Judgement and 1099-misc

[NoMoreCards]

My boyfriend has just received a judgment from a CC for 2K. He is paid cash for work, and at the end of the year he receives a 1099-misc for his income taxes. (He drives a semi and the check is issued from the transportation company to the person who owns the semi) Out of that check, the owner gives him part of the earnings of the semi as his weekly pay. Thus, at the end of the year he is given a 1099-misc to use for tax purposes.

Is it possible that the CC could go to the person that issues the 1099-misc and take that money? Other than that, he is completely judgment proof. He has no property of any kind, and has no bank accounts.

He does plan to pay this judgment, but we need to buy a bit of time to catch up on other bills and prevent further judgments. We just would prefer that he pays on his schedule, and not theirs.

Thoughts?

[junker]

if he is paid in cash...it would be hard to prove...the person that is paying him CASH..isnt the one with the garnishment or judgement...they would have to prove he is working there...as a truck driver does he keep a drivers log book?? they could make him show that at a debtors exam though..it would prove he is working...if he doesnt have to carry a log book..then he should be ok...remember they cant take all his pay anyway..if he is garnished they can ONLY take a certain percent..depending on the state...he should worry about a checking acct though...judgements go after them and can take any amount ...or his car depending on the value....i have had many judgements over the years....and they have never collected a dime....i was considered judgement proof...none of them even bothered to renew after the 10 years...i was always paid in cash also....so YES it is very possible he is judgement proof....

[catleg]

So to restate, the trucking company pays the truck owner by check who then pays your boyfriend in cash.

I'd say the only way they figure out who pays your BF is if he tells them. Otherwise they'll try to be clever and sniff around for bank accounts, real estate, or just trick him into revealing same info.

Probably this judgment expires uncollected (we hope, fingers crossed).

[NoMoreCards]

So to restate, the trucking company pays the truck owner by check who then pays your boyfriend in cash.

I'd say the only way they figure out who pays your BF is if he tells them. Otherwise they'll try to be clever and sniff around for bank accounts, real estate, or just trick him into revealing same info.

Probably this judgment expires uncollected (we hope, fingers crossed).

First off, thank you everyone for taking the time to read and reply! I appreciate your time and effort.

Catleg, you are correct in your restatement. Also, my BF won't take the CA calls. He says they will get the funds, when he gets them to give. So he won't be giving out any information.

We are only trying to hold off the payment of that judgment a few months. He has no bank accounts or real estate, or personal vehicle. BK is not a option for him, he filed in 2005 (CH.7), and then got caught up in a addiction (which he has been free from now for about 2 years). But with this addiction, he ran his debt up. His total debt is about 14K, and although he could file a CH13, he wants to repay and clear his name. I don't know what good a 13 would do other than give him 5 years to pay what he is working on paying anyhow. With luck, it won't take 5 years to pay it off. He don't want a Trustee looking over his shoulder financially for the next 5 years.

He gets anywhere from 400-700 most weeks.
His bills are:
child support =100.00 weekly
unemployment (for over payment) = bal. = 2800.00
IRS (2007) 1500.00
Sprint 900.00
Truck repo balance 6500.00
Cap One = 1750.00
HSBC = 2K (judgment granted this past week)
Ex-wife (funds borrowed) 2450.00
Department store CC 1500.00

[catleg]

The advantage of a judgment vs the underlying contract is that interest accrues at a much lower rate, the court's post judgment interest rate, rather than the credit card's contract rate of (probably) 30%. That is, assuming you ever pay it.

The disadvantage is of course that they can take your "stuff" if they find it. But again, if he puts everything in your name, then he is collection proof for all practical purposes (and probably better for him from an addiction standpoint).

Sounds like he would qualify for a ch7 based on the means test. He should probably work on getting the ex-wife paid off then look into chapter 7. With a judgment his credit is probably shot anyway. Might as well get a fresh start, it might improve his outlook on life vis a vis the addiction issues.

[NoMoreCards]

The advantage of a judgment vs the underlying contract is that interest accrues at a much lower rate, the court's post judgment interest rate, rather than the credit card's contract rate of (probably) 30%. That is, assuming you ever pay it.

What is interesting here, the 2K judgement was for a 1K limit card. All the fees and high interest caused the additional 1K. *sigh*


He seriously does not have any property for them to take, so that is not a concern. Based on the means test he would qualify for a 7, but he filed in 2005 and has to wait 8 years to refile. So this isn't a option either.
I see the pride in him when he is able to pay the bills, he glows with pride. I think it would be great for him to be able to pay them, but we are prioritizing them and a CC Judgement is low on the list. We felt the state (for unemployment) and the IRS should be moved to the top. Of course Child support goes out weekly, so that is untouchable.

It will just take a bit of time, so that is what we are hoping we have without them taking his pay.