Received summons, but judgement proof and likely to be filing BK.

[smith22]

Greetings,

I received a summons from AMEX Legal including two plaintiffs. One (FSB) is claiming  an amount of $11,000 owed, and the other (Centurion) is claiming $5,000 owed. I also owe two other creditors similar amounts.

I'm unemployed. I have no attachable income or own any assets such as a home or land. My car is worth $1200 according to KBB and I don't own more than $4000 in other personal property (I believe, that's the amount FL Debtors' rights allow you to exempt.)  In short I believe myself to be "Judgement Proof".

I understand that this does not excuse my debt. I can still get a judgment ruled against me and that this ruling can be effective for as long as 20 years.  For this reason, and the fact that I want to be employed again in the future, I'm most likely going to proceed with Chapter 7.

I'm posting this in the Collections forum because I need to know how to proceed with the summons from AMEX legal.  I considered answering and agreeing to all the statements (I understand it's difficult to fight against original creditors).  But would this effectively be the same as not replying at all and receiving a default judgement?  To be honest I'd rather save the money on the filing fees and postage.

Thanks.

Smith.

[WhoCares1000]

If you have no intentions of fighting this, then don't bother answering. An answer admitting to everything is the same as a default so you can save the funds.

If you are receiving government assistance into a bank account, let the bank know now that funds going into that account are exempt funds. That way, the account will not be seized. Beyond that, realize that they can call you in for a debtors exam every so often and if you do not answer the debtors exam, you can be arrested for contempt. Many creditors use that to attach bail money (at least that is how it works in Minnesota). Make sure you answer those while getting ready for BK 7.

In fact, if you can do so, get the BK 7 filed before the judgement is issued. That might make things quite a bit easier.

[BackFromTheDebt]

@WhoCares1000 has a point.  

If you file for BK before the judgment, that pretty much stops everything.  The case is generally suspended while the BK proceeds.

There is a case to be made that filing earlier is better, since that starts the clock sooner.  Also, in SOME situations it can be better not to have a judgment against you.