Lawsuit Filed Against Me

[BankruptinNJ]

I live in New Jersey.

A lawsuit has been filed against me by Chase Bank for an unpaid credit card debt of approximately $3,000. I did not answer it within the time frame allowed because I was away and then when I saw it I panicked. I didn't fight it because I DO owe them the money. I just didn't answer the summons. What do I do?

If they get a judgment against me do they garnish my wages? I have very little money. I receive a very small income. I have no house, no car, just a five-year-old laptop, inexpensive furniture, some artwork, and several hundred books.

I CANNOT afford an attorney. They want thousands of dollars. Heck, if I had $3000 I'd pay Chase off, not an attorney. I owe about $40,000 overall in credit card debt. I plan to file for bankruptcy myself. If only NJ lawyers did pro-bono bankruptcies!!!

If they start garnishing my wages will the bankruptcy filing stop them in their tracks???

[keptdigging]

Yes bankruptcy will stop them in their tracks, though depending on far along things get I'm not sure if it is completely automatic (that is there might be extra process or paperwork.) Perhaps the gurus will provide more detail.

[WhatMoney]

If you can't afford a BK lawyer you can file Pro Se. Get the Nolo Ch.7 book and ask questions on the Pro Se forum here. Your costs will be court fees and credit counseling, around $400+.

Otherwise the NJ wage garnishment is 10% of gross or 25% of disposal earnings whichever is less, but no execution on gross wages of $217.50 or less a week.

In connection with the July 24, 2009 minimum wage increase from $6.55 to $7.25 per hour, the New Jersey Supreme Court recently ordered that any wage execution/garnishment orders issued after July 24 will reflect a higher base amount of disposable weekly earnings under which no amount of wages may be withheld or garnished. Specifically, as of July 24, 2009, the base amount of disposable weekly earnings increases from $196.50 to $217.50; for earnings paid every two weeks, the base amount increases from $393.25 to $435.00; for earnings paid twice monthly, the increase is from $425.75 to $471.25; and for earnings paid monthly, the increase is from $851.50 to $942.50.

With a judgment you will need to protect your bank accounts against levy as well - by using other cash equivalents and keeping your account balance low with an out-of-state bank.

[catleg]

Don't feel bad, the courts in NJ are heavily biased against debtors. At best, answering the lawsuit would have bought you 35 days for $15.

Since you didn't answer, a judgment was automatically entered against you after 35 days.

You'll most likely hear from the lawyers next with either: (in decreasing order of probability)
--a motion for wage garnishment (if they know where you work)
--an information subpoena (to find your assets, particularly bank accounts)
--a bank account garnishment.

It's really unlikely anyone is going to come to your door.

And yes the BK stops them in their tracks.