I am being sued by Discover in SE Michigan! Help!

[Violet]

Hello! I defaulted on my credit cards in December 2008. Today I received a summons from Discover Card. I owe them about $4,000. My total debt was about $34,000 when I stopped paying. I have had no job and no income since May 2009. I have not been able to find a job in the severely depressed Detroit area and have no idea when I will be able to. I am currently living with my parents. I have no assets besides a 2000 Chevrolet Cavalier and $19.00 in a bank account.

As I have no assets, income or health insurance, I decided that there was no point in filing bankruptcy until I have an income. There is always the possibility of a health emergency, and if I rack up health expenses for some reason (like a trip to the ER), I can always add them to a Chapter 7. Until I have a job and health insurance, I feel I should leave myself that option.

I have some questions:

1. Given my situation, should I just ignore the summons and let them get a default judgment? I don't have enough money to file BK or to hire a lawyer. The actual plaintiff is Discover.

2. How long do you think it will take for this to reach judgment? My court is the 23rd District court of Michigan in Taylor. I don't think the docket is available online, is it? I'd expect courts to be pretty backed up in this area, but maybe they're not.

3. What are the chances that they will seize my car? I can't afford to file BK anytime soon. The Kelley Blue Book for private sale of a 2000 Cavalier in good condition is $2660. My car has been in two accidents and probably isn't worth $2660, but would they even care about that? Do they inquire about car condition after judgment, or do they just show up on your doorstep demanding the key?

4. If there is a judgment and it just sits there unpaid, does this have any effect on whether other creditors will sue me or be willing to settle?

I'm really surprised I ended up getting sued so soon, given that I live in an area with 25% + unemployment, and my credit report shows I haven't paid anyone in nearly a year.

Any advice would be appreciated.

Thanks,
Violet

[Violet]

More questions:

1. The summons was filed with the court on November 13. I only received the summons today, December 1. The summons says I have 21 days from delivery to file a written answer with the court. How can I prove that I only received it on December 1?

According to this form:

http://forms.lp.findlaw.com/form/courtforms/state/mi/mi000303.pdf

It looks like the server was supposed to ask for a signature and provide proof of service. The guy just handed the summons to my mother. Is this legal?

2. Is there any reason to respond to the summons? If so, how can I do so, without a lawyer? Is there any way to communicate to the plaintiff's attorney that I have no assets and they will get nothing from me? (I did find out that Michigan allows a $2,950 post-judgment vehicle exemption, so they wouldn't be able to take my car away.)

Could you direct me to a good source for how to respond to a summons? I have no idea where to begin.

[junker]

it does sound like you are collection proof...although i personally enjoy fighting with the ca,s and jdb,s and would probably try and deny the claims..just to delay the inevitible judgment....just to cost them more money....it sounds like you are safe..i have had many judgments...and so far none has been able to do anything...i dont know what michigans exemption is for a car..but it sounds like they wouldnt bother with that either...if and when it is feasible for you to file bk...be sure to advise your lawyer of any judgments so they can have them removed....with some lawyers it does cost extra to have judgments removed after bk.....so given your current situation dont worry about it.....here is a sample letter to send...albeit a little late but if you have other creditors lurking ...it might help

judgement proof letter

--------------------------------------------------------------------------------

Here is another form letter if you are Judgement proof...to send to a collection agency...received from California Legal Aid.....it says......

Use this letter to inform a collection agency that you have no income or assets it can reach, that you are, in effect, "judgment proof"
if the account is being handled by a collection agency= not the person or company to whom you originally owed money--the agency is forbidden by law from calling you if you request that it not do so.. you may still get letters, but pay attention and if you see a new agency name or address, send another letter if you want to prevent new calls.
your name
your address
city,state zip
Date-------

xyz collections
address
address

re: your name
Acct no--------------

Dear Collection Manager:

This letter is to acvise you that I/we am/are considered "judment proof" due to my/our financial circumstances. Under the California Code of Civil Procedure, all my/our income and assets are protected against court judgments.
I/We am/are formally requesting that you make no further contact with me/us. Under the Federal Fair Debt Collection Act(15 U.S.C 1692c), you are required to stop contacting me/us once I/we make this request, except to inform me that you are terminating collection efforts or that you are taking certain steps, as specified in the statute.
Sincerely,
your name------- 2nd name if applicable-------------

insert YOUR state..........

[OHBOY]

(Quote):...."so given your current situation dont worry about it.....here is a sample letter to send...albeit a little late but if you have other creditors lurking ...it might help"...


'Junker', as I am trying to understand, please allow me to ask:
as the OP stated that the lawsuit is coming from the OC, are you saying that it would be advisable to contact other OC's with such a letter while they are still 'just calling' on a daily basis ?

I don't know why...for some reason I thought that this was only applicable after CA's get into the picture...(?)

You don't think it would be 'jumping the gun' and possibly 'rushing things'...
Or... would it give an OC the idea to consider an 'involuntary judgement' ???

So, if it applies to OC's too, than the next time they call (tommorrow..), l just ask for a contact address, tell them I need to mail them 'important information' and mail this 'sucker'/hmmm...letter ?... Should it be notarized ?

[junker]

to OHBOY>>>>>>the letter as i see it is meant to go to a ca or jdb.....BUT i personally would also send it to a oc...of course they can probably ignore it...but i would surely tell them i am collection proof....if you tell them up front..you are collection proof...they MIGHT have second thoughts about spending more money to get you....i have told them myself...among many other things......go for it if you want to waste your time and money....i can guarantee you wont get a dime....i have told them i am judgment or collection proof....and the only reason i havent filed bk...is...I DONT NEED TO at this time.....when it would become necessary to file i would in a minute....i have taken great pains to make myself collection proof....and as i said earlier....i ENJOY messing with them....i stalled a judgment creditor when i lived in florida from domesticating the judgment there...just long enough so i could sell a house....i fed him a line of bulll....that he actually believed me and the house sold before he could lien it...i told him i was underwater and was going to let it go to foreclosure..he believed me...it sold without a lien...another filed suit against me in florida..legal aid did a fantastic job for me there and got the case dismissed...without even using my sol defense....i said many times in earlier posts that I personally believe in stalling judgments..there are other reasons you can get a case dismissed besides the sol defense....even if you are 100% sure you are going to lose...make them work for their judgment.....the judge isnt going to give them any MORE money if you deny it and still lose.....all they are going to get is the judgment amount anyway....no punitive money....of course thats my personal opinion....

[OHBOY]

THANKS 'Junker' !!!!

While I am certainly not attempting to 'hijack' this thread...(it does go along with what the OP is talking about...)... my own situation is very similar to the OPs, exept his state exemption for his vehicle is better.
Here in FL it's only $ 1000 (for BK or non BK).
Vehicle left in my name is a 1997 Chevy Blazer is valued right about $3000...though of course in reality I very much doubt I would ever get it on a private sale (trade in about $ 2000).

So, here is my additional question: in your opinion is it ok for my wife to switch the title, which is presently in BOTH our names (titled with an 'OR' in between) into HER name only...meaning she would just go down to the DMV and get it done...does not even need my signature because of the 'or'..

In MY book it would not be 'Fraudulant Conveyance', but I am wondering if a court could see it otherwise.

Anyhow, if my wife decided to do that on her own, I do believe I would be totally 'collection proof'.

Could you kindly give me your valued thoughts ? THANK YOU !!!

[Martha31]

THANKS 'Junker' !!!!

While I am certainly not attempting to 'hijack' this thread...(it does go along with what the OP is talking about...)... my own situation is very similar to the OPs, exept his state exemption for his vehicle is better.
Here in FL it's only $ 1000 (for BK or non BK).
Vehicle left in my name is a 1997 Chevy Blazer is valued right about $3000...though of course in reality I very much doubt I would ever get it on a private sale (trade in about $ 2000).

So, here is my additional question: in your opinion is it ok for my wife to switch the title, which is presently in BOTH our names (titled with an 'OR' in between) into HER name only...meaning she would just go down to the DMV and get it done...does not even need my signature because of the 'or'..

In MY book it would not be 'Fraudulant Conveyance', but I am wondering if a court could see it otherwise.

Anyhow, if my wife decided to do that on her own, I do believe I would be totally 'collection proof'.

Could you kindly give me your valued thoughts ? THANK YOU !!!

I was fortunate to have an "or" in one of my titles. Wife transferred into her name. I have no control over what she does so how could it be fraudulent.
IMHO it is not fraudulent and you need have her do it ASAP!

[OHBOY]

Thank you 'martha' !

[SunshineGal]

Careful with switching the title...that can cause big problems in a BK.

[OHBOY]

Careful with switching the title...that can cause big problems in a BK.

Considering that EITHER spouse owns the vehicle full and clear and can sell it at any time without the others consent or knowledge ( my wife HAS indeed done such a thing previously...when she traded in another 'or' titled vehicle years back...)in what way would it cause a problem in a BK if an original 'or' title had been converted by one of the spouses to sole ownership ?

Please understand, I am not stating so to argue, instead I am here to LEARN. Please tell me how it could cause a problem in any possible bk, or for that matter, how would it cause a problem in case somebody sues and gets a judgement without me being in bk.

[justbroke]

Considering that EITHER spouse owns the vehicle full and clear and can sell it at any time without the others consent or knowledge ( my wife HAS indeed done such a thing previously...when she traded in another 'or' titled vehicle years back...)in what way would it cause a problem in a BK if an original 'or' title had been converted by one of the spouses to sole ownership ?

Because, if you did this solely to hide the asset from the Bankruptcy, the Trustee can exert their most powerful weapon... avoidance. They can avoid the transfer and bring it back into the BK estate.

Please understand, I am not stating so to argue, instead I am here to LEARN. Please tell me how it could cause a problem in any possible bk, or for that matter, how would it cause a problem in case somebody sues and gets a judgement without me being in bk.

I think it was the way it was worded. You said to transfer it to the other titled person so that the creditor(s) couldn't get to it. That's a fraudulent transfer in the BK context.

Now, having wrote all that.... would it be questioned? Probably. What would you say when the Trustee asks... so why did you retitle the vehicle?

[Violet]

Hello, would someone be so kind as to answer my questions? This thread is going a bit wayward.

Is there any point to filing an answer without affirmative defenses? I understand I can answer "DENIES having information and knowledge sufficient to form a belief as to the truth of the allegations" to each paragraph in the complaint. As I'm being sued by Discover, the original debtor, and only defaulted a year ago, I can't think of any legit affirmative defenses or counterclaims. Do I need to add some?

Basically I have no defense, I'm just trying a "hail mary" on the off chance they don't file a motion for judgment.

Also, is there any point in sending a letter to the firm informing them that I am judgment proof and they won't get a dime from me if they sue?

Thanks!

ps. Here is a sample I found on another forum. Should I send in something like this?

[OHBOY]

'VIOLET':

Quote:..."This thread is going a bit wayward..."


SORRY... I'll get outta here rightaway...

__________________________________________________ ______________
'justbroke':

Quote:..." What would you say when the Trustee asks... so why did you retitle the vehicle?"

Actually I would intend to state the truth, namely: " With all due respect, but I (!) did not retitle the vehicle "

[Violet]

3. ( Office name) has not proven that Capital One Bank (USA), N.A. is the real party in interest. Defense demands proof of ownership, specifically that the alleged account is still the legal property of Capital One Bank (USA), N.A. with all of the original creditor’s rights and privileges intact.

I will definitely include the above in my answer, since it has been a year since I defaulted. Isn't there a chance Discover is no longer the owner of this account, though they are listed as the plaintiff?

[justbroke]

What would you say when the Trustee asks... so why did you retitle the vehicle?

Actually I would intend to state the truth, namely: " With all due respect, but I (!) did not retitle the vehicle "

I like it!