Default judgement just weeks before bankruptcy filing
Date: Wed, 03/21/2012 - 22:54
Submitted by hidden.amaranth.21
on
Wed, 03/21/2012 - 22:54
Total Replies: 8
Anyway, I'm really stressed out right now and would appreciate any anwers anyone can give me.
HSBC got a default judgement against me for a credit card debt. After they tacked on all the interest and stuff, it's about $11,000. When I first learned of the judgement/being sued, I couldn't afford to respond to the summons ( court said it was something like a $400 fee or some odd money. But I remember it was quite a few hundred just to respond to the summons ) and instead, I saw a lawyer and paid about $200 retainment fee in order to file CH 7. I still owed an additional $1400 to actually file and set the bankruptcy in motion. But you know how it goes, when you can barely afford to pay your bills you can barely afford to pay a bankruptcy.
Anyway, I have almost the entire remainder of that money and will be able to go down and formally file with my lawyer in probably a month's time. However, in the time it has taken me to get that money together, based on the mail I have been receiving, it appears HSBC already got a default judgement against me.
My question is, how much time do I have before they can take anything? Does HSBC have to file for an executive order/grant before they can sieze my bank accounts? I lost my job about 4 months ago, so I have no wages to garnish ( I do have a paper route to try and make extra money to even afford the bankruptcy. But you get a paper check for that and you're considered self-employed/independent contractor. Can they garnish that? ). But I lost my full-time job and am currently collecting unemployment benefits. They can't touch that, right?
Also, I don't own any property. I have a car that I am paying on. Can they take/reposses a car when technically it doesn't belong to me, it belongs to the bank that financed the loan?
I live in California, btw.
I'd appreciate any feedback. I'm just terrfied they'll start taking stuff from me before I can pay for the bankruptcy.
The can place a lien on your bank account which means that they
The can place a lien on your bank account which means that they will have access to that paper check. Maximum garnishment will 25%. Other than that they can place a lien (secondary to the title holder/financer) on your car as well. What they can't do is garnish your unemployment benefits.
Quote:The can place a lien on your bank account which means that
Quote:
The can place a lien on your bank account which means that they will have access to that paper check. Maximum garnishment will 25%. |
Wrong...when they levy a bank account, they take the ENTIRE BALANCE!!!
As for answering a summons, I have never heard of there being a charge. What state are you in?
Check your state laws. In NY they cannot touch the first $1700.
Check your state laws.
In NY they cannot touch the first $1700.
If you have protected funds, ie. SS, unemployment, they cannot touch the first $2500.
In Response to you
In Ca. they can take 25% of your disposable income, Best bet would be to cash your check at Walmart and pay cash for everything. I would empty my checking account out now and close it, Your lawyer should be to give you some advise, I don't know about your bank, but they charge you a 100.00 for a account garnishment. In CA if your on unemployment or SSI, they can't touch those funds, they may try, and you will probably have to argue with the bank about protected funds. Thats a Federal Law.
I think Soaplady is wrong. Maximum garnishment in most states i
I think Soaplady is wrong. Maximum garnishment in most states is 25%. Of course garnishment is different than levy. Also, you don't answer a summons, you answer the complaint that is filed with the court and served on you along with the summons. There is a charge for filing an answer to the complaint. Each state charges a different amount. Usually between $100 to $400.
Bankruptcy
I could be wrong, but wouldn't a bankruptcy wipe out the judgement if the debt was included in the bankruptcy to begin with?
bankruptcy stay
I always thought that once you got the bankruptcy going, that there was an automatic stay until the bankruptcy was resolved. When I spoke to my attorney several yrs. ago, while in the process of filing for bankruptcy, I was told to refer all creditors to them. These creditors stopped in their tracks with all attempts to collect. You should speak to your attorney further about your situation.
The original poster hadnt finished paying the attorney so the ba
The original poster hadnt finished paying the attorney so the bankruptcy had not been filed. No filing,no automatic stay.