CC collections actions/judgement question


R

ryan_txguy

Hello,
I wondered if anyone here could answer a question concerning a
situation I now find myself in.
One of my credit card companies, Discover, to be exact, has
referred,sold,transferred or whatever, my debt to them to a collection
agency. I owe about $3000.00, and live in NY.
I haven't been able to make any payments for a few months now. So, the
collection agency sent me a letter saying they are going to get a
"judgement" against me.
I have no assets except for my salary, and no bank account.
What will the judgement do exactly?
Can they garnish my wages? How would they find out where I work?
I will be able to start making payments in a few weeks.
I just wanted to find out about this judgement thing before I call
them.
Any advice would be greatly appreciated, as would any other helpful
hints.

Ryan
 
Ad

Advertisements

D

duh

[ I live in NY and I've been in default for a few months
in paying about $3,000 I owe on my Discover credit card
so Discover's collection agency sent me a letter saying
they are going to get a "judgement" against me, but I
don't know what that is. ]
It is a formal written direction from a court saying that the debtor
owes whatever is the amount the court awards plus whatever may be the
applicable court costs, directing that the judgment debtor pay that
sum plus accruing interest in an amount established by whatever is the
case specific combination of underlying agreement or by statute.
What will the judgement do exactly?
Besides the above, authorize the judgment creditor and certain persons
acting on the judgment creditor's behalf (e.g., the relevant local
sheriff) to use the means provided by applicable law to try to collect
from whatever if any assets they can find that are not made exempt by
law from such "execution" and "turn over" and related enforcement even
if the judgment debtor does not want voluntarily to pay the judgment
and also provide a basis for credit reporting companies accurately to
note the judgment's existence and degree or not of its satisfaction in
credit reporting records relating to the judgment debtor.
I have no assets except for my salary, and no bank account.
This is not a defense against the underlying breach of contract (your
failure to pay what you borrowed and owe) unless that contract says
that it is a defense nor a defense against efforts by or on behalf of
the judgment creditor to try to collect on the judgment by whatever
means are provided by law.
Can they garnish my wages?
This is the most common such means.
How would they find out where I work?
First, they probably already know. Second, they can ask you
informally or by way of formal post-judgment procedures your wilful
noncompliance with might subject you to contempt of court sanctions.
Third, they can make what they consider to be an educated guess then
verify whether that guess is correct with whoever they reasonably
believe may be your employer by using post-judgment depositions or
written questionnaires designed for that purpose.

Related rights conferred in a creditor holding a validly obtained
judgment are to use those same sorts of post-judgment discovery
procedures to question third-parties under oath who may be holding or
who have an expectancy soon to have in their custody or otherwise
under their control property belonging to the judgment debtor or in
which the judgment debtor has some interest and then to try to obtain
the turn over of such money or other tangible or intangible things of
value to the extent not made exempt by law while at the same time
preventing the judgment debtor from having access thereto.

IOW, a valid money judgment is a kind of "hunting license" that
authorizes the judgment creditor to look for and then to take the
non-exempt portions of the judgment debtor's present of future
property and apply that property to the satisfaction of the judgment
plus accruing interest thereon.
I will be able to start making payments in a few weeks.
Whether this would persuade Discover or its agent or Discover's
assignees from holding off from suing and whether you should or should
not try to communicate with them to try to arrive at a payment plan
that might include a compromise in the sums you must pay (or not) is
not meaningfully determinable just from the facts you so far state.
But do be alert to what probably is a related consideration depending
on what your underlying credit card or other borrowing agreement says
-- namely, that it is likely (you should verify this) that you also
agreed to reimburse your credit card providing creditor for its
reasonably incurred attorneys fees and related collection costs and,
if so, be aware that trying to raise not merited defenses or maybe
just trying to delay may increase the principal amount you owe by a
perhaps considerable sum.
I just wanted to find out about this judgement
thing before I call them. Any advice would be
greatly appreciated, as would any other helpful
hints.
You don't provide enough information about your overall credit/debt
and financial status and reasonably forseeable expectancies to enable
very much advice, except that you ought familiarize yourself with all
the terms/provisions of the relevant agreements, verify the
correctness of the amount claimed, and avoid communicating with the
creditor or creditor's collection agents in a manner that they are
likely to find not credible (and so don't make promises that you know
or ought know that, realistically, you will not be able to keep).
 
N

No 33 Secretary

(e-mail address removed) wrote in
Hello,
I wondered if anyone here could answer a question concerning a
situation I now find myself in.
One of my credit card companies, Discover, to be exact, has
referred,sold,transferred or whatever, my debt to them to a collection
agency. I owe about $3000.00, and live in NY.
I haven't been able to make any payments for a few months now. So, the
collection agency sent me a letter saying they are going to get a
"judgement" against me.
A judgement is something they get from a court. In other words, to over
simplify, to get a judgement, they have to sue you.
I have no assets except for my salary, and no bank account.
What will the judgement do exactly?
It will let them take things of value from you to pay the judgement.
Can they garnish my wages?
Probably. (Varies considerably by state, but generally, there's a limit on
what percentage, and if your income is very low, possibly not even that
much.)
How would they find out where I work?
If need be, they can compel you to show up in court and answer questions
like that. They probably already know, as they have access to your credit
report, which almost certainly includes that information.
I will be able to start making payments in a few weeks.
If that's true, and you do so, call them and tell them that, and they
_might_ be willing to work with you.
I just wanted to find out about this judgement thing before I call
them.
Any advice would be greatly appreciated, as would any other helpful
hints.
A collection agency that starts off by threatening to sue you, while making
it sound like a "judgement" is something they can simply do rather than
*ask* the court for, is probably not going to be real cooperative, or
smart. But you can try.

My advice: Insist they put *everything* in writing. From what you describe
above, it sounds like they're more interested in threats and bluster than
in actually collecting any money. If they offer you a deal, and refuse to
put it in writing, I'd wonder if they have any intention of living up to
it. It's not unknown for dishonest (even for the collection industry, and
they're all a packe of thieves) collection agency to extort (with threats
of jail or other things they simply can't do) enough money out of you to
cover their fees, then sell the debt to another dishonest collection agency
who will take their fees on and start the whole process over again. The
entire *idea* is to specifically prevent you from ever paying it off, so
they can continue to collect their fees over and over.

So insist on everything being in writing before you give them a penny.
 
B

Brett Weiss

Ryan:

It is likely an idle threat--most collection agencies don't file suit (the
only way they can get a judgment). They probably make the threat simply to
scare you and get you to pay.

--
Brett Weiss
(e-mail address removed)
www.brettweiss.com/bankruptcy

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at www.brettweiss.com/bankruptcy/FAQ/br_faq.htm

Justice consists not in being neutral between right and wrong, but in
finding out the right and upholding it, wherever found, against the
wrong. -Theodore Roosevelt

Required disclosure and notice: We are a federally-designated debt relief
agent, proudly helping people file for relief under the Bankruptcy Code
since 1983. Pursuant to 11 USC §§ 342 and 527, we are required to provide
certain notices, which may be found at www.brettweiss.com/faq/br_faq.htm.

*****************************************************************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
*****************************************************************
 
S

slimick

If it's been sold to a collection agency, they probably paid around 10
cents on the dollar...so they probably purchased the debt from Discover
for $300 but will try to collect the entire $3,000...which is their
right. The judgement threat may be a gimmick to scare you. You may
offer a settlement amount....i.e. $1,000, which you can pay in
installments. FYI, most likely your debt was "charged-off" by
Discover. Don't naively think that paying off a charged-off debt will
automatically give you good credit again...it won't. A charge-off is a
bad situation and it sounds like it's already happened here.
Charge-off's stay on your credit report for seven years...starting from
the day that you first became deliquent (not the charge-off date). From
a credit report/FICO standpoint...a paid charge-off is just as bad as
an unpaid chargeoff....If you pay this charge-off amount your credit
report will state "settled" or "paid" but the dreaded "R9" Charge-off
notation will remain....this will cause damage to your credit for
years.

If you do agree to pay this collector, NEVER pay them via an electronic
check...i.e. giving the bill collector your bank transit # and checking
account #....don't do it! Even if the collector states that this is
the only way they can accept money. Doing so is an open invitation for
the collector to raid your checking account.

If you plan to seek credit counseling....stay away from the for-profit
firms that advertise on TV...contact either the Salvation Army or the
Red Cross for a referral for the legitimate CCCS in your area. FYI,
credit counseling can also damage your credit while you're in their
program and some lenders consider enrolling in CCCS just as bad as
filing a BK
 
N

No 33 Secretary

(e-mail address removed) wrote in
If you do agree to pay this collector, NEVER pay them via an electronic
check...i.e. giving the bill collector your bank transit # and checking
account #....don't do it! Even if the collector states that this is
the only way they can accept money. Doing so is an open invitation for
the collector to raid your checking account.
I can attest to that, having had it (not quite) happen. Fortunately, the
collection agency in question was run by Elmer Fudd, who called me and told
me he was going to do so beforehand, letting me close the account.
 
Ad

Advertisements

B

Brett Weiss

If you plan to seek credit counseling....stay away from the for-profit
firms that advertise on TV...contact either the Salvation Army or the
Red Cross for a referral for the legitimate CCCS in your area. FYI,
credit counseling can also damage your credit while you're in their
program and some lenders consider enrolling in CCCS just as bad as
filing a BK
Not to mention the 1099 tax hit on any forgiven or reduced debt.

--
Brett Weiss
(e-mail address removed)
www.brettweiss.com/bankruptcy

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at www.brettweiss.com/bankruptcy/FAQ/br_faq.htm

Justice consists not in being neutral between right and wrong, but in
finding out the right and upholding it, wherever found, against the
wrong. -Theodore Roosevelt

Required disclosure and notice: We are a federally-designated debt relief
agent, proudly helping people file for relief under the Bankruptcy Code
since 1983. Pursuant to 11 USC §§ 342 and 527, we are required to provide
certain notices, which may be found at www.brettweiss.com/faq/br_faq.htm.

*****************************************************************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
*****************************************************************
 
Ad

Advertisements

D

darrenli516

I have a question about this.
Suppose one of my creditors(collection agency that bought a credit card
debt) has obtained a "judgement" against me in court.
I then make satisfactory arrangements to pay off the debt.
Once I have paid it off with the collection agency, is this reflected
in any way on my credit report?
Or does it simply stay on my report as a "charge-off" by the original
creditor even though it's been paid in full?


Darren
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top