Will they get a judgement?

[maxpi]

I am working in California. At this point I am unable to keep up with all the expenses and pay the credit cards. I started working with a Consolidation service but I am wondering what will happen if I default. I can only make the payments if I work overtime and the overtime opportunities may dry up. My largest CC debt is about $8500. I have learned that some companies are more agressive than others and I have loans with some of the more agressive. If it goes to collections with one of these will they get a judgement against me and attach my wage or property?

 

[Wizard of Laws!]

I am working in California. At this point I am unable to keep up with all the expenses and pay the credit cards. I started working with a Consolidation service but I am wondering what will happen if I default. I can only make the payments if I work overtime and the overtime opportunities may dry up. My largest CC debt is about $8500. I have learned that some companies are more agressive than others and I have loans with some of the more agressive. If it goes to collections with one of these will they get a judgement against me and attach my wage or property?

No. You'll never have to pay. You'll go free. Hey, it's just plastic anyway, right?

Are you originally from one of the Dufus Southern States? You can't possibly be from California.

 

[Ladynred]

Ignore the idiot above.. clearly a troll or some child with nothing better to do.

IF you stop paying, at 6 months of non-payment the accounts will be charged-off - written off as a bad debt. They will go to collections who will harrass you for a while. It is impossible to say who will sue you and how long that will take. Discover will definitely sue, they always do regardless of what you owe. Citibank is very aggressive now and MBNA will railroad you into arbitration.

IF they sue and get a judgment, they can seize your bank account, garnish your wages and sieze any other non-exempt assets you may have. They can also place a lien on your home and even your car.

 

[maxpi]

Ignore the idiot above.. clearly a troll or some child with nothing better to do.

IF you stop paying, at 6 months of non-payment the accounts will be charged-off - written off as a bad debt. They will go to collections who will harrass you for a while. It is impossible to say who will sue you and how long that will take. Discover will definitely sue, they always do regardless of what you owe. Citibank is very aggressive now and MBNA will railroad you into arbitration.

IF they sue and get a judgment, they can seize your bank account, garnish your wages and sieze any other non-exempt assets you may have. They can also place a lien on your home and even your car.

I am transitioning from job to living from trading stocks in a 401k account. I am never selling the house, my cars are all classics which I rebuild continually, it's funny but liens on those assets would be fine, I am never selling any of them. They can't go after my 401k either. The total amount is not enough for a judge to order sale of the house and I need the cars for transportation, judges don't force the sale of those either AFAIK.

I am getting letters asking for some minimal payments on some past due accounts. If I make those will that reset the clock regarding the 6 month time period?

 

[Debt Guy]

Have you considered bankruptcy? BK is not as easy as was once but still worth looking at.

 

[Ladynred]

I am never selling the house, my cars are all classics which I rebuild continually, it's funny but liens on those assets would be fine, I am never selling any of them

Actually, classic cars would likely be considered to be non-exempt assets. IF you couldn't exempt the market value of all of them with the available exemptions from judgment, they COULD sieze them to sell.

judges don't force the sale of those either

Yeah.. they can if you can't exempt them ! The judges and lawyers don't care whether you need a vehicle for transportation, the law doesn't guarantee you can keep one because you 'need' it, not in CA anyway. If you can't exempt it, its up for grabs.

I am getting letters asking for some minimal payments on some past due accounts. If I make those will that reset the clock regarding the 6 month time period?

Not unless you can bring the account current. You could make a $10 payment but that wouldn't stop them from charging it off as a bad debt. Making ANY payment will most definitely reset the SOL though.

 

[Debt Guy]

CA is not especially generous in terms of exemptions for autos -- either in bankruptcy or as an exemption from creditor attachment. My table says the exemption is $2300.

My thought is that a creditor will sue you, obtain a judgment, and then force a sale of the autos.

In that case, you will be better off to sell them yourself. A sheriff's sale will attract the lowest of bids. A trustee's sale would be no different.

Perhaps you should just face the reality and sell the autos? Seems to me you are likely to lose them in any event. If you get after this correctly, you might the able to sell for the best price and negotiate discounted settlements with the creditors -- that would leave you in the best position in the end. Maybe you save the vehicle that is closest to your heart?

Be careful if you decide to transfer ownership of the cars to a related party. A court can order that type of "sale" overturned and reversed.