[chrysalis]

So my husband went delinquent on a small CC a few years ago due to a dispute. We tried resolving it and getting on a payment plan but they would not accept that. Fast forward to present. He received a summons from a "scavenger" agency that had bought the old debt. Technically I think they are getting in under the wire for SOL. Until this summons though we had never heard from this collector. There was a few collection agencies in the past (more then a year ago) who called us, but not this one. The only reason we were not able to take care of it was because we couldn't do the full amount or even a slightly smaller amount to settle it. We were willing to make payments but that was unacceptable.

So now he is going to respond to the summons. We will fight the amount and there is a slight chance the attorney may not show given he is 3 hours away, the amount is only around $1000 and they probably handle tons of these in the state.

I have reviewed the statutes and laws in NC but still am confused. We do not have wage garnishment here so that will not happen. Obviously I am concerned about the bank account because it holds the money which we live off... nothing extra. If you look here Chapter 1C - Article 16 in the first part #12 it lists "funds that are received and entitled that are reasonably needed for support of the debtor or dependents" I would include paychecks in that. We do live paycheck to paycheck and he is the sole income winner for a family of 4. But this seems ambiguous to me. My other question is if wage garnishment is not allowed in NC why would they then allow it once it gets into your hands?

He has to have direct deposit in his job. Currently it is going into a checking account that I had prior to marriage. I added him later. Can I remove him from my account. I am not listed in the summons nor linked with the original debt. Could they go after my personal account after a judgement? Also since he is required to direct deposit his paycheck we were thinking to protect ourselves and assuring no bounced checks in my checking account that he could get one of those pre-paid credit cards through Wal-mart that can be loaded with direct deposit funds. Could they freeze a prepaid credit card like a checking account?

Ideally what we would like to do and what we have wanted to do all along was make payments to pay it off. If a judgement is entered perhaps the court will set that up since they wouldn't? We have nothing of real value. Used junk cars, cash or anything that wouldn't fall under exemption. If a lien is placed on the house so be it. My main concern is not losing his income for one month through a bank account freeze leaving us unable to pay our bills and even feed the kids.

[JudyKayTee]

So my husband went delinquent on a small CC a few years ago due to a dispute. We tried resolving it and getting on a payment plan but they would not accept that. Fast forward to present. He received a summons from a "scavenger" agency that had bought the old debt. Technically I think they are getting in under the wire for SOL. Until this summons though we had never heard from this collector. There was a few collection agencies in the past (more then a year ago) who called us, but not this one. The only reason we were not able to take care of it was because we couldn't do the full amount or even a slightly smaller amount to settle it. We were willing to make payments but that was unacceptable.

So now he is going to respond to the summons. We will fight the amount and there is a slight chance the attorney may not show given he is 3 hours away, the amount is only around $1000 and they probably handle tons of these in the state.

I have reviewed the statutes and laws in NC but still am confused. We do not have wage garnishment here so that will not happen. Obviously I am concerned about the bank account because it holds the money which we live off of...nothing extra. If you look here Chapter 1C - Article 16 in the first part #12 it lists "funds that are received and entitled that are reasonably needed for support of the debtor or dependents" I would include paychecks in that. We do live paycheck to paycheck and he is the sole income winner for a family of 4. But this seems ambiguous to me. My other question is if wage garnishment is not allowed in NC why would they then allow it once it gets into your hands?

He has to have direct deposit in his job. Currently it is going into a checking account that I had prior to marriage. I added him later. Can I remove him from my account. I am not listed in the summons nor linked with the original debt. Could they go after my personal account after a judgement? Also since he is required to direct deposit his paycheck we were thinking to protect ourselves and assuring no bounced checks in my checking account that he could get one of those pre-paid credit cards through Wal-mart that can be loaded with direct deposit funds. Could they freeze a prepaid credit card like a checking account?

Ideally what we would like to do and what we have wanted to do all along was make payments to pay it off. If a judgement is entered perhaps the court will set that up since they wouldn't? We have nothing of real value. Used junk cars, cash or anything that wouldn't fall under exemption. If a lien is placed on the house so be it. My main concern is not losing his income for one month through a bank account freeze leaving us unable to pay our bills and even feed the kids.

Under the wire for the SOL - as long as it's within the Statute - is still good. It is an exact time frame, not a "few days one way or the other." Are you certain it's within the Statute?

I'm sure if you've researched you realize there are exceptions to the "no garnishment" laws in NC and have ascertained that those exceptions do not apply to you.

I don't know why NC would not allow garnishment but does allow bank account liens and seizures - probably because creditors want some means of getting paid and don't want to be shut out from any/all collections.

You can remove him from the account (or, for that matter, close the account and open your own account) at any time prior to a Judgment and in "most" cases any time after a Judgment but prior to enforcement of the Judgment. Once the bank is served the account is frozen. If a Judgment is granted and the creditor moves against the bank account - joint or in his name alone, they cannot seize your money but co-mingled monies become his - no, they will grab any money put in that account so you will have no time to have the paycheck deposited and then get a money card. The money will hit the bank and be gone... by Court Order. They won't have to worry about freezing the pre-paid card because they'll freeze the money BEFORE it turns into the pre-paid card. (Am I explaining this?)

No, the Court will neither order nor set up a payment plan - it is up to the creditor to obtain the Judgment and collect on it. The Court simply decides if the debt is valid and then orders that it be paid. Collection is in the hands of the creditor. The creditor might be a little wary of a payment plan - apparently there was a payment agreement once, your husband defaulted (for whatever reason), they are hesitant to "trust" him again.

Unfortunately, ability to pay is not a consideration. Considerations are: is it your debt; what is the Statute; is there some other reason it's not paid? I don't understand what the dispute was and why your husband stopped paying on the card but depending on the circumstances, perhaps that's a defense (such as, not his charge, stolen card, whatever was involved).

[ScottGem]

Judy gave you good info, some additions. You may not be able to take him off the account if you need to deposit his check there. But I would open a new account in his name with you as joint. Use that account ONLY for receiving his paycheck. Then, if his pay is exempt, you can warn the bank of that (if a judgement is entered) so they don't accept an attachment.

[chrysalis]

Well I feel better because he will now start receiving a paper check... his employer agreed to. So now I will basically move the money out of this account so there is nothing to grab.

I guess what I am still confused on is whether they can then try and seize my account should I open one on my own. Note I am not listed in the lawsuit and I would not have my husband's name listed with this account in any way, shape or form. I usually pay all my bills online because of timing. I often don't have money until payday and due to things being behind am also close to the wire on disconnects... that type of thing. Mail is unpredictable. If I am working off cash not only do I have to wait till he gets paid but then I have the additional mail time. If I feel secure they cannot touch my personal account then I can put the money in there.

Not that the circumstances are relevant in how we got here. We have never opted not to pay we just weren't able to pay on their terms of "all at once". They are, by right, able to file for a judgement. They want to force their "all at once" mentality on us since we won't/can't. 3 layoffs in 3 years for a low income family is hard to overcome especially when the next job is still considered low income leaving you almost nil after paying for your necessities. I cannot wave a magic wand and make money appear at will. If they have nothing to take then we can pay the judgement off on our terms which, in my opinion, they should have agreed to to begin with. Not because I wanted it that way but because short of putting a family on the street that is the only way it could be done. If my mother had not paid for my airline ticket I wouldn't have had money to spare to attend my father's funeral. I didn't have $200 anywhere.

[JudyKayTee]

Well I feel better because he will now start receiving a paper check...his employer agreed to. So now I will basically move the money out of this account so there is nothing to grab.

I guess what I am still confused on is whether they can then try and seize my account should I open one on my own. Note I am not listed in the lawsuit and I would not have my husband's name listed with this account in any way, shape or form. I usually pay all my bills online because of timing. I often don't have money until payday and due to things being behind am also close to the wire on disconnects...that type of thing. Mail is unpredictable. If I am working off of cash not only do I have to wait till he gets paid but then I have the additional mail time. If I feel secure they cannot touch my personal account then I can put the money in there.

Not that the circumstances are relevant in how we got here. We have never opted not to pay we just weren't able to pay on their terms of "all at once". They are, by right, able to file for a judgement. They want to force their "all at once" mentality on us since we won't/can't. 3 layoffs in 3 years for a low income family is hard to overcome especially when the next job is still considered low income leaving you almost nil after paying for your necessities. I cannot wave a magic wand and make money appear at will. If they have nothing to take then we can pay the judgement off on our terms which, imho, they should have agreed to to begin with. Not because I wanted it that way but because short of putting a family on the street that is the only way it could be done. If my mother had not paid for my airline ticket I wouldn't have had money to spare to attend my father's funeral. I didn't have $200 anywhere.

No, they cannot seize anything YOU own/hold individually for HIS debts unless - in some States - the debts were for necessities and/or medical expenses. Lots of people live check to check, unfortunately, right now but no, if what you have said is 100% correct - you are not on the debt, you never used the credit card - they cannot touch your assets.

You are not alone in your financial plight, believe me - and a lot of people blame the creditor which you are not doing. Why do they turn down a payment plan in favor of a judgment? I don't know - maybe they think because your husband defaulted once he'll do it again. I really don't understand in some cases; in others I do.

But, yes, follow Scott's advice, my advice, move your money NOW into your own account. Keep everything separate.