A default judgment was given about six months ago for 8999.00,,last month they sent a letter about arranging a settlement,,,,I called them and told them I lived off of SDI and could only attempt to pay it off it it were a low percent of the total,,,,they told me to call back in a week and they would talk to the original creditor ,this was a law firm,,,,I called them back in 2 weeks the sad they have closed the case and would no longer pursue collection actions,,,,,,I would like to know what this means,,,as far as the judgment and anything else I should know,,,,,My situation is a have a couple of cheap vehicles under 3000 and an old double wide on land worth about 22000 total and live in Georgia,,,disability is my only income,,,,thanks for any clarity on this matter
They can record their judicial lien, and sit on their judgment. You should consult a bankruptcy attorney, and explores your options with filing a Chapter 7 case.
People on SSDI, SS and Pensions are considered "Judgment Proof", i.e. their assets are not collectible. That is why they closed your account and dismissed the case.
I am not your attorney and am not giving legal advice.
Although you are almost certainly "Judgment proof", don't take any chances and at least consult with an experienced GA bankruptcy attorney. Use AVVO's Find a Lawyer tool to select a qualified attorney. Good luck. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
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Some creditors will stop actively trying to collect if you have no wages to garnish. However, they can place a lien against your house and renew it every 7 years. They could also sell the debt to another creditor who may be more aggressive. In that case, they could foreclose on your house if it is paid for. You sound like a good candidate for a chapter 7, where you could get rid of the debt and not have to worry about it ever again.
The above information is general in nature. In order to obtain more specific legal advice upon which to base your important decisions, you should consult with an attorney in person and retain one of your choosing. Robert M. Gardner, Jr. Gardner Law Firm
This goes to show that collection lawyers are not all bad. When you showed that you were on Social Security (which is exempt from garnishment), the collection firm decided that it would not waste time and effort trying to collect. When the firm said that "they have closed the case and would no longer pursue collection actions," I would interpret this to mean that they will not take any further action (such as a garnishment).
The law firm has probably already filed a FiFa (this is the document that puts a judgment lien on any property in the county where it is filed). I would not interpret the firm's statement to mean that they would release the FiFa. So if you own land in the county where the law suit was filed, then you or your heirs will have to deal with the judgment before you can sell the property. But as long as you don't want to transfer the property, you won't have to deal with the judgment.
As far as the vehicles and double-wide go, mainline collection firms never attach items like these.
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