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Michigan debit collection questions (Judgement letter in mail )

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warcraftfan1

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

Ok here is the story. I have a credit card debt from Florida from 12 years ago or so. I now live in Michigan , an attorney already took me to court ( I did not show up because I had no way to get there ) I agreed on the phone and in writing to pay the attorney $50 a month all was fine and dandy and I paid for quite a few months but being part time and minimum wage the $50 was too much so I stopped paying. About 3 months later I get a letter in the mail ( today )


Judgement

At a session of said Court, held in the city of __________ County of Macomb, state of Michigan

On ________________________

Present : HON _______________
District court Judge

This matter having come before the court upon the filing of an Affidavit of Noncompliance reflecting that Defendant has failed to comply with the Order of Settlement and Dismissal, and the Court being otherwise fully advised in the premisis:

It is hereby ordered that judgment is entered in the amount of $701.84 which represents ( they itemize the $$$'s )

This judgment resolves all pending claims between the parties and closes the case

( signed by judge )

I love how this letter does not say anywhere that I have to pay. Why can't they just use the words ( ordered to pay ) or something like that. It's so ridiculous that when they send these letters they just can't use basic English.

I DO NOT HAVE $701.84

What happens if I do not pay this? I have NO property worth while. I have no car, no house nothing valuable Oh wait I do have a $300 computer...... oh yea and my bank account has $64 in it

If I fail to pay this will they garnish my wages ( or is this beyond the wage garnishment part ) or will it get much worse like being arrested?

Please and thank you for any help and advice in this matter.
 
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Proserpina

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

Ok here is the story. I have a credit card debt from Florida from 12 years ago or so. I now live in Michigan , an attorney already took me to court ( I did not show up because I had no way to get there ) I agreed on the phone and in writing to pay the attorney $50 a month all was fine and dandy and I paid for quite a few months but being part time and minimum wage the $50 was too much so I stopped paying. About 3 months later I get a letter in the mail ( today )


Judgement

At a session of said Court, held in the city of __________ County of Macomb, state of Michigan

On ________________________

Present : HON _______________
District court Judge

This matter having come before the court upon the filing of an Affidavit of Noncompliance reflecting that Defendant has failed to comply with the Order of Settlement and Dismissal, and the Court being otherwise fully advised in the premisis:

It is hereby ordered that judgment is entered in the amount of $701.84 which represents ( they itemize the $$$'s )

This judgment resolves all pending claims between the parties and closes the case

( signed by judge )

I love how this letter does not say anywhere that I have to pay. Why can't they just use the words ( ordered to pay ) or something like that. It's so ridiculous that when they send these letters they just can't use basic English.

I DO NOT HAVE $701.84

What happens if I do not pay this? I have NO property worth while. I have no car, no house nothing valuable Oh wait I do have a $300 computer...... oh yea and my bank account has $64 in it

If I fail to pay this will they garnish my wages ( or is this beyond the wage garnishment part ) or will it get much worse like being arrested?

Please and thank you for any help and advice in this matter.

Well, you won't be arrested. But that judgment is going to stay with you for a long, long time - do you intend to just not work for the next 20 years?

The irony is that if you would have posted here much earlier, you may have been able to defend yourself using the statute of limitations. That too is out of the window.

Bigger irony? You're mocking the wording of the judgment when realistically, a 12 year old could figure it out without needing to be spoon-fed. Then again, that same 12 year old could figure out that if you don't pay your bills, you end up in financial trouble.
 
I love how this letter does not say anywhere that I have to pay. Why can't they just use the words ( ordered to pay ) or something like that. It's so ridiculous that when they send these letters they just can't use basic English.

I DO NOT HAVE $701.84

What happens if I do not pay this? I have NO property worth while. I have no car, no house nothing valuable Oh wait I do have a $300 computer...... oh yea and my bank account has $64 in it

If I fail to pay this will they garnish my wages ( or is this beyond the wage garnishment part ) or will it get much worse like being arrested?

Please and thank you for any help and advice in this matter.
I understand that times are tough, that it can be hard to pay $50/month when you make minimum wage, and that not everyone intuitively understands the legal system or legal terms, but......

This might have arrived in the mail, but it is not a simple "letter", it is an official notice from the court about the court-ordered judgment that was entered against you. The judgment is in favor of the plaintiff (the party who sued the defendant), and it is against the defendant (that's you). The judgment is for $701.84. Even though it doesn't specifically say that you have to pay the judgment amount to the plaintiff, I am sure you understand that you have to pay the judgment entered against you.

They can't get blood from a stone, but**************...

I don't know the rules of Michigan, but the judgment could be good for 10 years or more and it will likely accumulate interest at some specific yearly rate. You can find out the interest rate on judgments in Michigan and do the math. Figure out how much you will owe after 10 years of interest (probably more than $1,000). Then consider whether or not you hope to have more than $1,000 in the bank 10 years from now or if you aspire to live off the grid, with no savings to speak of, for the rest of your life. Then decide if you want to hope that it all goes away, or if you would rather be surprised when they suddenly garnish your wages (I am not 100% sure if they can do that in Michigan, but I think they can) or freeze your bank account.

It's not a large judgment amount, but they might pursue collecting it. Who knows.
 

latigo

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

Ok here is the story. I have a credit card debt from Florida from 12 years ago or so. I now live in Michigan , an attorney already took me to court ( I did not show up because I had no way to get there ) I agreed on the phone and in writing to pay the attorney $50 a month all was fine and dandy and I paid for quite a few months but being part time and minimum wage the $50 was too much so I stopped paying. About 3 months later I get a letter in the mail ( today )


Judgement

At a session of said Court, held in the city of __________ County of Macomb, state of Michigan

On ________________________

Present : HON _______________
District court Judge

This matter having come before the court upon the filing of an Affidavit of Noncompliance reflecting that Defendant has failed to comply with the Order of Settlement and Dismissal, and the Court being otherwise fully advised in the premisis:

It is hereby ordered that judgment is entered in the amount of $701.84 which represents ( they itemize the $$$'s )

This judgment resolves all pending claims between the parties and closes the case

The

( signed by judge )

I love how this letter does not say anywhere that I have to pay. Why can't they just use the words ( ordered to pay ) or something like that. It's so ridiculous that when they send these letters they just can't use basic English.

I DO NOT HAVE $701.84

What happens if I do not pay this? I have NO property worth while. I have no car, no house nothing valuable Oh wait I do have a $300 computer...... oh yea and my bank account has $64 in it

If I fail to pay this will they garnish my wages ( or is this beyond the wage garnishment part ) or will it get much worse like being arrested?

Please and thank you for any help and advice in this matter.
You ask why can't they use the words "ordered to pay"; (or) that you have to pay the $701.84?

The reason is that if the civil court was empowered to ORDER you to pay the $701.84, then it would follow that the court would also be authorized to ENFORCE its order. That is, compel you to either pay the amount awarded or punish you in some manner for disobedience and that it cannot do. Not in the USA.

Aside from that I agree that it was poorly drafted in that it fails to specify that judgment is entered against you and in favor of the plaintiff. Perhaps excusable as being made in reference to the Order of Settlement and Dismissal. Which raises an interesting question.

If you made no appearance in the case, written, by counsel or in person, that is, you only had telephone communication with the plaintiff's attorney, whence comes this "Order of Settlement"? A settlement agreement, which apparently contained a provision that should you fail to make the agreed monthly payments that a judgment would automatically result. (Here, we call it a confession of judgment.)

In other words, if your participation in the case was limited to telephone conversations with the attorney, (that it is you didn't sign anything or make an agreement in open court) how could there be any court record of a settlement agreement from which the final judgment was clearly rendered?
 
In other words, if your participation in the case was limited to telephone conversations with the attorney, (that it is you didn't sign anything or make an agreement in open court) how could there be any court record of a settlement agreement from which the final judgment was clearly rendered?
I don't know what participation the defendant had in the case against them, but it looks like the defendant signed some kind of agreement with the plaintiff, and the existence of that agreement and the defendant's breach of that agreement was presumably presented to the court by the plaintiff, and that is presumably what led the court to issue the judgment against the defendant. Unh, presumably of course, since I have no clue other than what the original poster tells us.

I agreed on the phone and in writing to pay the attorney $50 a month.
 

warcraftfan1

Junior Member
Where is my brain , it's all coming back to me now. I called the court and told them I have no way to get there. The judge called me while the attorney was in her court and I talked to her over the phone but they had a hard time understanding me or something. What ended up happening is I finally found a ride to get there like 2 hours later and I did get to talk to the judge. I really can not remember what happened but it ended up where I made an agreement with the lawyers office to pay $50 a month ( oh yes while I was at the court I had to sign a couple papers ) I wish I remember what they said.
 

justalayman

Senior Member
the original suit was stayed pending payment if full after which it would have been dismissed. If you had completed that agreement (that was this part: Order of Settlement and Dismissal) you wouldn't have had a judgment on your credit record. Since you did not complete the agreement to pay the pending judgment the plaintiff simply went back into court and had them enter the judgment. You now owe $700 and you will have a judgment on your credit history.

go to this site:


http://www.legislature.mi.gov/(S(5lkenu55ny1flejzax5y2ln1))/mileg.aspx?page=GetObject&objectname=mcl-600-6023

anything not listed is subject to seizure to pay off the judgment
 

warcraftfan1

Junior Member
The only bank account I have is the one that my payroll card is associated with when I get my weekly paychecks. If they were to go after that account ( I never personally deposit money into it ) does the same rules as wage garnishment apply or can they take my full paycheck for a few weeks until the $700 is paid off? What is the next step in this process for them to actually go and try to get money out of that account? Does the attorney have to initiate that process or is it something the court will automatically do?
 

justalayman

Senior Member
The limitation of how much they can take from your paycheck is speaking to money taken directly from your paycheck as a direct deduction. Once it hits the bank account it is treated as money in a bank account where the payroll deduction is not applicable.
 

warcraftfan1

Junior Member
The limitation of how much they can take from your paycheck is speaking to money taken directly from your paycheck as a direct deduction. Once it hits the bank account it is treated as money in a bank account where the payroll deduction is not applicable.
That is good to know. Do you know the process to which this has to happen? Is it a one time thing that the court ( or whoever is in charge of actually initiating the process ) will try to find the money in the account? Will there be an automated process set up with the bank ( I don't even know if it's a bank it's a company that has prepaid and payroll visa's ) where every time money goes in it they automatically take it? Will the account be frozen so I can't use it?
 
That is good to know. Do you know the process to which this has to happen? Is it a one time thing that the court ( or whoever is in charge of actually initiating the process ) will try to find the money in the account? Will there be an automated process set up with the bank ( I don't even know if it's a bank it's a company that has prepaid and payroll visa's ) where every time money goes in it they automatically take it? Will the account be frozen so I can't use it?
You will not receive any advance notice from anyone. It's a one time thing if they satisfy the judgment. If not, then they can usually keep the hold going or they can keep coming back until they get enough money to satisfy the judgment. It depends on your state and the bank. But there's no "payment plan" if that's what you're thinking.

Some day, when they find out what bank is holding your money, your bank will simply freeze the judgment amount in your account (plus any fees that they will charge you to pay for that process, which is often about $100-$200) and wait for the plaintiff to file the appropriate papers to take possession of the judgment amount. Depending on the bank, and the amount in your account relative to the amount of the judgment plus the bank's fees, you may be able continue to use your account or your account may be completely frozen until the process is complete (which, depending on the bank and your state and the plaintiff, can take up to a month). Usually while your account is held or frozen, deposits are accepted, but withdrawals are denied.

If you are receiving your paycheck on a prepaid Visa card, then your money is not in a bank (you should really read the agreement with the card issuer, they likely explain that they are not a bank and that your money is not insured by the FDIC like it is in a bank, and that unlike a Visa credit card you are not protected from fraudulent purchases made by someone else using your card number). Even though that money is not in a bank, that money is still subject to collection by the plaintiff - it's just a little harder for the plaintiff to find. Basically they would have to know what card you get the money put on (they could get that information from your employer if they knew to ask for it).
 

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