Need answers about debt collections

[DrakeG1208]

Hi I live in Texas and American Express is trying to collect a debt, they have gone to the courts and are about to get a default judgement, My question is, what can they really take from me? They can't garnish my wages, they can't take my primary residence, i'm still paying another 5 years on my car, I don't own any other assets so what could they really take. Would it be easier to wait out the 10 years on a lien or could I use the fact that they can't take anything to negotiate a lower amount?
Thanks
Drake

 

[adjusterjack]

They can levy your bank accounts so be careful where you keep your money.

could I use the fact that they can't take anything to negotiate a lower amount?

Sure. Creditors want money, any amount, rather than no money.

Just make sure you have the cash to back up your offer.

 

[LdiJ]

Hi I live in Texas and American Express is trying to collect a debt, they have gone to the courts and are about to get a default judgement, My question is, what can they really take from me? They can't garnish my wages, they can't take my primary residence, i'm still paying another 5 years on my car, I don't own any other assets so what could they really take. Would it be easier to wait out the 10 years on a lien or could I use the fact that they can't take anything to negotiate a lower amount?
Thanks
Drake

They are unlikely to negotiate once they have the judgment.

 

[Mass_Shyster]

They are unlikely to negotiate once they have the judgment.

I disagree. It sounds like OP is judgment-proof. The debtor would be smart to settle for a bird in the hand.

 

[quincy]

Here is a link to the "sticky" thread that sits at the top of this forum, on how to negotiate a settlement. It is written by forum member TigerD, a former debt collector who is now an attorney.

https://forum.freeadvice.com/threads/how-to-negotiate-a-settlement.428587/
The problem with letting a debt collector get a judgment against you is that judgments can last a long time. They are renewable. While you may have no assets or income now, this might not always be the case.

 

[adjusterjack]

The debtor would be smart to settle for a bird in the hand.

Especially in Texas where wage garnishment for consumer debt is prohibited by the Texas Constitution.

 

[NeilTheCop]

How about simply paying them the money you owe rather than trying to weasel out of your debt?

 

[TigerD]

For the OP: It sounds like you have researched your protections in Texas, so I won't go into that. Amex is one of those companies that is proud of its reputation to sue and to not let up. It works to ensure that they are paid first because other companies will settle for less and make deals. Not saying that you can't make a deal - go for it. But understand that not getting paid by you doesn't hurt Amex. Amex can let that judgment earn interest for 10-20 years and then write off the total amount, getting a tax break. Of course it can also enforce the judgment against you. Your situation may change during the next five years. They also collect enough of those to making staying in the game a viable business strategy. The only real defensive play beyond statutory protections you have is to stay poor or file bankruptcy. You can try to negotiate, but they hold all the power once the judgment is entered.

TD