Cant BK, Lawsuite filed by Creditor, what can I do?

[kjonyou]

I had perfect credit up untill about 6 months ago. I lost my job, have a long term illness, but have not qualifed for disability yet, its a very slow process can take years, where 70% of most people get rejected the first time. I thought it would happen sooner then later and now I am really stuck.

Since then, I could not pay my credit cards, and Chase Bank has file a suite for $6000 plus legal fees. I have not recived a summons yet, but I have recived several letters from different companies saying that they have knoledge its been filed and will help me settle this suite that has been filed.

What can I do? I dont have any money, assets, or income to pay, I dont qualify for disability yet so I am considered able to work. I dont even have enough money to go BK unless I get onto disability. I certinaly dont have any money for a lawer, I am on food stamps! I dont own a house, cashed out my 401K months ago.

Is this stuff scare tactiics? Do they really take people to court for that amount or is it just for insurance purposes? Should I try to contact them knowing I cant pay ever?? Should I just show up in court and plead poverty? Should I avoid the summons and let them get a judgment on me and file for BK when I have the money?

I need your advice, anything except talk to a lawyer, I already know that is what I should do but I can barly afford to eat right now.

[lrprn]

What can I do? I dont have any money, assets, or income to pay, I dont qualify for disability yet so I am considered able to work. I dont even have enough money to go BK unless I get onto disability. I certinaly dont have any money for a lawer, I am on food stamps! I dont own a house, cashed out my 401K months ago.

First, I'm terribly sad that you've cashed out your 401K. That wasn't necessary. It's obvious that you are an ideal candidate for Ch 7 bankruptcy. If you had filed before emptying out your 401K, you could have at least saved that because the bankruptcy law protects it 100%.

Is this stuff scare tactiics? Do they really take people to court for that amount or is it just for insurance purposes? Should I try to contact them knowing I cant pay ever?? Should I just show up in court and plead poverty? Should I avoid the summons and let them get a judgment on me and file for BK when I have the money?

Yes, companies will take you to court for $6K (and much less). And they will win too if you don't take steps to protect yourself. You need to do more than go to court and plead poverty. The law doesn't care you can't afford to pay.

I need your advice, anything except talk to a lawyer, I already know that is what I should do but I can barly afford to eat right now.

Even though you have no money presently, you can still talk to 3-4 bankruptcy lawyers who provide free initial consultations (and that's most bk lawyers). That's how you find out what's best for you to do in your very tough situation.

Don't be scared. The worst thing you can do right now is allow your fear to freeze you into inaction. This enlarging debt wave is going to roll right over you unless you get sound advice from several bankruptcy lawyers about what your best options are at the moment. Don't hesitate. Get on the phone and set up those initial interviews! They won't cost you a penny.

[BigJohn]

I became disabled and I can personally tell you "Don't believe everything people tell you". I did not think I could get Social Security disability so I waited. I even went to a disability lawyer who told me I would have a very difficult time qualifying for disability. later, in a moment of frustration, I filed on my own. I got it along with a big check postdated back to the time I was injured. It didn't take long after I filed that I was approved. A few years later I had to be re-examined. I guess I 'passed' that exam also.

[treehugger1]

Since you have not received a summons yet, you probably have 14 - 30 days from time of receipt of summons until you need to respond or a default judgment can be entered. In most states it costs money to answer and deny allegations in the initial suit. But, in some states this cost can be waived. If you have no money or assets, then there is not much folks can get from you even if they do get a judgment.

Take a deep breath and begin putting some money away to file BK. You might also look into any low cost/income legal help in your area.

Believe it or not, $6K is not an unusually large sum and qualifies as a "small" claim in many states. Small claims can move quickly depending upon your local courts and how backed up their dockets are. You might want to call your local courthouse an dask if any suit has actually been filed against you. It could be that a suit has not been filed yet.

[ready2puke]

How can a cc file a lawsuit and you not know ? Dont they have to tell you about the suit? Sorry if this is a stupid question.

[soleprop]

hi OP, hang in there. also, NOLO books do talk about being judgement proof; if you have no assets to be taken away and such, the worst that can happen typically is a 25% wage garnishment (if you're working). so if your medical condition is such that you can't work and your stress level etc. is such that you can't cope with filing a bk or fighting these lawsuits, just take care of your health first and foremost; the bk option should be there later on for you and you can discharge these matters then...

just another opinion..

[StartingOver08]

Also, make sure to check the court under your name to see if they have filed suit, but did what is known as sewer service. JDB's do this regularly. 'Sewer Service" is when they mail the summons to an old address, or to an address that never was your address or some other wacky thing - then they sign a affidavit saying you were served.

The idea is to get the judgment without your knowledge - so you won't fight it. Sears did this to me and it was 4 years before I found out about it (way too late).

Usually you can go right on line to see what court cases may or may not be pending against you.

[GoingDown]

I became disabled and I can personally tell you "Don't believe everything people tell you". I did not think I could get Social Security disability so I waited. I even went to a disability lawyer who told me I would have a very difficult time qualifying for disability. later, in a moment of frustration, I filed on my own. I got it along with a big check postdated back to the time I was injured. It didn't take long after I filed that I was approved. A few years later I had to be re-examined. I guess I 'passed' that exam also.

Yep, a similar thing happened to a relative of mine. He was told he wouldn't qualify for disability, but he went ahead and called Social Security and applied over the phone, and then they called him in for an interview, and after that he was approved for disability payments from Social Security. So, don't listen to what other people say. Go ahead and apply for Social Security Disability. You might be surprised by the result.

Just make sure you stop using a checking account / savings account, because after they get a judgment they will take any money you have in them.

[filingin08]

Until you get an actual summons or see your name on a court docket, don't believe what these folks tell you. We had a +$40k Chase account. No payments in over a year. Nothing. We did receive stuff that looked legit, but never a court date, etc. Anyone can make up a case number!

[magyar123]

Whatever you finally decide to do fitst close yout bank account(s) to safeguard any mones from bank freezes.

[kjonyou]

Thank you EVERONE! I can bearly sleep at night which is the last thing I should be doing consider how it affects my health.

Here is a new twist, I went online to the courthouse and did a serch for the case number provide by these debt collection companies offering me their services. It comes up with my name, but so dose a compleatly different case with the exact number? Is that normal?

A search for the Lawer named on the case dose come up as a firm located in Los Angeles repesenting Chase Bank. Its been 15 days since they filed but no summons yet. That seems kind of long. There is also a court date set already. How is that possable? Collection or mediation companies who some how seem to know about this also have my worng appartment number on all thier docs, it that why I have not been served? Dose proof of service have to be in person or signed mail? I am in CA, I know laws are different state to state and read that some places just showing they sent something registered mail is considered notice.

Should I call these guys and say look, I am basicly judgment proof, so you would be wasting your time even if you win. Do you think they stop or do it anyway since they can write off bad debt or recover through their insurance? As I am not a lawyer, I am afraid that contacting them might back me in a corner.

Do you think its still some scare tactic? Legally filed but no intent to go to court? Its hardly over the small claims limit. In CA the limit is $5000. The amount due is $6000. Of course if they ad legal fees which they will, it will be $$$$$$$$$?

[magyar123]

Chase is on the warpath now. THey'll do anything to get the money out of you. As I mentioned in my first response - close any and all bank accounts you have to avoid them robbing you of whatever you have left.

[StartingOver08]

Remember what I said about sewer service earlier?? This is what it is...they have your wrong apt number so you don't get the summons, you fail to show, they get a default judgment and then they take the money from your account. You need to respond to the summons and definately show up to court.

[fltoo]

Please remember that no one is judgment proof, just garnishment or levy proof. Anyone can get a judgment against you, but if you have no assets and don't keep money in the bank, they can't act on their judgment.

Please don't worry about a judgment from Chase until you start working again and check out the garnishment laws in your state. Close bank accounts and use money orders.

I have a judgment from Chase that is a year old and I will just vacate it in BK.

Chase is still the only one that calls me regularly. They threaten me with a law suit. I tell them they already filed a law suit, duh! They tell me that a judgment will stay with me for the rest of my life. I say, no, I will vacate it in BK. They tell me to borrow money from a relative to give them a payment. I tell them, good idea, I will do that as soon as I hang up.

This week, a new tactic. They called and said that they reviewed my credit report and see that I am making payments to other creditors. I asked to speak to the account manager. The manager gets on the phone and I proceeded to give him a few self study internet sites on learning to read credit reports, to give to his employees.

Chase has the highest collection rate of all cc companies. They hound and scare people. Don't be scared of them and never let them intimidate you. They can do nothing to you while you are unemployed and have no assets.

Lots of people here disagree with this, but I always answer every call, verify that they have the right number and have never been nasty to a collector. They are just people that take the job as a last resort because they can't get a better one. If given a better opportunity, they would quit the job in a heartbeat.

[treehugger1]

I also subscribe to a credit monitoring service. I am beginning to see some national CA's inquire as to my credit. I do have the right to file a complaint as these folks have nver contacted me or given an opportunity to DV them. I'm going to let them sit there on my report for the time being. Charge-offs are beginning to pile up, I have several legitimate CA's showing, and several judgments. Along with that, one can clearly see the $100k+ unsecured debt including student loans. I have no assets and am upside-down on two vehicles that already have lienholders. I don't even have any furniture! I live in a furnished house.

I have found some comfort in letting OC's know I am undergoing wage garnishment and have several judgments posted to my credit reports. If they do a Lexus search, they will clearly see other court mediation agreements. This immediately changes the tone of the conversation. Any OC can clearly see the evidence that I will show in court; and the cost of going through mediation/arbitration can't pencil out in the short term. Recent conversations have been cordial and respect showing for all parties. Keep in mind that there are currently millions of folks getting calls! I would guess the big ones such as AMEX, BOA, CITI, CAP1, Chase, etc have to be piling up millions of dollars in attempted collection costs. Every OC I speak to agrees that I am not the only American working through a debt crisis.

Am I a deadbeat? That's a tough one, as those who are willing to work with me on terms I find agreeable are being paid off. Wage garnishment is certainly paying off my local debts. I am paying off my debts, but I'm using a somewhat unorthodox method. LOL

I'm with BB. A good simple DV does wonders. I just had a discussion this morning with a new CA colelcting on what I believe is a Citi account. I recorded the call and asked them to send me written information within 5 days under state and federal laws. They were cordial up to a point. The woman stated the account was in the pre-litigation stage and I told her everything is in prelitigation, duh. She said that if we could not resolve this soon, they would send the account back and I would be served. I asked her, "served what?" She said, "documents." Oh, those. LMAO It would have made a great Seinfeld show!