Local CA files for judgment

[treehugger1]

One of my many agreements with local creditors/CA's calls for a few months payments with an original amount of $1300.00. I didn't receive a full paycheck last month, so sent the CA a letter stating I would return to the original agreement next month (approximately $200 left owing.) I'll be darned if the local CA immediately went to the courthouse and received a judgment lien against all real property, of which I have none. I guess they will now have to get in the wage garnishment line, LOL.

Seriously, my point is that local CA's can be ruthless and move very, very quickly. They know the local court system.

Oh, well, one more judgment (three now) posted in the public records portion of my credit report. Things can't look too great for other creditors/CAs pulling my credit reports.

I am down to 8 remaining creditors (all big ones) who have yet to file suits. I'll keep you informed of actions taken by these national creditors/CA's. It's a h*ll of way to pay your bills.

[treehugger1]

Add on - I'm very tempted to begin telling all my creditors/CA's that they should send all my accounts to the local CA. At least I'd have them all in one place, they could continually garnish my wages, and everyone would be happy. In addition, I'd be supporting a local small business. LOL

[Tbornetun]

lol, better yet, have your boss just direct deposit your entire paycheck to the CAs account. Then you won't have to worry about it while you are living in your cardboard box. CAs are a pain in the @$$.

[treehugger1]

Yea, I would love to do that. My payroll clerk finds my attitude toward debt garnishment amusing. At least I work for a high-tech organization that deems garnishment "just another input into the payroll system."

I won't have to live in a cardboard box, but the long-term benefit of continual wage garnishment would pay off my debt much faster than a BK 13; the truestee's 10%, attorney gets $3K+, etc. This is not the case for most BK folks, but it is the case for me. I'm fortunate in that I am a very high-wage earner. My heart does go out to those who cannot take such a "don't give-a-sh*t" attitude.

Hmm... Then again, if I moved into a cardboard box, I'd have a sh*tload of extra cash.

I'm always concerned about "uniform transfer/conveyance of assets to other creditors." This is the case if I decide to pay one creditor over the other in my state. However, the other day legal counsel informed me that such is the case after consideration of exempt "assets," including salary. So, I'm much better off being on a continual garnishment. I'll take my 75% disposable income and be thankful. Exemptions for bankruptcy are identical to exemptions from judgment in my state. This is not necessarily the case in all states. Oregon recognizes it's own exemptions for BK and not the federal exemptions. I don't write our state laws, but I increasingly understand them. LOL

[Tbornetun]

I really was joking about the cardboard box, just so you know. lol
Just last night, my husband and I were discussing the cheap little apartment we used to live in 15 years ago, how little money we made, and how we would buy gas to get to work with change. Wouldn't we be loaded if we moved back to that apartment!!! From the outside it would be a crappy apartment, the inside would be GRAND!! lol
Plus, it is kind of hard to fit 3 kids and 2 adults in a 1 bedroom. Hey, I know, we could rent them an equally crappy apartment next door and still pay less for both rents than we pay now!!
Nevermind my rambling, just remembering how exciting it was when we had enough to buy groceries as if that was a luxury.
If garnishment is the way to go for you, go for it. Maybe you could make a deal with the creditors before it goes that far though. You will pay them back either way, but if you deal with them prior to garnishment, you may be able to get a better deal.

[treehugger1]

I know you were joking. I just think that sometimes we (debtors) get all fussed-up about situations that we "invited" and then want to walk away. Debtors have a multitude of options for dealing with debt; garnishment, liens, and bankruptcy. The last thing we should be concerned with is the effect on our credit rating. If one is most concerned about future credit, then prehaps BK is the best option. But then again, I think the current financial crisis will redefine what constitutes "good" credit. The vast majority of folks are not going to be able to afford to go out and lay down cash for a $200K home. The entire concept of "home ownership" is pretty twisted, as is. One OWNS their home when they hold the title free and clear. Until such a time, the bank/creditor is the legal lienholder. I'm surprised at the amount of folks who are willing to file a BK 13 to protect an investment that has little or no value. If I had such an "investment," I would probably be facing liens on real property. I would still want to provide my children with a concept of the Amercian neighborhood dream. What a tough situation for those folks caught in this ideal.

[Tbornetun]

We have never filed BK, but we had our own financial crisis 2 1/2 years ago. We had an ARM that came up, my husband's business failed, and a huge payment on a vehicle. We had no other debt besides a couple small medical bills. We decided what was more important, our kids not our home, home is where you make it. We walked away from it all! Foreclosure, repossession, start over. We have never been happier, the stress is gone. We were never sued for a deficiency judgment on the house or the car. We are even able to secure a mortgage now when so many houses are selling at half of their previous values. It was not worth it to fight to keep something that was already long gone. It was totally worth it to walk away and start over. We actually have a savings account now, it even has money in it. SHOCKING Houses and cars are nothing if you are struggling, stressed, unhappy, and broke. I drive a 2001 Jeep that I paid cash for, my husband has a trusty, reliable, 45 mpg, (ugly) Honda civic, also paid for, and a ugly trusty buick regal that runs like it just came off the lot, also paid for. NO MORE BILLS. Well one thing we didn't walk away from is our Harley, but that is the only payment we have and the only thing that still has equity in it. If we needed to we could sell it today and make a profit. I haven't devastated our checkbook now if I go buy the kids new shoes.

[GoingDown]

One of my many agreements with local creditors/CA's calls for a few months payments with an original amount of $1300.00. I didn't receive a full paycheck last month, so sent the CA a letter stating I would return to the original agreement next month (approximately $200 left owing.) I'll be darned if the local CA immediately went to the courthouse and received a judgment lien against all real property, of which I have none. I guess they will now have to get in the wage garnishment line, LOL.

Seriously, my point is that local CA's can be ruthless and move very, very quickly. They know the local court system.

Oh, well, one more judgment (three now) posted in the public records portion of my credit report. Things can't look too great for other creditors/CAs pulling my credit reports.

I am down to 8 remaining creditors (all big ones) who have yet to file suits. I'll keep you informed of actions taken by these national creditors/CA's. It's a h*ll of way to pay your bills.

I've experienced a similar situation. The only creditor that filed a lawsuit against me was a visa card with a $300 limit. All of the credit cards with large balances have not yet filed a lawsuit. In Arizona, small claims court goes up to $10,000. Everything above that has to go to Superior Court which is much more expensive for them, so I guess they don't do that unless they really think they can get paid back.

[GoingDown]

We have never filed BK, but we had our own financial crisis 2 1/2 years ago. We had an ARM that came up, my husband's business failed, and a huge payment on a vehicle. We had no other debt besides a couple small medical bills. We decided what was more important, our kids not our home, home is where you make it. We walked away from it all! Foreclosure, repossession, start over. We have never been happier, the stress is gone. We were never sued for a deficiency judgment on the house or the car. We are even able to secure a mortgage now when so many houses are selling at half of their previous values. It was not worth it to fight to keep something that was already long gone. It was totally worth it to walk away and start over. We actually have a savings account now, it even has money in it. SHOCKING Houses and cars are nothing if you are struggling, stressed, unhappy, and broke. I drive a 2001 Jeep that I paid cash for, my husband has a trusty, reliable, 45 mpg, (ugly) Honda civic, also paid for, and a ugly trusty buick regal that runs like it just came off the lot, also paid for. NO MORE BILLS. Well one thing we didn't walk away from is our Harley, but that is the only payment we have and the only thing that still has equity in it. If we needed to we could sell it today and make a profit. I haven't devastated our checkbook now if I go buy the kids new shoes.

I agree with you. Not having any monthly payments (other than the basics like rent and utilities, etc.) is so much less stressful. I don't plan on ever using credit again. I only buy things if I can afford to pay for them with cash from now on.

[treehugger1]

Credit can be a compulsion. But, we are what we read, see, and learn. The big financial insitutions were pretty good "teachers." It was hard for me to simply stop paying on unsecured debt under the original contractual agreements. But once I stopped playing my own twisted version of the financial game, I felt immediately better. Granted, I have small claims, garnishments, and potential circuit court suits on the way, but the realization of how much I now have at the end of the month is well worth dealing with creditors and CAs. As mentioned in other posts, I am not the typical person. I make very good wages and can survive years of wage garnishment. I also spent considerable time researching my options. Others are far less fortunate than I am.

I just downloaded two well-written papers related to "non-judicial debt and informal bankruptcy." I was stunned to learn that the amount of debts filed in bankruptcy proceedings in this country does not even come close to the charge-off amounts of unsecured debt by national companies. There is far more unsecured debt being unpaid than can ever be accounted for by BK. More folks choose to either walk away or deal with debt through judicial means. I don't feel quite so alone any longer.

The bottom line is that the BK 13 laws clearly have shied folks away from a BK if all their debt is unsecured. Throw in the student loan dilemma, and you are looking at your's truly. Cheers.

[Mary Irene]

With all the financial mess on wall street, 500 will be the new 700 in FICO. Take THAT credit reporting agencies. NO ONE CARES ANYMORE! I am never getting another credit card in my life.

[treehugger1]

Since my wages have been garnished at 25% of disposbale earnings, the remaining 75% is mine to spend/share as I please. It has really changed my creditor/CA calls the past few days when I can say my wages are being garnished and there is nothing I can do. I say nothing more and eventually they simply hang up the phone. It is true that many creditors/CA's think one's priority is their credit score. In my case, I can take a 25% garnishment and still afford a $400K mortgage payment. I'll be curious to see what banks think in a year or two. In terms of a credit score, I'm "high risk." In terms of my ability to pay a monthly mortgage payment, I'm low-risk! I wonder when lenders will base secured loan decisions based on 75% of disposable income, not some meaningless FICO score from a dying system. LOL