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dddaniel · Dec 24, 2006, 05:42 AM

Well here's my situation, I'm 19 living with my parents still I don't work and won't probably find one anytime soon so I don't have any sort of income or assets, most of the stuff in the house belongs to my parents the only thing I own is a computer which I built myself a bed and a TV which which don't worth more than 2000 dollars. I don't receive any payments from the government for being on a dole so recently I received a letter from a debt collector saying they want the money which is apparently $2541 which was money for my studies (youth allowance) but when I drop out of school I didn't report to them. So now they demand that money within seven days, as I said I have no income to pay that of so I sent a letter stating that I have no assets or any sort of income and that I'm living off my parents at the moment and that once I find a job I would build the money up to pay them back. So is there a chance I will get sued? If I do how do I prove that I'm judgment proof, I don't know what to say in court either and I can't afford a lawyer. Any advice would be appreciate.

ScottGem · Dec 24, 2006, 06:02 AM

There is a very good chance you will get sued so the creditor can get a judgement on the record against you. Being judgement proof doesn't mean you can't have a judgement against you, it means they can't collect on it because there are no assets to attach.

But they will probably keep an eye on you once they obtain the judgement. As soon as you get a job, they will probably be there ready to garnish you.

dddaniel · Dec 24, 2006, 06:11 AM

If I do get sued, what kind of proof do I need to tell the judge that I own nothing, how do I respond to the judge cause this is going to be first time going to court and I am feeling nervous.

Fr_Chuck · Dec 24, 2006, 06:12 AM

First I do hope your parents kick you out of the house soon or force you to get a job and start paying some of the expense at home. No older child should be lazy and living at home without helping with the bills, even if the parents can afford it.

I am not sure exactly what type of debt this is, but if connected with any type of Student Loan, most of these have special collection rules.
Also if your parents signed anything to help get this money for school for you, they need to be made aware of this, so that they may not end up having to pay it.

Next no one is "judgement proof" only collection proof, the term is called judgement proof but that is incorrect in fact.

They can and may decide to sue you and get that judgement, since that gives them more rights to collect and a longer time to do so.

If I was them I would figure that sometime in the next 10 years you are going to have a bank account, or you are going to have a job and income.

So once I get that judgement I can merely wait and watch you every year or so to see activity on your credit report, showing a job, or applying for a bank account. Then as the debtor I can go and attach the money in your bank account, or garnish your wages.

So what should you do, go get a job and start paying them what you owe them.

ScottGem · Dec 24, 2006, 06:27 AM

Originally Posted by dddaniel

If I do get sued, what kind of proof do I need to tell the judge that I own nothing, how do I respond to the judge cause this is going to be first time going to court and I am feeling nervous.

You don't have to prove anything the judge. The suit is simply about whether you owe the money or not. The creditor shows the promissory note you signed and the fact that you haven't paid. They then win. The judge awards them a judgement which gives them the right to attach any cash assets you have including bank accounts, salary etc.

Chuck does have some major points here. Your parents may have some responsibility here. Also having a judgement entered against you can affect your ability to get credit or even a job in the future. And I do have to wonder why you don't have a job and are sponging off your parents.

s_cianci · Dec 24, 2006, 10:06 PM

You don't have to "prove" that you're judgement proof. They'll find that out when they go to collect from you. However, the minute you get a job they'll be garnishing your wages. You can't remain unemployed and "judgement proof" for the rest of your life. Your best bet would be to try to make some sort of arrangements to repay the debt now, before it ends up in litigation.

excon · Dec 25, 2006, 08:23 AM

Hello dd:

Nahh, you're not judgment proof. Not even close. That is, unless you don't ever plan on getting a job or having a bank account. Of course, I'm assuming that at 19 that's not the case, but if it is, then dude, you're judgment proof.

Judgments can be renewed forever.

excon

CaptainForest · Dec 26, 2006, 05:23 PM

Originally Posted by excon

Judgments can be renewed forever.

You sure about that excon?

In Ontario it's only for 20 years.

And in either Michigan or Illinois it's 5 years, plus you can renew it for up to 20 years.