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avoiding an unpaid debt.

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wordy68

Member
What is the name of your state (only U.S. law)? Texas
In May of 2012, I paid $554.00 for someone to get into my network marketing business. We agreed verbally (she and her husband) that they would have 90 days to pay this debt back. Long enough for them to work the business and earn at least that much back. She earned the money back within the first month. Instead of paying me back, she took a trip to Florida. No biggie...she had 90 days to pay me and it had only been 30. The next month she made the same amount of money. She took a trip to Vegas and did not pay me back. (I was her sponsor in this business, so I was aware of her rank increases in the company and the dollar amounts associated with them) 90 days came and went and she hasn't paid me back. After two additional months had passed, I picked up the phone and tried reaching her. After a month or so of leaving messages, she finally returned my call, pleading hardship with bills, etc. I told her that I was mostly upset about the lack of communication. I was willing to work with her. She could pay me 20 a week, 5 a week, whatever...let's just make some sort of payment plan and keep communication open. Here we are two months shy of a year and she still owes me just over 350 dollars. Payment has been sporadic and only happens after I email or text her. I would say at least 10 texts/emails go unanswered before I get a response. She pays in different amounts. Sometimes five dollars, sometimes 20 dollars. Never more than that. Each time, I email her a receipt. I have several emails of her acknowledging the debt and the initial agreement that we made. It has been over a month since her last 20 dollar payment and I am fed up. I have texted her 11 times this past month and she will not answer. There was even a time when she said there would be an envelope under her mat and I could go get it. I have gone 2x and it isn't there and she wont respond to my texts. If I take her to small claims court over this debt, do I have a case??
 


Proserpina

Senior Member
What is the name of your state (only U.S. law)? Texas
In May of 2012, I paid $554.00 for someone to get into my network marketing business. We agreed verbally (she and her husband) that they would have 90 days to pay this debt back. Long enough for them to work the business and earn at least that much back. She earned the money back within the first month. Instead of paying me back, she took a trip to Florida. No biggie...she had 90 days to pay me and it had only been 30. The next month she made the same amount of money. She took a trip to Vegas and did not pay me back. (I was her sponsor in this business, so I was aware of her rank increases in the company and the dollar amounts associated with them) 90 days came and went and she hasn't paid me back. After two additional months had passed, I picked up the phone and tried reaching her. After a month or so of leaving messages, she finally returned my call, pleading hardship with bills, etc. I told her that I was mostly upset about the lack of communication. I was willing to work with her. She could pay me 20 a week, 5 a week, whatever...let's just make some sort of payment plan and keep communication open. Here we are two months shy of a year and she still owes me just over 350 dollars. Payment has been sporadic and only happens after I email or text her. I would say at least 10 texts/emails go unanswered before I get a response. She pays in different amounts. Sometimes five dollars, sometimes 20 dollars. Never more than that. Each time, I email her a receipt. I have several emails of her acknowledging the debt and the initial agreement that we made. It has been over a month since her last 20 dollar payment and I am fed up. I have texted her 11 times this past month and she will not answer. There was even a time when she said there would be an envelope under her mat and I could go get it. I have gone 2x and it isn't there and she wont respond to my texts. If I take her to small claims court over this debt, do I have a case??

You can try, but you have a problem.

Regular creditors in Texas cannot garnish wages, and it does sound as if she's basically "uncollectable" anyway. Getting the judgment would be the easy part - collecting is an entirely different matter.

Unfortunately I believe you might just have to "eat" this one.
 

wordy68

Member
How is it determined whether or not she is "uncollectable?" I mean, she has taken trips, bought a new big screen tv, she has even told me (in an email) that she has the money, but just chooses to put this particular debt on lowest priority. Surely, if a judgement were found against her and she was ordered to pay, she couldn't just dig in her heels and say, "I can't!" Or can she????
 

sandyclaus

Senior Member
What is the name of your state (only U.S. law)? Texas
In May of 2012, I paid $554.00 for someone to get into my network marketing business. We agreed verbally (she and her husband) that they would have 90 days to pay this debt back. Long enough for them to work the business and earn at least that much back. She earned the money back within the first month. Instead of paying me back, she took a trip to Florida. No biggie...she had 90 days to pay me and it had only been 30. The next month she made the same amount of money. She took a trip to Vegas and did not pay me back. (I was her sponsor in this business, so I was aware of her rank increases in the company and the dollar amounts associated with them) 90 days came and went and she hasn't paid me back. After two additional months had passed, I picked up the phone and tried reaching her. After a month or so of leaving messages, she finally returned my call, pleading hardship with bills, etc. I told her that I was mostly upset about the lack of communication. I was willing to work with her. She could pay me 20 a week, 5 a week, whatever...let's just make some sort of payment plan and keep communication open. Here we are two months shy of a year and she still owes me just over 350 dollars. Payment has been sporadic and only happens after I email or text her. I would say at least 10 texts/emails go unanswered before I get a response. She pays in different amounts. Sometimes five dollars, sometimes 20 dollars. Never more than that. Each time, I email her a receipt. I have several emails of her acknowledging the debt and the initial agreement that we made. It has been over a month since her last 20 dollar payment and I am fed up. I have texted her 11 times this past month and she will not answer. There was even a time when she said there would be an envelope under her mat and I could go get it. I have gone 2x and it isn't there and she wont respond to my texts. If I take her to small claims court over this debt, do I have a case??
You might.

Understand that verbal contracts with no written proof of the loan or payment arrangement can be very difficult to prove. You MAY be able to use the emails and texts as evidence of the agreement, but not all courts will allow these due to the possibility of spoofing (faking) them.

You should also consider the cost of pursuing a lawsuit against this person. The filing fees are relatively inexpensive, but Small Claims courts do allow for attorney representation, which can be expensive. Also, in the event that you DO win your case, all you will get would be a judgment, NOT the money. You would still be responsible for collecting the debt. The court provides collection procedures that you can use, including wage garnishment, seizure and levy of bank accounts, vehicles, and other valuable assets. Texas law, however, exempts 100% of wages from garnishment, but has no limit on vehicles or ban accounts. A judgment is good for 10 years, and can be renewed again every 10 years for another term.
 

wordy68

Member
So essentially, all I would be "winning" is a third party, on the record, saying "yep! She's right. You owe her money and you need to pay it!" Beyond that, I would be back to where I am calling, texting etc etc???

Sigh...
 

Proserpina

Senior Member
How is it determined whether or not she is "uncollectable?" I mean, she has taken trips, bought a new big screen tv, she has even told me (in an email) that she has the money, but just chooses to put this particular debt on lowest priority. Surely, if a judgement were found against her and she was ordered to pay, she couldn't just dig in her heels and say, "I can't!" Or can she????

The thing is, the court can't force her to pay a civil debt. They can award you the judgment, but it will be up to you to collect. You can't garnish her wages (if she has a job), and you can't take things such as her new TV.
 

justalayman

Senior Member
Surely, if a judgement were found against her and she was ordered to pay, she couldn't just dig in her heels and say, "I can't!" Or can she????
that's not how it works. The court enters a judgment but it is up to you to collect it.

To be able to seize assets or such, they would have to be non-exempt. Texas has a high threshold to determine what is and isn't exempt so, you usually have slim pickin's to grab the money from.

Here is a site that lists exemptions:

http://www.co.travis.tx.us/justices_of_peace/jp3/collecting_judgments.asp

One thing to consider: if you do get a judgment, even if you cannot collect on it, it will be reported on her credit report. Sometimes that knowledge is enough to get a person to pay a debt. If not, let it hurt her credit history for the next 10 years, or longer if you renew it.
 

wordy68

Member
Forgive my frustration...I understand all the things that I cannot do. Is there anything I CAN do?? (assuming I get a judgment against her in the first place)
 

wordy68

Member
Just saw the post from Justalayman...our posts must've crossed. Thank you for that bit of info. The fact that it goes on her credit report is a big deal. Thank you for mentioning it.
 

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