Why am I being warned that I must show up for hearing when sued by Discover?

[Violet]

I posted on another board that I am considering blowing off filing an answer to the summons I just got from Discover, and letting it go to a default judgment, because I will eventually file Chapter 7. Several people warned me that this was a bad idea:

if you have a court date, make sure you make it. I learned the hard way!

Be sure to go to court because I hear what they do if you don't show up is put out a warrant for your arrest for not showing up and that is the new debtors prison in the USA.

not showing up for court is always a bad idea, in my experience. laws vary everywhere so this is just my opinion, when i got the payment plan the judge also said if for any reason i could not pay , i could come back to court and explain why. as opposed to simply not paying and then having an arrest warrant issued , which is a whole nother hassle you don't want to deal with.

to my understanding its not the civil trial its the failure to comply with a court order IE the judgement , all states are different period. NH can and will issue an arrest order if you don't comply with judgment as written , ask my ex wife about that. in short you are better off in NH to get the payment plan from the judge even if you don't plan on complying . that way if you get popped you only out 20/30/40 bucks instead of the full amount to get out of jail. da judge doesn't give a about what you "plan on doing" its whether you comply with the order or not

I have read of several BK lawyers telling their clients that they can ignore a summons when they get sued by a credit card and just let it go to a default judgment. Is there any truth to what the above-quoted people are saying? It sounds to me like the last two quotes are discussing a POST-judgment hearing. I can ignore the summons and judgment hearing, right?

[Bell30656]

Allowing a creditor to get a default judgment is the equivalent of rolling over for them. How can it hurt you if you are going to file bankruptcy anyway? Well, it can cost you $$$. Obviously you can't file right now for some reason such as not enough cash to pay the lawyer/fees or maybe waiting for your income average to come down a bit or whatever....

Once that creditor has a judgment the fun really begins. Depending on your state the collection of the judgment begins. This can involve a debtor's exam... Seizure of your bank accounts, garnishment of your wages... In my state, Georgia a person holding a judgment can then get a Writ of FiFa with which they come to your home bringing deputies, then start carting off your valuables... televisions, vehicles, furniture, etc.

Can you claim it is exempt and get it back? Maybe. How would you feel if on Friday right after your direct deposit goes in the bank the creditor takes your balance? It happens.

Filing an answer is the start of the process. Then comes interrogatories and other fun motions. You would be surprised how long a case drags out. I was served by Nemdegelt (a JDB on an Ugly Duckling debt) in November 2007. I was served a second time by Nemdegelt (this time on a Bank of America credit card debt) in February 2008. And finally I was served by World Finance (small personal loan secured by household items) in November 2008.

When I filed for chapter 7 in December 2008 none of these cases had made it to a courtroom. How much did my legal battles cost? Almost nothing. A little time and research on the internet. A few postage stamps.

[OhioFiler]

When do you plan to file your Chapter 7 petition?

I would submit an answer to the court to at least delay the default judgment.

And those quotes you posted, I suspect none of them are from bkforum members. I wouldn't pay much heed to them.

[Violet]

Once that creditor has a judgment the fun really begins. Depending on your state the collection of the judgment begins. This can involve a debtor's exam... Seizure of your bank accounts, garnishment of your wages... In my state, Georgia a person holding a judgment can then get a Writ of FiFa with which they come to your home bringing deputies, then start carting off your valuables... televisions, vehicles, furniture, etc.

Thank you for your response. This is scary stuff. I'm not afraid of a debtor's exam, as I am unemployed and living with my parents. My bank statements show that I have made all of $2,000 this year. I have $20 in the bank currently. In Michigan there is a $2,950 exemption for a car. My 10 year old car isn't worth more than $2,500. There is a $3,000 exemption for household goods. I doubt my belongings are worth even that much.

I have no idea if fieri facias is often applied in Michigan. Correct me if I'm wrong, but doesn't a Writ of FiFa mean the debt collector must already know that you own something valuable, like a big screen plasma TV, for example, and write that specific item down on the writ of execution for the sheriff to seize that particular item? The sheriff can't just show up to my parents' house and go shopping like he's on Wheel of Fortune, right? That is the only thing that scares me. Even so, none of us own anything valuable. Just old furniture and a 10 year old TV and a 5 year old computer. My credit card statements would show that I've never charged any luxury items.

I haven't decided whether to respond or not. I only got served December 1, so I am gathering as much info right now as I can.

[Violet]

When do you plan to file your Chapter 7 petition?

I would submit an answer to the court to at least delay the default judgment.

And those quotes you posted, I suspect none of them are from bkforum members. I wouldn't pay much heed to them.

If I had the money and health insurance, I'd file BK now just to put this all behind me. I don't have the $1500-2000 I'd probably need to file in Michigan, though if I had to I could probably borrow some of it.

I've been advised that since I'm judgment proof and have no health coverage, there is no point in filing BK until I have an income. If I filed Chapter 7 and got sick or injured soon after, I'd be really screwed. This way, I'm at least leaving myself the option of going to the ER if I need to, and the ability to discharge that in a BK.

Since it's virtually impossible to find a job in Michigan right now, it could be quite a while before I file BK. Aside from any judgments, it would be an uncomplicated case.

[Violet]

Filing an answer is the start of the process. Then comes interrogatories and other fun motions. You would be surprised how long a case drags out. I was served by Nemdegelt (a JDB on an Ugly Duckling debt) in November 2007. I was served a second time by Nemdegelt (this time on a Bank of America credit card debt) in February 2008. And finally I was served by World Finance (small personal loan secured by household items) in November 2008.

When I filed for chapter 7 in December 2008 none of these cases had made it to a courtroom. How much did my legal battles cost? Almost nothing. A little time and research on the internet. A few postage stamps.

How far did you have to go beyond filing an answer? I'm particularly interested in the BoA case, since I'm being sued by an OC, Discover.

[Bell30656]

I filed an answer on the last day possible to file it. I took it to the courthouse personally and had the "filed" stamp put on it then mailed it to the plaintiff.

A month or so later I received the plaintiff's first interrogatories. I actually only answered one or two and objected to almost all the others are irrelevant and basically none of their business. I also sent them interrogatories at the same time. To which they objected and answered really none. Also sent on last day possible.

Next I received a motion for summary judgment where the plaintiff just wanted the judge to give them an easy win. I objected to the summary judgment and insisted that I wanted my day in court.

Up to this point we still hadn't even went inside a courtroom. The judge denied their motion and ordered us to mediation. It cost each party $50 and was a total waste of time. But it took about 45 days to get on the schedule for mediation and the lawyer from Nemdegelt had to drive halfway across the state while I went up the block.

A court date still had not been set when I filed CH7. Courts are really backed up right now.

[MSbklawyer]

Legal Aid

Violet, with your lack of income and assets, you would probably qualify for legal aid. They will do a chapter 7 for you for free. You'll have to pay the filing fees, but you can do that in installments.

[Violet]

I filed an answer on the last day possible to file it. I took it to the courthouse personally and had the "filed" stamp put on it then mailed it to the plaintiff.

A month or so later I received the plaintiff's first interrogatories. I actually only answered one or two and objected to almost all the others are irrelevant and basically none of their business. I also sent them interrogatories at the same time. To which they objected and answered really none. Also sent on last day possible.

Next I received a motion for summary judgment where the plaintiff just wanted the judge to give them an easy win. I objected to the summary judgment and insisted that I wanted my day in court.

Up to this point we still hadn't even went inside a courtroom. The judge denied their motion and ordered us to mediation. It cost each party $50 and was a total waste of time. But it took about 45 days to get on the schedule for mediation and the lawyer from Nemdegelt had to drive halfway across the state while I went up the block.

A court date still had not been set when I filed CH7. Courts are really backed up right now.

Thanks, that is good news. Considering I am right outside Detroit, I'll bet the courts are really backed up here, too. If I can put off judgment for a few months, then maybe I can scrape together the money to file BK. It might be better to get Chapter 7 over with, with or without health insurance, than to get a judgment.

[treehugger1]

Oregon has it's own version of Mandatory Arbitration, that has nothing to do with National Arbitration Rules. If one files an answer (Costs money for everything,) and the claim is above the small claims limit ($7500) then the arbitration rules apply. This process is time consuming and messy, but it keeps a judgment from occuring for another 30 - 60 days. I have several freinds dealing with this mess. They were given mandatory arbitration and then they receive a letter asking them to strike one of the arbitrators from a list. The plaintiff then gets a chance to strike an arbitrator, etc, etc. This is much like jury selction between the prosecution and defense attorneys. I'm only stating this because if you can afford to "pay" here, then you can "play."

[frogger]

Wow folks. Go back and re-read some of the quotes that Violet has posted from other places. Seems that the common thought is debtor prison.

Violet - if you don't go, you're not going to jail. They're not coming to arrest you. They're not sending you to debtors prison. If you quit making payments, they're not coming to arrest you.

The things that you posted from other forums is a total crock of b.s. People here will try to help you, not scare you.

Bet you that the other forums that you're posting from are infested with credit card representatives and the like.

Debtors prison....... if we had one, it would be full of the folks from Enron and AIG.

[Bell30656]

Wait Frogger, if this is the debtor exam or its equivalent in Michigan then you could be arrested for not going. A debtor's exam is what a creditor uses after they have a judgment and want you to reveal what mattress you are hiding your money under. In many states you can be arrested for Contempt of Court if you do not show up for this.

From all the different posts I've read from this user, I'm not certain (and I don't think the OP is certain) of where they are in the procedure. If you receive a summons, you need to read up and see if an answer is required or your presence is required. I'm sure you would prefer not to have the county give you a ride.

[frogger]

Wait Frogger, if this is the debtor exam or its equivalent in Michigan then you could be arrested for not going. A debtor's exam is what a creditor uses after they have a judgment and want you to reveal what mattress you are hiding your money under. In many states you can be arrested for Contempt of Court if you do not show up for this.

From all the different posts I've read from this user, I'm not certain (and I don't think the OP is certain) of where they are in the procedure. If you receive a summons, you need to read up and see if an answer is required or your presence is required. I'm sure you would prefer not to have the county give you a ride.

Thanks Bell, but the poster stated that it was going to go to a default judgement if not showing. Therefore I have assumed it is a suit that is not required to be answered if the poster does not choose to show.

If this is more than I think, if it is an exam or interrogatory, then the poster will be required to respond. That is just not how I interpreted the question.

Regardless, on some forums, there are many people trying to scare people into thinking things that are just not true.

Like going to jail for not paying a debt......

[AngelinaCat]

Here is the exact reason not to blow off a lawsuit. Read entirely.

I posted on another board that I am considering blowing off filing an answer to the summons I just got from Discover, and letting it go to a default judgment, because I will eventually file Chapter 7. Several people warned me that this was a bad idea:

Clearly, they had the wrong Mark Hoyte. But that did not stop the lawyers at Pressler & Pressler from suing him. They swore out a complaint and sent a summons to Mr. Hoyte, ordering him to be in court last Monday.

http://www.nytimes.com/2009/11/29/nyregion/29about.html"

Quoted from the Bankruptcy and Credit News Forum.

[DeadManCrawling]

It IS VERY possible to land in jail, if you do not answer the interrogataries. I know this from personal experience.

Usually, this process and hearing, is years into the case. Three years, for us. So there is time, dependingont he circumstance.


Besst bet is to admit to things like address and who you are.

Then answer the rest with: Not sufficient knowledge. Debtor does not maintain such records, etc.

This will extend the matter further.

Eventually though, you must file BK or be prepared for a warrant. In most cases, there is no reason you should not be ready to file when this is clearly in the making.

good luck,

-dmc