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Lost Your Trial? And want to Cancel Judgment? Here is how


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Friend of my Lost his case to Junk Debt Buyer. My friend makes minimum wage. his head of house hold 3 kids. and he certainly qualify to cancel judgment base on his responsibility

 

 

Options to Reduce or Eliminate the Wage Garnishment

If you won’t be able to afford basic living expenses for yourself or your family with the wage garnishment, here are some of your options:

File a Claim of Exemption

Your state laws provide you with various protections called exemptions that you may claim to reduce or totally wipe out a garnishment. These exemptions allow you to keep your income based on whether you make a certain amount of money, you provide support to a dependent, or your income falls into a special category such as social security, public assistance, or retirement benefits.

The head of household exemption. Most states offer a Head of Household or Head of Family Exemption. You may claim this exemption if you provide more than 50% of the support for a child or other dependant. This exemption protects all of your wages unless you agree to a wage garnishment in writing.

 

Social security and disability cannot be garnished. State and federal law prevent social security benefits and disability benefits from being garnished. Typically, the Social Security Administration rejects a request for garnishment sent to it unless the underlying debt falls into a special category. However, when your funds are deposited into your bank account, the creditor may attempt to seize them. Social security funds retain their protected status for six months even in a bank account. If the creditor successfully seizes those funds, simply file a claim of exemption with the clerk and the judge should direct the creditor to immediately turn those funds over to you.

 

Complete and File the Claim of Exemption Form with Your County Clerk’s Office. You may obtain the form online or from the clerk’s office itself. Select the appropriate exemption and file the claim with the clerk. The clerk then sets a hearing that you must attend. You should bring to this hearing proof of your income and all expenses so that you can show the judge that you cannot afford basic expenses necessary to live.

 

 

The Form:

 

Request to Correct or Cancel Judgment and Answer
CLAIM OF EXEMPTION
 

 

Please if i miss anything or need to add/modify something. please let me know

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This does not cancel a judgement, this only tells the creditor that the debtor is collection proof and that they will not be collecting anytime soon. They will simply sit on the judgement letting it accrue interest or keep calling the debtor to court for an exam every 6 months hoping the debtor messes up just once so that they can use contempt of court to have the debtor arrested and put in jail until the debtor posts bail in which the creditor can then attach.

The only way to clear a judgement is to pay it in full, come to a settlement with the creditor, declare bankruptcy, or hope that the creditor does not renew the judgement in states that require it. You can also vacate a judgement but only in instances where doing so is in the best interests of justice for both sides.

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That is all fine and dandy if you live in California or Florida where exemptions and head of household are allowed.  Many states do not have those options available.

 

As @WhoCares1000 said all it does is prove the defendant is collection proof for the moment.  They can still put a lien on personal property and a home.  They can allow the judgment to marinate and rack up a lot of interest.  Only a handful of states prohibit wage garnishment so for consumers who do not reside in those states and do not have HOH exemptions available the creditor will simply seize 25% of their paycheck.

 

Your plan does not "cancel" the judgment it simply delays collection and there is a major difference.

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Well. shi@t then..

 

He lost trial. Judgment is coming.. If he decided just to pay. would that judgment be removed of his credit? or it will be on his credit even if it was paid?

 

What is the best way to pay Judgment?

 

He is trying to preserve his credit.. so i guest paying that judgement off will remove it from appearing on his credit history...

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I was watching the Movie "The Purge: Anarchy" Tonight. and All i think about was purging this lawyer who gave me the EYE. while he drill my friend an extra hole on the court room.. i did not lose the case. but i felt the suffering he had from this as%hole... He has 1 More with this JDB coming in a few weeks. just recently "7 days ago" he got a letter stating he own Them $1,500. they have not filed a lawsuit just yet. but i know the process.

 

" The court did however agree that claim of exemption was warranted " Please explain this to me in my language. LOL

 

at this point. I'm in lost of word. i don't think if i should suggest to appeal "he never made an objection to anything. but his trial briefs stated a lot of objection that's for sure.. its like this " all the paperwork done to win this was set up. all he needed to do was TALK. and do some magic with his mouth but instead. he just froze up. but lesson learn.

 

Going to see a lawyer with my friend tomorrow. I'm so angry at this firm. that I will personally pay a lawyer the amount that my friend will have to pay to the JDB. So instead of giving the money to the JDB. I will pay to someHOW get an Approval to Appeal this case. and Win with "Prejudiced"

 

I will keep you guys update..

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Once a judgement is perfected (this means the appeals period has gone by and an appeal with not filed or the debtor lost in the appeal), then it will probably show up in credit reports because the CRAs pay people to go through court records to get the information. If your friend pays the judgement, it will still make it to their credit report but show paid/settled and will be there for 7 years from the date of the judgement.

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Hey there @longstand

Sorry to hear your friend lost their case here in SD. I've heard we have some good judges, but also witnessed that some may not be very debtor friendly. As you've already learned, your friend doesn't have a strong case for appeal, as you must object to things in order to create a (possible) error in application of law when your (possibly correct) objections are overruled. Not to say appeal is not an option, but it may not be very worthwhile without an argument that an appeals panel would at least have to consider.

 

As far as wage garnishment, If your friend makes minimum wage, then the head of household exemption may not be necessary. Under California law, For any given workweek, creditors are allowed to garnish the lesser of: 25% of your disposable earnings, or the amount by which your weekly disposable earnings exceed 40 times the state hourly minimum wage (now 9$). So, in other words if you make minimum wage, they can't touch anything. Also, it says DISPOSABLE EARNINGS, which are what's left AFTER employer makes required deductions. So, your take-home amount each check, after taxes, is protected up to 40hrs x 9$ (minimum wage), or 360$ a week. You can also file for exemption (not sure how likely to be granted). Also if seeking to avoid at all costs, you could possibly make payment arrangements with the JDB, though many would argue that's not wise, and to only pay them in a pay for delete type deal.  

 

In my case, JDB was willing to accept around 55% of the judgement amount as settlement AFTER that had already won, so they will play ball, especially with someone who doesn't earn alot or own property (like me, or maybe your friend as well.). I'm sure they would probably accept less than that if offered, maybe as little as 40-30%. If I lose my appeal, I plan to offer them what it would cost me to file BK, or they can kick rocks and get nothing.

 

So, your options may boil down to

1) appeal - wouldn't advise, don;t have much of a case without objections.

2)settlement - maybe the best option, if it is even an option financially.

3)BK - maybe not worth it depending on judgement amount, overall financial situation, othet debts, ect. Speak with an attorney about this one, or a financial advisor at your bank or something.

4)Do nothing/try to fight avoid wage garnishment and string it out. Interest will accrue, but maybe you can save up money to settle.

 

Those aren't your only options, but some of them. I would consider reaching out to the jdb, explaining your earnings situation, and how it is exempt, and that you would like to pay, get a ball park figure, and try to save up, offer them less. They are a business. If they know they can';t garnish your wages, they won't pay the 1000$ or so it costs them to file and obtain an order for garnishment if it can't be enforced. They will sit on the judgement and let it rack up interest, waiting for you to become more able to pay them. 

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What you posted does NOT cancel the judgment.

 

The form you posted is for small claims only and it is basically a form of small claims appeal.  It is separate from the hardship exemptions that you referred to.  While it may be harder to collect, it does not cancel the judgement.

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Hey there @longstand

Sorry to hear your friend lost their case here in SD. I've heard we have some good judges, but also witnessed that some may not be very debtor friendly. As you've already learned, your friend doesn't have a strong case for appeal, as you must object to things in order to create a (possible) error in application of law when your (possibly correct) objections are overruled. Not to say appeal is not an option, but it may not be very worthwhile without an argument that an appeals panel would at least have to consider.

 

As far as wage garnishment, If your friend makes minimum wage, then the head of household exemption may not be necessary. Under California law, For any given workweek, creditors are allowed to garnish the lesser of: 25% of your disposable earnings, or the amount by which your weekly disposable earnings exceed 40 times the state hourly minimum wage (now 9$). So, in other words if you make minimum wage, they can't touch anything. Also, it says DISPOSABLE EARNINGS, which are what's left AFTER employer makes required deductions. So, your take-home amount each check, after taxes, is protected up to 40hrs x 9$ (minimum wage), or 360$ a week. You can also file for exemption (not sure how likely to be granted). Also if seeking to avoid at all costs, you could possibly make payment arrangements with the JDB, though many would argue that's not wise, and to only pay them in a pay for delete type deal.  

 

In my case, JDB was willing to accept around 55% of the judgement amount as settlement AFTER that had already won, so they will play ball, especially with someone who doesn't earn alot or own property (like me, or maybe your friend as well.). I'm sure they would probably accept less than that if offered, maybe as little as 40-30%. If I lose my appeal, I plan to offer them what it would cost me to file BK, or they can kick rocks and get nothing.

 

So, your options may boil down to

1) appeal - wouldn't advise, don;t have much of a case without objections.

2)settlement - maybe the best option, if it is even an option financially.

3)BK - maybe not worth it depending on judgement amount, overall financial situation, othet debts, ect. Speak with an attorney about this one, or a financial advisor at your bank or something.

4)Do nothing/try to fight avoid wage garnishment and string it out. Interest will accrue, but maybe you can save up money to settle.

 

Those aren't your only options, but some of them. I would consider reaching out to the jdb, explaining your earnings situation, and how it is exempt, and that you would like to pay, get a ball park figure, and try to save up, offer them less. They are a business. If they know they can';t garnish your wages, they won't pay the 1000$ or so it costs them to file and obtain an order for garnishment if it can't be enforced. They will sit on the judgement and let it rack up interest, waiting for you to become more able to pay them. 

 

The total is over $1,600 now.

 

This is what he owes now:

 

The Court enters judgment on the Complaint and Declaration Re: Reduced Filing Fees for Midland Funding LLC and against XxxxxxX in the amount of: $1319.97 principal, $0 punitive damages, $0 attorney fees, $0 interest, $216.00 prejudgment costs and $0 other costs.

 

---------

They added $216. bastard.

 

I will rather pay %55 to %50 of total Judgement. but if the judgment has already been filed, can this debt still be negotiable at this point with midland? specially %50 off the judgement?

 

Honestly. this is a sad story. I mean. my friend could barely  purchase food for his kids, buy formula for his baby. wife makes very Little. and they can't be approve for any assistant from the government "makes over 1k the state limit. DENIED. WOW". but his has been approve for medical for his family.. This midland funding is honestly making me very upset. taking what little money this poor friend of my have.. and the WORSE PART is. He never applied for the credit card. Never used..

 

The billing Statement. stated. it was send to his home. and made automatic payment monthly. he never own a back account for the past 5 years. just recently he open a checking account. so how can he possible make an automatic payment if he does not have an account number to input..

The money sh@t is. The bill of sale, states his last social security number and address. THAT'S IT.

 

as you can tell from my grammar, I'm not the most educated person here. but my friend is worse "LOL" so this is why I'm here seeking assistant from anyone who has time to respond.

 

has anyone ever made a deal with JDB after judgment. if so. how did you do it.

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Oh certainly he can make a deal after judgement. I would actually start with 25% (or about $400) and work up to 50%. Realize that they paid maybe $250 for this so collecting $500 would be doubling their money. Once your friend shows that he is collection proof and they they can either sit in this (and let it build interest) and hope that your friend someday is in a position to collect from or accept the deal and move on. I bet you can settle for under 50%.

Realize that it will take more than one call. They will say no at first thinking they got your friend between a rock and a hard place. Once they realize that they are going to get nothing for a while, the will start to negotiate.

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has anyone ever made a deal with JDB after judgment. if so. how did you do it.

They called me a few days after trial offering deals. They will probably be in contact. Although having a judgement gives them all the leverage, they still aren't guaranteed payment.

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The Trial was August 23,2014. DO i have 10 days OR 30 after he lost the trial, OR do i have to get some kind of paper at the mail to  file "The head of household exemption" "claim of exemption"

 

Well. Good thing his not trying to buy a house anytime soon. I think the bank will not like Judgement on his record.

 

 

 

Thanks

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