Judgment Proof and on SSDI. Should I Make Them Prove Up, or Just Let It Go To judgment? – Richard
Retired, 65. Lawsuit filed but not yet served by atty. allegedly rep. purchaser of alleged CC debt from HSBC. SSDI sole source of income. 1 car, 1 home (<15K). Am apparently judgment-proof. I think the alleged debt is inflated, but have no money with which to negotiate, anyway. Foresee need for new car w/i 5 yrs. Have impeccable credit w/Capital One which held loan on current vehicle (never missed pmt. in 5 yrs.), so suspect they will car loan again, therefrom. Imminent need for new car is sole concern, not credit rating. Currently hold Capital One CC, also.
Have done legal research. Should I simply let them have judgment; or, should I force them to validate debt ownership, how alleged debt was arrived at and produce copy of original CC appl.?
—Richard
Short answer
If you have the time and the inclination, making them prove up a valid debt does no harm, and being judgment proof is still there as your fallback. The financials you laid out do appear to make you judgment proof.
Key points on this page
- Some debt buyers walk away after a well crafted answer and follow up discovery requests
- Others make a weak attempt at responding, and some, such as Midland Funding, keep up the pressure
- Filing the answer is how you find out which kind of collector you are dealing with
- Make sure your SSDI is the only money deposited into that bank account, and you should be fine there
- A judgment can still result in a lien against your home, which gets paid when you refinance or sell if there is equity
- Which collection law firm is suing, and who they are suing on behalf of, shape what happens next
If you have the time and the inclination it certainly would not hurt to make them prove up they are collecting a valid debt. You can fall back on being judgment proof in the end.
In some instances debt buyers will just walk away after a well crafted answer and follow up discovery requests. Others may make a lame attempt at responding. Others, like Midland Funding currently, will keep up the pressure. Why not belly up to the bar and see what type of collector you are dealing with?
Given the financials you laid out, you do appear to be judgment proof.
Be sure that your SSDI is the only money deposited into your bank account and you should be okay there. Realize that a judgment could result in a lien against your home, which would get paid once you refi, or later sold and where there was equity.
Who is the collection law firm doing the suing?
Who are they suing on behalf of?
Let me know in a comment reply below and I may have some additional feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
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