|Question:||QUESTION: Hello Bill. I received a letter from an arbitration company telling me that a civil lawsuit from Discover card is on its way regarding some credit card debt. We don't deny the debt and paid our bills until we ran out of money. My husband and I have been unemployed for a few months now but we are actively looking for work. The only asset we have is some computer equipment and a car we are still paying (in other words, it still belongs to the lender.) We have a couple hundred dollars in the bank which we are using for food. Our situation is desperate and we have told the collection agents so but to no avail. I guess they have heard similar stories so many times from so many people.|
The company sending the letter even mentions the civil suit by number so I will go to the courthouse tomorrow to learn how far along the civil suit is.
I read your comments posted on your website and most likely, in civil court, Discover card will win because we don't (and never have) denied the debt.
My question is: If I don't have a job and virtually no assets, what will happen after the judgement is entered against me?
Your response is welcome and greatly appreciated.
ANSWER: What arbitration company did they use? NAF? It isn't because you have never denied the debt that they will win. And you want to know what will happen after the judgment is entered against you? Next they will probably go for an assets hearing and force you to go in to court and tell them where you bank, where you work and all about your assets, income and the like. They can and probably will grab any money you have in your bank account and you will go to the store one day to buy groceries and you won't have any money in your bank account to pay for them. Count on that and keep your bank account drained down to nothing or next to it. Then one day you will get a job and find out that your check has been garnished too. And just what do you mean by "virtually" no assets? Now then, since you have already assumed that you probably can't win in local court then maybe you would do well to learn how to beat up on them in federal court. But on the other hand, don't forget to tell me what arbitration company they used because that can be the key to keeping them from getting a judgment in the first place. I wouldn't give up on winning in local court just yet. Maybe all isn't lost just yet.
---------- FOLLOW-UP ----------
QUESTION: Hello Bill,
Thank you for reply. I'm grateful for the information you provided. It helps a lot. I was afraid but thanks to you I am learning about this process which is new to us.
WHAT ARBITRATION COMPANY DID THEY USE?
The arbitration company turned out to be a scavenger agency trying to "help us reduce the debt" for a fee. I went to the courthouse to check if the case was active and learned there is a hearing later this month.
WHAT DO I MEAN BY VIRTUALLY NO ASSETS?
We don't own a home nor do we have a mortgage. We are paying a car which is our only means of transportation. We incurred the Discover card debt to buy a printer, a computer, and some computer accessories so my husband could start a business. We have been unemployed for a few months now. The money we had saved was used to pay bills until the money ran out.
I assumed we could not win in local court because I read all the answers you provided in your website. Specifically that 94% of the cases brought to court are won by the credit card companies because the judge only cares if the debt is valid. While at the courthouse I went into the court room and spend a few hours listening to the cases presented that day and all the cases before the judge went very rapidly. Of the 30 cases before the judge that day all 30 were won by Chase and Capital One. The only case that required postponment was a man who filed for bankruptcy. It seems the only solution available is to file for bankruptcy. We don't have the funds to pay a lawyer for bankruptcy nor are we well versed in legal proceedings. Denying the debt will only delay the inevitable.
This is the reason why I decided to contact you. You seem to know a lot about the law. Any information you could provide will be greatly appreciated.
|Answer:||I'd advise you to start learning by checking out some of my comments at which is a links page leading to many other docs pages which I and others have written. There is a great deal of information in those links that will be helpful to you. I'd like to get a look at the papers you get from the courthouse. You can scan them into image files and send them to me at email@example.com or you can also copy them then redact all the personal information then scan them and upload them to your own Google Docs page and either email me the links or post the links here. It is not necessary to file bankruptcy at all. Doing so is very expensive, time consuming and the results are usually pretty devastating in many ways. The only way it is worthwhile is if you have a huge amount of debt and a great deal of assets which are still insufficient to pay off all that you owe. I'd say that if you owe less then $50,000 it probably won't be worth filing BK. I wouldn't worry much about smaller debt because you can easily make those and resulting judgments go away by catching them breaking the law and filing one or more federal lawsuits against them for those violations. That's what I teach people how to do as well as how to do battle with them in local courts. Fighting in local courts is well worthwhile even if you end up losing which, as I predict, is probably inevitable. That is because they always violate federal law giving you grounds to take them to federal court and make it all go away. It really isn't all that hard to do. Just takes a bit of time and effort and you will learn very quickly how to win even though you might lose at local court. Again, I'd like to get a look at the court paperwork because the statement you made about some outfit ostensibly trying to help you and now filing a lawsuit against you is intriguing to say the least.|