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CHECKING ACCOUNTS ...are they safe from Collectors?


catfish
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A few questions, Please help answer!

I have been out of work for two years and I'm in Credit Card debt up to my ears. I get letters from collection agencies every week and phone calls but I have avoided them all. :oops:

I can not pay I'm broke and below the poverty line at this point.

I do not own a house I rent

My car is 10 years old.

Are checking accounts safe from debt collection in Michigan :?:

Are Visa Check cards tied to a checking account safe to use or will they see what your buying? Could this be frozen by collectors :?:

I use paypal to buy things I need from time to time and its tied to my checking account and the Visa debit card. Could this be frozen by collectors :?:

It has been over two years since I have paid and the statu of limitation in Michigan is 6 years so I have 4 more to go, I guess, but I just would like to know if my checking account is safe from collectors :?:

Inquiring for any help. 8)

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Thanks for the reply :!:

I did receive a certified letter notice in my POB today... :shock:

I don't want to pick it up because I think it is from a lawyer that has been calling about time is running out and action will be tacken...I have never spoken to him it just goes to my answering machine.

Should I pick it up or just let it go back to whomever is sending it :?:

I don't want to open a can of Worms on myself.

If someone is suing me and I don't officially received the letter and don't show up and judgment is charged against me then I guess the judgment will last 10 years?

I don't ever plan on paying because I totally broke at this point...

What is best to do :?:

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You are probably judgment-proof simply beacuse you have no assets to claim.

I don't have all the details from your post, but based on your brief account, I suggest you seriously consider your options with bankruptcy before the laws change. The new laws that the card companies are trying to push through Congress would make it so unsecured credit card debt would have to be paid back under many cases.

If you are sued, a collector can freeze your checking account pending a court order allowing them to take funds. It doesn't sound like you are in a position to risk that happening.

Without a court order, a collector cannot see your transaction history. I doubt a court would grant such a thing unless the judge suspects you are trying to hide assets.

Try not to get on the receiving end of a lawsuit. If you loose (even if you don't show up), they can have the judge order you to appear for a creditor examination where you have to disclose where all you assets are or come from. Failure to appear at a creditor examination ordered by a judge can mean jail time. So don't get yourself there.

If BK is an option, filing it will stop the calls and any action against you. Any collector violating the bankruptcy stay gets fined or jailed by the judge.

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I don't even have the funds to file bankruptcy... :(

my checking account never has more than 200 in so that would be the most they could get...

I really don't have much of anything to get.

I saw on TV that the new laws where even if you file bankruptcy they could still make you pay a portion of that debt back over time (5yrs) or so... this is that new law your talking about. Why file then?

My point is should I just not pick up any certified letter because if I sign for it them something could start against me :shock: What to do, it is so confusing at this point :?:

They only have my PO BOX address so they have know idea where to mail it to a home address unless they do a public search, I guess.

There certified letter pick up slip says from some discret legal :?

The phone they call is not in my name as well.

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Not picking up the certified letter will NOT stop a judgment. In fact, if it IS a lawsuit, ignoring it will GUARANTEE that you will LOSE by default ! Go get the letter and deal with it. You may end up with a judgment anyway, but you might also be able to work something out.

As for the new law - its NOT LAW YET ! IF it gets signed next month by the President, it will be SIX MONTHS before it actually goes into effect, so you still have time to file for bankruptcy. Go to LEGAL AID, they may be able to help you. You could also try filing without a lawyer, the filing fees are $209, you'd still have to pay that.

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catfish, don't hide in fear. The economy has put you in the position you are in. Many of us have been in simular situations.

Take these guys on full force. Use the rights afford to you under law, do lots of research and such. It sounds like you have a little more time than many people and you can put it to good use fighting for the rights of all consumers. Every time a consumer stands up to these guys they have to take notice. If you find a CA in violation and threaten to sue or do sue their insurance company takes notice which means the insurance company leans on them harder.

Use the processes discussed here and when you find them in violation hit them back as hard as you can.

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catfish, don't hide in fear. The economy has put you in the position you are in. Many of us have been in similar situations.

Thanks KentWA for your words of inspiration :!:

I really think the Credit Card system is nothing more than a shell game, they are able to change the rules at will and due you in for no reasons.

All CC issued by Banks are nothing more than a Loan Shark loans...

I saw a inside look at the CC industry on (CBC) Canadian Broadcasting Channel, which pretty much shows how they are surgically identifying peoples ability to pay...and if your getting to deep they up your interest rates. This is really wrong because you might have had a 8% when you bought something and they decide to change your rate to 19% and this will be charged on any past revolving balances.

How are government can allow this, they are causing millions to go bankrupt...what a scam. I had a FICO score of >> 720

2 years ago and now because of the economy and job loss I have a score of >> 520

I really don't see how I can ever recover in my Life Time from the CC SCAM industry...If I land a new JOB (just over broke) which will be at a lot lower pay with this new world economy... how long before they start attacking my wages?

With the New law coming in there really is going to be no way for anyone to shake them from your past...I have seen several of my friends file BK and have lost there homes... :evil:

8) are the only answers

S. Ormans had a special on CBC, funny how all these programs are not on the local channels???

She was at a college forum and was recommending the college use there CC to finance them selfs while taking low paying entry level jobs and to work 60 hours a week, be early..stay late...get noticed...for the bigger salary? Like what are the odds of that? Your lucky if you have a job and they can afford to pay you period.

What a pipe dream she's promoting. college graduates are already in debt up there gazuba in college loans and the average CC is 20,000 when

graduation comes as well. Lets face it there probably 30 fighting for the 1 job in there field...

So her plan is riskier then playing the lotto, millions will lose to this type of malarkey.

I would like to see the CC industry brought to there knees.

Venting

Catfish

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Re: Changes in the bankruptcy laws. It will not affect most people who make less than the median wages in your State. In California that's 50K. But the final bill has not been sent to the President yet for his signature and it won't take effect for another six months when he signs.

Kerry wouldn't have signed this BK bill just like Clinton didn't!

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The problem is, that 'median' income is based on Census Bureau and IRS input. In CA, that may be 50K OVERALL, but it is further broken down by COUNTY. If you're in a county with a low median income, and you make more than that just because you live in that county.. guess what - you can't file Ch 7.

This bill is going to hurt more people than the measly 10% the supporters keep spouting about - its going to hurt LOTS more.

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LadynRed

That's the way I see it to

So one can assume that the CC industry will crush are Economy because

If you get in the trap (just about everyone) and can't pay off you could possibly :

1. lose your JOB less money for the Economy

2. have a very hard time getting hired ...most companies pull CC reports these days (should be illegal does not show your skills)

3. lose your living status (Homes, family, friends, loved ones)...

4. and so the Gap widens between the Wealthy and the poor, middle class is fading away (might just about be gone)

5. You can fill it in from here...

Oh well, its humble being poor they say.

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While I agree with your frustration catfish, I place the blame squarely on me for getting ME into this credit mess. I am paying the price, but never again. They fooled us once and we got screwed. Whether you agree or not with state usury laws and the new BK bill, they are here to stay. Let's not let them take advantage of us again!!

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Whether you agree or not with state usury laws and the new BK bill, they are here to stay. Let's not let them take advantage of us again!!

Individual State usury laws are irrelavent these days. Thanks to a US Supreme Court ruling about a decade ago, companies can export their own State usury laws to other States. So unless there is a Federal usury limit or all States have the same usury caps, there will always be a horbor for those who will gouge the consumer.

By the way, you can blame the State of Oklahoma. They are the first State to drop their usury limits in order to entice the credit card companies to set up shop (read as: bring jobs) in their borders. Prior to that fiasco, the usury limit in most States was prime+4% (or about 8%).

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Don't get me wrong...I'm against the new BK law. I applaud Clinton for not signing it back then. The L.A. Times had a great article showing how credit card companies are making a tremendous profit. Late fees and over limit fees are now $35! Our politicians are now owned, democrats and republicans, by the lobbies, and the credit card lobbies have finally won.

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Yes, that is exactly what was on that " An inside Look at the Credit card Industry" on the CBC channel...I think it was put together by the PBS station. you could probably look it up. :wink:

here it is, it was on Frontline. You can watch it on windows media player...

pbs.org/wgbh/pages/frontline/shows/credit/view/

add www. to the front of it or copy paist in address

Watch section Three first and be ready to fall of your chair :shock:

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Individual State usury laws are irrelavent these days. Thanks to a US Supreme Court ruling about a decade ago, companies can export their own State usury laws to other States. So unless there is a Federal usury limit or all States have the same usury caps, there will always be a horbor for those who will gouge the consumer.

Hmmmmmm sounds like they have total freedom.

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From what Ive seen/read/heard of the bill, the "means test" is there to determine if you can even FILE bankruptcy.

If you fail the means test .... income too high, and/or too much in assets... then you CAN NOT EVEN FILE.

So if you have low assets and income below your state's "median" then you will PASS the "means test" and be allowed to move ahead to file bankruptcy. BTW, you still dont pass GO or collect $200 :roll:

By "not even file" I mean you cannot seek protection under bankruptcy. You will suffer forever with interest accrueing and fees compling.... until you are dead. Enjoy.

So "sell EVERYTHING, ship the proceeds to offshore acct's, quit your job, count to 6month's and a day, then file" is about all we are left with out of our up to this point CONSTITUTIONAL RIGHT to protection under bankruptcy.

This is all part of the New Republican Party creedo. They are from this day known as The DICKENSIAN Party.

"Are there no prisons? Are there no workhouses? If they be sick, then they should go about dying and reduce the surplus population."

________

Dodge Spirit

Edited by uwackme
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That's not true. The 'means test', which is totally Bullsh*t, is to determine whether or not you can file CH 7. If your income is above the median, you will be forced into a 5 year Ch 13 - and its not going to be the same type of Ch 13 that you could get today. Your ACTUAL living expenses will be virtually IGNORED and you will be forced to adhere to the IRS Collection Standards 'budgets', which are extremely bare-bones. You might as well be under house arrest for 5 years and many families will be forced to move to smaller places to shoehorn themselves into the IRS's outrageous budget limits. Forget cell phones, forget cable tv and internet, forget EVER going out for ANY entertainment and you might as well go on a diet now, even the food budgets are tight.

You are also going to be REQUIRED to go for 'credit counseling' and if you don't go, you WILL be prevented from filing at all. All the deadbeats must be taught how to handle money, ya know. :evil:

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The CC companies deliberately issued credit to those who have all too great a chance of falling behind on payments and/or outright defaulting!!

Believe me, these "legal loansharks" saw it as a way to MAKE MUCHO DINERO through high interest rates, penalties, and stupendously high fees!!

:shock:

The CC companies are ROLLING in "DOUGH"...their fees/interest rate setup GUARANTEES that!! The "deadbeat" customer, in fact, is their bread and butter!! The BK law changes are simply an attempt to keep their...uh...profit center going for as LONG AS POSSIBLE.......

ideally (from their viewpoint) FOREVER!!! :mad: By forcing more bankrupt debtors into Chapter 13, they will only fatten the bottom line, whether the Ch 13 plans succeed...or not!!! :evil:

That's the game plan...and...it looks like we, the consumer, are going to be "drop kicked" through the creditors' "goalposts" and "spiked" to death!!! :twisted::shock:

We may, in many cases (not all, certainly) have brought some of our troubles upon ourselves...but we DON'T DESERVE THIS!!!

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I assume you watched this FrontLine special... :shock:

here it is, it was on Frontline. You can watch it on windows media player...

add www. to the front:

pbs.org/wgbh/pages/frontline/shows/credit/view/

Watch section Three first and be ready to fall of your chair :shock:

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