Being sued by Collection agency

[Joely760]

What is the name of your state (only U.S. law)? California

I took several business loans which I personally guaranteed totalling 10,838 in 2016. I was unable to pay them and On line creditor was very shaky with me encouraging me to draw more from the line to keep current on payments. Once I fell behind I contacted them to establish a payment plan and they wanted my banking info and would not put in writing agreement. They sold to TBF Financial and they called for 3 months which I ignored and they never left a message. I was just served for full amount, attorney fees, and interest until judgement. Should I bother responding? I am still cash strapped. Just curious what route they will take to get money once a judgement is made. Self employed so no wages to garnish, home is in wife's name and I had to sign a release of interest when she purchased on her own in 2011. Any info would be appreciated.

 

[quincy]

What is the name of your state (only U.S. law)? California

I took several business loans which I personally guaranteed totalling 10,838 in 2016. I was unable to pay them and On line creditor was very shaky with me encouraging me to draw more from the line to keep current on payments. Once I fell behind I contacted them to establish a payment plan and they wanted my banking info and would not put in writing agreement. They sold to TBF Financial and they called for 3 months which I ignored and they never left a message. I was just served for full amount, attorney fees, and interest until judgement. Should I bother responding? I am still cash strapped. Just curious what route they will take to get money once a judgement is made. Self employed so no wages to garnish, home is in wife's name and I had to sign a release of interest when she purchased on her own in 2011. Any info would be appreciated.

It is rarely a good idea to ignore a summons and complaint and let the other party get a default judgment.

I recommend you answer the complaint and appear in court on the scheduled date and time and hope to work out a pre-trial settlement amount that is less than what is being sought.

As to any judgment, these are good for a long time and are renewable. Over time, you may have a change in your financial situation and you may acquire assets. The judgment creditor will be right there to collect and attach, until the amount owing is paid in full.

 

[latigo]

What is the name of your state (only U.S. law)? California

I took several business loans which I personally guaranteed totalling 10,838 in 2016. I was unable to pay them and On line creditor was very shaky with me encouraging me to draw more from the line to keep current on payments. Once I fell behind I contacted them to establish a payment plan and they wanted my banking info and would not put in writing agreement. They sold to TBF Financial and they called for 3 months which I ignored and they never left a message. I was just served for full amount, attorney fees, and interest until judgement. Should I bother responding? I am still cash strapped. Just curious what route they will take to get money once a judgement is made. Self employed so no wages to garnish, home is in wife's name and I had to sign a release of interest when she purchased on her own in 2011. Any info would be appreciated.

You say "the home is in wife's name" and you live in a community property state?

Then I am willing to wager that she couldn't pass merchantable title to a buyer without you joining her on the deed. Not unless every dime that is now in the home and henceforth is your wife's sole and separate property. And her earnings are not, and obviously neither are yours, her sole an separate property.

With regard to responding to the complaint. Hopefully you are aware that the more effort required of the creditor's attorneys in securing a judgment the more of those fees are going to be added to that judgment. As an alternate to making an appearance in the case, disputing the complaint and incurring court costs and adding more legal fees you might consider offering to stipulate to a mutually agreeable judgment. Unfortunately you don't have much leverage.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

I took several business loans which I personally guaranteed totalling 10,838 in 2016. I was unable to pay them and On line creditor was very shaky with me encouraging me to draw more from the line to keep current on payments. Once I fell behind I contacted them to establish a payment plan and they wanted my banking info and would not put in writing agreement. They sold to TBF Financial and they called for 3 months which I ignored and they never left a message. I was just served for full amount, attorney fees, and interest until judgement. Should I bother responding? I am still cash strapped. Just curious what route they will take to get money once a judgement is made. Self employed so no wages to garnish, home is in wife's name and I had to sign a release of interest when she purchased on her own in 2011. Any info would be appreciated.

Am I correct to assume that you and your wife hold no joint accounts and have no other joint assets?

If the creditors have obtained a judgment against you it is not going to go away. You may be uncollectable for a period of time but eventually something is going to happen in your financial life that will make you collectable. Therefore its a bad idea to just ignore it.

 

[Joely760]

Am I correct to assume that you and your wife hold no joint accounts and have no other joint assets?

If the creditors have obtained a judgment against you it is not going to go away. You may be uncollectable for a period of time but eventually something is going to happen in your financial life that will make you collectable. Therefore its a bad idea to just ignore it.

You say "the home is in wife's name" and you live in a community property state?

Then I am willing to wager that she couldn't pass merchantable title to a buyer without you joining her on the deed. Not unless every dime that is now in the home and henceforth is your wife's sole and separate property. And her earnings are not, and obviously neither are yours, her sole an separate property.

With regard to responding to the complaint. Hopefully you are aware that the more effort required of the creditor's attorneys in securing a judgment the more of those fees are going to be added to that judgment. As an alternate to making an appearance in the case, disputing the complaint and incurring court costs and adding more legal fees you might consider offering to stipulate to a mutually agreeable judgment. Unfortunately you don't have much leverage.

I had to sign a paper relinquishing any claim or interest in the house for her to get financed. It is in affect for15 years years because the second was a neighborhood stabilization program. I do understand the attorney fees and that was my initial thought. I have contacted an attorney to negotiate a settlement. Hopefully that works out.

 

[Joely760]

Am I correct to assume that you and your wife hold no joint accounts and have no other joint assets?

If the creditors have obtained a judgment against you it is not going to go away. You may be uncollectable for a period of time but eventually something is going to happen in your financial life that will make you collectable. Therefore its a bad idea to just ignore it.

You are correct. We have no other assets and no joint accounts.