Judgement questions

There's a new credit card judgement for $10,000 on my sister's credit report. She doesn't work.
1.So, the judgement owner can't garnish her wages now, but can they if she gets a job?
2.How would they know she got a job?
3.Can they get into her bank accounts and with draw money?
4.If she marries can the new husband be made legally responsible to pay the judgement?
5.If she just wants to bankrupt this judgement, will it go away for ever?

thanks so much.

Hi

The judgment owner won't be able to garnish the wages as long as your sister is without a job. As the credit company must have filed a legal case in the court using a sheriff, all details are put in the court ordered document and your sister will have to notify when she gets a new job.

Taking out money from the bank account is called a bank levy. The judgment owner might be having the name of her bank with the account information. But there are certain debtor laws restricting collections. They cannot take out money from wages, retirement funds, social security and during unemployment.

After marriage, your sister will still be obligated to pay the judgment. If she somehow fails to do so, the credit company might insist her husband to pay the debt.

A bankruptcy can stop most of the judgments. Sometimes, the creditors and the collectors misinform people that bankruptcy cannot be filed on judgments. Except non-dischargeable debts like a student loan or a government overpayment, bankruptcy can erase a debt in spite of the fact that a creditor has a valid judgment.

You can further discuss your options with a qualified bankruptcy attorney. There are some that offer free or minimal fee consultations.

thanx

...
"1.So, the judgement owner can't garnish her wages now, but can they if she gets a job? "

yes. There is a limitation on enforcement of judgments, and it depends on what state she lives in and what court the judgment was obtained in, but it's commonly between ten and twenty years.

"2.How would they know she got a job? "

If she told them. There is a procedure for calling the judgment debtor in before a judge, notary, or other officer to answer questions about the judgment debtor's estate. It's common to demand that the judgment debtor bring along documents, like tax statements, bank statements, cancelled checks, utility bills, etc. If that happens, they'll find out about the job. And the bank accounts.

"3.Can they get into her bank accounts and with draw money? "

Yes, that's also a garnishment. I've discussed the idea of garnishment at some length elsewhere on this website, which you can find using the search function. But remember that the gist of a bank account isn't storage of your cash, it's a loan to the bank. So if A owes money to B and B owes money to C, then the court can order A to pay C directly. In this case, A is the bank (or any other person who owes B money), B is the sister, and C is the judgment creditor.

"4.If she marries can the new husband be made legally responsible to pay the judgement? "

Absolutely not.

"5.If she just wants to bankrupt this judgement, will it go away for ever? "

Yes, but you can't bankrupt a particular judgment. You can do a general assignment for the benefit of creditors, a state law equivalent, or a homestead deed up to the limit allowed in the state, but if a chapter 7 bankruptcy is filed, all of the debts that can be erased will be. And, by the way, once the debt is converted into a judgment, it's no longer "credit card debt", it's a judgment. Chapter 13 on the other hand is a forced payment plan, in which you agree to repay at a particular percentage, and the creditors have to take what they get and be happy with it. Chapter 13, or "personal reorganization" is different from chapter 7 or "bankruptcy" because you have to actually repay the debts, but it only works with people with sufficient assets to cover the plan.

Hi. I'm 4 years removed from discharge of Chap 7 and my attorney never filed a motion to remove a judgment lien from my title on my home. It is due to expire next week and could be renewed. This debt was discharged so will renewing the lien be allowed and if so, did my attorney mess up by not filing the proper paperwork 4 years ago? If it is renewed will I be able to get it removed and how do I do it? I'm in AZ and this particular judgment was filed before we filed for BK. Thanks for your help.

Actually, the person who placed the lien on the residence was required to remove it. A failure to do so will subject that person to a lawsuit by you for any damages you've suffered, as well as a rule to show cause why he should not be held in contempt of the Bankruptcy Court. Renewing a lien on real estate for a debt that has been discharged in bankruptcy would also be fraud on the court in which the lien is filed. Both a renewal and the failure to remove the lien may also be violations of the Fair Debt Collection Practices Act as well as state consumer protection statutes. If I were you, I'd be looking for a way to make that person pay up.

Thankyou Virgina, for the information.

Hi, I live in Virginia and my credit card company took me to the arbitration board and got the award I was very foolish and didn't even know what the heck they were talking about but that's my fault. I owe to all creditors $80k and I do have a job and I do qualify for the chapter 13. My question is, when they turn it over to the courts here in VA and it's entered as a judgement, will a chapter 13 intervine in this. not chapt 7 but chapter 13. can this judgement be entered into a chapter 13 after the judgement is awarded. The thing is, my husband is not on any of this debt. We own a home together jointly and deeded propertly. What are my options

Guest

Check out this thread as it relates to your situation.

http://www.debtconsolidationcare.com...-judgment.html

spam removed by erz

Q: (1. So, the judgement owner can't garnish her wages now, but can they if she gets a job?)
A: This is mainly up to the job for garnishing wages. If a job allows the garnishing of wages, the company is basically co-signing this owed debt. Your sister can quit her job and the garnishing stops, but the owed people can now request the job to pay the debt. That is why most jobs do not get involved with garnishing wages.

Q: (2. How would they know she got a job?)
A: That is easy. The can run her ss# through certain databases and get this info. They can get it by her letting them know. They can find out in court. They can maybe find out through the IRS, in which im not to sure they will get any info that way.

Q: (3. Can they get into her bank accounts and with draw money?)
A: Yes, but not after you stop this by calling your bank. Then when they get permission to do so again, you can always close your account. Most times, your account would be frozed until judgement and then permission can be given to your account at the bank. One good thing is, the person owed is not allowed to try and get more than whats in the account.

Q: (4. If she marries can the new husband be made legally responsible to pay the judgement?)
A: NO! The new husband or wife is not responsible for debts owed before being married.

Q: (5. If she just wants to bankrupt this judgement, will it go away for ever?)
A: Yes, it will go away for ever. After around 7 or more years. She can still get credit from anyone, but can also be turned down by all of them also. Alot of companies like people who declared bankruptcy because they already went bankrupt once.

Of course, some of these answers can be wrong because laws change as does the state you are in, from the state your living beside.

i've filed for chapter 7, here in Florida does the same laws apply for a debt that was discharged on a judgement lien on my property?

I just received a judegment in California for an $8000 credit card debt that had been sold to a law firm collection agency. My questions are:

1.) I have a joint bank account with my wife (married 5 years after CC account was opened, but stopped paying debt a few months after getting legally married). Can they take the assets in the joint account?

2.) Filing bancruptcy is not an option as I am ineligible since I make a certain amount at my job. A random lawyer advised that I should negotiate to payoff the judgement, will paying it off erase it from my credit report?

Answer: Yes, they can take the assets in the joint account because your name is on the account and California is a community property state. It doesn't matter if the credit card debt was before your got married. Your wife is the co-owner of both your assets and your debts. I agree that you should mediate this because of the high amount. Don't try to negotiate on your own. The CC company has it's own legal team and they will walk right over you. Either get an attorney or find a mediation service (much cheaper). Get a copy of the contract with the credit card company and see if it has a clause providing for arbitration. Working out an agreement with them would be in your best interest, but don't go it alone.

Adding to previous questions: How does a creditor find out if you have a job? Most states have requirements where the employer reports your SSN to the Department of Workforce Services (or whatever it's called in your state). This department correlates its information with the Social Security Administration as well as your state tax authority. Your name is added to a database which is available to the public (Freedome of Information Act). That is how a creditor finds out if you have a job or not.

Thank you for your feedback, just a few more questions if I may...

1.) I understand that wage garnishment is limited to 25% in CA. So, for example, if I have my paycheck direct deposited to my bank account, they can take 25% through wage garnishment, and the remaining 75% once it hits the bank account (by takeover of my bank assets)? What if I have my paycheck mailed to me, then they can only take 25% per check and I would be able to keep the remaining 75%?

2.) At some point at the start of this judgement case, some person came to my door with documents saying, "you've been served". Out of curiosity, if I had not opened the door that day to be "served" the court docs, does that mean the judgement would never have gone through? Can the judgement still go through the legal process even though a debtor is never "served" the paperwork?

3.) Before the judgement trial day, I did meet with a bancruptcy lawyer in Los Angeles. I already knew befor meeting him that I was ineglible to file bancruptcy, so instead I asked him how he could help me. He offered to assist in "negotiating" a lower settlement with the Creditor with no guarantees of success. He stated that in many cases prior, he had been able to settle at 50% or less of the total balance. I thought it was a good idea, so I paid him $700 on the spot. A few days before the judgement day, he gave me a call and said the creditor was not moving below 70% payoff. He said my options were 1)wait it out and let him continue to negotiate, as more time goes by the more likely they will settle for 50% or less. or 2) payoff the full 70% they are demanding. or 3) wait to see if they eventually get to my paycheck or bank assets which would payoff the balance anyway. I just wanted to know what your feedback regarding his "options".