I received a summons that I am being sued by my credit card that I haven't paid in about 1.5 years. I was working when I originally had the card. My only income is Social Security retirement, my house is homesteaded, and my car is worth $7K at most. I have no other assets, and occasionally have to overdraft my bank account as it is. I cannot afford to repay my credit card debt. I have a hard enough time paying utilities, mortgage, and basic necessities without aid from my children. Should I contact the lawyer and explain my situation? I doubt it would be worth their time and additional expenses to pursue this further.
Chapter 13 Bankruptcy Attorney
Basically, they don't care if you are judgment proof at this time, you may become wealthy down the road or win lotto or lottery later. The attorney who is suing you is being paid and he needs to justify some action. However, a simple letter from you may put them on right path. But if they are suing you, and you are not contesting it, they may get a free hand in getting a default judgment which can be renewed every six years. Think about all the choices. Our office can give you a free in-house consultation. There are other good attorneys on this board also. One more thing, there is no automatic assumption of "judgment proof". This status would come after the execution of judgment takes place against you.
Only see a licensed attorney before you make any decision. This answer may not be perfect in any given situation. However, more fact may be required by your local attorney. If you are in Las Vegas, you are welcome to send your questions regarding Chapter 7, or 13 to Attorney Malik Ahmad at Malik@lasvegaslawgroup.com or www.fastbankruptcynevada.com or by calling (702) 270-9100. In many cases, we do not charge initial consultation fee.
Chapter 7 Bankruptcy Attorney
So let's say you follow through with your plan. Do you really think that the creditor's attorney will believe what you tell them & say "Oh, it's ok, then we'll drop the suit"? Of course not, creditors attorneys get calls like this all the time & most of the stories are total lies. Their job is to obtain a court judgment against you, record it, and then down the road when you need to clean up your credit, or you get back on your feet, you will either voluntarily pay or they will start attaching your bank account or seizing any other assets they find that aren't exempt. Or they will wait until you die and file a claim in your probate estate. The attorney gets paid for filing the case & getting a judgment. Collecting the judgment is usually someone else's problem. Hope this perspective helps!
Chapter 7 Bankruptcy Attorney
Judgment Proof or not, never let a creditor get a judgment against you without a fight. You should see a bankruptcy / debtor's rights attorney to get some simple advise that will bring the creditor to the table and negotiate the debt.
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Debt Collection Attorney
While I agree with a lot of what my colleagues have said, I think you should try contacting the law firm. Some law firm debt collectors do only get paid when they collect. If that's the case, they won't want to pay filing fees to obtain a judgment they won't be able to collect.
You also need to answer the complaint to prevent a default judgment. Sometimes that alone will be enough to deter further collection. Most collection law firms deal with such high volume they don't have the time to actually litigate a case.
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