Notice of Dismissal

What is the name of your state? Texas

I'm new at this, so please be patient with any typing errors. At one time I had a Providian credit card and was laid off three times in one year and became unable to make payments. The new job that I was able to get pays much less than the other jobs so I had to choose which bills to pay, and basic living expenses won over the Providian payments. I had no phone, just a cell phone, so threatening phone calls were never a problem.

On June 15, 2002 I found a stack of papers on my front door step from the Tarrant County Court House that said I have been sued by Providian and had 20 days to respond. I responded to both the Court and to the attorney "rrr" that was listed for Providian. I am able to make monthly payments at this point, but there is no way I can pay the entire $5,000.00. I sent a payment of $200.00 (which is all I had) with the letter to the attorney, the check cleared my bank shortly thereafter, but no response from the attorney regarding any type of payment arrangements. I sent two letters to them "rrr"... still no response.

On July 7, 2002 I received a letter in the mail from the Tarrant County Court which reads "Notice of Dismissal" which states "The case has been on the docket of the court for more than 10 months. In order to comply with the Supreme Court on time standards, it will be dismissed unless some disposition is made". It states that they have had no communication from the attorney's office since suit was filed.

What does all of this mean? I am willing to make payments if they will let me, but I can't get an answer from them. I don't want to send any more money unless I can get something in writing from them.

I only have a couple of hundred dollars in the bank, no home to sell, and no car to sell. I was just wondering what they can do in Texas. If they do try to take what little money I have in the bank, will I have any notice, or will it just dissappear?

Any help would be greatly appreciated !

[Ladynred]

Did you mean the first papers arrived in June 2002 or did you mean June 2001 ?

If the attorney who filed the case has done nothing to pursue it, I'd be inclined to just let it go. If they wanted to sue you that badly it would not have been sitting on the court dockets for so long.

Unless someone else has some other input, I'd say let it be. If they want the money badly enough, you're bound to hear from the lawyer or creditor again.

As fas as siezing your bank accounts.. if they already have your account info the money will simply just be gone one day.. you won't get any notice. Halket can speak to TX law on stuff like this.

Yes....it was the middle of June 2002, so I was really suprised to get the other letter (dismissal) barely three weeks later. I moved last summer, so all I can figure is that it took them a while to find the new address and serve the papers.

Thanks for your help !

After reading a couple more threads, I think I really screwed up. When I sent payment to Providian, I sent a check, and I see where CAs have taken money out of bank accounts. I have less than $200.00 in there, but should I close the account now?

Thanks!

[Ladynred]

Unless I'm mistaken, LEGALLY they can't take money out of your account without your authorization or a judgement against you. That's not to say they can't try anyway. If that's all you have in your account, I doubt they'll bother. Paranoid person that I am when it comes to these scumbags, I'd keep an eye on the account anyway.

Thanks again.....I am so glad I found this website, ya'll give great information/advice.

Just got another LARGE envelope from the Providian attorney, I guess he recevied the "Notice of Dismissal" as well. I had told him in my previous letter that I could make a maximum payment of $140.00 per month until the debt was paid, and the info he sent me said they will take no less than $280.00 per month and there was a judgement attached that I am suppose to just sign and send back instead of going to court. (total balance now is about $7,000.00 with all of their fees added)

How crazy is this......I would think I should just wait and let him take me to court, especially since I don't even make enough money to pay what they are requesting. I definitely cannot make the payment of $280.00 per month, I have approx $43,000.00 dollars in unsecured credit card debt, no assets, and have tried to continue paying, but by making minimum payments for over 6 years on all of these cards, the balances have not moved an inch. Should I just finally give up and file for bk? I don't know what else to do. What should my next step be?? Especially with response to the Providian attorney. They want their first payment by August 30th.

HELP ????????

[Ladynred]

NOW would be the time to go see an attorney and find out what your options are. and ASAP. Filing for BK would stop this in its tracks. With that kind of debt, and a judgment hanging over your head, it might be worth considering. Most BK attorneys give free consultations.

Personally, I wouldn't sign the judgment, I'd make them go to court. By sending you this 'agreement' they're hoping for an easy victory, I wouldn't give it to them and certainly not on terms you can't afford (but then, I'm a bit** about this sort of thing.. LOL) At least in court you might have some chance of negotiating a payment that YOU can afford. In TX they CAN'T garnish your wages, but they can garnish bank accounts, etc. unless you make sure you get your exemptions available in TX.

Sounds like this attorney figured you were low-balling your ability to pay so he doubled what you offered. If you go to court, you can take financial statements of your income and expenses and prove that you cannot pay more than what you offered. At least you offered, which shows a willingness to at least pay your debt.
Since they can't garnish wages in TX, and if you can exempt any or all assets, collectors have a tough time in TX. The 'take no less than' verbage is typical and probably not entirely true.. you can't give them what you don't have.

Halket.. you're in TX.. does she have a chance in going to court and NOT signing the 'judgment agreement' ??


Did they give you a deadline for signing and returning the judgment agreement ? You don't HAVE to sign it, they just hope you will not take it to court.

No...it didn't give a timeline for the judgement form, just that the first payment is due by 8/30/02 and by the 30th of each month thereafter, so I'm guessing they expect me to send the signed judgement with the payment.

What is the absolute worse thing that I can expect if I don't file bk and let them take me to court? I have no idea what to expect.

Thanks again !

[Ladynred]

What's the absolute worst ? Halket is better qualified to answer to particulars, but in case he doesn't chime in....


Since they cant garnish wages in TX, and you don't have any property or signficant assets they can sieze, then the judgment sits there for 10 years and accrues interest at a 10% rate. Judgements are renewable too, so it could hound you for a very long time if its renewed. If you end up with property, they can put a lien on it. If you come into any money, you can expect them to be there with their hand out to take it all, and I *think* that includes tax refunds (Halket ??). I think they can even grab things like security deposits that you give for apts and utilities and such.

I found a document that contains the following:

"The entry of a judgment against a defendant creates a debt. A defendant may satisfy that debt by paying the full amount of the judgment. Parties may also enter into postjudgment settlement agreements allowing defendants to pay the judgment in
installments in exchange for the judgment creditor forgoing its right to pursue postjudgment collection efforts."


If you don't settle or agree to pay then they can do the following;

"the judgment creditor may seek satisfaction of the judgment by
levy or execution of the judgment against the debtor’s nonexempt assets in the state.
The first step then is to locate the debtor’s nonexempt assets. This is done through postjudgment discovery and independent investigation. As far as formal discovery goes, the Texas Rules of Civil Procedure allow creditors to use any method of discovery after trial to determine the existence and location of the debtor’s assets."

Basically, for years to come they will periodically send you legal paperwork that you must answer to find out if you have any assets they can grab to satisfy the judgment.

Here's a link to this document.. it tells you what a creditor can do to collect on a judgment: [url]http://www.prdg.com/remedies.pdf[/url]

Your exemptions from judgments are:
"The officer may only levy the writ of execution against the debtor’s nonexempt assets. Exempt assets include the debtor’s homestead, up to $60,000 in personal property, tools of the trade, and numerous other items as prescribed by statutes. "

That's pretty generous compared to most states.


Hope this helps. That document it very detailed.

[JETX]

Now, my turn....

Q1) "What does all of this mean?"
A1) We can't tell.... other than something is really screwed up on this case. If the case was just filed (you were served June 15, 2002), it would NOT be 'dismissed due to lack of prosecution' at this early date!! Something is wrong here!! Call the court and confirm the status of the case. Do NOT just assume that this has gone away!!

Q2) "I am willing to make payments if they will let me, but I can't get an answer from them."
A2) So, just continue to make payments and keep copies of ALL documents and payments. Do NOT make payments using your checking account (if they get a judgment, they can use your check information to garnish your accounts).

Q3) "I don't want to send any more money unless I can get something in writing from them."
A3) Why not. You obviously owe them money.... keep making your payments. They may be the only thing keeping the creditor from taking you to court.

Q4) "I only have a couple of hundred dollars in the bank, no home to sell, and no car to sell. I was just wondering what they can do in Texas."
A4) A judgment is not like 'normal' debt. There are specific statutory processes that can be used to enforce a judgment that cannot be used for 'debt'. The main thing is that a judgment creditor can seize any non-exempt assets.

Q5) "If they do try to take what little money I have in the bank, will I have any notice, or will it just dissappear?"
A5) A bank garnishment will happen as a surprise without notice (it would kind of defeat the purpose if I had to tell you in advance, would't it??). The funds will be frozen and all your outstanding checks will bounce. You will have the opportunity to go to court and try to challenge the garnishment.

Q6) "After reading a couple more threads, I think I really screwed up. When I sent payment to Providian, I sent a check, and I see where CAs have taken money out of bank accounts. I have less than $200.00 in there, but should I close the account now?"
A6) A creditor cannot take any action against your account WITHOUT a judgment. So, if no judgment exists against you, then you don't have to worry about your bank being seized. If you have a judgment against you, then it is a good bet that the creditor will seize your funds..... if he finds them).

Q7) "Just got another LARGE envelope from the Providian attorney, I guess he recevied the "Notice of Dismissal" as well. I had told him in my previous letter that I could make a maximum payment of $140.00 per month until the debt was paid, and the info he sent me said they will take no less than $280.00 per month and there was a judgement attached that I am suppose to just sign and send back instead of going to court. (total balance now is about $7,000.00 with all of their fees added)"
A7) He is wanting you to sign what is called an "Agreed Judgment". This simply means that they win... you don't argue the case (or that you have no defense to present). In any case, the result is the same... they get a judgment against you. If you really feel that the claimed amounts are correct, and that you have no defense to present, there is really no reason for you not to sign..... but you might try to negotiate a reduced settlement first. If they are claiming $7,000.... try to settle for $3,000 or so. And if needed, go higher. There is no obligation for them to settle, but explain that their legal fees will be higher with the same unlikely chance of recovery. You might also add that if they don't accept a reduced amount, you will very likely be filing bankruptcy (and they get nothing!!).

Q8) "What is the absolute worse thing that I can expect if I don't file bk and let them take me to court? I have no idea what to expect."
A8) If you go to court (or sign the agreed judgment) a judgment will be rendered against you. Since you own no property, no car and really have little or no non-exempt assets, your immediate 'damage' will be minimal. However, a judgment in Texas can last forever (10 years, and renewable) and accrues interest. And no one knows what you might have in the way of 'non-exempt' assets in the future.

A list of exempt personal property can be found at:
[url]http://www.capitol.state.tx.us/statutes/py/py0004200.html#py001.42.001[/url]

[Ladynred]

Thanks Halket.. I was hoping you'd pop in on this one.. its your area of expertise

Thanks so much to both of you. I will respond to their letter "rrr" and see if they will possibly lower the amount or at least the payments, so I can handle it. I want to try everything possible other than bankruptcy.

I really appreciate the help !