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Advice on Credit Card Judgment - The Bills.com Blog
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Advice on Credit Card Judgment
Question: I am a 60 year old self-employed female with a very limited income. Several years ago I experienced some problems when my business took a big downturn, and got behind on my credit card payments. The longer I was unable to pay, the worse the debt got, until it's now out of my reach to ever repay. One card with a $300 credit limit (that I neverexceeded) went after me for all the excessive charges and obtained a judgement against me for over $2800. Can they take money from my very limited bank account? I worry all the time that they will try to take money from the little I earn in my business, and then I won't be able to stay in business any longer. Please help. Thanks
Answer: You should keep in mind that, depending on your state law, a creditor with a judgment against you might be able to place a lien on your property, freeze your bank accounts, and/or garnish your wages. It is important that you research your state's laws to determine what action a creditor can take against you to enforce a judgment. I encourage you to contact any creditor holding a judgment against you to attempt to resolve the account;
the creditor may be willing to forbear execution on the judgment if you can start making payments on the judgment. However, if your state is one of the states whose law make the enforcement of judgment difficult, such as Texas, you may decide to simply wait to resolve the judgment at a later date. You need to determine the potential consequences of the judgment against you so you can determine whether it is better for you to try to pay off the judgment or simply let the judgment sit for the time being. You can review your state's laws regarding judgment enforcement by visiting http://www.bills.com/collection-laws/.
Whether they can take money from your business account depends on how your business operates. Is your
business an LLC or a sole proprietorship? If your business is an LLC then your business accounts are separate from your personal accounts. On the other hand, if you operate on a sole proprietorship basis, then unfortunately, the creditors may be able to garnish your business account to recover monies for this judgment. As I said before, try and work out an arrangement with the creditor so that the situation of garnishing your bank accounts does not arise.
I also encourage you to consult with an attorney in your state to discuss the best course of action for you based on your state's laws and your current financial situation.
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
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1. Posted by Kim schenk on Tuesday 10th June 2008 09:14
a law office bought an old credit card debt I owe to Providian. I disputed the amount ($about 900.) with Providian for about 15 months and closed the account because of the dispute. Now this law firm has sued me for over $5000. They have not provided proof that I owe them the debt and say the statute of limitations expiring is not a defense. The court has agreed and now there will be a trial. What would be helpful for me to provide at this trial? I cannot afford an attorney or to pay this giant debt. Thanks.
2. Posted by Bill on Thursday 12th June 2008 17:47
It does not matter if the case goes to court, what you have to make sure is that you have all the paperwork that will prove that the Statute of Limitations has expired. Please visit http://www.bills.com/collection-laws/ to find out the statute for your state. Also, dig out all the paperwork that you have (when you disputed the account). If you can prove it in cour that the statute has passed, then the case will be dismissed. Also, if the court finds out that the collection agency/creditor filed a suite knowing that the statute has passed, then the they could face a penalty form the court. Do not believe everything that the collection agency says on the phone, they are trained to intimidate you into making a payment.