Its been over six months since last payments.

[bcohen]

DYLAN150, the issue is not whether or not a creditor could successfully get anything by placing a lien on your house. The issue is that most collection law firms and JDB's use a computer model to predict the ability to recoup funds from a person and base their decision to sue on that. The mere fact that real estate titled in your name exists--regardless of whether or not there is any equity at this moment--is one of the major factors that goes into the "sue or don't sue" decision. Even though your house may be $50,000 underwater now that doesn't mean that there will never be any equity, and a judgement lien doesn't go away, and must be paid in order to get clear title when you want to sell or refinance.

Besides, the mere act of being sued is likely to cause a lot of stress for you, which may lead to health problems, etc. I know that when I was sued it was one of the most stressful experiences, and that was not a creditor lawsuit--it was a customer of my former employer bringing suit because of work that the company did and I took part in. Even though I was in fact unemployed at the time, and so poor I was getting public assistance, the situation of being sued was very stressful, and since I have Crohn's Disease, I got very sick from the stress. And if the lawsuit had resulted in a judgement against me, I would have filed for bankruptcy.

[treehugger1]

Being sued can be stressful for some. However, suit over a civil issue does not bother as many folks as one might think. I think many folks know that they have been unable to fulfill obligations, but simply take a more calm stance. They can accept it for what it is, a civil disagreement between two parties. I do know people who have fought hard and long, thinking they had some kind of moral obligation to creditors they could never possibly repay. They were definitely stressed. They had no reason to be. If one is so over-strapped that they are worrying about where the next meal might come from, then the last thing they should be stressed about is debt. It is an odd world that has created a group of people who believe life is about physical, tangible assets. When you are dead, that's it. You are dead. You are neither rich nor poor. Just dead.

Just my not-so-humble-opinion.

[ryan]

Being sued can be stressful for some. However, suit over a civil issue does not bother as many folks as one might think. I think many folks know that they have been unable to fulfill obligations, but simply take a more calm stance. They can accept it for what it is, a civil disagreement between two parties. I do know people who have fought hard and long, thinking they had some kind of moral obligation to creditors they could never possibly repay. They were definitely stressed. They had no reason to be. If one is so over-strapped that they are worrying about where the next meal might come from, then the last thing they should be stressed about is debt. It is an odd world that has created a group of people who believe life is about physical, tangible assets. When you are dead, that's it. You are dead. You are neither rich nor poor. Just dead.

Just my not-so-humble-opinion.

I happen to agree with this totally.

[IamOld]

I too agree with Treehugger...my thing though is if I get sued and garnished financially we are screwed. So there's where the stress comes in...

[GoingDown]

GoingDown: Collection proof: I do have a house but it's now underwater like everyone else in my neighborhood. At least 50K negative. So if they want to put a lien against this, go for it. They can't get a garnishment or bank account, car is a lease. I am well under the state exemptions, so what are they going to do?

In your situation, what are they going to do? Nothing.

They can put a lien on your house, but they can't take it.

There's nothing for them to garnish.

They can't even touch a leased car, but even if you owned your car outright, they are extremely unlikely to take it, because it would be more trouble than it's worth to them in most cases, and most debt collectors like to do clean transactions like slapping a lien on real estate and garnishing wages and checking accounts. Those are simple and easy things for them to do, with very little risk or effort involved. If it gets too difficult for them they lose interest in it, and move on to lower hanging fruit.

CapOne got a judgment against me, but never came after my completely paid off (old) truck. It wasn't worth it to them to take it.

[GoingDown]

I too agree with Treehugger...my thing though is if I get sued and garnished financially we are screwed. So there's where the stress comes in...

In your case, I would keep working on whatever you need to do to file bankruptcy and then file bk if and when someone sues you.

[IamOld]

In your case, I would keep working on whatever you need to do to file bankruptcy and then file bk if and when someone sues you.

:-) Agreed - well, the bk is supposed to be done at the end of Sept...fingers toes, etc crossed!!!!

[GoingDown]

Being sued can be stressful for some. However, suit over a civil issue does not bother as many folks as one might think. I think many folks know that they have been unable to fulfill obligations, but simply take a more calm stance. They can accept it for what it is, a civil disagreement between two parties. I do know people who have fought hard and long, thinking they had some kind of moral obligation to creditors they could never possibly repay. They were definitely stressed. They had no reason to be. If one is so over-strapped that they are worrying about where the next meal might come from, then the last thing they should be stressed about is debt. It is an odd world that has created a group of people who believe life is about physical, tangible assets. When you are dead, that's it. You are dead. You are neither rich nor poor. Just dead.

Just my not-so-humble-opinion.

After my recent cancer scare, I know how true this is.

If you can file bankruptcy, then file it.

If not, then brace for impact from any potential lawsuits, making yourself as judgment proof as possible to minize the damage from any judgment liens or garnishments. Send cease and desist letters to all debt collectors harassing you on the phone to get them to shut up and leave you alone. And then just go out and live your life and enjoy your life, while you still have it to enjoy. And stop worrying about debts you can't do anything about anyways.

Because when you die, that's it. It's all over, and whether you leave this world with huge amounts of debt or huge amounts of wealth, it really won't matter to you anymore, because you'll be dead and gone forever.

It really puts it all in perspective.

[IamOld]

You are very wise my friend!

After my recent cancer scare, I know how true this is.

If you can file bankruptcy, then file it.

If not, then brace for impact from any potential lawsuits, making yourself as judgment proof as possible to minize the damage from any judgment liens or garnishments. Send cease and desist letters to all debt collectors harassing you on the phone to get them to shut up and leave you alone. And then just go out and live your life and enjoy your life, while you still have it to enjoy. And stop worrying about debts you can't do anything about anyways.

Because when you die, that's it. It's all over, and whether you leave this world with huge amounts of debt or huge amounts of wealth, it really won't matter to you anymore, because you'll be dead and gone forever.

It really puts it all in perspective.

[DYLAN150]

I knew, I most likely would be sued when I stop paying my cards over 6 months ago. What's funny is that I have one card I just stopped paying on 3 months ago and they just turned the account over to Suttell & Hammer in Seattle. (Citibank). I received the letter today, It says the communications is from a debt collector and at this time, no attorney with the firm has personally reviewed the particular circumstances of the account.

With the exception of a lien against my underwater house, there is nothing they can get.

[treehugger1]

Ah, good old S&H out of Washington. I was sued by them more than once, CHitibank accounts. They are pretty good at getting information back to you. For me their DV was a signed affidavit by an "affiant" out of CHitiCore, the finance arm. I just let them get the default judgment. I looked at several cases in my local district where there was a fight, but the plaintiff's always lost in the end. I thought one might have a chance to repudiate their affidavit and posted this possibility on this forum somewhere. Legal counsel told me that S&H had their bases well-covered, so I rolled over and let them get in the long-time 10% garnishment line. This was over a year ago for both accounts, and there has never been any action to garnish wages. Of course, I live in Oregon, and wage writs are only good for 90 days, and then the judgment creditor must renew the writ and re-serve on emplyer, and etc, etc. As posted on another post, I think S&H must have a contract with CHiti that may not include acting as their judgment collectors. It could also be the case that Chiti is looking over all their affidavit processes, not just those associated with mortgages.

[dman]

Over twelve months here. Over 1,600 calls (all handled by a dedicated GV number). Down to 1-2 calls a day now. Get a few letters sent to my old address. Get about the same amount sent to my current temporary address (which I WANTED creditors to get). Zero letters to my "real" address. I check pacer about once a month to make sure there's no lawsuits (and if there were; that I wasn't improperly served). Did have a bit of a scare when I got a notification of a certified letter from the state trustee...but it wasn't addressed to me (I guess the previous tenant had some financial issues too).

[GoingDown]

Ah, good old S&H out of Washington. I was sued by them more than once, CHitibank accounts. They are pretty good at getting information back to you. For me their DV was a signed affidavit by an "affiant" out of CHitiCore, the finance arm. I just let them get the default judgment. I looked at several cases in my local district where there was a fight, but the plaintiff's always lost in the end. I thought one might have a chance to repudiate their affidavit and posted this possibility on this forum somewhere. Legal counsel told me that S&H had their bases well-covered, so I rolled over and let them get in the long-time 10% garnishment line. This was over a year ago for both accounts, and there has never been any action to garnish wages. Of course, I live in Oregon, and wage writs are only good for 90 days, and then the judgment creditor must renew the writ and re-serve on emplyer, and etc, etc. As posted on another post, I think S&H must have a contract with CHiti that may not include acting as their judgment collectors. It could also be the case that Chiti is looking over all their affidavit processes, not just those associated with mortgages.

I'll bet after getting nothing the first 90 days, they will probably not renew the writ, and your account will go to the backburner along with all the other non-paying accounts.

[DirkDiggler]

Over twelve months here. Over 1,600 calls (all handled by a dedicated GV number). Down to 1-2 calls a day now. Get a few letters sent to my old address. Get about the same amount sent to my current temporary address (which I WANTED creditors to get). Zero letters to my "real" address. I check pacer about once a month to make sure there's no lawsuits (and if there were; that I wasn't improperly served). Did have a bit of a scare when I got a notification of a certified letter from the state trustee...but it wasn't addressed to me (I guess the previous tenant had some financial issues too).

How do you do that? Does it cost $$. I know about Pacer for looking up BK docs but didn't know you could use it to look up lawsuits too....thanks

[dman]

How do you do that? Does it cost $$. I know about Pacer for looking up BK docs but didn't know you could use it to look up lawsuits too....thanks

Go to the main Pacer site. Look at the list of states in the middle column, under "U.S. District Courts." The list of states in the right column under "U.S. Bankruptcy Courts" is of course for bankruptcy cases. It costs 8cents a page (including for search results), but keep it under $10 in a quarter and they waive the fees.