[sernae2]

I stopped two of my credit card payments in 2008... I have too many bills on my name that I'm paying... I have three children one on daycare... I'm just receiving phone calls on one of the credit card collectons , they said the're going to sue me and will file a judgement against me... I don't know what to do.. can they arrest me for this? Can someone give me any suggestions?

[ScottGem]

A judgment is the result of a court case. If you renege on a debt, the creditor can sue you for what you owe. They file suit, a summons is issued and a hearing scheduled. At the hearing a judge will find for the plaintiff (then) or the defendant (you). That's called a judgment. The amount you have to pay will be listed in the judgment.

Once they obtain a judgment, then may be able to use it to garnish your salary, attach your bank accounts or other assets. But they can't put you in jail. Debtor's prison ceased to exist in the 19th century.

What you should do is either try a credit counseling service that can negotiate on your behalf or consider filing bankruptcy.

I would also suggest you browse this forum as well as the Bankruptcy & debt and small claims forums. There are hundreds of people in the same predicament and you can get a lot of advice just reading their threads.

[sernae2]

I thought that here in Texas they cannot garnish your wages or freeze your bank accounts if you have a judgement against you...

[ScottGem]

You are only half right. Texas does not allow garnishment for unsecured debt (of course, since you didn't mention you were from Texas, we did not provide that info) but they can attach bank accounts.

[XTC832]

In addition to Scott's valuable advice, if you consider bankruptcy, you are fortunate in one respect. Texas is one of 17 states (including DC and Puerto Rico) that allows you the choice between using either Federal or state bankruptcy exemptions. And it's no secret that Texas state exemptions are probably the most generous of all. Also keep in mind, when you file for bankruptcy, you receive an 'automatic stay' from the courts. This prevents creditors from calling you and sending you nasty letters; it also removes all judgments on bank accounts. If you choose to go this route, do your due diligence and consult with a good bk attorney in your area or feel free to leave another post. Take care.

[sernae2]

Is it safe to set up auto draft payment arrangements to a collection agency? I mean how safe can this be?

[sernae2]

You are only half right. Texas does not allow garnishment for unsecured debt (of course, since you didn't mention you were from Texas, we did not provide that info) but they can attach bank accounts.

What do you mean they can attach bank accounts? You mean they can get my money automatically without any notices to me?::confused:

[ScottGem]

First, no need to shout at us. Once they get a judgment they can then go to the court and get a writ of execution against your bank accounts. They do not need to inform you before they serve the writ on your bank.

Also do not set up automatic debits, that just gives them knowledge of where you bank. If you do set up a payment plan, pay via money order.

[DownUnder]

ScottGem speaks the truth, once a judgement is issued then they do not have to notify you of an "attached bank account" Why would they? Also as mentioned above if you set up payments DO NOT set up automatic debits,if you do then your troubles have only just begun. Try working out a payment plan or if all else fails you may have to do bankruptcy

[Fr_Chuck]

Yes and if you give some collection agencies your bank account into to set up a automatic withdraw, guess what they just take all of the money and say you said it was OK.

Opinion, don't write them a check, never give them your account numbers to allowthem to take money out.

If you are going to pay, pay them by money orders