Help with Law fiirm collecting on Judgement

[Dette]

Have a chase judgement for over $19k, it was filed back in early 2007, they tried to do a wage garnishment but with a child support order they havent been able to, Got a call from someone at a law firm Sidney Mickell, he is trying to collect on the judgement. He says a group of Investors bought the judgement from chase and hired them to collect on it.

Question I Have:

a. How should I handle them?

b. Should I Validate, to confirm they are the owners to collect on it?

c. Should I record all phone conversations?

He said if I don't cooperate they will issue some kind of demand where I need to produce assets and documents and if I fail to appear they will get a warrant for my arrest, come to my place of business and take me to the sheriff station where they will interview me.

He also said they can come after me for anything I own even my watch or small personal items.

He was trying to create fear, but really I am not scared of him, I'm just trying to find a way to get him off of me.

I don't have money to pay him and I also have over 80k in personal debt, irs tax lien on my property, and a whole lot of other stuff.

Any suggestions?

Thanks

[Robert Nashville/Savannah]

I seriously doubt you are going to "get him off of you"; not for a nearly $20K judgment.

He is bluffing about the "arrest" garbage; you aren't a criminal - it would be nice if you had that little claim on tape!!!

Validation is Ok (you do need to know this "law firm" has the legal right to try and collect the debt. but it's alomst a moot point if you aren't going to/can't pay anyway.

Obvously you have some serious financial problems and they aren't going to go away anytime soon and wWithout knowing your all the specifics it's difficult to really offer much advice.

I think it's going to come down to one of two options; either you work with your creditors to begin paying on these debts or you consider bankruptcy (that won't make the IRS go away but may free up enough cash for you to reach a repayment plan with them).

It's surprising what peopel can do if properly motivated - second jobs, new jobs, selling stuff, cutting back on lifestyle, etc. But it's also true that if the hole you've dug is deep enough, you may not have a big enough shovel (income) to get back out of it on our own (which is when bankruptcy may be appropriate).

[LadynRed]

He said if I don't cooperate they will issue some kind of demand where I need to produce assets and documents and if I fail to appear they will get a warrant for my arrest, come to my place of business and take me to the sheriff station where they will interview me.

Yep, it's called a debtor's exam and if you don't show up when you're summoned for one, they can arrest you for contempt of court and you will have to answer the questions in front of a judge.

He also said they can come after me for anything I own even my watch or small personal items.

Yah.. bullhockey.. they can TRY, but 99% of your personal property will likely fall under the CA exemptions, which are pretty generous.

I'm with Robert, do something to pay them or file bankruptcy because that 20K judgment is accruing statutory interest for every month it goes unpaid. It's not going away - it's GROWING !

[StressPot]

He also said they can come after me for anything I own even my watch or small personal items.

Yah.. bullhockey.. they can TRY, but 99% of your personal property will likely fall under the CA exemptions, which are pretty generous.

I agree there would be exemptions, but my question is would you have to file your exemptions with the courts? I think you may have to.

I don't have money to pay him and I also have over 80k in personal

debt, irs tax lien on my property, and a whole lot of other stuff.

I agree with everyone else - have you considered talking to a Bankruptcy attorney?

StressPot

[Robert Nashville/Savannah]

Yep, it's called a debtor's exam and if you don't show up when you're summoned for one, they can arrest you for contempt of court and you will have to answer the questions in front of a judge.

Wow...guess I messed up with my advice on that one didn't I!

I never considered the Contempt Of Court aspect.

[Dette]

Thanks for the replies...

I have given Bankruptcy a thought and it may be an option I am seriously considering and should probably consult with an attorney soon.

I was just trying to hold off as much as possible, i am behind on my mortgage several months, my ex is taking almost 90% of my income due to a paternity matter, have a date next month in court where it should get lowered closer to 40%, The IRS matter is for business tax my business owes, but they have a lien on my home, I have an attorney helping with that, I have over $80k in credit card debt, just had a car reposessed.

There is a lot going on, Don't know if once the collector for the judgement knows my story they may back off since there isn't much they can get if any, and if he pushes me hard enough filing bankruptcy may be the only course for me and they'll get nothing anyways.

I need to call him back monday, since I have'nt gotten any communications in writing from him, I will ask him to send me something in writing, then I will send a Validate letter to confirm they own the debt, I guess I will try to record any conversations and treat him like a C.A. and try to get them on some violations incase I go that route, Was also thinking if I should try to Vacate the Judgement on some technicality?

Any suggestions on what I should say?

Thanks!

[Robert Nashville/Savannah]

You could always just try being honest with him - if he is local you might even consider a face-to-face meeting.

Given what you are going through; he may well just let thigs go for a while to give you time to address everything else - if he has any sense at all he'll understand his place on the food chain.

Of course, that is not a long-term solution.

Long-term you really need to take a hard look at your finance...it may be that you can't afford your house any longer and may need to sll (even if you get the mortgage caught up shortly) or you may need to make some other signifcant lifestyle changes. Banktuptcy may well be in your future although I woldn't jump into it too quickly either. Maybe one or two part-time jobs, maybe a new, better paying job.

Just throwig out ideas..I don't know what might be THE answer for you. I can tell you, however, that I've seen people in much worse shape come back from life blows like this and thrive.

I suspect you can too.

[Dette]

Well I own my own business (a corporation) so I hope that is protected from the personal judgement?, It requires at least 60 hours a week on my part, and then I have my kids 1/2 the time so when I'm not working long and hard I am with them, so another job is not an option, even though I always wanted to get into buying and fixing up homes since I am a contractor, I would love to take advantage of all of the foreclosures and maybe do something there with some partners.

I have cut back in all areas, I have one of those low option arms, and paying the minimum payment is currently cheaper or comparable to renting something else, but I haven't been able to even make that, I really need to contact my lender and try to get on a forebearance or loan modification, until I can get on my feet and the market improves somewhat then sell then, but until by business can get caught up with the IRS that Tax Lien is on there, there is probably $100k or so in equity in the home but I will have to sell pretty cheaply in order to sell in this market.

At least I and my family have good health, I was reading another poster in a similar situation his fiance/wife has cancer and is doing chemo.

I am a very optimistic faithful person and pray and hope and try to stay positive that I can get through this.

Unless the other Creditors start to push for judgements then I may have to file BK, American Express is close to $30k, Cap 1 $8k, B of A $8k, Wells Fargo $8k, and the two Chase Judgements $39k, all of them are with CA's currently.

What else can they do with a Judgement?

A Wage garnishment won't work since I have child support that exceeds 25%, can they go after my checking account?, not much in there just my paycheck gets deposited electronicaly a few hundred a week after the child support is taken out, maybe I should stop the direct deposit and just cash my check and buy money orders to pay bills that way they won't get anythng from there, My vehicle I drive is a business vehicle so they can't take that, they can't take your car I believe unless you have more than one?

Anyways thanks for the advice and opinions and I will keep you all posted.

[divinemadness]

why dont you file bankruptcy???

[brokeinok]

why dont you file bankruptcy???

Kinda wondering the same thing myself... it sounds to me like you are in a hole that your "income shovel" just ain't big enough to dig out of

[momof5]

Look....we all respect you for trying to deal with your creditors. I also understand that you have a faith and pray for a solution....and you often will get answers in places and from folks you never expected and the answer you never expected.

If your faith is keeping you from filing BK - remember the Jews had the 50 yr Jubilee where all debt was forgiven!

Honestly, you are overwhelmed and you have made errors. But that is ok, you can start fresh...and you need to for the children if not for yourself. You are a prime candidate for BK. Once you file, the monkeys get off your back. You can address the paternity issue... take care of yourself and your family....etc. Within a few short years you will be wiser and you will have recovered enough to obtain new credit.

Although foreclosed homes appear to be something you would like to do...you have bigger fish to fry and I would let go of that for the time being.

Good luck to you and yours.

[Robert Nashville/Savannah]

I would not count on your business being protected; if fact in terms of collecting on this judgment, it makes you a juicer target in my opinion - with debts as large as yours they will not stop coming after you and they may well force you into bankruptcy themselves just in hopes of getting something.

If your 60 hour/week business isn’t giving you enough income to handle your debts then maybe it’s time to close the doors on that business and find a job(s) that will. I know that would not be an easy decision; it’s likely that none of the possible options will be easy but you are in a deep, deep hole – it’s time to get out of it and I’d start by taking the phrase “I can’t do that” completely out of your vocabulary for a while and start finding things you can do.

Keep in mind that a bankruptcy (whether it’s one you enter yourself or is forced upon you) treats the symptoms, it does not treat the cause of your financial woes and if they are left untreated, you’ll be right back where you are now and faster than you would like to think. So, even if you file bankruptcy, keep in mind that significant changes will likely still need to be made.

[rmuse00]

After reading this complete thread seems bankruptcy is your best option. Not just for the financial aspect but for your emotional well being as well. I can't imagine what this type of stress is doing to you and your kids. Seems bankruptcy can eliminate some of the stress too.

[rdve]

I filed BK in 2005, and it is not as bad as it seems...and frankly, it wasn't as bad for us, and it appears to be for you! Talk it over with a good BK attorney, read up on the current laws, and go for it once you have protected yourself as much as you can!

[Dette]

Thanks for all of the replies and positive feedback!, I really do appreciate it.

Well he called me today at work and was really tough on me, I told him that I had no proof in writing from him that they own this debt, he said that some company in colorado called CHCH owns it and they have hired them to collect on it, after being rude he transfered me to a manager and he was just as rude and tough on me as well.

They threaten to have me arrested and subpoena to court, will deposition examine me and my employees, My employees are employees of a corporation, don't think they can do that.

He wanted me to transfer him to my payroll department so they can do a wage garnishment, I didn't of course, and I know they need to have a court order for a garnishment.

He pretty much hung up on me and said he would no longer call me that he was done trying to be nice and commuincate with me on the phone.

I guess if he means that he will issue the subpoena for a debt settlement conference?

Sounds like they are trying to scare me into paying them?

In the meantime I will look for a BK attorney in my area to at least talk to them and see if I qualify.

[rdve]

did this slimeball do anything, or just go quietly into the dark?