Sued by Citi

[jammy118]

Hey everyone, I stopped paying on my credit cards about a year ago. I tried to work with Citi, but I honestly live paycheck to paycheck. There is no extra room to pay the creditors. I just had my mortgage modified and even with that we are barely making ends meet. I can't file a ch 7 until 12/10. I filed a ch 13 for medical reasons in 12/04. Since the laws have changed the BK court in my area requires us to include our mortgage, vehicle payments, and of course intrest, and whatever amount I have to pay the creditors in one lump sum. My husband is self employed and our income is not always steady. I can not be 100% sure I can have the trustee payment in full each month by a certain due date. It is easier to squeeze by when you can have grace periods and seperate due dates.

My question is I have just been sued by Citi for 1700.00. I live in FL and am wondering what to expect. I know I will get a judgement, but at that point will they attach my bank account? I am in school trying to better myself right now and only have two semesters left. I work a part time job and barely make anymone. My husband deposits what he makes into our business account. What happens after they get thier judgment and how awful is the court process. I have arbitration on the 28th and I am scared. I want to pay my creditors, but I don't have the money. I spend day after day crying and praying for a miracle. I never thought I would be living this life. Please any advice is greatly appreciated.

[inevitable]

The Carolinas, Pennsylvania and Texas prohibit wage garnishment, except in special circumstances such as unpaid taxes or child support. Florida prohibits garnishing wages from the head of a household.

In your case you most likely would not be considered the household as you are the woman in the marriage, but it might fly if you make more than your husband.


Florida is one of the most debtor friendly states in the union. Here is a list of assets that are generally off limits to creditors (judgment holders): However, before any assets can be seized, they have to get a judgment against you.

exempt from seizure:
1. Annuities
2. 401K plan savings
3. IRAs
4. Homestead property (your primary residence)
5. Social security benefits
6. Up to $1,000 of value of personal property, such as tools and other personal property
7. Income of the head of the household
8. Certain trusts such as irrevocable trusts and spendthrift trusts
9. Cash surrender value of life insurance policy
10. Pensions and retirement and profit sharing benefits.
11. Unemployment compensation payments prepaid college trust fund monies and medical savings accounts.
12. Up to $1,000 of interest in a single motor vehicle
13. Any ownership interest in professionally prescribed health aid for the person being sued or their children.
14. IRS refunds.

Certain assets cannot be seized legally by your creditors. Many creditors will attempt to seize assets that are exempt from seizure under Florida law. If this happens to you see a competent lawyer immediately.

If they win, they will most likely only be able to garnish your wages by 25%, and possibly freeze any bank accounts.

[jammy118]

Once they get a judgement do they actually go after you in this way? I have read that some creditors just want the judgement, but never go after it and have your wages or account garnished. At some point a person will pay it in order to get on with their life and get credit again.

[inevitable]

Once they get a judgement do they actually go after you in this way? I have read that some creditors just want the judgement, but never go after it and have your wages or account garnished. At some point a person will pay it in order to get on with their life and get credit again.

It is possible that they will just get the judgement, and never file a writ of garnishment with the court, I suppose it just all depends, but I would not count on it. You could just let them garnish you until 12/10 rolls around in 16-17 months and file another bk.

[treehugger1]

If you have money, why do you want to pay your creditors? As noble as it sounds, if you don't have money, creditors should be your last concern. You mention two things. 1) You have been sued. If you are worried about your bank account, close it and go to cash and money order only. This is not illegal! 2) You said you have an arbitration meeting. At the meeting deny everything and ask for detailed records of the account, going back to the original signed agreement. My sense is that arbitrators tend to lean toward the creditor. But, if you can leave a trail of unanswered questions, you set up the possibility for a future appeals process outside of arbitration. Every state is different.

If you received forms related to the arbitration, I hope you filled them out and played the "least-sophisticated" consumer and citizen.

I'm not an attorney nor do I give legal advice. I do try to use some logic and my state laws. You should do the same. Best to you.