What is the worst thing they can do?

[SwimminUpStream]

Because of certain things going on, we have decided NOT to file Chap. 13. We have a wrongful death lawsuit of our Son that the attorney feels will be finally over by March. Lets hope.

Anyway, my issue is major credit card debt. I already have 1 judgement against, although they have yet to garnish my wages.

So, here in Florida, what is the worst they can do? Get judgements against me and stand in line to collect that 25%. I understand that only one garnishment at a time can be taken out...am I correct?

I am homesteaded so they cannot touch the house and both cars have pmts and are worth alot less than owed. Nothing else of value.

Meanwhile, I will try and nego. deals with those that will. Yesterday AM EX called and offered to settle .30 on the dollar. But Chase who I owe ALOT to is major jerks!

Thoughts?

[magyar123]

A judgment against you might also freeze your bank account. To avoid that just close your current bank account and get your employer to give you paper paychecks instead of automatically depositing your pay, and cash those checks - but not at the bank where you have your current bank account but at a store or one of those check cashing places.

[SwimminUpStream]

My account is joint, so not sure they could come in and take. But couldn't we just open an account in my husband's name and me deposit my check into "his" account?

[magyar123]

My account is joint, so not sure they could come in and take. But couldn't we just open an account in my husband's name and me deposit my check into "his" account?

Even though it's a joint account - including your name/SS# - you are an account holder.
You can try just having one account in your husband's name only and deposit your checks in it - BUT - don't open this new account at the same bank.

[treehugger1]

M123 has good advice, in my opinion. Depositing your paycheck into another's account can work for a while. But months (or years) down the road should you get a debtor examination, it will all become transparent. You never want to make a false statement under oath. There are plenty of online banks that you can open an account with, or prepaid debit card services that allow direct deposit. Why run the risk of having to argue after the fact that monies in the account are separate? In addition, I would also encourage my significant other to open a new account in a different bank.

[Nicollette]

My account is joint, so not sure they could come in and take. But couldn't we just open an account in my husband's name and me deposit my check into "his" account?

I'm assuming your credit cards are in your name only, correct? Just wondering because if your husband's name is on the credit cards also, and you opened up an account in his name only, couldn't that account be frozen if his name is on the credit cards?

[fltoo]

Because of certain things going on, we have decided NOT to file Chap. 13. We have a wrongful death lawsuit of our Son that the attorney feels will be finally over by March. Lets hope.

Anyway, my issue is major credit card debt. I already have 1 judgement against, although they have yet to garnish my wages.

So, here in Florida, what is the worst they can do? Get judgements against me and stand in line to collect that 25%. I understand that only one garnishment at a time can be taken out...am I correct?

I am homesteaded so they cannot touch the house and both cars have pmts and are worth alot less than owed. Nothing else of value.

Meanwhile, I will try and nego. deals with those that will. Yesterday AM EX called and offered to settle .30 on the dollar. But Chase who I owe ALOT to is major jerks!

Thoughts?

My sympathy to your family.

Do you have any dependents? Check out the "head of family" exemption for garnishments in the state of FL.

[SwimminUpStream]

Thanks for all the replies.

The CC's are in my name only and husband is not even an authorized user on them. So that kinda solves that problem.

We would (he would) open an account at a different bank.

All of our children are grown, however, couldn't my husband still be considered head of household? He earns some more than I and without his income I would be dead in the water! I do not know if this would qualify him as head of household.

The company I work for is TINY...only 3 of us and the other 2 are the owners. They will not do direct deposit. My paycheck is written on the same back that we have our account with.

The lawsuit is actually filed by my husband and his ex-wife. The child was never mine by birth, however, in my heart he is. SO...any monies would not be "mine", so to speak.

However, it has always been our intent to pay off creditors IF anything comes from the lawsuit.

Is it worth me trying to set pmt. arrangements (which I can do financially) with the people that got the judgement?

[SwimminUpStream]

Also, any monies received from a wrongful death lawsuit are not taxable. Did check on that one!

[AngelinaCatHub]

You mentioned one creditor attempted to settle 0.30 on the dollar. Do not do that as that will ruin your chance at a 7. That is preferential, and may even cause you not to be able to file anything. This was attempted over a weekend on us for a Sears card. It had to be that day as Monday (When I could talk to my lawyer) would be too late. They were slick, even faxed me the documents. 'Hub

[fltoo]

How does it ruin his chance at a chap 7? I thought that is a trustee problem having nothing to do with the filer.

[SwimminUpStream]

We cannot file a Chap. 7...make too much money. I cannot file a Chap 7 since they take DH's $$$ into account. So, filing is out of the question right now. We could file a Chap. 13...however that is just not doable for us as well as our attorney told us that IF we get any type of settlement of course the Trustee has a lien against it...which I understand.

But the KICKER in the pants is, the Trustee COULD decide to pay off our BK as per the agreement we made OR they could revert back to the total amount we owed without the benefit of BK. Depends on the Trustee and mood my lawyer said. They also said where we would be filing, the Trustee is not so great.

That REALLY Stinks! I feel once an agreement is made that should be how it is. While we do want these debts paid, I know we could nego. with the creditors and pay them off ourselves.

[magyar123]

M123 has good advice, in my opinion. Depositing your paycheck into another's account can work for a while. But months (or years) down the road should you get a debtor examination, it will all become transparent. You never want to make a false statement under oath. There are plenty of online banks that you can open an account with, or prepaid debit card services that allow direct deposit. Why run the risk of having to argue after the fact that monies in the account are separate? In addition, I would also encourage my significant other to open a new account in a different bank.

Or he could just cash the checks somewhere (Walmart, check cashing places, etc.) go over to your bank and deposit the cash.

[ssdsco]

We cannot file a Chap. 7...make too much money. I cannot file a Chap 7 since they take DH's $$$ into account. So, filing is out of the question right now. We could file a Chap. 13...however that is just not doable for us as well as our attorney told us that IF we get any type of settlement of course the Trustee has a lien against it...which I understand.

But the KICKER in the pants is, the Trustee COULD decide to pay off our BK as per the agreement we made OR they could revert back to the total amount we owed without the benefit of BK. Depends on the Trustee and mood my lawyer said. They also said where we would be filing, the Trustee is not so great.

That REALLY Stinks! I feel once an agreement is made that should be how it is. While we do want these debts paid, I know we could nego. with the creditors and pay them off ourselves.

Review your state's exemptions from Judgments and max them out. Moving to a state that exempts annuities saved the day for me. While I have to be a resident for 2 years to use the exemption in BK the annuity was exempt from judgment the day I became a resident.

[WhatMoney]

I can answer your easy question about your husband claiming head of household (he can't) -

Head of Household

You may be able to file as head of household if you meet all the following requirements.

1) You are unmarried or “considered unmarried” on the last day of the year.

2) You paid more than half the cost of keeping up a home for the year.

3) A “qualifying person” lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the “qualifying person” is your dependent parent, he or she does not have to live with you.

Age Test for qualifying child:

To meet this test, a child must be:

1) Under age 19 at the end of the year,

2) A full-time student under age 24 at the end of the year, or

3) Permanently and totally disabled at any time during the year, regardless of age.

4) To meet this test, the child cannot have provided more than half of his or her own support for the year.

See Publication 501 for what constitutes a "qualifying person".