Can a creditor set you up?

[BrokeIn2011]

By December 2010, I had about 12 creditors after me. My house went into a foreclosure in March 2011, but my siblings were able to help me financially to save the house and the house is fine today. Yet I got 2 judgments against me, one in December of last year, and 1 in January of this year. Since this January, I now get about 5 collection calls per week vs. the 30 - 40 per day, I now get about 1 collection letter per month. I guess I have at least 100K in credit card debt at this exact moment, with all 12 creditors/collectors combined.

1 judgment was for 3K, 1 judgment was for about 14K. I’m not sure why the creditors and collectors are so quiet nowadays. However in the past 2 weeks, I have been getting these various pre-approved credit card offers (from various companies, ALL OF A SUDDEN), with nice letters stating that I have been pre-qualified due to them checking my credit report, etc. etc. etc. I know that my credit report is toast, since I could no longer afford to pay my credit cards as of May 2010. I know that my credit score is below 400. Yet I received one credit card offer (claiming the offer is based on among other things and information in my credit report). Yet they also want $37 for a membership fee to join their credit union to get their credit union credit card with a 10K limit. Yet I can’t believe anyone wants to give me credit card of any kind since my credit report is toast and is a real nightmare.

Now with that being said, since I know the collectors with the 2 judgments can levy my bank accounts, I’m wondering if collectors could use a bogus offer to try to get my bank information (i.e. send out bogus credit card offers)? Thus far, neither of these 2 collectors put a lien on my house, or levied my bank accounts. Since I’m unemployed, they can’t garnish my wages.

Lastly, how do creditors “usually” get someone’s bank account information to do a levy? Yet with it being over 3 months since the judgments were awarded, I wonder why those 2 creditors have not done anything as of yet???

[frogger]

Lastly, how do creditors “usually” get someone’s bank account information to do a levy? Yet with it being over 3 months since the judgments were awarded, I wonder why those 2 creditors have not done anything as of yet???

Creditors buy your information from providers that sell it. It's not that difficult to locate bank accounts....

As to why they are waiting, could be many reasons. Perhaps they have their own system of "timing". Everything is based upon patterns, profiles, and scores that you don't have access to.

[DesdemonaB]

We all know the difference between “pre-approval” and “pre-qualify” and they are pretty much unless words if you can’t enter in to financial agreements at this time in your life.

Can’t say why the creditors are so quiet, close of a fiscal year for creditors and/or JDBs, or in between JDBs who knows.

As for a creditor getting your banking information they start with the bank that you used to make your payments; they request from the court a Writ of Garnishment to your bank based on your name and SS number the bank must response within a set timeframe. If the account is closed they will inform the plaintiff, if it’s open they will garnish based on state garnishment limitations.

I would be proactive now, change your UE benefits to either a pre-paid CC or if your state issues its own debt card ask for one, get it out of your bank. While UE benefits are exempt from garnishment if your bank receives a Writ the bank does not know what funds in the account are exempt, if any and it up to you to petition to have them returned and that can cause your funds to be tied up for weeks.

Good luck with everything.

[karm43]

They put a lien on your house when you get a judgement. Also depends if you have anything that not exempt they will threaten to sheriff sell your stuff. When you have a house I found that the judgements kept coming. However BK helped gonna have the judgements removed at the end. I would not trust the credit card companies I received pre approved too. As far as bank accounts they call the banks not sure but I think they could call utilities and find your bank account. But like I said that was hearsay. You may be in a position to file chap 7 if your unemployed lucky you. Do it before you get a job. My husband broke his leg lost his job etc and I waited how stupid was I?

[BrokeIn2011]

Thanks Everyone. I greatly appreciate your help, feedback, and comments.

Right now, I’m am still mulling over the BK thing, but I have not decided as of yet.

In the meantime, I will trash all of these credit card offers, and I will never cash any checks from people I’m not expecting money from.

[treehugger1]

Not every state allows an automatic lien upon judgment. Some states require a separate action from the plaintiff to apply a lien.

Here in Oregon, a lien is placed on all real property when the judgment is a default and the amount exceeds a certain threshold.

[BrokeIn2011]

Treehugger1, thank you very much for your feedback and help. It is greatly appreciated. Thanks much.

[AngelinaCat]

I do know that whenever you get into a telephone conversation with a CA or a similar type, that they can and do record the phone call. Do not ever say anything in the affirmative, even if asked an innocuous sounding question such as: "It's a beautiful day, isn't it?" because that recording can be edited so that it appears that you have reaffirmed and acknowledged that you owe a debt--even if it isn't yours, and they have your name mixed up with another similar one.

This can restart the clock on a debt, especially if it is nearing the end of the SOL in your state. See this link on Zombie Debt, for more information:

http://www.bkforum.com/entry.php?2256-How-Debt-Buyers-Turn-Zombie-Debt-into-Valid-Claims

and

http://www.bkforum.com/showthread.php?29743-How-to-Deal-With-Zombie-Debt

[BrokeIn2011]

AngelinaCat, thank you very much for your feedback and help. It is greatly appreciated. For sure, the information that you have provided is most helpful and good to know.