Need advice regarding Stipulated Judgment

[dgifta]

I am self employed, and due to the recessions effect on my business, I have
defaulted on a credit card.

The credit card company, Chase, turned the debt over to a law firm, Bishop White
Marshall.

They contacted me and threatened legal action.I agreed to make payments,
$100 per month for 6 months, $600 per month thereafter for a specified period
of time.

I have made two payments, as agreed, on time.

They said they would send me a payment form to sign and return.What they
sent me instead was a Stipulated Judgment form, to sign.
That form outlines the payment plan, but also includes a clause that essentially
makes me admit my guilt for this debt.

My concerns or questions are the following:

1. By signing this form am I depriving myself of the right to have a fair hearing
in front of a judge to determine my culpability?Does the above clause convict
me automatically?


2. Am I opening myself up to having my bank account garnished without any
further legal process on their part?Can they simply send me a form demanding
my bank account information which I will have to furnish since I've admitted
to my guilt per the above clause?

3.What course of action is likely to buy me the most time until I can save
money to file for BK, signing the S.J form, or not signing it ?

My inclination is to not sign, but to send them a letter explaining that I am willing
to comply with the original agreement and and I will keep making the payments
I agreed to. I have no issue with making the payments, I just don't want to sign
something that might put me in a worse legal position.

I may not be able to file for BK until May.I am in really dire financial straits, and
really struggling to pay for the most basic necessities. I've been told I should have filed for BK several years ago.I'm desperately trying to not lose the very little
money I have left in the bank as I try to save for filing BK, and pay my essential
living expenses.

Thank you for your kind help.
Dennis

[frogger]

I have made two payments, as agreed, on time.

You should have waited for the "payment form" before making any kind of arranged payments.

They said they would send me a payment form to sign and return.What they
sent me instead was a Stipulated Judgment form, to sign.

Looks like they are typical liars.

That form outlines the payment plan, but also includes a clause that essentially
makes me admit my guilt for this debt.

Sneaky bastards.......

My concerns or questions are the following:

1. By signing this form am I depriving myself of the right to have a fair hearing
in front of a judge to determine my culpability?Does the above clause convict
me automatically?

That's pretty much the way it is.


2. Am I opening myself up to having my bank account garnished without any
further legal process on their part?Can they simply send me a form demanding
my bank account information which I will have to furnish since I've admitted
to my guilt per the above clause?

They would normally be required to take the stipulated judgment before the court first. They can send all they want, but it takes paperwork from the court to compel you to answer anything.

3.What course of action is likely to buy me the most time until I can save
money to file for BK, signing the S.J form, or not signing it ?

Open trash can lid, insert, close lid.

My inclination is to not sign, but to send them a letter explaining that I am willing
to comply with the original agreement and and I will keep making the payments
I agreed to. I have no issue with making the payments, I just don't want to sign
something that might put me in a worse legal position.

They don't care about your explanations. Don't waste perfectly good air or trees trying to explain anything.

I may not be able to file for BK until May.I am in really dire financial straits, and
really struggling to pay for the most basic necessities. I've been told I should have filed for BK several years ago.I'm desperately trying to not lose the very little
money I have left in the bank as I try to save for filing BK, and pay my essential
living expenses.

Thank you for your kind help.
Dennis

Save those coins and file a.s.a.p. They can't eat you.....

[DYLAN150]

dgifta, when did you stop paying Chase? I also live in Washington and owe chase. In other words how long did it take chase to turn over the account to these attorneys? ( I owe them 15K)

[treehugger1]

They probably have to file with the court, however, Washington probably allows a BAR member to simply submit a stipulated judgment to the court clerk for an official sstamp-and-seal. I have some info on washington somewhere. I'll see if I can find the link.

I think Washington may allow you to submit a claim of exemptions prior to any garnishment or levy.

[treehugger1]

dgifta, I just posted the following link in a different response. You might find some info to glean from here. If it were me (and not everyone is me,) I would let them sue and possibly follow the directions provided in the link. I don't know how current the info is. I also don't know how much it costs to file an answer in Washington. It might be cheaper to wait until you are sued and then pay to answer than make payments. This is all premised on the knowledge that you are going to file BK very soon 30 - 60 days.

http://www.lawhelp.org/documents/1387410205EN.pdf?stateabbrev=/WA/

As always, this is not legal advice. The link is public information. Do your own due diligence.

[dgifta]

Thanks you so much for you help.It's been a very trying time, and I'm just trying to minimize
the damage until I can file for BK.
I have a meeting scheduled with an attorney, but saving the money is a problem.

Dylan, it's taken about 6 months. I stopped paying in July when my retirement account ran out.
City Light came to my house to tell me they would turn off my electric the next day. I had a
choice to either pay Chase or pay my electric bill.

I don't know if I'll be able to file BK as quickly as 30-60 days.It may be May, which would be more like
60-90 days.

As stated previously, if I'm reading the Stipulated Judgment correctly, it sounds like by signing it I'm
agreeing to their allegations regarding my culpability and also the amounts they are claiming I owe.
It worries me that that if that's accurate, they could then levy my bank account without any further legal
process. I have so little, losing that little bit would make it impossible to even pay the most basic things like
food or phone, and I need my phone for what little business I have left.

I'm very open to any other suggestions or information anyone might have.I'm hoping that when I meet
with the BK attorney she'll answer this question.However, that appointment is not until March 11.I'm
trying to move it closer, but don't know if I'll be able to

Thanks!
Dennis

[flyinbroke]

March 1 is in 6 days so you are closer to 60 than 90. Just sayin'.

And yes, a stipulated judgment is a judgment and opens the doors for all that comes with a judgment. Permanent record? Check. Ability to levy if you miss a payment? Check.

I am with everyone else: circular file that paper, let it go, and save your pennies to file for BK sooner than later. (And never agree to a payment plan that is not in writing. Never send a red cent until that written plan is one you can live with.)

[discouraged]

You might want to take most of your money out of the bank and start buying money orders rather than using checks to pay your bills until this is all over. I am doing that until my bk is filed and discharged (should be filed soon). I also had to wait and from reading some of the bank horror stories, I just decided I would rather have my money where I can control it. My lawyer laughed because my main problem is the house and my cc's aren't really high, but I would rather be safe and laughed at than have my services cut off.

[shark66]

All jokes aside, Frogger's post contains all that needs to be said here...

Get your money out of the bank and under the mattress and you'll be fine. They would need more time than they have (presuming you're filing in May) to get a judgment and have your wages garnished.

Good luck.

[mom2crazies]

I'm with everyone else. Do NOT sign it, or give them any sort of access to your bank account (I have heard horror stories of people agreeing to EFT plans and then the CC company going in and taking everything). You are admitting guilt or any recourse by signing it and compromising any settlement.

Withdraw all of the funds from your accounts, if possible and just do cashiers checks for bills. (This is one drawback to automatic deposit. I had to run to the bank the minute DH's check would go in and do all of the cashiers checks right then)

Let them get a judgment. It will probably take them a couple of months and then IF they get one, you still have 30 days (typically) before they can garnish. I would check your states laws on garnishment, too. They may not even be able to.

(Our 2nd mortgage - which is treated as an unsecured creditor in UT - filed a motion for judgment back in Nov. We responded you have to, or the judge automatically approves the motion) within 10 days, they responded back, and then the judge made his ruling at the end of Jan.)

GL - I have hear that Chase is NOT easy to deal with.

[dgifta]

Hi Everyone.You all are really great.
I have begun paying with money orders and taking money out of accounts as a result of reading messages on this forum.
I was able to find $100 in order to get an appointment with a bankruptcy attorney scheduled for this Fri.
She won't actually file the papers until I pay her another $700, but it's start.

You've all confirmed my own intuition, which is that signing the Stip. Judg. would not be a good idea.Probably 6 months ago I would have
signed because I believed no attorney would take advantage of me, or I'd have signed because I felt intimidated by the "official looking" forms.
As a result of the things I've read here I've learned a lot, enough so that I had a sense of what the potential implications of my signing
could be. I am grateful to all of you for the education.

I think that until the last few days I've been in denial about the bankruptcy.I think somewhere deep inside I believed somehow I'd pull a
rabbit out of a hat. Sometime the Cavalry just doesn't get there on time. Someone plays " Taps", and flowers are spread.

Now my new reality is grieving and coming to grips with the economic shambles my life is. I've hit bottom now, and it's time to begin to rebuild.

What a mess.

Dennis

[shark66]

Now my new reality is grieving and coming to grips with the economic shambles my life is. I've hit bottom now, and it's time to begin to rebuild.

What a mess.

Dennis

It's been said many a times that the best thing about hitting the bottom is that there's nowhere left to go but up. Try to look at everything from that perspective.

Been there, done that, more than once. Wasn't always fun but sure as heck made me stronger, and I'm certain it will do the same for you.

Good luck.

[dgifta]

Hi Shark.Thank you so much for your kind thoughts.
I find little things, small kindnesses touch me so deeply now.
I Appreciate your help.
Dennis