Advice needed--being sued by attorney for Discover Card

[GoingDown]

Update: I see on the court website that I lost the lawsuit, and a summary judgment was awarded. I have already spent my bank account balance below the paltry $150 exemption amount in this state, since I used the money to buy my college textbooks. I am not employed at this time, and don't have any wages to garnish. I have not yet received any notification from the court, or the collection law firm.

It is my intention to not pay this debt, and instead file for bankruptcy. Is there anything I need to look out for (other than not using a bank account until I get my BK filed) or should I just wait for the creditor to make the next move. I am hoping to file my federal taxes and use my small (less than $300) tax return to pay off some unpaid state income taxes from previous years.

Any advice?

About the $150 Arizona exemption for checking accounts... I would personally go down to your bank and ask one of the managers about what forms you need to file to claim this exemption... I found one of the forms at a paralegal center in Phoenix (around 32nd Street and Indian School Road if you are familiar with the Phoenix area)... and as I remember, you have to serve it by certified mail on your local bank branch to get them to honor it.

Here is some info from the Maricopa county court system about this issue... http://justicecourts.maricopa.gov/Fo...onEarnings.pdf

"Property that is not earnings may be subject to garnishment, however, not all property is subject to garnishment, and certain
non-earnings property is protected (see A.R.S. Title 33, Chapter 8). For example, Arizona law provides that a judgment
creditor who garnishes a bank account may only take the money that is in the account on the day the Writ of Garnishment is
served on the bank. If additional funds are later deposited in the account, a new garnishment must be filed to collect them. In
addition, the first $150 per person per bank account is protected from garnishment. If persons other than the judgment
debtor(s) is/are on the account, a hearing may be held to determine each persons share in the account (A.R.S. § 12-1595)."



You want to make sure that your bank won't be charging you fees to respond to garnishment. Ask them what fees they would charge to respond to a garnishment, and whether they would take that amount from the $150 left in your checking account. If they say yes, then you might be better off closing that account.