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o2bdebtfree · Jul 6, 2008, 09:29 PM

Hi just had a question concerning a credit card judgement but I will give a real brief history.

In 2006 I leased a store, the landlord lied about being able to get a certificate of occupancy and he fell into breach, which caused me to fall into breach and to default on $120k+ worth of debt. My wife and I hired a an attorney and are suing the landlord seeking back rent and her release from the lease (she didn't sign the lease but did sign a lease guaranty). Needless to say we have a strong case against the landlord. I ended up defaulting though on a ton of debt, and one of them is seeking a judgement. I work for my wife's business but it is not currently making money (therefore I have no income and have had none all year, my wife has been supporting us). I could have gotten a job but with that much debt and knowing they can garnish, it didn't make sense to try to get a job so for now I am mr. mom. I would have tried to work out a small payment plan with the credit card company but my bankruptcy attorney has advised me not to as it would show preference for a creditor and therefore could cause trouble in when filing. I could file now but if I do the case against the landlord then becomes an asset of the bankruptcy court. So I am stuck until this landlord settles.

So here's my question, as I understand it the creditor then has to petition the court for fact finding, in otherwords an order is sent that I have either to fill out or appear in person concerning my assets (of which I have none, not even a car). How long does this process take, and once the creditor gets the judgement do I have to answer to the creditor or only the court?

jsa2x · Jul 7, 2008, 11:37 AM

I'm surprised your attorney hasn't explained this to you. You are free at any time to contact the credit card company. You should make them aware of your situation, and ability to pay, and to work out a settlement, that is a lump sum payoff for a much smaller amount than what is owed. Often it is accepted, because they don't want small payments over a long period. If they refuse to work with you, they can file a collection case in civil court. Since you cannot deny the debt, the credit card holder will be awarded Judgment. The only question is the amount. If you can convince the judge that you fully intended to pay the debt, and are willing to work out a settlement of some kind, often the judge will consider your financial hardship and rule that interest be waived, or greatly reduced, and that you only repay a percentage, at reasonable payments.

It never helps to be discourteous to the creditor, or to the court personnel. Remember, they will be making very serious decisions about you. And nice people tend to get better deals.

Janet

o2bdebtfree · Jul 7, 2008, 01:06 PM

That's my whole issue, because I will be filing 7 I cannot show preference to any of the creditors. I have an advanced degree and tried to find a job but that didn't work, then I picked up a job bartending but received the summons for judgement the sameday, with $4 gas it wasn't fiancially feasible to have 25% of my pay garnished (I would be left with mere pennies), so I had to refuse the job. I expect to file 7 in the next month or so but I am just trying to find out what the legal process is and whether I have to answer to the creditors attorney or do I deal with the court. I would pay it off if I could but there is no way I will ever pay it off particularly with $60k in college loans

JudyKayTee · Jul 7, 2008, 03:43 PM

Originally Posted by o2bdebtfree

Hi just had a question concerning a credit card judgement but I will give a real brief history.

In 2006 I leased a store, the landlord lied about being able to get a certificate of occupancy and he fell into breach, which caused me to fall into breach and to default on $120k+ worth of debt. My wife and I hired a an attorney and are suing the landlord seeking back rent and her release from the lease (she didnt sign the lease but did sign a lease guaranty). Needless to say we have a strong case against the landlord. I ended up defaulting though on a ton of debt, and one of them is seeking a judgement. I work for my wife's business but it is not currently making money (therefore I have no income and have had none all year, my wife has been supporting us). I could have gotten a job but with that much debt and knowing they can garnish, it didnt make sense to try to get a job so for now I am mr. mom. I would have tried to work out a small payment plan with the credit card company but my bankruptcy attorney has advised me not to as it would show preference for a creditor and therefore could cause trouble in when filing. I could file now but if I do the case against the landlord then becomes an asset of the bankruptcy court. So I am stuck until this landlord settles.

So here's my question, as I understand it the creditor then has to petition the court for fact finding, in otherwords an order is sent that I have either to fill out or appear in person concerning my assets (of which I have none, not even a car). How long does this process take, and once the creditor gets the judgement do I have to answer to the creditor or only the court?

You have an Attorney who presumably is very familiar with all the facts and all the circumstances as well as Federal Bankruptcy Law and the laws in your State.

If the Attorney says not to work out a payment plan (which would be your only purpose in contacting them; they already know you can't pay or else you would have) then I wouldn't do it.

That's why you are paying an Attorney and if you go around their advice and do your own thing that Attorney has every right to tell you to find another Attorney - and that can and does happen. Attorney was not paid to straighten out the mess you could cause.

To answer your question about Judgments - papers have to be prepared and filed with the Court (at least in NYS); matter has to be docketed; you have to be served; you have to have time to respond (between 10 and 20 days); depending on your response, add another 10 to 20 days from them to respond back; then they go to Court on the appointed date and maybe get a Judgment. Then that has to be filed. Then the Defendant/creditor has to decide how to proceed. I'd say 60 days, give or take.