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shreker · Jul 24, 2008, 11:19 AM

I've never been in this situation before, after a marriage of 28 yrs ended I found myself without a penny until alimony kicked in 1,000. A month. Little by little I built up my credit and took out a credit card. Yup, Capital One, silly me! Well, I found myself having to use this card for car repairs, a new hot water heater, frig and window A/C oh yes, an attorney to file for more alimony. Then, in 04 I was hospitalized FOUR times, two of those required massive abdominal surgeries. I had no one to help me and let me tell you, I was one big wreck.. couldn't think, remember or function as a 'normal' person. Then, in 05 I had to have yet another surgery. While all of this is going on, I fell behind on CC payments, I called the CC company to explain what was going on and asked them to please be patient with me and reduce the interest rate, now I have to appear in court because the attorneys for this CC company want to file judgment against me. The amount 'before' attorney's were involved was 5,100. Now they want 6,500.. There is no way I can come up with this amount, lol I can barely buy food after other bills are paid and, I'm still paying on hospital bills from 04. Anyone have advice for me, other than bankruptcy? All my other bills are paid on time or even early.

Thanks so much

ScottGem · Jul 24, 2008, 11:52 AM

The only thing that might work is to try and offer a lump sum settlement for a lessor amount. But unless you can come up with such, they will probably take you to court and win. You can use the threat of bankruptcy to try asnd get them to settle.

progunr · Jul 24, 2008, 11:58 AM

Originally Posted by ScottGem

the only thing that might work is to try and offer a lump sum settlement for a lessor amount. But unless you can come up with such, they will probably take you to court and win. You can use the threat of bankruptcy to try asnd get them to settle.

Still have to spread some to be able to rate it, but, he is correct.

If you want to use the threat of BK to try to ward off the suit, may I suggest you do so gently.

No one likes to be hard balled, especially attorneys.

Something along the lines of "if you decide to take this to court, I'm afraid you may force me to file Bankruptcy as I have no other way to handle this amount of debt. Are you sure we cannot work out a suitable arrangement"?

Good luck.

shreker · Jul 24, 2008, 12:16 PM

Originally Posted by progunr

Still have to spread some to be able to rate it, but, he is correct.

If you want to use the threat of BK to try to ward off the suit, may I suggest you do so gently.

No one likes to be hard balled, especially attorneys.

Something along the lines of "if you decide to take this to court, I'm afraid you may force me to file Bankruptcy as I have no other way to handle this amount of debt. Are you sure we cannot work out a suitable arrangement"?

Good luck.

[F] Tried to do that earlier on, they said they would lower it to 5,000. but I have no way of coming up with that kind of money. There is no savings account, I don't even own furniture except an oak table my dad made me. I am a 59 yr woman with all kinds of health issues and NO health insurance as I can't afford it. So, if they do win what will happen to me?

Thank you very much

shreker · Jul 24, 2008, 12:18 PM

Originally Posted by ScottGem

the only thing that might work is to try and offer a lump sum settlement for a lessor amount. But unless you can come up with such, they will probably take you to court and win. You can use the threat of bankruptcy to try asnd get them to settle.

That's the problem, there isn't any money to settle with! :confused:

ScottGem · Jul 24, 2008, 12:21 PM

You may be judgement proof if you have no salary and no assets

shreker · Jul 24, 2008, 12:23 PM

Originally Posted by ScottGem

You may be judgement proof if you have no salary and no assets

I'm unable to work as I have Lupus, Fibromyalgia and advanced Degenerative Joint/Disk Disease... the only money I receive is alimony, no money from any other source.

Thank you

shreker · Jul 24, 2008, 01:31 PM

Originally Posted by ScottGem

You may be judgement proof if you have no salary and no assets

Do you think this could be so? Being judgment proof, I mean? But won't that still affect my credit rating? Perfect score up to this point, no black (or is it red) marks against me. Don't want to have bad rating, anything I can do about that if they find me judgment proof?

I really appreciate your advise, there isn't anyone else to ask.

progunr · Jul 24, 2008, 03:07 PM

All the term judgment proof means is that your income is not subject to levy or garnishment and that you have no property to attach a lien to.

You can still be sued. You can still loose. You can still have a judgment placed against you.

Yes, it will have a negative effect on your credit rating, until it is paid, and for about seven years after that.

shreker · Jul 24, 2008, 03:16 PM

Originally Posted by progunr

All the term judgment proof means is that your income is not subject to levy or garnishment and that you have no property to attach a lien to.

You can still be sued. You can still loose. You can still have a judgment placed against you.

Yes, it will have a negative effect on your credit rating, until it is paid, and for about seven years after that.

Well, I guess I'm done for :( as I do own a house (well the bank and I do) and with no reserve to draw on, I'll just have to bite the bullet, swallow it and keep going. Thank you so much for your help, it is greatly appreciated!:D

progunr · Jul 24, 2008, 03:22 PM

If they sue you and win, they will most likely place a lien against the home.

You would not be able to sell it, refinance it, or transfer it into anyone else's name until the judgment is paid.

They cannot make you sell the home to pay the judgment.

ScottGem · Jul 24, 2008, 04:35 PM

Generally, your primary residence is protected from a lien on unsecured debt. At the worst, as progunr said, they would place a lien but not force you to sell.

shreker · Jul 24, 2008, 04:35 PM

Originally Posted by progunr

If they sue you and win, they will most likely place a lien against the home.

You would not be able to sell it, refinance it, or transfer it into anyone else's name until the judgment is paid.

They cannot make you sell the home to pay the judgment.

Well, good grief! Really got myself into this time. OK what if I do file bankruptcy? That cost money as well, what all does that entail, do you know?

progunr · Jul 25, 2008, 07:27 AM

Depending on chapter 7 or chapter 13?

Chapter 7 dismisses all allowable unsecured debts. (Credit cards, medical bills, judgments or any debt that is not secured by some type of collateral)

You can reaffirm on the home as long as you do not have more than $100,000 in equity.

If your equity exceeds that, you can be required to sell the home and anything over the $100,000 limit would be applied to your debts.

Chapter 13 just resets your debt, in some cases lowering the balance owed, and lowering the monthly payments to fit your situation.

While you can represent yourself in bankruptcy, I would not recommend it, unless you know a great deal about it, or have a close friend or relative who does.