Sued not in small claims court

[eli4625]

What is the name of your state (only U.S. law)? IN
I am going to be sued for a non secured debt of a little over $11000. I know the amount is to big for small claims court. I have tried to reach an agreement on a repayment, but they are wanting way more then I am able to pay so I know it's going to court. So what court does it go to? How is it different if at all from small claims? I don't deny the debt is owed, just that I don't have the $505 a month they are demanding. I turned in my car and told them I would send them that $200 a month until I can find a better paying job. Just wondered what I can look forward to.

 

[cosine]

Have you sent them your payment plan offer in writing? The people that talk on the phone usually have little or no leeway to negotiate.

 

[eli4192]

Yes

I have sent them a written letter 3 times, giving them a full break down of my financial situtation and everything. So I guess they are beting the garnishment will be more and it will, but given the amount it will be, I will probably not be able to continue at that job. So in turn they will get nothing.

 

[cosine]

Then, apparently, they do not believe your financial situation, or are just running on instinct (e.g. doing what they usually do).

Suppose they sue, win, and garnish your paycheck for $500/month (I have no idea how much you make to know if this is viable). Are you really going to quit a job where your take home pay comes up $300 short, and end up taking home nothing at all? How will you live, then? If you have no assets, like a home and car, maybe that's practical. Are you considering bankruptcy?

 

[eli4192]

Presently,

After taxes I bring home $650 per paycheck, and we are paid 2 times a month. So take 25% of that and it's $162 per paycheck or $324 per month. That would leave me about 968 per month. I pay 615 per month in just rent, you add in utilities and car insurance and I have nothing left to cover gas or food. So why work if I can't even pay my bills and live? BK is not an option.

 

[cosine]

And you think quitting your job is a better option?

 

[eli4192]

what other choice?

I won't have the monies to get to work or enough to pay my basic bills. If I am not making enough to live on, why work?

 

[ShyCat]

If you're not working, you will have $0 to live on. How the heck is that better? You can't collect unemployment if you quit. You'd be cutting off your nose to spite your face. Get a second job, sell stuff, cut expenses, etc.

 

[Proserpina]

After taxes I bring home $650 per paycheck, and we are paid 2 times a month. So take 25% of that and it's $162 per paycheck or $324 per month. That would leave me about 968 per month. I pay 615 per month in just rent, you add in utilities and car insurance and I have nothing left to cover gas or food. So why work if I can't even pay my bills and live? BK is not an option.

Not that it's necessarily important, but why exactly isn't bk an option? If you have already filed in the past 8 years obviously it's not an option, but if that's not the case, is there a reason you won't file?

(With a judgment like this your credit is already going to suffer - and moreso as long as the judgment remains unsatisfied. And they have an awful, awful long time in which they can try and collect on that judgment - are you prepared to not bother working for say 5 years? 10 years?)

 

[eli4192]

Tried

I have attempted to find a second job, but working second shift right now at this job makes that almost impossible. I would quit this job in hopes of being able to find a job that pays more or be able to work 2 jobs. Also BK is just not an option. My credit is so bad this won't hurt it any, heck my Student loan kills it enough. Plus I am not really concerned about my credit history, I have no desire to own a house and CC are not good in my hands, so what other things do I need to worry about my credit history? I am just trying to get a handle on the procedure I can expect from being sued in non small claims court.

 

[Proserpina]

I have attempted to find a second job, but working second shift right now at this job makes that almost impossible. I would quit this job in hopes of being able to find a job that pays more or be able to work 2 jobs. Also BK is just not an option. My credit is so bad this won't hurt it any, heck my Student loan kills it enough. Plus I am not really concerned about my credit history, I have no desire to own a house and CC are not good in my hands, so what other things do I need to worry about my credit history? I am just trying to get a handle on the procedure I can expect from being sued in non small claims court.

Well, since you did ask....

Your credit rating can affect employment and your ability to rent a house, an apartment, a car.

Which makes it even more prudent to consider bankruptcy - it would actually help you at this point. You didn't answer the question of why it wasn't an option though, so that's probably moot.

However, if you're ok with having this judgment hanging around you for up to about 20 years, go for it. They can, and probably will (considering the size of the judgment) attempt to garnish you in every way they possibly can until the judgment is satisfied or they are legally prevented from pursuing the debt.

Quitting your job is not going to save you from either being sued or being forced to pay the debt at some point. Unless you're planning on not working at all, or working under the table, for the next 20 years, I'm just not seeing how you're going to get around this.

 

[cosine]

His only other option seems to be "living off the grid" (you can google that).

 

[megabux]

To address your original question, filing fees are more in a higher court, plus, there may be atty. fees, so, the total owed by you would be greater.

 

[eli4625]

would look for other employement

BK is not an option because this debt can not be discharged via BK, so filing wouldn't make it go away. Also, I am not saying I wouldn't not work, just look for a better paying job that would allow me to live, pay bills and pay the garnishment. I have no issue with repaying the debt, but if paying it means I don't have the monies to pay rent, buy food and get gas to go to and from work, why keep that job?

 

[Proserpina]

BK is not an option because this debt can not be discharged via BK, so filing wouldn't make it go away. Also, I am not saying I wouldn't not work, just look for a better paying job that would allow me to live, pay bills and pay the garnishment. I have no issue with repaying the debt, but if paying it means I don't have the monies to pay rent, buy food and get gas to go to and from work, why keep that job?

That's a valid point - except that's really not what you said (or at least implied) initially

(You were quite clear on the fact that if you were garnished you wouldn't be able to afford to live on the wages you currently earn, and thus would need to leave the job and they would get nothing - this does seem a little different from simply changing jobs in order to have the money to repay the debt, y'know?)

If the debt is not dischargable (and I don't think I'm alone in wondering exactly what this debt is), would filing bankruptcy discharge other debts which would then enable you to pay?