credit card in collections

[cashonlynow]

What is the name of your state? CA
I’ve learned quite a bit by researching this forum, but I have a few more questions. Over the past two years I have had 5 different addresses, the most recent move was in April and the post office has NOT done a good job forwarding my mail and unfortunately I left my last place of residence on bad terms (an argument with a friend) so I’m afraid a lot of my mail has gone in the garbage, I rarely got it even when I did live there. I have read on this forum about people who ended up with judgments against them and had been unaware of it until they end up with wage garnishment or a lien on their accounts.

1. Is it really possible that I could be served a summons at a previous address, end up with a default judgment against me and not be aware of it?
2. If someone at my old address signs for it and throws it in a pile, would this be considered improper service?
3. Is my creditor obligated to serve me in person or serve me at the correct address, or is it my responsibility to inform them of my new address?
4. I’ve read that 1st class mail is considered proper service. If the post office fails to forward that piece of mail, is that improper service?
5. Do some creditors knowingly serve people at the wrong address so they get a default judgment?
6. I know from doing quite a bit of reading on this forum that they can in fact sue me and garnish my wages, but is this likely to happen?
7. Does it depend on how easy you are to find and what your assets are? My only assets would be my wages and it’s not much.
8. How often do creditors just cease the collection process? A friend of mine told me that she owed several thousand in charge cards, never paid and hasn’t heard anything for at least three years. Another friend told me not to count on it, and that creditors don’t “forget about it”.
9. If I do end up with a judgment against me, are creditors still willing to work out payments or do they go straight for garnishment? Hopefully I’ll be in a better financial position when and if this happens.

I’m in a really bad spot right now and hopefully it won’t be forever, but I don’t see my financial situation improving in the near future.
Thank you to anyone who can give me a little help with these questions.

[Ladynred]

1. Is it really possible that I could be served a summons at a previous address, end up with a default judgment against me and not be aware of it?

Yes, its possible. They use the 'last known address' and they don't usually do much research to find a current one - so much for the 'due diligence' clause.

2. If someone at my old address signs for it and throws it in a pile, would this be considered improper service?

Unfortunately, no.

3. Is my creditor obligated to serve me in person or serve me at the correct address, or is it my responsibility to inform them of my new address?

No, the creditor doesn't have to serve you in person unless that is the only acceptable type of service in your state's laws. Most states have 'substitute service' - usually certified or 1st class mail and as a last resort, by publishing a notice in your local newspaper (where you last lived that they knew about).

Are you obligated to tell your creditors your new address ? It may be buried in the card agreement, but I don't think they can hold you to it legally.

4. I’ve read that 1st class mail is considered proper service. If the post office fails to forward that piece of mail, is that improper service?

No. In the case of 1st class mail, they only have to say they mailed it and it is ASSUMED that the PO delivers it. yeah.. right....

5. Do some creditors knowingly serve people at the wrong address so they get a default judgment?

There are some unscrupulous collection agencies that have a reputation for doing that. If you can catch them at it, you have some legal grounds to fight them off though.

6. I know from doing quite a bit of reading on this forum that they can in fact sue me and garnish my wages, but is this likely to happen?

Depends. If your wages are the only 'asset' they can get to, then they will. No way to tell what a collector will go after first.

7. Does it depend on how easy you are to find and what your assets are? My only assets would be my wages and it’s not much.

You're not that hard to find, believe me. A lot depends on assets and what they THINK you may have that they can take satisfy the debt. If they get a judgment, it may not be what you have TODAY that they're after, but what you may acquire during the term of the judgment - and that can be 20 years (or more in some states)

8. How often do creditors just cease the collection process? A friend of mine told me that she owed several thousand in charge cards, never paid and hasn’t heard anything for at least three years. Another friend told me not to count on it, and that creditors don’t “forget about it”.

Depends on who the creditor is, and how much you owe. The more you owe, the more aggressive they'll be. Discover will sue very quickly, Citibank is about as bad and Crap1 sued someone over a $20 debt !!!

9. If I do end up with a judgment against me, are creditors still willing to work out payments or do they go straight for garnishment?

You would have the chance to negotiate either for a settlement and/or payments. If you negotiate payments in lieu of garnishment, what they'll likely do is fix it so that if you miss even one payment, the judgment goes thru and they'll garnish. Get ANY negotiated agreement in writing only.

In some states, you can ask the court to pay a judgment in payments rather than have your wages garnished. In that case, the JUDGE decides what you pay based on your financial position.

[cashonlynow]

First of all thank you to ladynred for taking the time to answer all my questions from my previous post individually, of course I have more questions now

Even though I’m probably not obligated to inform my creditors of my address change, is it in my best interest to do so? I really don’t want to end up with a default judgment against me somewhere down the road, but I also hate to put up a red flag saying “here I am, come get me, I still don’t have any money to pay you!”

Will creditors try to serve you in person first, or do some just resort straight to mail or publication (so unfair)?

Here’s another thing I’m stressing over a little now. (Sometimes too much information can be a little dangerous!) I’ve read on a couple of posts that some people have “settled” a debt, but after some time has passed, they now find a collection agency trying to collect on the very debt they paid off. I ask this because I settled several debts with a settlement from a lawsuit I received in April. These were all done over the phone, although the offer of settlement from Providian was sent in writing, I paid with a check over the phone. (BTW, I’m going to close that account now). I was told over the phone with all the debts I settled, that I would receive something in writing stating my debt was now settled. Well, that was right before I moved this last time, so I don’t know whether these things were not forwarded or if they were never sent, but I haven’t received anything from anyone. Should I contact these collection agencies in writing, by phone, or both?

Also, the debt I have that is currently in collections is with Capitol One and the last time I paid on the card was Oct. or Nov. and the balance is now over $3000.00. I don’t know if this is important, but in April I received a work comp settlement and was able to pay off all of my debts except for this one. I called them and tried to settle, but they would only reduce my balance by about $300 so I left this one alone and paid off everything else I could. The guy I talked to said that my account was going to be considered a charge off the next month (that would be May) and he said he would make a notation that I had called attempting to settle my debt. I know what a charge off is, but is the fact he said he was going to notate I had attempted to settle important? He said it as if this should mean something to me.

Also, when you claim bankruptcy, can you include judgments? I don’t want to do it, but my credit is so #$%@ed up anyway that it just might be worth it.

[Ladynred]

Even though I’m probably not obligated to inform my creditors of my address change, is it in my best interest to do so?

I know how you feel, as I only just moved in March. I did NOT give my new address to all my creditors - most of them are with one CA or another anyway. My new address is currently on my credit report - so if they want to find me, they certainly can, and some have gotten the COA w/o my giving it to them.. well.. its obvious where they got THAT from ! Personally, I wouldn't tell a CA anything. If you get the COA on your credit reports, it'll be there for them to see when they pull it anyway - and they will.

Crap1 is sue-happy lately. It may behoove you to give THEM your new address just in case they do sue, at least it'll get to you. If they charged off the account in May, then its still 'fresh' to them and they may continue to collect thur a CA for a while, but be prepared.. they DO sue and for a lot less than $3000

Will creditors try to serve you in person first, or do some just resort straight to mail or publication (so unfair)?

A lot depends on your State laws. Personal service, so far as I've seen, is their first choice, then it goes to Certified mail, then 1st Class mail, then, as a LAST resort, Publication.

Your Settlements - if you did everything over the phone, forget getting ANYTHING in writing from them at this point. You can try to request ( in writing) a letter stating the debt is settled, but don't hold your breath - they got their money, they don't care anymore. Your credit report likely reads 'settled for less than full amount' (a BAD entry) and look out for collection agencies coming after you for that part that you did NOT pay them !!! This happens all the time and its why you MUST get settlements in writing - they'll sell the balance and you have to fight all over again .. and you don't have any proof that you paid the OC !!

I know what a charge off is, but is the fact he said he was going to notate I had attempted to settle important? He said it as if this should mean something to me.

Crap1 is scum - never had one in MY wallet and I never will !!!
Is it important ? IF he actually notated your account, what it will show to some CA later is that you had money to pay and they'll latch onto that like a bulldog on a bone .. and they won't let go. It *could* be somewhat favorable in that you were at least willing to pay them something, but I wouldn't trust them to make any favorable notations.

[quote] when you claim bankruptcy, can you include judgments?/QUOTE]

Yes. The debt is discharged then you have to get the judgment vacated.