Hello,Looking for some kind of advice.The sherrif's dept.served me w/ a summons today at work.Court date is set for 11/18 this month.Filed by Mcnearney & assoc. on behalf of HFC for a unsecured line of credit that i had defaulted on due to a job loss & could'nt make the 350.00 monthly pymt. on.With all the late fees & attornry costs added it's up to almost 20,000.00.Did rec. valadation from them,copy of orig. agreement from 1989.Looked up naca lawyers but none even close to me.Am i dead in the water?.Am trying to make some settlements w/other accounts that are smaller,but did'nt think this would happen so fast.Still can't afford to pay this either.If they win the case what can happen,garnish wages ? or what else.I am worried sick over this & scared of what can happen.Any advice on where to look for info,who to talk to or any other help would be greatly appreaciated.Also there is no kind of legal aid in town.Thanks for any help or advice.
When was the date of last activity (the last time you made a payment), what state do you live in, and what else did you recieve as "validation.?" Those pieces of information are really important to answer for the board. Do a search on this site under summons, but I believe your course of action is to file a response tomorrow basically stating you do not believe you owe on this account, and then ask for a 30 day continuance to buy yourself some time.
Also, if you are under threat of similar action by numerous creditors, it might be time for you to consider filing BK. Call around tomorrow and set up consultations with 2-3 differnet attorneys - the first meeting should be free. Tonight, make a list of all your expenses, all your debts (including defaults), and all income and asstes with fair market value, and take that to your meetings. If you file before the 18th you will receive an automatic stay and the suit will not be allowed to proceed. If you do decide to look at the BK route, just be careful and double check the attorneys' advice before you decide who to use. In your case, depending on what assets you own, it sounds like a BK 7 would be the best alternative, but BK 13 are more profitable for attorneys (although also a lot more work) so some of them will try to steer you in that direction).
Not all states allow your wages to be garnished. Here is something I found to look at. In my state (Texas), 100% of my wages are exempt from garnishment (unless it is for child support). http://www.edebtexchange.com/state.asp
In most states the amount that can be garnished is between 10 - 25% of you wages usually the first $150 is exempt. Some states do not allow garnishment as other posters have mentioned. They can also go after any bank accounts you have, and put liens on any real property you own. They could also get a lien on any cars you own, but it is doubtful they would do this if there is already an outstanding car loan since they would not be the first lienholder on the title. What is most important is the SOL for collecting this type of debt in your state. You must find out what it is, and you must know when you made your last payment before going deliquent on the loan. You said they send a paper from 1989?? what were the terms of the loan?, and when was the last current payment on it?
***They can also go after any bank accounts you have, and put liens on any real property you own.*** Check for your state exemptions. Just like you have exemptions in a bankruptcy, there are also exemptions for garnishments, judgements and other things. If you are under that exemption cap, then you are basically "Judgement Proof". They can't get blood from a turnip.
The last pymt.was Jan.2004 that i made.Since that time i went thru all the calls they made & told them i wasn't refusing to pay but that that i did'nt have it to pay,They did'nt want to take any less than a normal pymt ammount.Then the calls stopped & it went to attorneys Mcnearney & assoc.When i got there 1st letter I sent val.request crrr & got a copy back of orig, signed app.+ a comp.history of pymts.Then never got a call or any other papers in the mail for any type of settlement offer,they went srtaight to serving a summons.Any way to get a continuance on this thing ? I am in Mo. & did talk a lawyer in another town that could'nt help that far away but said garnishment in Mo. is 10% if married & 25% if single.I am single but still do not bring home enough to pay for essentials in a month.
The last pymt.was Jan.2004 that i made.Since that time i went thru all the calls they made & told them i wasn't refusing to pay but that that i did'nt have it to pay,They did'nt want to take any less than a normal pymt ammount.Then the calls stopped & it went to attorneys Mcnearney & assoc.When i got there 1st letter I sent val.request crrr & got a copy back of orig, signed app.+ a comp.history of pymts.Then never got a call or any other papers in the mail for any type of settlement offer,they went srtaight to serving a summons.Any way to get a continuance on this thing ? I am in Mo. & did talk a lawyer in another town that could'nt help that far away but said garnishment in Mo. is 10% if married & 25% if single.I am single but still do not bring home enough to pay for essentials in a month.Will they ever talk to you about a settlement or pymt.arrangements for less before you go to court?even if they win a judgement how can they get anything if you don't have it ?Any other options here except for BK?
Re: Re: Summons from Household finance As long as you make above minimum wage they will take 25% of your salary. You would have to go to court and prove to a judge that you can't afford for them to take 25% of your take home pay and maybe he will order al lower garnishment amount. Also perhaps you can make a settlement with the CA at the court before the hearing
Re: Re: Summons from Household finance Thanks for the advice.Is it worth calling them before the court date to try to make settlement arrangements,or do they think they have a better chance for the whole amount at court ?Have some other charge off accnts and trying to make settlements w/some other oc & ca for accnts w/smaller amounts.After coming this far is it still worth filing BK for this i account ? Thanks
Re: Re: Re: Summons from Household finance Sure it is worth calling before the court date to try and work something out. You should put it in perspective for them. By this I mean let them know that you will settle with them and they will get a significant lump sum or - they can go to court, get a judgment, get a garnishment order, then you will petition the court for a lower garnish amount and they will get money a little bit a a time, or - after they get a judgment, you just might be forced to declare BK in which case they will get nothing! BTW as far as BK, it's not worth declaring for 1 account! (But they don't have to know that)
Re: Re: Re: Summons from Household finance Thanks pd11604-Is there a general percentage amount they usually will come to an agreement on & will they generally take pymts. on that or do they want it all up front ?I guess it's still worth the call to see what they say.What procedure is there to file a continuance on the summons for the court date to buy a little more time ? Thanks
Re: Re: Re: Summons from Household finance Thanks pd11604-Is there a general percentage amount they usually will come to an agreement on & will they generally take pymts. on that or do they want it all up front ?I guess it's still worth the call to see what they say.What procedure is there to file a continuance on the summons for the court date to buy a little more time ? Thanks
Re: Re: Re: Re: Summons from Household finance As far as percentage they will try to get as much as possible...i'd say they might settle for 60-75%, but it's really up to them. If they want it all at once they might settle for a little less. They might take a partial lump sum and agree to payments on the rest. As far as continuance procedure, the best bet is to ask the court clerk what the procedure is
Re: Re: Re: Summons from Household finance Since your credit is not in the best shape (I do not mean any disrespect) why don't you consider a chapter 13? It is only on your record for 7 years. It might be a healthy solution for you?
