What's going on here.

[CCM620]

I've been out of work over two years and was living off unemployment and assistance from family. After I lost my job I let all my credit cards go, around 7 for over $50,000, with interest and penalties the sum is much more now. I have cut off all contact with the CC companies and have never talked to anyone. I noticed this week that the first judgement has been filed against me from Bank of America, after looking on my county website. My state is unigue in that we have a no garnishment of paycheck law. It should be obvious to the CC company that I am collection proof as I have nothing to collect on. I have researched state law and talked to a BK attorney, and they agreed I did not have to file BK because I have nothing to protect at this point. It would seem to me that the CC companies would do their own research and reach the same conclusion, operating in a state where there main weapon (wage garnishment) is off limits. The exemptions here for judgements are the same as if you file bankruptcy, so I am protected under both. Another thing going for me is that judgements here expire after 10 years and are not renewable. I wonder though after my other creditors see I have a judgement and am uncollectible, will they leave me alone or also file judgements. Have scheduled another appointment with a BK attorney to get a second opinion. I happen to live in the state that was 50th in bk filings in 2010, what do others think here.

[keepsmiling]

Hello and welcome to the forum.
Sounds like you got good advice. I'd relax and focus on improving your situation and not worry about these idiots. Don't expect any common sense to apply. In debt collection and BK, you will soon learn that things don't always go the way that seems to make the most sense

You are lucky to live in such a debtor-friendly state!

Hang around for awhile and chit chat with us. You are sure to find lots of valuable info, support and camaraderie here.

[CCM620]

Thanks,
Not trying to downplay my situation, as I understand I owe money here, but when you have a limited income, you worry about rent, car, gas, groceries, and living expenses, and to save for the future. Unfortunately their is little money available to pay your debts. I have resigned myself to the fact that this is the situation I face, But my #1 priority has to be myself. Credit crad companies make more than they lose, so I dont shed many tears for them. What is the experience of the board, after the first judgemnet, should I expect one after the other (7 total) or do the others not usually bother. The good thing about bankruptcy is that I can file at any time, so if the lawsuits become too much, in 3 or 4 years its still there and will erase the judgements.

[HHM]

Judgments have value to the collection industry.

Banks DO NOT do research. Keep in mind, the judgment is permanent. You may have nothing now, but that may not always be the case, and you may decide to move.

I am not intimately familiar with South Carolina exemptions, but I do know wages cannot be garnished directly, but what about bank accounts. Do you want to own a home eventually. Do you want your credit to recover at some point. Those are the other factors. I HATE when BK attorneys advise such non-sense because it is so small minded. The benefits of BK far outweigh any downside. Do you really think your credit and ability to rebuild your financial life is somehow easier with a slew of permanent judgments and non-stop collection.

Just file, you will be better in the L-O-N-G run if you do it now. Don't take the short term, small minded of approach.

[CCM620]

Well the judgement is not permanent in SC, its enforcable for 10 years, and can not be renewed. There seem to be pluses and minuses of going each way. It seems I can make a decision on bankruptcy at any point, so it may make sense to see just what the cc companies will do.

[mountanddo]

I have to agree with HHM. At some point you might aquire something worth taking. Your credit will alway's be in the sewer unless you take some action to take care of this. Some jobs check credit and the fact that you just let it go and let judgement after judgement be filed against you wouldn't look good. You may need a car one day and if you don't have the cash to buy one outright then you will forever drive junkers. Not to mention the incessant calling, letters in the mail, etc. Unless you plan on being poor for the rest of your life and can count on assistance from your family to support you until your death at some point you are going to be tired of looking over your shoulder at every turn. At least your present situation gives you a little time to find a job and save for an attorney. Your choice but not the way I'd want to live.

[shark66]

In your particular set of circumstances, I'd go with the option of delayed filing for now.

It's not just the fact that you're collection proof at this point in the game...

You're unemployed and likely have no health insurance. If you were to - God forbid - get injured or fall ill, you could rake up some serious medical bills in no time, with no way of paying them off...and if you were to pull the trigger and file BK now, you'd be left completely unprotected.

If and when the times get better, and you actually gain something that should be protected by filing BK, then by all means go for it. In the meantime, lay low and keep ignoring the bloodsuckers.

My $0.02 only...

Good luck to us all.

[keepsmiling]

In your particular set of circumstances, I'd go with the option of delayed filing for now.

It's not just the fact that you're collection proof at this point in the game...

You're unemployed and likely have no health insurance. If you were to - God forbid - get injured or fall ill, you could rake up some serious medical bills in no time, with no way of paying them off...and if you were to pull the trigger and file BK now, you'd be left completely unprotected.

If and when the times get better, and you actually gain something that should be protected by filing BK, then by all means go for it. In the meantime, lay low and keep ignoring the bloodsuckers.

My $0.02 only...

Good luck to us all.

Exactly what I was trying to say, only more eloquently said.

[mountanddo]

In your particular set of circumstances, I'd go with the option of delayed filing for now.

It's not just the fact that you're collection proof at this point in the game...

You're unemployed and likely have no health insurance. If you were to - God forbid - get injured or fall ill, you could rake up some serious medical bills in no time, with no way of paying them off...and if you were to pull the trigger and file BK now, you'd be left completely unprotected.

If and when the times get better, and you actually gain something that should be protected by filing BK, then by all means go for it. In the meantime, lay low and keep ignoring the bloodsuckers.

My $0.02 only...

Good luck to us all.

Agree. That's why I said at least he's protected for the time being while he looks for a job and saves for an attorney. However, to put your head in the sand and not act at some point is not the smartest way to handle the situation long term.

[CCM620]

Yeah,
Sounds like good advice. Seems like if I do decide to file bk, i should get all my ducks in a row first. Like I said, I have the option to file bk and any time if I am forced to. I have been able to save up some money, and Im trying to save some more. Is their any benefit to settleing with 1 or 2 of my cards that I have the cash for, if im not able to settle with the rest. I have recently thought about this as a way to get my debt down. I recently called my bank and they did not think my checking account could be frozen for a judgement from cc debt, only for taxes. I will need to find this out for sure. Im keeping less than 1k in it, just to be safe. No garnishment of wages plus the exemption for judgements for liqued assets is $5,000, so that would make me think they do not freeze back accounts.

[mountanddo]

No reason to get your debt down if you can't get rid of it all. Since they can't get anything from you right now I'd save the money you do have to live on and to pay an attorney. There is no advantage to doing that. I assume that they have frozen your ability to use the cards already.

[CCM620]

I quit using all my credit cards except for one shortly after losing my job. I did ring up some charges on 1 up untill about a year ago. Funny, I still occasionally get cc offers in the mail. I have never talked to the first collector or credit card company, call blocker has worked well.

[HHM]

I think you are missing the point, if you really want to deal with this sitation, there is no "if" about filing, it is merely "when". Also, no point on paying any of them...I was reacting to the irrationality of that idea, if you have limited income, why pay.

I concur with the others, I normally recommend that the unemployed not file while unemployed unless they are historically high earner.

However, based on your posts, the fact that you would even consider waiting out 10 years on judgments tells me you harbor some objection to filing BK that somehow, that filing BK is worse than letting judgments rack up and near permanent death to your credit and financial future. Generally, that level of objection is based on misinformation, you need to read through this forum, no one, absolutely no one who files bankruptcy regrets it, the regret is usually that they didn't file sooner.

Humans have a remarkable tolerance for suffering. (let me get a little psychological), prolonged unemployment and playing cat and mouse with creditors starts becoming the "norm" and therefore bankruptcy seems like change, and we generally fear change. So not only must debtors face the fact that they ARE BANKRUPT but must also overcome the inherent fear of change, and for some, that is too tall an order, so they suffer needlessly.

[jst4f]

You need to look at your situation as a business decision not a personal one. Clearly the CC companies are treating you as a business decision and there is nothing wrong or immoral to do the same. Research your situation on this website and with a BK attorney to make the best business decision for you including the timing for filing. You may have a contractual obligation to the CC companies but you have a moral obligation to yourself.

[CCM620]

Not really opposed to bankruptcy, just want to do it when and if I'm ready. Like I said, trying to get all my ducks in a row. One thing that has me somewhat hesitant are the exemption amounts. If you have possessions over the amounts, is it ok to sell off some of these before you file bk, and spend the money on day to day living, travel, etc.? I'm looking at about a 5k cash, 5 k household items, and 5 k wildcard exemption in SC. I'm likely over this amount in a few areas. So, yeah, if you notice some hesitancy, that is probably why. And also like I said, my state seems to be a good one for debtors with the no wage garnishment law (if we had one Im sure I would file), the exemptions the same either way, and the judgement cutoff date of 10 years. So it seems many people in the state dont file bankruptcy versus the rest of the country, backed up by the filing rate.