Judgement found against me. Can they take the money in my Bank acct?

[JDL5555]

What is the name of your state? OH

I have had a judgement decided against me (and my wife). I have been sent a 'Notice of Court Proceeding to Collect debt' from the Debtor. We are thinking about BK. Can the company take the monet from our joint account before the hearing for garnishment?

The letter was ONLY addressed to me (my wife was a co-defendant in the suit). Does she also have to be sent a letter? I am unemployed. She does work (makes about 35K). We have 3 kids. No real assets other than an IRA (1000.00) and a 401k w/600.00.

I was also wondering IF I should go to Court to show that paying the judgement would be an UNDUE hardship. We are already paying a judgement for city back taxes that is breaking our backs (at 110.00 per month). We own a 12 year old van that has one foot in the grave. We are paying on a 5 year old car with little or no equity. Should I lean that way rather than going through BK? I was told that a simple BK would cost 1000.00 or more. I have no idea HOW we could even pay that amount (our credit is a mess).

PLEASE HELP!

THANKS!

 

[Ladynred]

Can the company take the monet from our joint account before the hearing for garnishment?

It some states and in some cases it is possible, but probably unlikely.

I am unemployed. She does work (makes about 35K). We have 3 kids. No real assets other than an IRA (1000.00) and a 401k w/600.00.

The retirement funds are exempt from seizure and probably most, if not all, of your other assets. However, if your wife is on the judgment, then they can garnish her wages. Your unemployment is exempt.

I was also wondering IF I should go to Court to show that paying the judgement would be an UNDUE hardship

Absolutely ! Draw up a complete financial statement that shows all your monthly expenses and your tax liabilities and take it to court with you.

If you haven't already, you need to file your list of exemptions with the court, and the suing attorney.

I was told that a simple BK would cost 1000.00 or more. I have no idea HOW we could even pay that amount (our credit is a mess).

BK will wipe it all out, except the taxes may not be discharged.
Call for a couple of consultations, most BK atty's give free consultations and find one that will also take payments - many of them will.

 

[JDL5555]

Thank you VERY much!

 

[kevinss]

Also note that when you file your BK, the automatic stay from execution is effective immediately. All of your creditors / judgment holders will have to be notified of the BK, but that's something your BK lawyer will do. Make sure, though.

Once the automatic stay is in place, you won't have to worry about execution of the judgment from MOST judgment holders. The holder can file for relief from the stay (secured creditors are of concern here mostly) but you shouldn't have to worry about it with most card debt.