Have questions about court.

[combat]

What is the name of your state (only U.S. law)? Missouri

I got a summons a few weeks ago for court. A 'Midland Funding LLC' is filing a judgment against me for one of my many credit cards (this one being Washington Mutual) that I had to stop paying when I lost my job last year for nearly 10 months.

The summons says AC Suit on Account.

I have never been to court for ANYTHING other than a minor traffic ticket I received a few years ago and I have no clue how these things work and I can't afford a lawyer at all. In fact I can't even afford to pay these people.

Now I want to go into some detail about my situation. I was fired last September of 2008. I did not find another job until July of this year. I am currently working for a temp agency for a temp-to-hire job. Now the company that I am working at is VERY strict as far as attendance and I've been told by more than one person that if I were to miss a day of work or even be late as a temp that I would not get hired full time, meaning that all my hard work has just went down the drain.

What I am curious about is what will happen if I can't make this court date? I know they will get the default judgment, but what else will happen? Will I have a warrant out for my arrest for failure to appear?

My summons also says that I owe the company just over $3,000

Is there anything I can do (like contacting the judge personally and explaining my situation) to make it so I can not need to be at the court that day?

[Proserpina]

I have never been to court for ANYTHING other than a minor traffic ticket I received a few years ago and I have no clue how these things work and I can't afford a lawyer at all. In fact I can't even afford to pay these people.

Now I want to go into some detail about my situation. I was fired last September of 2008. I did not find another job until July of this year. I am currently working for a temp agency for a temp-to-hire job. Now the company that I am working at is VERY strict as far as attendance and I've been told by more than one person that if I were to miss a day of work or even be late as a temp that I would not get hired full time, meaning that all my hard work has just went down the drain.

What I am curious about is what will happen if I can't make this court date? I know they will get the default judgment, but what else will happen? Will I have a warrant out for my arrest for failure to appear?

My summons also says that I owe the company just over $3,000

Is there anything I can do (like contacting the judge personally and explaining my situation) to make it so I can not need to be at the court that day?

There will be no warrant - it's a civil, not criminal, matter.

Very simply, if you don't turn up they will of course get the default judgment. The judge won't hear your reasons for not turning up - there are more than a few letters each year from people offering reasons why they can't go to court on a particular day.

Even if you attend though do you have a defense to the suit?

[combat]

No I wouldn't really say that I have any defense for it. I mean...I know I'm obligated to pay the amount due and I understand that. The only reason I even stopped paying the bill was so I could keep my house and vehicle that I owed on too.

I mean...I paid them for as long as I could even after my unemployment happened so it's not like I just up and said...well....I'm not paying these people anymore cause they don't deserve my money.

I figured if there was a way for me to talk to the judge without being there on the court day that I could explain why I wasn't paying it in hopes that I might catch a break.

[Proserpina]

Originally Posted by combat

No I wouldn't really say that I have any defense for it. I mean...I know I'm obligated to pay the amount due and I understand that. The only reason I even stopped paying the bill was so I could keep my house and vehicle that I owed on too.

I mean...I paid them for as long as I could even after my unemployment happened so it's not like I just up and said...well....I'm not paying these people anymore cause they don't deserve my money.

I figured if there was a way for me to talk to the judge without being there on the court day that I could explain why I wasn't paying it in hopes that I might catch a break.

Even if you could speak with the judge, the judge cannot rule contrary to law - you had an agreement to repay a debt and the debt was not repaid. The company do have the right to sue to enforce that agreement and that's what will happen. Either way they'll get their judgment.

Have you tried to negotiate a repayment plan with the company? Can you afford any payments at all at the moment?

[combat]

Originally Posted by Dogmatique

Even if you could speak with the judge, the judge cannot rule contrary to law - you had an agreement to repay a debt and the debt was not repaid. The company do have the right to sue to enforce that agreement and that's what will happen. Either way they'll get their judgment.

Have you tried to negotiate a repayment plan with the company? Can you afford any payments at all at the moment?

I did actually contact their lawyer the day that I got the summons and he told me I either had to pay half or in full...which I obviously can't do seeing how I've only been back to work for a few months. Then he told me I could pay $400 down and $140 a month and I can't really do that either.


What will happen when they get the judgement anyways? Will my checks be garnished? If so...how much can they take out of them each week? Will they try and take my house? I think that would be stupid because I've only owned it about 2 years and have less than $3,000 in equity into it. It's really the only thing other than my truck that I have that they would be able to take and the truck is in my dads name so really they can't take it. I've had to sell nearly everything else I own to stay on my feet when I didn't have a job.

[Proserpina]

Originally Posted by combat

I did actually contact their lawyer the day that I got the summons and he told me I either had to pay half or in full...which I obviously can't do seeing how I've only been back to work for a few months. Then he told me I could pay $400 down and $140 a month and I can't really do that either.


What will happen when they get the judgement anyways? Will my checks be garnished? If so...how much can they take out of them each week? Will they try and take my house? I think that would be stupid because I've only owned it about 2 years and have less than $3,000 in equity into it. It's really the only thing other than my truck that I have that they would be able to take and the truck is in my dads name so really they can't take it. I've had to sell nearly everything else I own to stay on my feet when I didn't have a job.

Once they obtain the judgment they'll generally start collection procedures; in Missouri the garnishment rules are:

The maximum amount that may be held from a person's weekly wages, after withholdings required by law, is the lesser of:

1. 25% of the wages,

2. 10%, if the person is head of a family and a Missouri resident, or

3. The amount by which the weekly earnings exceed thirty times the federal minimum hourly wage. Mo. Rev. Stat. §525.030.

They can attach a lien to the house, yes, and they can attach a levy to your bank account.

[combat]

So if I live alone does that qualify me as head of household or is it the same as the tax rules where you must have a child or spouse or something like that?

I don't know what happens when they levy a bank account but I guess I can just get used to cashing my checks and holding on to the money and only putting it in the bank when I need to pay a bill?

I'm confused by your 3rd rule for garnishment. Does that mean my weekly earnings would need to exceed 7.50 an hour x 30? Which would be $225...and yes they do exceed that...I get $322 each week. I sure hope they don't try and take $100 out of every pay check....if they do I may as well let the house go into foreclosure there's no way I can afford to pay for it too.

[Proserpina]

Originally Posted by combat

So if I live alone does that qualify me as head of household or is it the same as the tax rules where you must have a child or spouse or something like that?

A single person without dependents is not going to qualify as head of household.

I don't know what happens when they levy a bank account but I guess I can just get used to cashing my checks and holding on to the money and only putting it in the bank when I need to pay a bill?

Bear in mind that they have ten years to collect this judgment - and even after that point it may be renewable, for a further ten years. Sure, you can cash your paychecks - but you'll be cashing what's left after the garnishment in all likelihood.

I'm confused by your 3rd rule for garnishment. Does that mean my weekly earnings would need to exceed 7.50 an hour x 30? Which would be $225...and yes they do exceed that...I get $322 each week. I sure hope they don't try and take $100 out of every pay check....if they do I may as well let the house go into foreclosure there's no way I can afford to pay for it too.

Which is the lesser of the following? That's legally how much they can garnish:

25% of your wages
or
10% if you are head of family (which as a single person without any dependents you are not)
or
$322 (your weekly wage) minus $225 (thirty times the federal min. hourly wage)

[combat]

Looks like the 25% is lesser of the two that are for me. The $322 - 225 is like $97 and the 25% is around $80.

How long does it typically take before the garnishments take effect?

Also...thanks for all the help. You seem to be the only one to know the answers!

[Proserpina]

Originally Posted by combat

Looks like the 25% is lesser of the two that are for me. The $322 - 225 is like $97 and the 25% is around $80.

How long does it typically take before the garnishments take effect?

Also...thanks for all the help. You seem to be the only one to know the answers!

Missouri will not issue a writ of garnishment until after the judgment is obtained ( it may be included with the actual judgment award) and you need to be aware that if this happens they are under no obligation to give you further notice - your employer will probably let you know but a smaller paycheck might appear from out of the blue.

If the writ is not issued at the same time as the judgment they may be required to give you further notice.

There's honestly no set time-line; it may take weeks, months or - occasionally - longer than that.

[combat]

One final question I promise.

Since I was out of work for so long I have many accounts that are in the collection phase. If for some reason any of these other companies want to take me to court over the balance and also want to garnish my wages can they also take out 25% of my wages or is that 25% total no matter how many garnishments there are?

[Proserpina]

Originally Posted by combat

One final question I promise.

Since I was out of work for so long I have many accounts that are in the collection phase. If for some reason any of these other companies want to take me to court over the balance and also want to garnish my wages can they also take out 25% of my wages or is that 25% total no matter how many garnishments there are?

Other than for child support/spousal support the maximum you can be garnished is a total of 25%.

Example:

Credit Card A garnishes you an amount which comes to 15%; if Credit Card B also has a writ of garnishment they can only take what's left out of the total amount....they cannot garnish for 25% each. Whoever has to wait will simply bide their time until they can get their share which could feasibly mean you will be garnished for years to come.

You may seriously want to consider filing for bankruptcy - you are in an absolute financial mess at the moment and with there being more than one or two creditors after you it might in fact be the only reasonable option at this point. Your credit can't get much worse.

[blove29]

I would think about declaring bankruptcy. Your credit is already in the toilet, start fresh and learn from your mistakes. But with a BK at least your wages won't be garnished.
In times like these the banks are the real crooks. They are borrowing money from the government IE (your taxes) for about .02% from the governement. And then turning around and charging 32% on their credit cards. Screw Sh*tty Bank and Skank of America.

[Proserpina]

Originally Posted by blove29

I would think about declaring bankruptcy. Your credit is already in the toilet, start fresh and learn from your mistakes. But with a BK at least your wages won't be garnished.
In times like these the banks are the real crooks. They are borrowing money from the government IE (your taxes) for about .02% from the governement. And then turning around and charging 32% on their credit cards. Screw Sh*tty Bank and Skank of America.

It would probably help if people would actually pay off their loans and other financial obligations.

(clue: the banks aren't always the crooks here. Comprendez?)

[combat]

Originally Posted by Dogmatique

Other than for child support/spousal support the maximum you can be garnished is a total of 25%.

Example:

Credit Card A garnishes you an amount which comes to 15%; if Credit Card B also has a writ of garnishment they can only take what's left out of the total amount....they cannot garnish for 25% each. Whoever has to wait will simply bide their time until they can get their share which could feasibly mean you will be garnished for years to come.

You may seriously want to consider filing for bankruptcy - you are in an absolute financial mess at the moment and with there being more than one or two creditors after you it might in fact be the only reasonable option at this point. Your credit can't get much worse.

I plan on filing bankruptcy once income taxes come in, that's if they don't take it all from me. If they do, then I have no idea how or when I'll be able to get it done. I've heard it costs around $1500 total to do and I'm expecting to get at least $1200 for income taxes