Son is being sued-what to do?

[Belinda1023]

What is the name of your state? Texas
My son is being sued by a bank for an unsecurred personal loan.
When he got the loan he was in a job that paid very well...circumstances have changed dramatically. He now makes barely enough to make his car payment, insurance and utilities. He has a wife and three children and recieves food stamps. He cannot repay the loan. What are his next steps in responding to the suit?

[Veronica1228]

Originally Posted by Belinda1023

What is the name of your state? Texas
My son is being sued by a bank for an unsecurred personal loan.
When he got the loan he was in a job that paid very well...circumstances have changed dramatically. He now makes barely enough to make his car payment, insurance and utilities. He has a wife and three children and recieves food stamps. He cannot repay the loan. What are his next steps in responding to the suit?

What is the date of last activity on this debt? In other words, the last time he took an advance or made a payment?

[Belinda1023]

Don't have exact details...but no payment has been made for about 3 years.

[Veronica1228]

Originally Posted by Belinda1023

Don't have exact details...but no payment has been made for about 3 years.

Try and get the details from your son. The SOL in Texas for written contracts is 4 years, so find out if this debt is still collectable. Also find out what the summons says about responding.

The fact that he is having a tough time financially may not mean much in court. You say he gets food stamps, does he have a job at all? If he is taken to court and the bank wins they could garnish his bank account or maybe even his wages. It will depend on what the source of income is.

Post back when you have ALL pertinent information.

[Belinda1023]

The SOL does not apply (it has not been 4 years since last payment) He has a full time job.
The wording is:
You have been sued. You may employ an attorney. If you or your attorney do not file a written answer with the clerk who issue this citation by 10:00 am on the Monday next following the expiration of ten days after you were served this citation and petition, a default judgment may be taken against you.
The suit is for 'DEBT FOR UNPAID ACCOUNT' in the amount of $3792.00 plus court costs in the amount of $67.00.
It was issued June 8, 2005 and marked delivered June 9th.

I assume he has until June 20th to respond or appear.

I don't know what is expected as a response. He can't pay it...what is he supposed to tell them? and what can he expect in terms of a judgment? I had always heard that only IRS, Child Support, Federal Grants, etc, can be garnished from your wages in Texas...true or not? Can they attach his home?

[Veronica1228]

Originally Posted by Belinda1023

The SOL does not apply (it has not been 4 years since last payment) He has a full time job.
The wording is:
You have been sued. You may employ an attorney. If you or your attorney do not file a written answer with the clerk who issue this citation by 10:00 am on the Monday next following the expiration of ten days after you were served this citation and petition, a default judgment may be taken against you.
The suit is for 'DEBT FOR UNPAID ACCOUNT' in the amount of $3792.00 plus court costs in the amount of $67.00.
It was issued June 8, 2005 and marked delivered June 9th.

I assume he has until June 20th to respond or appear.

I don't know what is expected as a response. He can't pay it...what is he supposed to tell them? and what can he expect in terms of a judgment? I had always heard that only IRS, Child Support, Federal Grants, etc, can be garnished from your wages in Texas...true or not? Can they attach his home?

First of all, don't assume anything when it comes to this kind of thing. I suggest you respond as soon as possible.

Second, I did some checking and from what I could figure out, they cannot garnish wages or place a lien on your son's property. They CAN, however, garnish his bank accounts. Any account that he is sole of joint owner on is susceptible.

Because this debt is not beyond the SOL, I can't think of much that he can use as a defense. Stick around though because there may be other responses from someone who has a different opinion.

Good luck to you both.

[Belinda1023]

I agree that he should respond as soon as possible and not ignore this but what kind of response does he give? It's supposed to be written but what in the world would he say? "I'm poor and I can't pay" sounds stupid.

I'm lost.

[Veronica1228]

Originally Posted by Belinda1023

I agree that he should respond as soon as possible and not ignore this but what kind of response does he give? It's supposed to be written but what in the world would he say? "I'm poor and I can't pay" sounds stupid.

I'm lost.

Actually, since he is not disputing the debt the only thing he can do is show up in court and explain to the judge why he can't pay. Have him take anything that he thinks might help. The creditor may still be awarded a judgement, but the only thing they can really go after is the bank account.

Check back later. There may be more responses.

[Belinda1023]

Thanks so much for all your help!
Just one more question...can they attach his bank account in Texas? and if so, is this a one time thing or does it effect his account permanently?

[Veronica1228]

Originally Posted by Belinda1023

Thanks so much for all your help!
Just one more question...can they attach his bank account in Texas? and if so, is this a one time thing or does it effect his account permanently?

Yes they can levy or garnish his bank account. It is not permanent, but it may depend on the specifics of the judgement that is awarded to the creditor. Usually it is until the debt is paid, within set amount of time. Once that set time expires they can renew it or refile.