Hello, State: NY I am comming up on 6 months for several credit cards with varying balances. Some $5000.00, some just a few hundred. The CA's have been more aggressive lately with phone calls and I am trying to figure out the best way to deal with them. My problem is I have no money to pay them at this time and no cash to negotiate a deal. I am strictly in survival mode, paying for housing and food. I have tried to get on a payment plan with several and some have said OK, but Cap one and Disc business will not work with me. Global is one of the CA's My question is if the creditors take me to court does the judge decide if you are even capable of paying at this time. The reason I am in this mess is because I lost my job and up until that time, 6 months ago, my bills had been paid on time as is reflected in my credit reports(just to show I am not a chronic "non payer"). Was wondering if the judge would see my small income that will not even cover my living expenses and say I am not collectable at this time. Also, I have a tax lien that the IRS is not currently collecting on because of my financial situation. Will the creditors see that lien and not bother to go to court? In other words would they know they would have to "get in line" and see it as a waste of time? Final question, Can a CA garnish a credit union. Wasn't sure if that works the same way as a bank? Thanks for reading this long post and any insights appreciated Calla
If you appear judgment proof, there is a chance your creditors will choose to fight their battles elsewhere. However, they could still sue you, receive a judgment, and wait until a future time when they can garnish your wages, etc. Basically, what I'm saying is your current financial status won't necessarily stop the process if they really want to come after you. Judgments can stick around for a VERY long time. Also, I don't see why a CA with a judgment couldn't garnish a credit union just like they would a normal bank.
Are your total debts owed more then your income at this time? If the amount owed is more than what you have to live on you may want to file a Chpt. 7 BK. and then re-group once you get back o your feet.
In my experience, Capital One is heartless and will sue you for the money. They will probably sick one of Howard Lee Schiff's offices on you and hang around for the judgment ... 20 years if need be. If you go to court, however, you can talk to the representative and show that paying would create an undue hardship for you. Most often, the rep will acknowledge this and hold off on garnishing. He will tell this to the judge. The worst thing to do is ignore it. You can work it out without a judgment. Re: garnishing a credit union - works the same as a bank. Move your money if you're concerned.
I owed 0ver 10k to cap 1 and never did get sued, I even now have 2 credit cards from them. It's been 8 or 9 years now.
OK, let me rephrase that... in the last few years Capital One has become nuts and will sue everyone - even if the cost outweighs the debt.
