Please note: Due to the economic recession and downturn, I have been unemployed and unable to secure work for many months. This issue has made a significant impact on my life. It’s depleted my savings, made me dependant on further debt on the use of credit cards and family support – I have no financial assets other then my invested knowledge and belief in myself and the positive outlook, hope, willpower to get through this major challenge and difficult set of circumstances. I was working with various non profit organizations that have been effected by this economic climate. I don’t have the money to pay this debt and i need help, advise and to secure another job!!!!!!!!!!. i have a civil court paper that was mailed to my home – filed in New York – this summons me to appear to the office clerk at the court. With this unforeseen set of extreme conditions, I’m not sure what to do? I have debt that accumulated through several years in the amount of 17,427.22 with interest on amex card. i have never defaulted on my credit cards and never would think this would be me….. Please forward and submit legal suggestions or advise…thank you
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✅ Answers
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First and most important of all “show up for the court date”
Due to your current condition, you would be considered “judgment proof” during periods of unemployment or while drawing disability pay or disability retired pay. Also, if you have no assets such as home, car, land, and other big-ticket items. In other words, you have no money and can prove it!
Judgment-proof is the commonly used term but a more accurate term would be “execution-proof”! Although creditors and debt collectors win lawsuits, they still have to collect thus, if you are penniless you are insulated not from judgment but from execution (collection of the debt – at least temporarily). If you lose your “judgment proof” status due to new employment, the creditor or collector can seek a judgment and ask for a garnishment of wages up to 25% of your disposable income (in some states it’s less). Once you’re employed again, it’s better to negotiate a reduced payoff rather than risk a court-ordered judgment. The difference is your credit report will show “debt settled” instead of the more negative “judgment”!
If you live in North Carolina, South Carolina, Texas or Pennsylvania, these states do not allow for wage garnishment (certain debts are not excluded such as taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed.
As to those other debts, check to see if they are beyond your state statute to seek legal action (or otherwise known as “time barred”. You can use the following link to find your states statutes of limitations.
http://www.bcsalliance.com/statute_of_limitations_…
Hope this answer helps to ease your mind.
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
If you cannot reach a settlement prior to court, then do this:
Send this debt collector and the court a letter via Certified Mail with Return Receipt (NOT regular mail) stating:
Notice of Intent to Defend
I cannot officially respond to your claim until validation is made for the alleged debt. I am officially requesting validation of your claim, to include (this info will be requested at the court hearing):
– A copy of the original application with my signature for this alleged debt
– How much was this debt purchased for?
– Provide a fully itemized statement for the amount you are asking which clearly details how this amount over the amount that was paid for this debt was calculated, including the interest rate being charged. Confirm that this rate falls within state usury limits
This letter has been mailed via Certified Mail with Return Receipt. Receipt of this letter is being officially time stamped.
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Fill out the response to the court the best that you can. If you are asked if you Affirm or Deny the claim, mark “Deny” and mail that along with the above letter stating that you cannot affirm or deny the claim until the claim has been validated. Also mail this via Certified Mail with Return Receipt
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On the court date: DO NOT be a no-show under any circumstances whatsoever. People often make the HUGE mistake of not showing up because they think they’d loose anyway or they cannot afford an attorney. Not showing up is the worst thing you can possibly do. Even if you are frightened….or you’re sick with a 102 degree fever…or if you think that you’d loose, show up anyway! If you don’t, the other side will get a default judgement and they will get this on THEIR terms. They will tack on all sorts of add-on fees and the amount of the judgment could end up being two or three times the actual amount of the debt.
Not showing up could mean that the judgement on $17,427.22 could end up being over $30,000. Debt collection attorneys will LOVE you if you don’t show up in court on the appointed time.
IMPORTANT: bring complete documentation of your income and living expenses: Pay stubs and copies of bills. Even if you loose, you can use this to negotiate much more favorable repayment terms. Request the following info from the other side on the court date:
– a copy of the original application with your signature
– a fully itemized statement for the amount they are asking which clearly details how this amount was calculated, including the interest rate being charged – How much was this debt purchased for?
Is this the only credit card you have this type of balance on? If not, you should consider bankruptcy. A judgement remains on your credit until it is satisfied. Additionally, if you do not pay it in the amount of time they see fit, they can garnish bank accounts in addition to your paycheck. At this point you need to really take a look at your financial position and the short/long term goals. I can’t even imagine how long it would take to pay off $17k credit card.
The only thing you can do is show up (DO NOT MISS THE HEARING) and tell the judge the story. Bring tax forms, check stubs or any other evidence that you think will help you.
The judge may find you have no ability to pay and reschedule in 6 months or he/she could order token payments on the debt.
Good luck.
The fact that you received a court summons means you dropped the ball on your credit card debt a long time ago. The only thing you can do is show up in court and plead your case. You are in serious financial trouble.
Go to the court and explain the situation. They will issue a judgment that says that you must pay, eventually, and will appear on your credit report. They will not force you to pay immediately and they will not send you to jail.
1 , is to show up in court ! Have ALL your paperwork with you.