Debt Collection....Kind of?

[annajosie]

Dear Debt Collector,

what accounts are you talking about? If he has no bank account then you can't freeze it. If you call social security and tell them to send you the debtor's ss check, I'd love to be a fly on the wall and listen to their response.

If he owns a home (at least in Florida), the unsecured creditor can't force him to move, thereby leaving him in the street. If he owns a vehicle and has less than $1000 equity, then the vehicle can't be touched. If he has furniture that is $1000 or less, then the furniture can't be touched.

And even if you did come in and try to take his meager possessions, what would you gain??? you have to pay the sheriff, you have to pay somebody to hold an auction, and you are left with what??? --- NOTHING.

I don't believe that a debtor should play mickey mouse games - I DO believe that if you honestly owe the debt, it is your obligation to pay it. But I also have seen situations where the debtor simply does not have the ability to pay it back. In a case like that, especially with a senior citizen, I think the creditors should leave him alone. Let them go after OJ!!!

 

[moburkes]

When DC originally responded, he was responding to a statement made by a person not in FL. When he responded again, I'm not sure that he was responding to someone who was specifically in FL.

 

[ajkroy]

I find it interesting that annajosie goes to such lengths to avoid keeping funds in a bank account just to prevent account levies. Why on earth would you subject yourself to the inconvenience and additional fees of cashing your check in a store? I certainly wouldn't feel comfortable walking around with so much cash afterward.

And what would you ever do if your money order to pay a bill was lost, misdirected, or simply applied to the wrong account? You would have no proof of payment.

To use (or misuse) moburkes' phrase, I believe I am "immune" from debt collection...but that is only because I pay all of my bills on time! Try it, and you would save yourself a lot of hassle.

 

[Chien]

annajosie – with the exception of daprez1963 fka GulfBreeze, everyone in this thread is right, despite perhaps sounding at opposites.

moburkes hit it most squarely on the head.

Some posts in the forum are to the effect that “Account(s) have been frozen but everything is exempt. What do I do?” Others are to the effect that “They can’t touch me – I’m judgment proof – everything that I have is exempt.”

For those who know there is a judgment (and that’s not all but most), I would suggest that the remarks confirm a point made over and over in this forum – communication is essential. It may not always help, but it is unlikely to hurt. (Oddly, the members who make the point most frequently are the collection professionals – make what you will of that fact.)

DC has mentioned instances where he has cut deals antithetical to an employer, but he had communication and documentation telling him that the deal was the best available. I mentioned an instance in which I convinced my client to return funds that were not even exempt, because the debtor needed them for insurance premiums for his wife’s on-going cancer treatment (and he went out of business before the debt was fully paid, and nobody felt they had made a bad decision.)

The problem with saying that a debtor’s exam could have/should have obviated the impact is two-pronged. First, the creditor has no obligation to do an exam and no way to know the status of funds. The debt became delinquent, demands were made, suit was filed and went to judgment, a bank account is known (for whatever reason), and they levy/garnish. It’s up to the debtor to begin the process of asserting exemptions.

The second part is that an asset exam can be frustrating, even when tried. A large number of people ignore the court’s Order to appear. A large number ignore the asset questionnaire’s that are sent. In many states, my own included, the Order to Appear must be personally served; service my mail or substituted service won’t work. If someone doesn’t want to be served, that’s a significant problem. Also, there are those who respond and just lie.

Now, if you levy on a bank account and it contains exempt assets, when the exemption claim is made the judgment creditor gets all of the information that might have obtained with more difficulty via asset exam. Can you really blame the creditor for that? Communication is a two-way street. Nobody prefers to do an asset exam, and nobody wants to spend money to seize a bank account only to have it all released. The costs of seizing can, by the way, be added to the judgment. It’s circular and pointless.

The OP is in IL. The exemption process requires a noticed hearing. It can take awhile.

(I wasn’t going to post here any longer, but I’m assisting an OP offline with just this problem. This seemed to be a relevant thread. My problem has been resolved, but it could have been avoided. While it existed, some utilities were cut off.)

 

[moburkes]

Thanks for posting, chien.

If you get a moment, I directed gracie to this forum for assistance from you all.

Your detective skills are amazing!