California Debtor And Creditor Legal Questions

What you should do really depends on what assets you have and other factors.  I agree filing bankruptcy probably wouldn't be worth it if this is your only debt.  If you don't have any major assets (like a house) and neither you nor your wife have a job, then you're basically judgment proof (but again, without all the facts, I can't anticipate all the potential issues). That being the case, why do you care whether Capital One gets a judgment against you or not?  The only thing they can do is possibly seize your bank accounts eventually, but you can avoid that by not leaving large sums of money in there. Once you get jobs again, you can negotiate a payment plan with them.  Frankly, the longer you go without paying (and you can show up at the judgment debtor examination and show you're unemployed with no assets, etc.) and once they realize you don't have anything, they'll be much more willing to settle for a lower amount.   Filing an Answer to the complaint merely delays the inevitable.  It will set out a trial several months down the road, instead of them getting the judgment now.  So it might be worth it, but I can't explain to you how to file an Answer in this forum.  And there is a cost to filing an Answer ( a couple hundred dollars I believe, but I don't really practice in state court). Most likely the best option for you is to sit tight, and after they get their judgment against you, once you get your income back on the right track, settle with them. If you DO have assets with significant equity, then you need to see an attorney.   Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  ... Read More

Hi Max.   That's a difficult situation.  The first part of your analysis should be to determine what your judgment creditor can get from you.  Do you have a job?  If so, then he can garnish up to 25% of your net wages.   Do you have any assets he can lien, such as a home?   You definitely don't want to leave a lot of money sitting in any of your bank accounts, because they can be seized as well. Once you get a handle on what he can get from you outside of a bankruptcy, you should schedule a consultation with a bankruptcy attorney to go over that option.  Most bankruptcy attorneys offer free initial consultation.  You can then compare the costs of doing a bankruptcy with how much your creditor is likely to get from you if you do not file bankruptcy. Sometimes this simple analysis will yield an easy decision. I hope this helps you on your path.   Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  CONTACT MARK for more information or to schedule an appointment.     ... Read More

Yes, but a debt-holder cannot begin to garnish your assets without first obtaining a court ordered judgment against you.  If you are having difficulty with collections, you may need to contact a local consumer rights attorney to protect your interests. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More

No, you cannot be arrested for defaulting on a payday loan.   Actually, if the company contacting you regarding this debt is a collection agency, and the company threatens you with jail, you may have a lawsuit against the agency for violating the Fair Debt Collections Practices Act.  You should contact a local consumer rights attorney to determine your rights, and how to proceed. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More

You have several options at your disposal.  A simple cease and desist letter may stop the harassing calls.  Also, you should consult with a local consumer rights attorney to discuss a potential FDCPA action against the creditor, assuming that the creditor is a collection agency. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.  ... Read More

I don't believe so.  Being "wrongfully discharged" from a school is not one of the bases for being able to cancel a student loan debt.  See the Student Loan Borrower Assistance Page for more information. Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of California Board of Legal SpecializationHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter:  @bklawr  ... Read More

Bankruptcy is certainly AN option to consider, but if this is your only debt and you have a good basis to dispute owing it, then you can try to fight it in state court.   You need a civil litigation attorney who handles consumer collections matters. Bankruptcy is a much easier route to go, and if you have other debts you need to get rid of anyway, it might be a good option rather than expending your resources and time to fight this creditor in state court, regardless of whether it was fraudulent or not. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr  ... Read More

They can garnish wages, attach bank accounts and place of liens on property. Accordingly, you should call the creditor and see if they will do a deal. The fact that they have a judgment does not prevent them from settling for ten cents on the dollar if they think it makes sense. You may  want to have the bankruptcy lawyer call them and let them know if they do not settle, you will file. I find that often works. ... Read More

Generally speaking, a creditor with a judgment against you will garnish you wages or levy your bank account if they are not paid. You may be able to contact the attorney of record on your case and offer to make voluntary payments toward the balance due. You may be able to work an agreement that would hold off a wage garnishment if you are making regular voluntary payments. ... Read More

A judgment creditor can collect the judgment debt by levying your bank account. Once your bank account is levied, you cannot use the money in it. If you have money in the account more than the judgment debt, then you can use the amount over the judgment debt. If you pay off the judgment debt, the levy will be terminated and the bank will be notified to release the levy which means that you can use all the money in the account. Credit Cards and Bankruptcy Garnishment and Unsecured Debt Debt Settlement - Negotiating with Debt Collectors The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.... Read More

It means that the credit card company has filed a lawsuit against you to recover the debt. Once you have been served with the papers, you have 30 days to respond to the lawsuit. If you do not respond within 30 days, the credit card company can get a default judgment against you. The credit card company can then take steps to enforce or collect the judgment from you. Credit Cards and Bankruptcy Garnishment and Unsecured Debt Debt Settlement: Negotiating with Debt Collectors Debt Collection: Stopping Consumer Harassment The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.... Read More

The statute of limitation for a credit card debt in CA is 4 years. The period of 4 years will run from the date of your use of the card or your last payment to the card (whichever is later). If your last payment was made in 2/2007 then the statute of limitation will be 4 years from 2/2007. The entries in your credit report have nothing to do with statute of limitation. Once the statute of limitation has expired and if the debtor sues you, you have a complete defense against the claim. The record usually stays on the credit report for 7 years. Credit Cards and Bankruptcy Credit Card Statute of Limitations Debt Settlement: Negotiating with Debt Collectors The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.... Read More

Statute of limitation for a credit card debt runs from the last payment date or last use of the card (whichever is later). So when make a partial payment, the statute of limitation will run from the date of the partial payment. If the payment is made after the statute of limitation has expired, the payment will cause the statute of limitation to start all over again. Credit Cards and Bankruptcy Credit Card Debt Statute of Limitations Debt Settlement: Negotiating with Debt Collectors Garnishment and Unsecured Debt The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.... Read More

I've never heard of a settlement loan, but if you take out a loan, you are responsible for it.  Period.  Somebody else's bankruptcy case does not affect your liability one way or the other.  The settlement itself may be collateral for the loan, but unless it is a non-recourse loan (like first mortgages are in California), then you will be liable for any deficiency amount if you do not receive all of the settlement. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

Short answer: Get out your contract and read it.  If you agreed to it, then it is a valid debt as long as it is legal.  In California, agreed to collection costs are probably legal. Long answer (for the curious at heart):  Go read this statute ConsumerAffairs under Article 2.6 paragraph 2 will be your answer.  Also read one of my posts regarding how California collection companies operate, california-collection-company Thomas Hogan Law Office331 J St #200Sacramento, CA95814(916) 756-0243www.tomhoganlaw.com Legal Disclaimer: The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.  ... Read More

Yes, you can be sued for credit card debt. Once you default, credit card companies will sell your account to a collection agency. The agency  will try to collect by calling you and writing demand letters. If that doesn't work they could file a petition in court and request for garnishment meaning the debt can be collected either through your employer, bank account or taken against your property. More info on Garnishment                    Debt Collection                    Credit cards and bankruptcy Thomas Hogan Law Office331 J St. #200Sacramento, CA 95814(916) 756-0243www.tomhoganlaw.com Legal Disclaimer: The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.  ... Read More

You should have settled or worked out a plan with the debt collection agency before they filed for wage garnishment. Once the wage garnishment order has been granted by the court, the debtor has little or no options at all to work out a settlement. The employer also does not have power over this because it is a court order. Best consult a bankruptcy lawyer. More info: Garnishment             Credit Cards and Bankruptcy   Thomas Hogan Law Office1207 13th ST. #1Modesto, CA 95354Tel. #: (209) 214-6600http://www.tomhoganlaw.com Legal Disclaimer: The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel. ... Read More

Yes, garnishment can be taken out of your bank account. But if the debt collector did not give you the full information about what you owe and had practice unfair debt collection practices you can report them to the FTC(Federal Trade Commission). The FTC will evaluate your case and see if the debt collector had employer unfair debt collection methods and will sanction the debt collection agency. The debt collection agency cannot charge you for more than what you owe but some seedy collection agencies put on interests and other fees. They are already in violation of your right to Fair Debt Collection when they dropped off the summons and other people had learned about your debt situation. Best go to the FTC and consult a bankruptcy lawyer. More info: Credit Cards and Bankruptcy                 Debt Collection Thomas Hogan Law Office331 J St. #200Sacramento, CA 95354Tel. #: (916) 756-0243http://www.tomhoganlaw.com Legal Disclaimer: The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.... Read More

I don't know what a "debtee" is, but if you are a creditor or party-in-interest to a bankruptcy case, any complaints for matters dealing with the bankruptcy case must be filed in the bankruptcy court.   Service of the complaint on the debtor is authorized to be made by mail to the address on file with the bankruptcy court.   Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr ... Read More