judgement question

[ready2file]

Tonight I received a "rush priority mail" red/white/blue envelope from advanta. Basically it had a sample complaint that would be filed in Utah(jurisdicton where I agreed when I accepted credit from them) -- it's a collection attempt stating that my case is now in the Litigation Dept. This card is the card I'm most concerned with, as this is the one that I've stopped paying first...think I'm nearing the 6 month mark.

I'm currently planning to file this coming May/June -- depends on if I can get a premanent loan mod on my primary residence. My question is...should Advanta file on me, do I go to court and say hey I'm filing chap 7 soon. Should I ignore it? What will happened with I get a judgement, do I get a 1099 issued?

I was thinking about just paying them a couple payments...I think they wanted $240 as a min just to keep them cool -- bad idea??

thanks for reading -- any comments are appreciated.

ready2file

[AngelinaCatHub]

Read on and welcome here. Do not worry as much as you have. This is not unusual. It is only one ploy. Yes they can sue you but at this time, they are in the intimidation phase.

Yes always respond (and in person) to a summons. You really want to avoid a Judgment. They sure are a lot of trouble. They can haunt you and then in bk they are trouble to get rid of.

NEVER ignore a legal subpoena.

As far as telling the Judge you intend to file C7, it means nothing at all.

If you get a Judgment, it has nothing to do with IRS. No 1099.

Please read all the "stickies" about Judgments, and C7.

You are a bit over-reactive. Be less worried. Stick by us here and ask questions. You did good finding this place. 'Hub

[jlmaca]

Tonight I received a "rush priority mail" red/white/blue envelope from advanta. Basically it had a sample complaint that would be filed in Utah(jurisdicton where I agreed when I accepted credit from them) -- it's a collection attempt stating that my case is now in the Litigation Dept. This card is the card I'm most concerned with, as this is the one that I've stopped paying first...think I'm nearing the 6 month mark.

I'm currently planning to file this coming May/June -- depends on if I can get a premanent loan mod on my primary residence. My question is...should Advanta file on me, do I go to court and say hey I'm filing chap 7 soon. Should I ignore it? What will happened with I get a judgement, do I get a 1099 issued?

I was thinking about just paying them a couple payments...I think they wanted $240 as a min just to keep them cool -- bad idea??

thanks for reading -- any comments are appreciated.

ready2file

Going to court and saying you're filing won't do you much good. Ignoring it will get you a summary judgement with which they will start the collection process probably a wage garnishment. The question is will all this happen before you file in May/June? If you have time you can drag out this process by answering the legal complaint when it comes to you. You probably have 30 days to answer the complaint and then maybe another 30 days before trial if not a lot more time than that. Even if they win a judgement they must start a legal inquiry as to your ability to pay a wage garnishment this all takes a lot of time. Eventually if they are serious they will get ya. Question is how long will it take them and when will you really be filing BK?

[catleg]

Normally I would say to pay attention to threatened litigation, but this is Advanta, which has exited the card business and laid off most of its staff. So given that you're planning to file soon anyway, I would just ignore it. The envelopes to watch for are the ones which aren't brightly colored. :-)

[ready2file]

Thanks for the replies...I tried to plan this as good as I could, but failed to think about the mortgage loan mod til right when I was ready to file. Chase is starting me 2/1/10 with a new trial payment - will wait to go perm...so I want my new payment to be reaffirmed as opposed to my old one!

Again i thank you

[jlmaca]

Thanks for the replies...I tried to plan this as good as I could, but failed to think about the mortgage loan mod til right when I was ready to file. Chase is starting me 2/1/10 with a new trial payment - will wait to go perm...so I want my new payment to be reaffirmed as opposed to my old one!

Again i thank you

You've been given good advice here, the letter you got was probably a bunch of scare tactics..... watch out for the "summons" delivered by the Sheriff.

[jjsmith]

I live in Utah also. What county are you in? If you need some referrals or pointers about what I've heard on the local level, let me know.

I wouldn't start worrying yet, but I would start planning. It's true, there letter is just a big scare tactic. Nothing has happened until you have a constable serving you papers. I'm not sure what Advanta's timeline is. We had multiple complaints filed against us, but they were from business contracts, not from CC Companies.

If you're not filing until May, you will probably at least need to respond to the complaint if you do not want a summary judgment issued against you.

In Utah, you have 21 days to respond to a complaint once filed. You can verify this by calling the court. The court can't give you any legal advice, but they can tell you what your deadlines are. The Utah courts website is very helpful and can answer many questions for you and help you prepare an answer.

I'm not sure if you are planning on keeping your house or owning any property in the future, but our attorney said that in Utah if a judgment is issued it's automatically attached to any real property you owe. It is possible to get get liens stripped in bankruptcy, but it's not cheap and there needs to be proof of no equity in the property to get them stripped. It is much better to not get a judgment.

With one of our complaints, the timeline was about a year until the judgment was issued. The process went like this. 1) They filed a complaint with the court 2) We filed a response pretty much denying everything we could. 3) They filed for a summary judgment (meaning they wanted the judge to not grant us a hearing and just slap a judgment on us) 4) We filed a response to the summary judgment request requesting a hearing. 5) They filed for another summary judgment 6) We filed another response. 7) The judge made a decision and about a month later a judgment was issued. We filed for bankruptcy before the judgment was issued and our attorney is working on getting it reversed, as it's an illegal judgment. We never got a trial, which really stunk because we had some pretty good arguments about why we weren't responsible for the entire sum that was sued for. I can't help but feel like if you're not an attorney and a member of their club, good luck getting invited for a trial!!

Given that my entire process to get a judgment took a year, you probably won't have to do nearly as much as I did.

[ready2file]

I'm not in Utah...the letter stated that they had the right to file their complaint there or in my home state which is MD.

I live in Utah also. What county are you in? If you need some referrals or pointers about what I've heard on the local level, let me know.

I wouldn't start worrying yet, but I would start planning. It's true, there letter is just a big scare tactic. Nothing has happened until you have a constable serving you papers. I'm not sure what Advanta's timeline is. We had multiple complaints filed against us, but they were from business contracts, not from CC Companies.

If you're not filing until May, you will probably at least need to respond to the complaint if you do not want a summary judgment issued against you.

In Utah, you have 21 days to respond to a complaint once filed. You can verify this by calling the court. The court can't give you any legal advice, but they can tell you what your deadlines are. The Utah courts website is very helpful and can answer many questions for you and help you prepare an answer.

I'm not sure if you are planning on keeping your house or owning any property in the future, but our attorney said that in Utah if a judgment is issued it's automatically attached to any real property you owe. It is possible to get get liens stripped in bankruptcy, but it's not cheap and there needs to be proof of no equity in the property to get them stripped. It is much better to not get a judgment.

With one of our complaints, the timeline was about a year until the judgment was issued. The process went like this. 1) They filed a complaint with the court 2) We filed a response pretty much denying everything we could. 3) They filed for a summary judgment (meaning they wanted the judge to not grant us a hearing and just slap a judgment on us) 4) We filed a response to the summary judgment request requesting a hearing. 5) They filed for another summary judgment 6) We filed another response. 7) The judge made a decision and about a month later a judgment was issued. We filed for bankruptcy before the judgment was issued and our attorney is working on getting it reversed, as it's an illegal judgment. We never got a trial, which really stunk because we had some pretty good arguments about why we weren't responsible for the entire sum that was sued for. I can't help but feel like if you're not an attorney and a member of their club, good luck getting invited for a trial!!

Given that my entire process to get a judgment took a year, you probably won't have to do nearly as much as I did.