoke your wage assignment.

They cannot request such a thing from payroll anymore once you send in that letter.

I have one creditor who I have this gut feeling is going to take me to court within a month. I told them today that I am getting a tax refund at the end of March and will have a payment for them in April. We plan on filing in May/June so I hope it buys me a month or two. I feel horrible lying to creditors but they have no mercy so why should we?

[treehugger1]

In terms of a creditor getting a judgment, recent personal experience in my state of Oregon, some states allow an immediate default judgment for uncontested small claims ($1000 or less in my state), i funcontested for 14 days. Once a creditor has the judgment, they can fill out there own garnishment form, submit a copy of the writ to the court, and send it on to your employer. In my case, I definitely owe the money, so nothing is gained by me spending $40.50 to file an answer. There is no such thing as a "wage assignment" in my state (salary reduction can only come through the courts), but you should check your state laws. And as stated by another, you should notify your employer that you have authorized no wage assignment. You should also send a letter to the creditor revoking any wage assignment.
Sofarindebt, I'm needing to hold off filing (potentially) until Sept or Oct. I have one default judgment that will be in effect in 13 days. I am speaking with other original creditors and can only tell them what my "intent" is regarding geting money to them. I don't consider this dishonest. What my current intent is may have no bearing on reality once I see how much my paycheck is in the future. Be careful of how you phrase your "promises." The best advice I received from forums and debt counselors is to "pay yourself first." The meaning is to cover your necessities such as rent, transportation, utilities, secured debt required to remain in a situation to maintain employment, etc.

[isaiah60]

My garnishment nighmare

Just a quick story on what happened to me. I was waiting for my tax refund checks. I had a local creditor (equipment loan on failed business that I signed for personally) get a judgment on me (not contested because I owed) and 3 days after tax refund deposited (via ach) and 5 days after my payday (also via ACH) garnished my checking account. Poof! $8K gone. I had a meeting w/ a lawyer set up and was planning on using that to pay him.

I filed a claim of exemption, that at least 75% of my paycheck was exempt (CO state law) but judge said once it hit bank account it was fair game.

Immediately after they got the $8K garnished they sent paperwork to my employer to garnish 25% of paycheck. 2 days before payday filed my Ch7 pro se and we'll see how it goes from there.

Lesson: If the creditor has hired local, watch out- keep you bank account balances to a min.

[CindyLou]

Even if you owe money on a judgement you should ALWAYS answer in order to buy time!!! Answering the suit at the last minute delays the judgment by default in most cases.