2 collection letters today

[WaitNSee]

Since I am not planning on filing bk, at least not in a couple of years, why should I care if they give it their best shot and get it on?

2 letters today:
Collection agency for medical bill say 10 days or they will get an attorney.
CU for deficiency on surrendered auto. Plus cc I quit paying on in November.Will get attorney in 10 days if they don't hear from me.
Nothing lately from C1. Total is close to $40k on all debt.
I am collection proof, receive pension and SS, rent. own very little not over exemption.
Why should I try to avoid the inevitable, and let them do what they got to do?

[GG1981]

All they could do is sue you. If they sue you and win, then they will garnish your wages. In most cases it's up to 25% of your wages. There are different scenarios and speculations for different people. In your case, you get pension and SS. I don't know if they garnish that as well.

Goodluck

[WhatMoney]

As you already know, you are collection proof and your SS and pension are exempt. If you have nothing outside of your state exemptions you need to protect, I'd let them bring it on. It will get them nothing but losses.

Their threats are probably just that right now. Once they get to the attorney, if they ever do, send the attorney a letter telling why you are judgment proof and what a terrible waste of his time and money it would be to sue you. They usually go way when they figure out you've got nothing to give them.

If they still go ahead, so what? Protect your bank account and be ready to counter-sue them if they attempt to illegally seize exempt funds after you have warned them. Consumer defense attorneys love cases where they have a sure win against debt idiot collector law firms.

[frogger]

Once they get to the attorney, if they ever do, send the attorney a letter telling why you are judgment proof and what a terrible waste of his time and money it would be to sue you.

The OP may be collection proof, but nobody is judgment proof...

[WaitNSee]

judgment proof/collection proof

I realize they can get a judgment, and will. But if they can't collect anything...can't throw me in jail...what would be the reasoning for me wanting to drag it out. I understand I probably won't out live the judgment. But what can they do after they receive a judgment and there is nothing or no way for them to collect?

[StartingOver08]

It sounds like you have exempt funds, but the problem is many banks freeze your funds first and then expect you to have all of the documentation to prove the funds are exempt AND you have to get a court order to recover the use of the funds.

Here is a good link about the process: http://bankruptcy.lawyers.com/consum...-Seizures.html

Make sure you keep your exempt funds in an account not associated with any of the problem debt. Make sure you don't commmingle your funds with non exempt funds. Look up asset protection or bank account protection in your state so you know how to protect yourself prior to any legal action by these creditors.

[WhatMoney]

The OP may be collection proof, but nobody is judgment proof...

Yes, of course - it's common usage to use the term "judgment proof" as anyone as sophisticated as a collection attorney will know exactly what you mean. Note I did use the term "collection proof" concerning the OP, as did he.

I actually prefer the term "execution proof" when writing a "judgment proof" letter to the plaintiff's attorney. In fact here is what I usually conclude my "judgment proof" letter to the attorney with:

As you can see I have no money to pay any old debts, now or in the future, and I am execution proof from a money judgment as I have only exempt income and assets. I can and will prove all of the above concerning my assets and income if so requested by a court order.

So, if the attorney still wants to sue me, let him pay the court fees and waste his time and money to find out he is out of luck.

So far, no attorney has bothered to file suit - after 7 accounts and 5 years from date of last payment.

[WaitNSee]

Firing Squad

I love that quote, am copying and pasting it to my "good things worth keeping" file.
When reading "execution" proof, I had a glimpse of a firing squad. You gave me some good info and brought a smile to my day. Thanks!