judgment Tag

29 Sep Can I File Bankruptcy if My Only Income is Social Security?

If your only income is Social Security or SSD, you can file bankruptcy. But you may not have to. If you do not plan on going back to work, you may not need to file bankruptcy because you are considered to be "judgment proof". That means that while your creditors can sue you and obtain a judgment, they may not be able to collect anything from you. Creditors generally cannot recoup any money from your social security income. You should determine, however, if you own any other real or personal property that creditors could get their hands on. It is best to review your situation with an experienced consumer bankruptcy attorney.
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18 Jun I Am Thinking About Turning In My Car …

Turning in a car to get out from under high car payments may backfire. Many people think that a "voluntary" repossession won't come back to haunt them, but any surrender or repossession of a car that does not pay off the loan in full can lead to big debt problems for the borrower. When you buy a car and borrow money to do so, you are taking money from a lender and promising to pay it back in full. That debt obligation has some additional "security" or "collateral" to make it less risky for the lender but whatever the sale of the car doesn't cover remains the obligation of the borrower. In addition to affecting your credit score, lenders will typically sell the car at public auction for much less than the retail (book) value, and then come after the borrower for the difference between the sales price and the loan balance. I often see a "deficiency balance" on car loans for $6,000 - $8,000, or more. When you are trying to get away from monthly payments that you can't afford, these balances can be nearly impossible to pay off, especially when the lender often asks for payment of the balance in full.
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16 Oct If You Are Sued, Don’t Just Call The Creditor – You Need To Take Action On The Suit.

This week I have talked to several people who have said that when they were sued they "called the creditor and worked it out so they didn't have to attend the hearing" but it turned out that a judgment was entered against them anyway. If you are sued by a creditor, you must understand that the neither the creditor nor the creditor's attorney is on your side. While it may be true that they will work with you on a payment plan, that doesn't necessarily mean that they stop the lawsuit. While they are "working it out", they may also be asking the court to place a judgment lien on you, which can be a lien on any real estate you own such as your house., and it can also be the basis for seizure of other personal property or bank accounts to satisfy the debts. In some states, the judgment can lead to garnishment of wages.
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30 Jun Can A Creditor Garnish My Paycheck?

Well, yes and no. Yes, a creditor can garnish, but no, they can't just start garnishing without going through a series of steps first. The first thing that has to happen is the creditor has to file a lawsuit. (There are two exceptions to this first step--the IRS and Student Loan Creditors). You have to be served with the lawsuit and you have time to reply to the lawsuit with any defenses you might have. If you defend and lose, the creditor will ask for a judgment. If you don't respond, the Creditor will ask for a judgment. Either way, the creditor must have a judgment before Step Two.
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