[nojobinmke]

I was sued for credit card debt in Wisconsin, I went to 3 hearings before commissioner ruled in favor of collection agency.
Today is the day a judgment can or will be entered against me.

Yes I did say the debt was mine and wanted to pay, but I lost my job 1 year ago, and only have 11 weeks of unemployment left. I also have no vehicles or property and only $420 in bank.

After the last hearing I talked to collections lawyer in the courthouse hall about my money problem, all he said was " well like I tell everyone in this situation, pick up the paper"

1 week ago I got letter from collections law firm offering me a deal to pay $220 a month to them, and the crazy part to me is they said I could use a credit card for that.

My guess is they know I have a credit card with zero balance & $3000 limit.

I am really tempted to use credit card to make payments, but that could just make get into a problem with another credit card if I don't find a job before unemployment runs out.

I am also worried they might put a freeze on my bank account, I have my unemployment going there by direct deposit. I really don't want a judgment on my record

Guess my question is, should I use credit card to pay off this debt?

Thanks

[tickle]

Never ever use one credit card to pay off another credit card debt, that is one way of getting deeper in debt. Sure they will encourage you to do that, they don't care as long as they get their money.

Have your unemployment cheque sent to your home address, cancel the direct deposit. It will be taken, nothing is differentiated in a bank account. In fact, cancel any other direct deposit and have any monies sent to your either your home or a post office box number. Everyone has to have money to live.

Tick

[nojobinmke]

I was real close to going to their website last night to make a payment.
Everyone tells me I am judgment proof and not to worry, but they don't understand that this could be on my record for 10 years, collection agency can still get money at any time when I get a job.

Local newspaper had to give me more bad news too

"Making it more difficult to talk about an economic turnaround, Wisconsin lost 2,200 jobs in March while the state's unemployment rate notched higher to 8.8% from 8.7% in the previous month, according to preliminary figures released Thursday by the state"

[tickle]

They can't when the statute of limitations runs out in your State. Stick to your guns and please do not pay with one credit card on top of another or you will never ever dig yourself out of debt.

If you can work at a minimum wage job to make a living, then do it. I have done just everything to make a buck and come out on top. Anyone can.

Tick

[Fr_Chuck]

They won't stop the judgement just because you sent them a payment, if that was what you were thinking, they don't care how they get your money, they just want to get payments when possible

[nojobinmke]

I would have made the payments every month or maybe even pay whole thing off with the credit card. But so far I haven't got a answer from them about if that will stop them from entering Judgment. The letter said they need money before April 26th, which seems odd since letter from court said judgment will be entered today unless I filed for appeal in civil court.

[JudyKayTee]

My feeling is that a payment arrangement will NOT stop a Judgment from being obtained and filed.

No effort will (probably) be made to collect IF you keep up your end of the payment bargain - if, however, you default, then the creditor is all set to file.

[nojobinmke]

I think I will have to wait and see what happens if & when they file judgment, it's been 2 business days and I see nothing online yet on my court records. Hate to make payment arrangement that I might not be able to keep. Using credit card could make things even worse if I don't find a job before unemployment runs out

[nojobinmke]

Today the judgment was entered, so I guess I will be getting a Order For Financial Disclosure soon in the mail.

Does household income include what my roommate makes?
He is not a family member, just a good friend.

[JudyKayTee]

Yes, you are in the same household and he is presumably assisting you in paying bills (rent, utilities, food), enabling you to pay more to your creditors.

[nojobinmke]

That's crazy! So if a roommate made $50,000 a year that would affect how much I must pay creditor, even though that money isn't mine? Also I am unemployed with no income, unless you count unemployment.

[JudyKayTee]

That's crazy! So if a roommate made $50,000 a year that would affect how much I must pay creditor, even though that money isn't mine? Also I am unemployed with no income, unless you count unemployment.

Whether you think it's crazy, that's how the law works.

If you had no roommate you would have even less disposable income. You have a roommate and so you have more disposable income - which your creditor is allowed to "tap."

I never said the amount of money your roommate makes causes you to pay more. I said that that is household money, used to pay household bills, giving you more disposable income.

If you made $100 a week and paid $50 for household expenses, you'd have $50 a week left to pay your bills. If you made $100 a week and paid $25 for household expenses because your roommate paid the other $25 you'd have $75 a week left to pay your bills.

That's the law.

[nojobinmke]

Thanks Judy.
It's been 5 days now and no Financial Disclosure letter from collections lawyer, just a notice of entry of judgment from court clerk. Surprised lawyers didn't send financial disclosure letter out right away. Maybe they want to freeze my bank account first, since they know I have no job.

[nojobinmke]

Been 10 days now since judgment was entered, and I haven't received financial disclosure letter yet. And no email or letters from collection lawyers
Is that odd?

[JudyKayTee]

Nope.

[nojobinmke]

Been a month now and no Financial Disclosure letter from collections lawyer, and my checking account is still OK.
I want to put rent money in the bank, but afraid account might have a freeze put on it, without me knowing in advance. I check court records every day, and all it shows is the entry of judgment. Would there be anything on record if lawyer ever puts freeze on my account? Also would they do that without sending a Financial Disclosure first?

Why would they go through 3 court hearings and not try to get their money asap?

[ScottGem]

Many times the creditors know you are judgment proof and don't bother asking for disclosure.

What they do is sit on the judgment and monitor your credit reports. If they see that you start building assets, they will go after them.

[nojobinmke]

Thanks Scott.
They won't see much on my credit report, I stopped using credit cards, and if I ever buy a car it would be used and paid with cash only. Odds of me owning anything of value anytime in the future is zero. Seems like everyone is trying to get rid of full time positions here.

[ScottGem]

But if you do get a job, odds are they will find out and garnish your salary. Remember, they have 10 years and then another 10 on renewal to wait.

[this8384]

I'm from Wisconsin, so I'll throw my two cents in. I have to say, I'm rather surprised that there were three court hearings over one small claims case. That seems a bit excessive. I've heard of a pre-trial hearing, at which point the judge will see if the parties can agree or if it needs to go to trial. If they cannot agree, then you proceed to trial which for small claims, shouldn't take more than an hour.

If you received the notification of judgment, that states that you are to fill out and return a Financial Disclosure to the plaintiff within 21 days of the judgment. Failure to do so can allow them to file for contempt of court against you - so I'd send it back rather than wasting time playing games.

This statement:

The letter said they need money before April 26th, which seems odd since letter from court said judgment will be entered today unless I filed for appeal in civil court.

Is very odd indeed. You cannot appeal a case that hasn't been ruled on. You can file a counter-claim against someone, but you cannot a appeal a decision that doesn't exist. Unless you entered into a deferred payment agreement and then defaulted, leading to a judgment being entered at a later date.

My assumption is that you either a)aren't quite sure what the situation is or b)are not giving us the full story.

If I can ask, what was your defense in court?