I live in Texas. In the past 15 years or so I've helped family and friends with cash using my credit cards. Most have never paid me back. I've switched the debt from card to card based on introductory rates and now owe many cards lots of money. I finally got to the point that I just quit paying other peoples debts (I know it's really mine).

The total debt now is over $70,000. I work hard and, if forced, could probably pay it off slowly in about ten years. I am buying a mobile home and car and own a 77 Corvette worth about $10,000. That's my legacy at age 61!

A law firm debt collection agency sued me and is now asking the court for a summary judgement against me.

My questions are (since I do owe the debt): What does a summary judgement against me mean in terms of forcing me to pay, sending me to jail for contempt if I continue to refuse to pay, attaching my income, bank accounts? Should I appear at the submission hearing?

The total debt now is over $70,000. I work hard and, if forced, could probably pay it off slowly in about ten years. I am buying a mobile home and car and own a 77 Corvette worth about $10,000. That's my legacy at age 61!

"A law firm debt collection agency sued me and is now asking the court for a summary judgement against me.

"My questions are (since I do owe the debt): What does a summary judgement against me mean in terms of forcing me to pay"

You will pay everything the plaintiff has asked for: principal, interest, attorney fees, and court costs.

"...sending me to jail for contempt if I continue to refuse to pay?"

No jail for failure to pay a debt, unless you live in Georgia.

"...attaching my income, bank accounts?"

The plaintiff can take eveything you have, but will usually leave alone anything that has a lien, unless it has equity that can be realized after sale and payment of the lien holder.


"Should I appear at the submission hearing?

Voluntary, on the one hand; on the other, you should consider retaining a lawyer to look over the file and get the most favorable terms for your situation.

Debtors prison hasn't existed since the 19th century. So you won't go to jail (I question that even in GA jail is possible). What a judgement does is allow the plaintiff(creditor) to attach your assets to pay the debt. Generally this will include wage garnishments and attachment of cash assets (bank accounts, brokerage accounts, etc.). It might include property as well if the property is easily saleable. However, depending on where you are, you might be able to exempt some real property or income types.

Under no conditions would I continue to ignore this. You need to answer the summons with a statement of your Intent to Defend. This may bring the creditor to offer a settlement that you can live with.

Your next step is to start collecting what you have lent out. If you have to, sue these people. Why should your life suffer because you were the nice guy.

Hello dc:

Hmmmmm. Not only are you not good at finances, you're REALLY, REALLY not good.

At your age, you will NEVER, EVER pay these cards off. If I took your number of 10 years to get it paid, and calculated an interest rate of 25% which is typical...

Your payments will be: $1,592 per month

Your total payments will be: $191,000

Your total interest payment will be: $121,000

That ain't going to happen. Not in this lifetime anyway.

Fortunately, in Texas they can't garnish your wages, but they WILL attach your bank accounts. Your vet is safe though, and I don't think they can get your trailer either. If you own the land under it, they might file a lien on it.

Maybe bankruptcy would an option.

excon

excon: I've got to spread it around; didn't realize I was such a big fan. I agree with your assessment and was going to say: "Ouch!"