Curious what happens if the collectors do take you to court?

Before you go to court, when you make your answer to the summons, you can file a hardship, in some states. They will take into account other expenses, etc., and work out a payment plan..Karen

Basically if you lose,there is a judgement issued by the court. The judgement is then recorded and verified.After the judgement is recorded,collector can begin the executory process. They will look for property,bank accounts,garnish wages,and try to sale non exempt property.You are allowed exemptions based on statutes of your state. Lexis-nexis will probably place it on credit report as a public record. Once judgement is fully recorded.Validation becomes a dead process because once they send you a copy of it,they have fully validated debt and can continue collecting.

When the creditor or the collection agency takes the debtor to the court and files a lawsuit against him, he can file for a judgment proof by submitting wage stubs, income tax statements, or oral testimonials to prove the facts that he cannot afford to pay anything at that time period. The court will look into the matter and offer some time period on his damage payments.

The debt will not be erased until it????????s paid, even if you have qualified for judgment proof. When your situation improves later, you need to pay the debt. The court will fix the time period by which you will have to pay the debt. In case, you don????????t pay within the specified period, the court will call you and ask for the latest updates. You have to put your explanations with proof of your inability to pay. These summons, hearings and demonstrations will continue till the debt is paid off or the judge takes the final decisions writing off the accounts.

Can they take nyour house?

Rita, they can't take your house, however if they get a judgement against you they can then place a lien on your house so that the house can't be sold until the judgement is satisfied and the lien removed.

If you are on SSI Social Security, welfare, unemployment and some other incomes, They cannot touch your money it is exempt. If you have no assets and are on one of the exempt incomes, yo are judgment proof. They can get a judgment against you but they cannot take your money.

If you are on one of the mentioned incomes and they get a judgment against you and ask how much you can pay, tell them nothing. You do not have to pay out of exempt income. They can ask you to but they can't force you to.

I'm was service summons for unpaid credit and am contiplating filing bankrupt, still in the process of filling out all that paperwork. If I get a judgment before I file bk, will the judgment get written off also?

the bill is under my business name and its tax ID # ,they do have my name though but not my social security #,since im going out of business what can they do???

no one is "judgement proof" ... that term is one that shouldn't be used, ever! Sure, you might not have any money to pay a legaly rendered judgement, but no judge is going to set aside a judgement BECAUSE you can't pay.

now i m out of business i have no money to pay this stupid phone company, do they have the right to throw me in jail.
note that the bill is under my corporation tax id ,and the corp has been changed what can they do????

isn't it true that if they have a lien on your house and it can go to foreclosures? i work in foreclosures and have seen it happen (velocity will be the plaintiff and hold a sale for a $2500 lien or so) those houses usually do not go to sale and if someone was to buy it, they would take ke over your mortgage. someone please correct me if i am wrong but i live in NJ and work in foreclosures and i have seen that happen.

I have never heard of this not saying that it is not true though. But I had a lein on my home once and the way the judge explained it to me was that scince I had no income they would put the lein on the home until it was paid and all that ment was that i could not sell my home until the debt was cleared or they got thier cut first before anyone else. There was no time limit, just pay it when you can. But this was my circumstance. I paid it the following year with my refund scince it was on my credit report and i was trying to fix my credit.

And to answer a previous post they cannot put you in jail it is a civil matter not criminal.

love_my_things, thanks for that info. to be honest i really am not sure what circumstances has happened to lead that home in foreclosure (maybe they had an arrangement and backed out of it??) where i work we just entered the information in the computer - we are completely middle-men so we never hear the details. i wish we would just because it would be a huge learning experience for me, which is why i am interested in being a paralegal. from this board and my own experience with debt i am so interest in the laws and the process of all this. it makes me sad how many people suffer over debt because i know there are so many honest people out there (not saying everyone..) who do want to pay but other things come up

It sure would be nice to know that information i agree with you its too bad we dont. I too am still learning on things they can and cant do. But with forums like these we tend to find alot of answers! But its great to a have a site like this with caring people that actually CARE about what is happening to others not just themselves. I love being a part of this forum, It makes me feel like i may be making a difference in peoples lives to help lighten the load. Like you, I believe that most people are honest and want to pay, they just cant you cant squeeze blood from a rock. I know what its like to suffer, and i wish i would have found this site when i was in debt trouble.

i still have some debt trouble and i found this site while dealing with payday loans, however i wish i have found it sooner. :) it is great, honest caring advice, which i like and it has helped me to settle and pay off my debt.

sadly, I have found myself getting uncomfortable this year also. I dont have alot of debt, but i have more than i want. After my settlements i swore i would never use cc again. but i had a emergency last fall and needed it. Now Im struggling to pay it off. I call it the debt trap. We never seem to be able to save enough for when something happens so we use our cards (because we have to) then we truggle to try to pay them off, and in the end we end up having to use them again because we used everything we had to pay them off instead of saving money. Its a vicious cycle that im hoping to break this year.

I went to a dentist. At the time, I was able to make payments and did so. For some months my financial situation has deteriorated. I have been turned over to a collection agency. I am willing to make small payments again, but the dentist will not go for it now. The collection agency was to charge 6% interest. If I am not able to pay this debt, except in bits and pieces, how can they justify adding an additional interest fee? I own no property or vehicle so I am asking you to help me with a solution.

the sheriff was just here looking for my husband for a small claims court from a credit card saying he owes 2359.00, the sheriff just left it in my door. what happens now?