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chopstix · Apr 21, 2009, 05:54 PM

Im unemplyoyed with over $60,000 in debt, 2 mortgages. My question is if nothing is paid and they take me to court, what's going to happen? There is no money to take from me... no assets... WHAT IS THE JUDGE GOING TO DO TO ME?? THANKS!:confused:

jjwoodhull · Apr 21, 2009, 06:00 PM

Your assets would include the house that you have mortgaged. Maybe you should consider selling it to pay off some debt.

chopstix · Apr 21, 2009, 06:11 PM

Thanks for the quick response... my question now is.. when I get summoned to go to court and I'm standing in front of the judge... what is ge going to say or do to me?? Jail?

ScottGem · Apr 21, 2009, 06:14 PM

You may not always be unemployed. No you won't go to jail, but you will have judgements hanging over you.

chopstix · Apr 21, 2009, 06:35 PM

THANK YOU SCOTT... its a relief to know there's no jail time. If you don't mind me asking "judgments hanging over me" what does that mean exactly? So if worse comes to worse, Does that mean that other than my credit being shot, there's nothing that could really happen to me?
As for the suggestion from JJWOOD, I am upside down in value for my houses... so I was told to just "let them go"

ScottGem · Apr 22, 2009, 05:51 AM

Once awarded a judgement remains in effect for 7-10 years and can be renewed for another 7-10 years.

So if you get a job and start to get back on your feet, they will find the job and garnish your salary. If you ever get a windfall (inheritance, lottery win, etc.) they can grab that as well.

AK lawyer · Apr 22, 2009, 08:11 AM

Originally Posted by ScottGem

... So if you get a job and start to get back on your feet, they will find the job and garnish your salary. ...

They could garnish a portion of your salary.

Now's the time to consider bankruptcy. On the other hand, it might be worthwile waiting a bit to see if Congress enacts legislation allowing cramdowns on residential mortgages.

chopstix · Apr 22, 2009, 03:24 PM

Any idea the time frame I have before I get summoned for non payment of mortgage & credit debt?

I have considered bankruptcy but Ive heard that they don't allow you to claim bankruptcy always. (in that case what then )

"CRAMDOWNS"
... A cram down or cramdown is the involuntary imposition by a court of a reorganization plan over the objection of some classes of creditors...
Uhmmm... I found the definition, but trying to see if anyone could explain in "dumb dumb" terms for me :)

jjwoodhull · Apr 22, 2009, 03:49 PM

Have you spoken to any of your loan holders about your current financial situation?

chopstix · Apr 22, 2009, 03:58 PM

No, should I? What would I say? All they want is the money, right? They don't care about my sob story...

jjwoodhull · Apr 22, 2009, 04:01 PM

Sometimes they do care and will work with you to lower your interest rates and monthly payments. If you file for bankruptcy, they will not see a dime of your debt. If they can work with you, they have a better chance of eventually recovering their money.