Can you help me avoid bankruptcy with the judgment and credit card debt that i have?
I currently have 3 judgements against me, and i know sooner i will get more.. i owe about 50K in credit card debt including the judgements, my question to you is I really do not want to file for bankruptcy and i want to settle with all this as soon as possible. but would you be able to negotiate with the 3 judgements i have and settle with the rest for only one month payment? less than 700.00 a month? i will be able to do that and get all this creditors off my bank acct and checks. do you think you can help me? if so send me some information so i could start this as soon as possible.
Can you help me have one monthly payment including the judgement that i have? Can I avoid bankruptcy this way?
—lala
Given the background information you provided I would suggest one of two courses of action to manage the judgment debts along side the other unpaid credit card debts you have.
First, speak with a bankruptcy attorney and find out if you qualify for chapter 7 bankruptcy where the judgments and other debts can be wiped out. If your paycheck is being garnished right now as a result of the judgements, the garnishment would stop.
If you cannot qualify for a chapter 7, consider a chapter 13 bankruptcy. In the chapter 13, garnishments would stop and your money in a bank account would be protected from a levy. You would be on a monthly payment, maybe even 700 a month you are seeking, for either 3 or 5 years (probably 5), while on the chapter 13 repayment plan.
An alternative to bankruptcy using a debt settlement approach would not make much sense.
Assuming you are being garnished right now, and given that you can only have one active garnishment at a time, allow the garnishment to continue and use any leftover money from monthly income to save up and start offering settlements on the accounts you were not sued on. This rarely works because garnishments can be up to 25% of take home pay. That does not leave enough left over after other monthly expenses to save up and settle with.
You could also look for whatever other sources of money you can tap in order to fund settlement offers more quickly.
You would circle back and settle or pay off any judgement debts last, leaving the judgment you are being garnished on for last.
Your bank accounts are at risk of being levied for judgment debts. You would have to think about creative ways to bank until the judgment debts are settled.
If any of this sounds plausible to you, you are welcome to contact us for a one on one consultation so more details can be discussed. fill out the consultation request form and submit. I would even suggest entering “consult with Michael” (that’s me), in the “additional concerns” section of the consult request form. That will get the form over to me so that I can consult with you personally.
You mentioned you want to avoid bankruptcy. Are there specific reasons you want to avoid it? Have you spoken with a bankruptcy attorney? If not, start there and only afterward, if you still want to avoid bankruptcy, submit the consultation request. Even if I came up with a strategy to help you avoid bankruptcy, because of how far your situation has advanced, I would not work with you unless you had spoken with an attorney and learned all the details you need to evaluate bankruptcy first.
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.
I am being sued by cavalry spy for a debt that I stopped paying in 2012 due to financial hardship. With limited funds, I stayed current on my mortgage, vehicle and student loans. I had a Pre trial hearing today that felt like David and Goliath. I think I need to negotiate a settlement but I have no idea what type of offer they would accept at this point. It is shady junk debt buyer stuff but the judge said if I borrowed money, I have to pay it back. Can you help me work out a settlement? I am in NM and I am finally barely back on my feet financially but live paycheck to paycheck. Thanks for your advice.
Fill in the talk to Michael form in the right column. When I see that I will email you to set up a phone consult, and we can go from there.
My wages are being garnished by capital alliance financial LLC. I do not know what they are garnishing me for. How can I find out?
The garnishment order served to you and your employer should have contained information about the judgment so start there and/or search your name in your county court records.
You can also call Capital Alliance Financial and get more details about the collection action from them.
Hello,
My father in law is a 86 years old, soon to be 87. He was served a summons and complaint about a old credit card dept that he defaulted on. The total with interst is around $9,000. He lives on social securty and no additional income that I am aware of so there is no way he could pay this bill. I know he needs to respond to the court. How sould he address this situation?
Thanks
G
Gary – There are different ways to approach the situation your father in law is in. With more details I would be better able to offer feedback.
Who was the credit card with? Is that the bank suing (listed as plaintiff), or is there another company name listed (debt buyer)?
When was the last payment made on the account? Who was that payment made to?
What state is he in?
Are their assets to be concerned about, like a home that has equity built up?
It is generally a good idea to respond to the lawsuit by filing an answer to the complaint prior to the deadline (usually 3 to 4 weeks from the date served). This will preserve most options for dealing with the situation, and perhaps open up more (depending on the answers to the above questions).
If you can post more details about the situation I will reply with more meaningful feedback.
Thanks for such fast feedback. The credit card was opened up on 4/20/1992 with Citibank. The last payment my father-in law made was in July 2007. When he open the account he lived in Florida. At that time I lived in Tenn. After huricane Ivan he moved from Fla to Tenn. Since that time I took a new job and moved to Michigan in 2006. My father in law soon followed. The lawsuit is with a debt buyer Capital Alliance Finacial, Inc. He does not own a homne or car, rents an appartment. Summons was served on6/22/2013 but was issued on 4/23/2013. Summons states that we must respond within 21 day.
Thanks for your help
G
Gary – Focusing on the math of the situation here is what the options look like:
Try to settle with Capital Alliance Financial for half of the balance now. Getting that done is slightly nuanced now that they filed suit to collect. Making an offer to settle without the correct approach would be seen as a sign of weakness. But I can walk you through that right here in the comments if you opt to go this route, or you can work with a pro and get one on one guidance.
File an answer to the complaint with an eye on either settling for a better savings, or getting the lawsuit dismissed. You really should work with an experienced debt collection defense attorney on this. There are not that many around the country, but I can refer you contact info for some nearer you if you email me the city you are in. The cost for working with the right type of attorney on this would likely be less than settling at half the 9k debt they are collecting. That would likely be the case whether you defend to dismissal, or defend to the point where a better settlement is negotiated.
File chapter 7 bankruptcy. It sounds like this would be a no asset chapter 7. National average cost for chapter 7 is around 1800, but this would likely cost several hundred dollars less. The debt, even if reduced to a judgment, would be eliminated through the chapter 7.
Do nothing and spend no money or effort fighting the collection suit. If the only income is social security, and there are no real assets to try to go after (non exempt collectibles etc), in order to collect, your father in law is judgment proof. He would be able to file bankruptcy at any point later and get rid of the collection.
Those are the realities I see. Post any follow up questions or concerns and I will add more thoughts. I am not on a normal work schedule for the next couple of days, but will still be posting replies and checking email if you want the attorney referral.