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Playing the "judgment proof" card when trying to settle. Does it work?


ty24
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I was recently served for the first time regarding a Cap1 debt amounting to approximately $1300. I have another Cap1 debt for approximately the same amount which the same lawyer has contacted me about and I will probably be served on as well unless I try to get this settled now. With that said I've read so many people say that they are "judgment proof" due to their current economic state. I was just wondering if that actually works when you are trying to settle. Do you ever reveal, in writing, your current economic state to the OC's attorney to try to get a lesser settlement and do they even take this into consideration? I was laid off of my job about two months ago and own nothing, not a house, not my car, etc. With that said, I will probably be getting a job that pays pretty good money within the next couple months (don't want to get into specifics). I have approximately $250 in my bank account and that's all I have. I do, however, believe I can borrow money from my family to pay for a settlement of these debts. Should I use this information in my settlement letter or is it a moot point?

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Not having a job or a house or a car does not make you judgment proof. Judgment proof is when the person's only income is from a protected source like Social Security.

If the creditor was able to get a judgment on you, they have the option of trying to garnish your wages or bank account at any job you have in the future or any bank account. They will just get a garnishment order for the new job.

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Judgment proof is when the person's only income is from a protected source like Social Security.

I'll take that a bit further. There really is no such thing as judgment proof. Just because you might have an income that is protected - like social security - a creditor can still sue you, obtain a judgment, get a writ to seize whatever other nonexempt assets you might have or might acquire at some later point in time.

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  • 2 weeks later...

From what you write my guess is that you are fairly young. You likely don't have much of a credit history that would reveal much of anything to someone looking for financial info. They probably think that they will get a quick judgement against you and then just wait for you to start making more money before they even bother trying to collect.

Tell us more about the debts? How old are they? When did you last pay on them?

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