Summons

[dabodu]

What is the name of your state? NY
I received a summons for a credit card I owe on. I didn't answer the summons so am I correct in assuming I am in something called a judgement default? What does that mean?

Also has anyone hear filed bankruptcy in NY state? Once you do can any creditors bug you for further payment of outstanding debts. Also could anyone please note how it affects getting a car loan later on? Thanks for the advice.

 

[Ladynred]

If you didn't Answer the Complaint or show up in court, then the creditor won a judgment by default - meaning they won because you didn't show up to defend yourself. It means they can now garnish your wages, sieze your bank account, place a lien on your home if you have one, and generally make your life miserable for the next TWENTY YEARS.

Filing for bankruptcy will put a stop to ALL collection actions, including judgments and once the bankruptcy is discharged, the judgment can be vacated (nullified). There is NOTHING that ANY creditor can do to try to collect on any debt that you included in a bankruptcy, its against the law.

Getting a car loan after bankruptcy really isn't all that hard, but the interest rate will be a killer. After 3-4 years of clean credit you should be able to get a better car loan rate.

 

[vgmhilliard]

garnish your wages????

If you didn't Answer the Complaint or show up in court, then the creditor won a judgment by default .....It means they can now garnish your wages, sieze your bank account .....

Quick question - How will the creditor know WHO my employer is in the 1st place? Especially if my employer is a foreign (non-US) entity and I am working outside US? Secondly, how wud the creditor get access to the bank accounts I have with banks OTHER than the creditor himself?

I suppose in the US, they can SOMEHOW look my other bank accounts by my SSN - even though I do not think OTHER banks are legally allowed to disclose my personal information to anyone, creditors included. Is that correct?

Finally, wud the brokerage accounts (i.e. trading accounts held with brokerage firms in the US - I think they have my SSN as well) be affected as much as bank accounts? Can a US creditor sieze my brokerage account with money in it?

many thx in advance

 

[Ladynred]

1 - its not that hard to find out who your employer is, but if they can't find that information, they can summon you for a debtor's exam, or serve you with interrogatories that you MUST answer. In either case, you are grilled about your entire financial picture and all kinds of personal information. Failure to appear or answer can get you charged with contempt of court and a warrant for your arrest can be issued.

If you're working outside the US, they'll have a tough time attacking your paycheck - unless the money goes into a US bank.

There is no way anyone can just look at your bank accounts, unless the bank itself is the creditor.

If they find the brokerage account, they can levy that too.

 

[vgmhilliard]

back to what we talked about

1 - its not that hard to find out who your employer is, but if they can't find that information, they can summon you for a debtor's exam, or serve you with interrogatories that you MUST answer.....Failure to appear or answer can get you charged with contempt of court and a warrant for your arrest can be issued..........

There is no way anyone can just look at your bank accounts, unless the bank itself is the creditor.......

Many thx for your clarifications.

Which bring us back to what we discussed under "Bench Warrant for US Citizens abroad" thread.

As u kindly explained there, the chances of a local bench warrant affecting my international travel or my US passport are very slim indeed.

My bank account in the US is NOT with any of my creditors. My British bank accounts are protected by UK's Data Protection Act which makes it impossible to anyone to collect my personal information. My foreign salaries are paid into my foreign bank accounts.

So I gather I can just tell my US creditors to zap off - as politely as a British lord of course , right?

Which makes my US brokerage account the only concern. How likely do u think my US creditors are to find those accounts though? Unlike regular bank accounts, brokerage accounts are also protected by SEC (Securities and Exchange Commission) in the US. Meaning that my broker has NO right to divulge my brokerage account details to anyone, unless SEC authorised. What do u reckon?

Cheers for help!

 

[cplumad1]

RE:Bankruptcy

What is the name of your state? NY
I received a summons for a credit card I owe on. I didn't answer the summons so am I correct in assuming I am in something called a judgement default? What does that mean?

Also has anyone hear filed bankruptcy in NY state? Once you do can any creditors bug you for further payment of outstanding debts. Also could anyone please note how it affects getting a car loan later on? Thanks for the advice.

I'm in the same boat, they the plaintiff can put a hold on your banking(checking or savings) account and or do what they call a "income execution" where they make you employer take 10% of your earnings. If you file bankruptcy it may take 30 days or more to get a case number from the courts and then you can tell the creditors that case number and everything gets put on hold, that means that they the creditors must stop calling you, you may need to bring that case number to the Sheriff's office to make them stop taking money from your paycheck if there is an income execution because they can be a few weeks behind in paperwork.

I filed about 15 years ago and it took me 10 years to get any credit.