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Judgement questions

Submitted by on Sun, 05/14/2006 - 02:20
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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.


Submitted by john on Sun, 05/14/2006 - 11:55

john

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thanx


Submitted by on Sun, 05/14/2006 - 13:43

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...
"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.


Submitted by Virginia-Legal-Defense on Mon, 05/15/2006 - 07:28

Virginia-Legal-Defense

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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.


Submitted by on Mon, 05/15/2006 - 14:33

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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.


Submitted by Virginia-Legal-Defense on Mon, 05/15/2006 - 15:38

Virginia-Legal-Defense

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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


Submitted by on Sat, 07/22/2006 - 20:30

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spam removed by erz


Submitted by on Mon, 08/14/2006 - 04:51

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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.


Submitted by ShawnK on Thu, 08/17/2006 - 00:53

ShawnK

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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?


Submitted by on Thu, 08/31/2006 - 18:33

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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?


Submitted by on Thu, 12/28/2006 - 23:07

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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.


Submitted by DebtFairy on Thu, 12/28/2006 - 23:20

DebtFairy

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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.


Submitted by DebtFairy on Fri, 12/29/2006 - 15:58

DebtFairy

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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".


Submitted by on Mon, 01/01/2007 - 12:58

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Hi..

first of all, if you don't have your check direct deposited, you will avoid losing money to your bank, all you'll have to worry about is the 25% garnishment.

If you hadn't opened the door, the judgement still would've gone through, because they would've taped the notice to your door, which is perfectly legal..

Also, a lot of times it's cheaper to just bite it and take the garnishment because usually 25% of your disposable wages ends up being cheaper than any arrangements the creditor would agree to.


Submitted by finsfan13 on Mon, 01/01/2007 - 13:10

finsfan13

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Wage garnishment is usually 25% in most states. The garnishment is not effected at the bank. It is effected with your employer. Your employer receives a Notice of Garnishment and they have two weeks to report back to the creditor regarding your wages. When you employer is served, they are required to notify you of the garnishment. If your employer likes you and doesn't want to participate in the garnishment they can forestall providing the information for a couple of more weeks, but eventually, they are required to forward the information back to the creditor. This is all a part of the judgment process. The employer also has to notify payroll or the company that processes your paycheck that the 25% has to be deducted from your check and paid to the creditor. I believe that the deduction is made after taxes, not before, but don't hold me to that.

It doesn't matter whether you get served personally or not. If you don't accept service, it only prolongs the process. After several attempts at service, the process server sends the complaint back to the creditor. The creditor can then post notice by publication. They usually choose to do this with some sort of paper local to your area that is business oriented instead of your regular newspaper. They do this because it costs less. It is also a strategy used to get a default judgment because it's very unlikely you will not see the notice in this type of paper when most people subscribe to the regular news delivered to their door every day. So yes, the legal process can go through.

Depending on how confident you feel about your negotiation skills, I would have opted to negotiate myself. For instance, if you had participated in the court process, you would have been allowed to mediate the matter. Most small claims judges prefer to have these things mediated and they usually have anywhere from three to six professional mediators at the hearing who offer their services for free. If you don't feel confident in your negotiation skills, you could have hired a paralegal to do the same thing the attorney was hired to do at a substantially lower rate. California is one of the few states that allow paralegals to practice a limited amount of law and this would be one situation a paralegal can handle.

As for what I would do, I have strong nerves and an unsually high amount of niave faith. So, I would hold out for the negotiation at 50%, knowing that it the creditor may never go below 70%. However, keep in mind that if the creditor already has the judgment against you, you now have interest accrual working against you, so time is working against you.

Hope this information helps you in your decision-making.


Submitted by DebtFairy on Mon, 01/01/2007 - 13:18

DebtFairy

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small correction here..Sorry, Deb, I'm an HR rep..

Garnishment for consumer debts is 25% in ALL states except Pa, the carolinas, and Texas, where garnishments are not allowed. Also, the payroll dept has 28 day, not 14, to report back. And yes, the garnishment is after taxes, as well as all voluntary deductions such as 401k and profit sharing.


Submitted by finsfan13 on Mon, 01/01/2007 - 13:20

finsfan13

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Correct me if im wrong, but if the creditor can and does choose wage garnishment as a way to get judgment paid then they would have no need to freeze a bank account right?.I was under the understanding that seizure of bank accounts and writs of execution were usually only done if no garnishment could take place and that was the only way to get the money from you.Sorry if I'm wrong on this.


Submitted by on Tue, 01/02/2007 - 06:53

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Yep, unless you're in Texas, The Carolinas, or Pa..Then they can't garnish, so they go after accounts and assets.

I did see an employee once who owed like a gazillion dollars in child support...He was on the verge of jail, total deadbeat dad. He ended up on probation, garnished, AND had accounts levvied. That's really extreme, though, and I can't imagine it would happen in a garnishment-friendly state unless it's a huge federal debt.


Submitted by finsfan13 on Tue, 01/02/2007 - 17:11

finsfan13

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I can relate. I was complimenting you BECAUSE I wouldn't want your job. However, if you would like my job, I would love to give it away. You have to have a thick hide to deal with attorneys and their egos, not to mention a great deal of restraint when you simply want to throttle them for their insensitivity and lack of consideration. Only benefit is that I learn the law in order to be educated about how to protect myself.
______________________
"There is only one success - to be able to spend your life in your own way." ~ Christopher Morley


Submitted by DebtFairy on Tue, 01/02/2007 - 18:12

DebtFairy

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One more question. You mentioned that the joint account can be levied since my name is on the account. What about an account that my wife has in her name only? Can that be levied as well?


Submitted by on Thu, 05/10/2007 - 21:31

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Forgot to ask also...once they get the court order and levy the account, does that mean they have access to all the account information as well? (ie. bank statements showing all checks paid recently, deposits, withdrawals, etc.). Are they only getting the funds from the Sheriff's Levy, or are they getting all the account info with it?


Submitted by on Thu, 05/10/2007 - 23:07

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Hi,
I won a judgement on Oregon for $20,000.00. The problem is this person has nothing in his name. He owns 2 pickups worth about $3,000.00. He also owns 6 horses and a horse trailer. He also has $600.00 a month taken out of his pay check a month for retirement. He broke his back and is collecting unemployment and has a child support garnishment. Can he cash in his IRA and pay me off?
Please help I trusted this person and was taken advantage of. I have already spent $1,700.00 in Lawyers fees. This is all the money I have.
Thanks,
Cherry


Submitted by on Wed, 04/08/2009 - 10:20

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My father is on my checking and savings account for convenience. He died last year at the age of 88 and last week I learned that my bank account had been seized. There is a judgement against him that was filed in California. Is this legal? We reside in So Florida. Should I remove his name from my bank account? Money has not been taken from the accounts yet. Also, am I responsible for the debt? Please help! thank you!


Submitted by on Thu, 04/16/2009 - 18:25

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Can a credit card company collect unsecured debt by placing a judgement on jointly held property ie: Real Estate, if the debt is only in 1 persons name in virginia


Submitted by on Mon, 09/14/2009 - 16:17

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My daughter paid a credit card payment late and the payments raised to unpayable amounts. She started working with a Consumer Law group that was supposed to work on her behalf to avoid getting wages garnished, etc. Several days ago she was served a notice to respond within 20 days or her wages would be garnished. She called the Consumer Law Group who just keeps telling her not to worrry. Can they garnish her wages having never been to court?


Submitted by on Thu, 11/05/2009 - 16:55

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Hello,

My Dad has left a life insurance policy for my sister and myself and currently he is in the hospital and we do not know if he is going to make it, with all that said, the family has come together to prepare the estate. Finding there are two policies one being in my sisters name, she currently has judgements against her for credit cards which she did not pay, she is not working and on disability. My question is can the credit card judgement garnish the insurance money to satisfy the judgement OR is insurance money out of their legal grounds for doing so.

Thanks for your help 5/24/11


Submitted by on Tue, 05/24/2011 - 12:26

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