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How do creditors find out about your assets?

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Jayfrayway

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

I owe about $11,000 to two different credit cards. I cannot afford to make any payments to them right now. I haven't made any payments for about 6 months. I am on disability and have enough expenses with medical that it takes my whole check. I live with my parents now so there isn't much expense there. However i am in the midst of a divorce and I am going to receive a good cash lump sum out of the divorce ($40,000). I would like to take that money and be able to get an apartment and live on my own. I would negotiate with the credit cards to try to pay them off for less than I owe. But what i am wanting to know is how can the creditors find out how much money I have. Like if I say I will give them half of what I owe them, will they see that I have $40K and then turn down my offer?
 


Jayfrayway

Junior Member
So Ginny are you saying that they are monitoring my bank account right now to see what I have/don't have? or would this only be true if they were to take me to court over the debt.
 

TinkerBelleLuvr

Senior Member
Read thru some of the other threads. Someone mentioned that when a judgment is issued, they can send the judgment to all the banks in the area until something sticks. Don't know much about it.
 

Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? Missouri

I owe about $11,000 to two different credit cards. I cannot afford to make any payments to them right now. I haven't made any payments for about 6 months. I am on disability and have enough expenses with medical that it takes my whole check. I live with my parents now so there isn't much expense there. However i am in the midst of a divorce and I am going to receive a good cash lump sum out of the divorce ($40,000). I would like to take that money and be able to get an apartment and live on my own. I would negotiate with the credit cards to try to pay them off for less than I owe. But what i am wanting to know is how can the creditors find out how much money I have. Like if I say I will give them half of what I owe them, will they see that I have $40K and then turn down my offer?
Does anyone else find this sickening.
You owe $11,000. You stand to collect $40,000. You are trying to find a way to not pay the $11,000 that you owe (which would STILL leave you with $29,000 left over).

The correct thing to do is to pay your debts.
 

nrknlknek

Member
Everything depends on whether or not there is a judgement against you. If there isn't, there is no practical way for your creditors to determine your assets. If there is a judgement, they can invoke supplementary proceedings to discover your assets.
 

applecruncher

Senior Member
First of all, I recommend that when you get that lump sum, you keep your mouth shut about it. I can’t think of a nice way to put it.

You admit that you owe $11,000, and you want to negotiate it to half that amount? Why? ??? :confused: That big lump sum you are getting will give you PLENTY of money to pay your bills and get a very nice apt, furniture, etc. – plus have some left for savings, a few CDs, if you manage it wisely. You also said you get disability. I’m not seeing what the problem is, other than your greed.

As other members have told you, once a judgment is rendered creditors will have access to lots of information.

Re: Zigner’s questio - yes, somewhat.
 

Debt Guy

Senior Member
If there isn't, there is no practical way for your creditors to determine your assets

A private investigator can find out a lot of things. I think that is unlikely given the size of the OP debt -- but, it would be $500 well spent when you are dealing with a debtor who is hiding his assets.

There are all sorts of public or private databases that would spill a lot of information -- everything from pulling a credit report to checking to see if you ever bought a pizza for home delivery. Motor vehicle registrations. Magazine subscriptions.

The creditor can easily figure out where you bank. They cannot determine the balance in your account unless you throw statements in the trash and the investigator finds them. They can, after a judgment, subpoena you to tell them everything about your financial life.

I would caution you that the divorce decree is a public record. Right? A smart creditor is monitoring public records.
 

outofdough

Junior Member
1. Don't put the money in your bank. They can and will find it for such a large sum.
2. Pay them off when you get that lump sum.
3. Double check to make sure your account is closed and all monies due are paid off.
4. Get it in writing from them they do not have some whacko collection agency hunting you down.
5. When you have all paper work from said CC company(ies) showing you paid off your debt then you put your cash in the bank.
 

Antigone*

Senior Member
Does anyone else find this sickening.
You owe $11,000. You stand to collect $40,000. You are trying to find a way to not pay the $11,000 that you owe (which would STILL leave you with $29,000 left over).

The correct thing to do is to pay your debts.
Utterly Sickening :mad:
 

VeronicaLodge

Senior Member
Does anyone else find this sickening.
You owe $11,000. You stand to collect $40,000. You are trying to find a way to not pay the $11,000 that you owe (which would STILL leave you with $29,000 left over).

The correct thing to do is to pay your debts.
i do i do!!!!!!
 
OP, was that debt incurred by you during your marriage? Is any of it in your soon-to-be ex-husband's name as well?

I'm guessing that the answer to both is yes, and that you are responsible for it as part of the divorce decree. If so, and you don't use the settlement to pay it, you are going to have additional legal problems in the future when your ex-husband comes after you after the creditors come after him.

Divorce decrees are easily obtained by creditors and others. You should assume the creditors are going to find out about it and the settlement.

Just do the right thing.
 

symphonsys

Junior Member
Please repay the debt...

If I were you, I would repay the debt...any kind of maneuvring of your assets can be considered a "fraudulent transfer" and no judge or jury will show you any sympathy should this go to court. Furthermore, it can come back to haunt you in future in ways that you would least expct.

Our judicial systems and financial markets are setup with one key underlying value - TRUST. If citizens start to violate trust to circumvent their responsibilities, we as a society will pay a higer price.

Thank you.
 

applecruncher

Senior Member
If citizens start to violate trust to circumvent their responsibilities, we as a society will pay a higer price.
What do you mean "if"? We already DO pay a higher price - for goods, services, insurance, credit car, etc. Welcome to the real world.
 

annajosie

Member
I have a question about a fraudulent transfer. If the OP gets a settlement of $40,000 from a divorce and they cash the check and keep the money, how could that be considered a fraudulent transfer?

If the creditor takes them to court and gets a judgement, they can send you a set of interrogatories which you must answer. This will tell them how much money you make, your bank account, your assets, etc. Theoretically speaking, if the OP spends the $40,000 and no longer has it, how can it be said that it was a fraudulent transfer?

The way I see it is the $40,000 belongs to the OP and they can do whatever they want with it. If the money is gone, then how can the creditor get it???
Let's assume that the OP takes a trip around the world or goes off the Vegas and blows the 40K. If the money is gone, its gone and all the Private Investigators in the world can snoop all they want, but they can't find what isn't there.

I know I'm rambling on here, but I really don't understand the "fraudulent transfer" issue in this case.

I do think that paying the debt is the honorable thing to do, but that aside, I'm asking a question that addresses the legal issue here. I know that there is alot of knowledge on this board and I'd appreciate any feedback on this. thanks
 

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