Many people have emailed me asking if they could go to prison for not paying their credit card debt. It seems that some collection agencies are trying to intimidate debtors with the threat of arrest and imprisonment. A collection agency representative might comment “if you don’t start making payments on this we can take you to court and put you in jail.” There’s a lot of information on this subject and I will attempt to organize it in an intelligent manner. The correct answer to this question is - it depends! If you have any questions after reading this article please leave a comment at the bottom of this page.
See also all of my articles on Collection Agencies.
See also DebtPrison related article How to deal with Collection Agencies.
Failing to make payments on debt is not considered a crime in the United States. The U.S. hasn’t utilized a debtor’s prison since the 1850′s. Some countries will still place a debtor in prison for failing to make payments. However, the U.S. government has a vested interest in making debt a desirable circumstance, therefore debt is not criminalized. In order to go to prison you must be convicted of criminal behavior. Laws regarding these issues will vary state to state. See also DebtPrison related article How to settle your debts on your own.
Here are your options with debt you’re defaulting on:
1. Settle your debt (but you’ll need some cash).
2. File bankruptcy (an often nightmare).
3. Ignore it and possibly go to jail for contempt of a court order (very rare).
4. Start paying it back in full.
If you need immediate advice on bankruptcy or debt settlement, then please call 877-231-4384. This is a toll-free number. A representative will help evaluate your financial problems for free and can even connect you with a local attorney. You can also fill out our free bankruptcy evaluation form by clicking here.
What will most likely happen
It’s always been my understanding that your creditor can take you to civil court and obtain a judgment against you saying that you owe the debt. Through the judgment the collector can then garnish your wages or even get liens against your assets. But getting to this point of wage garnishment or liens against assets is time consuming and usually never occurs. That’s because the collector has to go through a process that I’ll explain later in the article.
Going to jail for contempt wasn’t something that I thought could occur, but then I’ve read some comments from my readers below. I’m assuming there’s more to the cases than just the average default. It seems that in some rare cases an arrest warrant can be issued for contempt of court. I think this is somehow related to your not showing up in court, but from what I’ve read these arrest warrants are very uncommon.
This was stated by Sherri below in the comments “They tried to take me to court in 2000 ish. I tried to set up a payment plan and the guy told me he would not allow a payment plan and wanted me to ask friends and family to pay the bill. This week I got a letter in from the sheriffs dept stating it was a warrant for arrest. The attached paperwork was showing a court date for 12/20/07. In which I NEVER received any paperwork stating I had a court date in Dec.”
And this was stated by Deb “I owe around 3,000 in credit debt, and a sheriff keeps banging on my door leaving me a note from the sheriffs dept, what the hell is this all about? And can they arrest me in my own home?”
I have no way of knowing specifically what occurred in the two above mentioned cases that led to the Sheriff’s Dept. getting involved. In general, the negative outcomes (negative credit reporting, wage garnishment, liens, or jail) often depends on the amount of money involved and the aggressiveness of the creditor. The more money involved (almost always in excess of $1,000) the more likely the creditor or collection agency will pursue legal action.
Usually the process follows these guidelines:
You have defaulted on your payments. Your creditors collection division calls you daily to try and talk you into making a payment. After a year or two they give up on the phone calls and letters. They can’t get you to pay so they (this could now be a collection agency, not the original creditor) sue you in civil court. This can happen even if you are in a debt settlement program. It’s a lot of trouble and expense for them to sue you, so normally they won’t bother unless they figure they can get some money out of you.
Keep in mind that there are rules that collection agencies must follow according to the Fair Debt Collection Practices Act. If they don’t follow the rules you can actually hire an attorney and file suit against them! For example, if they have your phone number, they are not allowed to call your family, friends, or employer (if you request them not to). Also, you can write a cease and desist letter which instructs them to only communicate with you via U.S. snail mail.
Scenario 1 – You don’t show up and the judge rules in favor of the creditor and against you. This judgment is an acknowledgement that you owe the money. I’ve read that 80% to 90% of judgments are never collected! This is because the judgment is usually just an acknowledgement that you owe the money, and that is all. In order to collect another court date must be assigned to perform a ‘writ of execution’. If they summons you for this, and you don’t appear, they may issue a bench warrant for your arrest.
A writ of execution is a common court order granted by a court in an attempt to satisfy a judgment obtained by a plaintiff. When issuing a writ of execution, a court typically will order a sheriff or other similar official to levy property owned by a judgment debtor. Such property will often then be sold in a sheriff’s sale, and the proceeds remunerated to the plaintiff in partial or full satisfaction of the judgment. It is generally considered preferable for the sheriff simply to confiscate money from the defendant’s bank account. If the judgment debtor owns real property, the judgment creditor can record the execution to “freeze” the title until the execution is satisfied.
If you don’t show up for this one you may be arrested for contempt of court. This is the part of the process where the facts will be laid out. This is the part where they get your employment information for wage garnishment or asset info for liens. But bear in mind, most collections will not get to this point. It really just depends on how aggressive they are on your particular case. And many people are actually in a position where they cannot be collected on. Perhaps you are disabled and on limited income. Chances are they can get a judgment but will never be able to collect. There is also a federal minimum (I think this figure is 30 hours of minimum wage pay per week), which if you make below, they cannot collect. For example, if minimum wage is $5.80 per hour, times 30 hours, comes to $174/week or $702 per month. If you make that or less they cannot touch you. Money that is in IRA’s, custodial accounts, trusts, annuities, and insurance contracts are often untouchable. See also, Restrictions on Wage Garnishment for Debt Collection.
Scenario 2 – You go to defend yourself against the creditor. You explain why you do not owe the money. Or you explain that you owe the money and cannot pay it because of personal circumstances. The judge may or may not rule in favor of the creditor. If you don’t owe the money or really can’t pay – just walk into court and defend yourself, you’ll be glad you did.
Please understand that the garnishment of wages depends on many factors such as: your level of income, possibly your spouses income may be considered, and the number of dependents you have. To read about someone’s personal experience in using debt settlement companies read Tell Debt Settlement Companies to Kiss Your Ass. If this article doesn’t convince you to stay away from these companies, I don’t know what will.
Can you be arrested at airport returning to U.S.?
I’ve seen this question come up quite often. Some people moved away from the United States into another country. However, they left behind tens (or hundreds) of thousands of dollars of debt. Now they need to re-enter the U.S. for a vacation or to visit family. They are worried about an outstanding arrest warrant related to the debt. If you are concerned about this possibility try performing an information search on yourself at a site like this one. Perhaps avoiding entering the state where you used to live would be a good idea. Now if you have a warrant for fraud (related to your debt) the possibility for arrest may carry a bit more weight since this is a criminal, not civil arrest warrant. Keep reading to learn more about fraud and other issues related to debt and jail.
Fraud
Also, if you obtained debt by committing fraud you can go to jail. For example, let’s say you just moved into a new apartment. Mail for the previous tenant is still arriving at your apartment. A credit card offer comes in the mail for the previous tenant. You fill out the application, mail it in, and start using this new credit card which is in someone else’s name. This is fraud and if convicted you could serve time in prison. This happened to my cousin. He moved out of his apartment and the following tenant received his mail and ran up thousands of dollars in retail charges. He had to get a lawyer involved and it took years to get this completely removed from his credit report.
Perhaps you have ‘borrowed’ your sister’s credit card to go out and spend a couple of grand without her knowing about it. In this case you could be fined and or imprisoned for fraud. This type of conduct is also considered criminal in nature.
You could possibly be looking at prison if you ran up thousands of dollars of debt on credit cards with no intention of paying it back. Recently the federal government changed the law regarding filing bankruptcy on credit card debt. The new law makes it harder to erase the debts you owe to credit card companies. Before this law went into effect, bankruptcy courts received a record number of new filings. Broke Americans were all trying to file for bankruptcy before the new law kicked in.
At the time I had an acquaintance that had in fact, filed bankruptcy on debts to various creditors, worth over $60,000. We were discussing the new law and he suggested that I run up tens of thousands of dollars in credit card debt. When the bills came due I would simply file bankruptcy before the new law took effect. Many people did exactly that. If the credit card company can prove that this was your intention, then some judges would find you guilty of fraud – taking out loans that you had no intention of repaying. However, it is usually difficult to prove that someone had no intention of repaying the debt. For example, if you applied for six credit cards, maxed out the limits for a total of $15,000, and then never made a payment, you could be in serious trouble. It would be obvious that your intent was criminal.
In general if it can be proved you received money or goods by deceptive practices you may be eligible for a criminal conviction.
Find more bankruptcy specific information before making a final decision, at Totalbankruptcy chapter 13 and chapter 7 website pages.
You could also be imprisoned for the following:
If you violate a court order (a judgment against you to pay child support).
If you are convicted of willfully failing to pay your income tax to the government.
If you are attempting to hide assets or income to avoid paying a debt for which there is a judgment against you.
Bankruptcy related acts that can result in criminal penalties include:
If you defraud tenants
If you forge a bankruptcy judges signature
If you commit perjury during the creditor’s meeting
Keep in mind that there is a difference in a judgment (civil court decision about money you owe another party), and a verdict (criminal court conviction of a crime). In a civil court case the outcome will largely depend on the judge and his interpretation of the circumstances.
Simply defaulting on your debt is not a crime
If failing to pay your debts equaled prison time then half the people you know would be in jail. Even the author of this article, although my debt is caught up now and will be soon be paid off in full. Many people have lost their jobs or had unexpected medical issues force serious changes to their financial lifestyle. Through no fault of their own a debtor may no longer be able to make the minimum payments. This is not a crime and one cannot go to jail for these reasons. Like I said earlier, collection agencies will do anything they can to convince you to send them a payment. If you have credit card debts or medical bills that you can no longer pay, you can’t go to jail. This is why we have debt settlement, bankruptcy, and ruined credit scores.
Although you can’t go to jail for failing to pay your debts, there is a list of negative consequences you may be eligible for;
Collection Agencies can call your phone several times a day.
They can even call your place of employment, asking for you or where they can find you.
They can call your neighbors and ask them if they know where you are.
They can sue you in civil court for the balance of debt you owe them.
They can win a judgment in civil court against you for the debt owed.
Through the judgment they can garnish wages from your paycheck.
Through the judgment they can garnish your banking accounts.
They can (in some states) get a lien against your assets (house) and sell it to pay off the debt.
They can report the collection information to credit bureaus which lowers one’s credit score.
So the short answer is no – you can’t go to jail for simply not paying your debts, unless you are in contempt of court (very rare). But, creditors and collection agencies can make your life a living hell. So it’s in your best interest to get this situation handled in a manner that benefits you.
Remember that some debt collectors will scare you anyway they can to force you to pay up. The best advice I can give is to educate yourself about your options. Take the time to read information across the web about debt and collection. There are a lot of articles out there – most of them are accurate and truthful. Go forth and be debt free!
Protect your family — let a bankruptcy lawyer help you explore whether Chapter 7 bankruptcy or Chapter 13 bankruptcy will offer you the most financial clarity. The first step to financial renewal is completing this free evaluation form.
Related Articles
* Restrictions on Wage Garnishment for Debt Collection
* The Fair Debt Collection Practices Act
* Get Everything in Writing: Collection Agencies and Their Lies
* Reasons not to file Bankruptcy or Settle Your Debts
* Can you go to jail for not paying your debts?
* How to settle your debts on your own
* How to deal with collection agencies
* Sample Debt Validation Letter
* Information on Credit Card Balance Transfers
* How I Escaped Credit Card Debt
* What You Should Know About Credit Cards
* How to seek bargains for food and clothes
* Steven Palazzo, Mississippi, Property Rights, and Eminent Domain
Hello, thanks for your article. I have debt from two credit cards totaling just under $16,000 ($8000 each). I have paid all debt on time since I had a credit card, however, I couldn’t make payments anymore starting July 11. I have been contacted by the credit card companies and by two different collection agencies for each card. I’ve told them not to contact anyone but me and that I intend to pay the debt when I am able to. I live in another country and basic income – translated to about $250/month. The debt collectors tell me that I will continue to receive calls until I pay. (They call my Skype number so I receive it on my computer).
According to your post, they may sue me in court if I do not pay. This would probably result in me not showing up to court. And as you say, would file a bench warrant for my arrest.
My questions:
What are the chances that a warrant would be issued?
How much time before a court date is set would they notify me? Is it only by mail or is it by phone as well?
Thanks in advance!
I’m wondering, I had a note from the post office saying there was certified mail for me, and since I wasn’t expecting anything, I guessed it was from a credit card company I’m defaulted on due to the lack of funds to pay them (I lost my job unexpectedly and through no fault of my own – downsized). I never went to get the letter.
Is it possible they were notifiying me of a court date? Can they do that and then say well, you didn’t show up? Or does someone have to personally hand you something? I owe the company about $20,000 and I am now fearing a Sheriff will be at my door to arrest me.
I have an issue. A few months ago I lost my job and have NO income now. Staying with family and have just run out of my savings $. I have a Sprint cellphone account and it has 5 lines of service on it. (1 original line ive had for about 1 yr and the other 4 lines were just added 2 months ago for family members that agreed to contribute and help pay my bill ( we were hoping the bill would be less because it became a family plan when i added the lines, but that wasnt the case). The bill actually increased alot more than we expected and its WAY over the amount I can afford. Bottom line: I have a phone plan with 5 lines on it, and the bills are coming in cant be paid. The phones were iphones, so they were NOT CHEAP and I got them at 199.99 each with 2 year agreements. These phones havent been paid off since the bill wasnt what I had expected. So, what if i just let the acct go? I have no choice and im worried because when i added the 4 extra lines, they billed the $199 (x4) phone prices to my account and they have NOT been paid and its past the trial where i can return the phones. If they charge me the full prices of those phones, it will make the bill into a few thousand dollar bill after 1-2 months from now. So If i have a $4,000 cellphone bill, what will they do? Im afraid they will take legal action against me and say that I just added the 4 lines in order to get the phones and consider it FRAUD. WHAT CAN I DO!!?!?
Brenda,
You won’t get arrested. However, it might be in your best interest to explain to the law office that you have no income. Also, if possible you should speak with a lawyer of your own about this matter. Getting accurate legal advice will likely save you money in the long run. Because the amount you owe is this high… hiring legal council makes good sense.
Hi there, I’m Brenda, from Houston, tx.
I have a huge problem and I really need to know what’s going to happen if I don’t pay my debt!
Okay, so I signed a contract at a beauty school & broke the contract later on after going to school for a couple of months. What I am concerned about is that when I signed a contract it was with a Texas state ID. I did not provide any social security number or anything.
So I want to know what’s most likely to happen if I don’t pay a debt! Can I get sued? Can I get arrested?? Or Will I have to end up paying the whole amount? I owe 4,056.14. There is no way I can pay that much amount. I mean I don’t even have a job!!
I got a letter from LAW OFFICE OF JOEL CARDIS, LLC saying that, “Although the client has authorized suit, there has not been any assessment of ths matter by counsel, nor is any legal action now being taken against you. If I don’t hear from you, I’ll have to evaluate having you account reviewed by counsel.” Have no idea what they are talking about. I really need your advice plese!! Help me.
Im a mom of a 11 yr and my x husband is behind $20,569.41. What makes me so mad is everytime i call about what can they do I get the run around. I dont get his taxes they say they have me down to get them. He is to pay $387.00 a month but I lucky if I get $160.00. He has called to get his child support modified and they did that BUT they cant get him to pay what it was down to. come on He went from having to pay $578.00 down to $387.00 and he still cant pay that???? And now that he is so farbehind no one will help me. I have friends that have went to jail for oweing less then what he does. Im going to have to take the next step time to a Attorney. Seeing the state does not want to help AT ALL…. I work to give my child everything he needs and this deadbeat cant pay anything or even see her. Some men just dont need to be dads!!!!!!!!!!!
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My boyfriend got a pay day loan in May 2010 and they have been calling for months. They gave it to a collection agency, I’m not sure if it was assigned or sold. Anyway, the original pay day place stopped calling and the CA started. They stopped calling around…the end of November or beginning of December. Now the “prosecuting attorney” (Dunno if it’s actually them, but I think it is…) has been calling. She extended the payment date to Jan. 31st. What will happen if it is not paid by then? The debt is under $500… Please get back to me ASAP!! >.< Thank you so much!
Whats up there admin, I mainly wanted to firmly give a short mention to firmly mention that in fact I relished your particular blog post. Thanks!
i just got a called today saying that i owe them 2,600 dollars for a check that i got on the mail last year on December and used all the money for Christmas because the check had when through the account just fine so its been a year and the bank had wen from wachovia to wellfargos and now they want me to pay all this money that i don’t have i go to school full-time have no type of income what so ever and they specting me to pay this ASAP
I was recently a victim of a fraudulent check through craigslist and then went through in my bank account, which about a week after was returned, resulting in me being $5000 overdrawn in my account. The bank says I have no choice but to pay them the money back. But I don’t have the kind of money. They say after 30 days it is sent to a collection agency, Im filing a police report, but chances are I will not see any money out of it. What will happen if I am unable to pay the bank back and they send it to a collection agency? Am at risk? Im so upset that this happened to me and would not want any legal action against me after going through all of this. Any advice?
Thanks
I owe nearly $40000 debt in student loan. Will I have to show up the court if I live outside the country at the time of defaulting on my student loan and at the time they sue me? Will they basically ask the court to issue a summon for someone who is residing outside the country?
I’m experiencing a difficulty with your rss feed . Don’t know why I am not able to subscribe to it. Is there anybody getting identical rss problem? Anyone who knows kindly respond. Thanks
How do you own an LLC if you are broke and have no income? No they can’t collect through you’re LLC if you it’s broke and has no income. If you owe $48,000.00 then you must… MUST… hire a lawyer to negotiate this debt for you. DO NOT ATTEMPT TO HANDLE THIS DEBT ON YOUR OWN. This is too much. You need to configure a goal for yourself and your future. You need to get rid of this debt and if you cannot pay it off in full then you need to figure out how to pay the least amount possible with the least amount of damage to your credit history!!!!
Barry
I owe amex 48,000$, they just canceled my account and tell me if i don’t make payment soon they will send me to an outside collection agency. I have no income, just out of school with no job. Any suggestions?
Also, I am the sole owner of an llc, can they try to collect through that?
Hello
I owe American Express $2000 and the last date to make the payment was October 28 2011. They tried to call me but I ignored to call them back due to many reason .I paid the final payment online on October 27 but I noticed that my account has been cancelled. I called AE and I got message that my account has been sent to Collection agency. I have never deal with collection agency so I tried to get hold of AE representative.Finally I got through and was told that my account is with GS coection agency and they must have sent you a letter. I have moved to a new place for one and half year and I didn’t get any letter. I used to pay my bill online. I had made th.e final payment before the due date. Now I am worried that it will harm my credit report and getting a job because my account has been sent to collection agency. Is there anything I can do to clean my credit report. How much it will effect my credit report and how bad is it to your credit history? Thank you
Hi I have a question because I have so much debt (about $55k- includes student loans). I am unemployed and have been for awhile. My car recently got repossessed and I have no assets. I recently got served and I am suppose to give a court date to go against a collection agency for about $20,000. What do I need to do? I am going to go to court, but I’m going to tell them the same thing I’ve been telling them for the past year. I’m not avoiding the payments I just can’t pay them. Can the judge rule in my favor? If so, what does that mean?
Thank you,
Max
Reuben,
Go to the three credit reporting agencies websites – Transunion, Equifax, and Experian. You’ll need to contact them and begin a dispute of their record.
This same thing happened to my cousin and he ended up having to hire a lawyer to get it straight. Anyway make sure and get this cleared up because you don’t want any negative marks on your credit. It can keep you from getting a job these days.
Good Evening,
My name is Ruben and I live in El Paso Tx, and I recieved a call from my brother who has not even 1 year living here in El Paso to inform me that an attorney by the name of ****** with phone number 1-888-203-**** had called him asking for me? So I called him right away and he answered, now I dont know if hes the secretary or what but as soon as he answered i introduced myself to him and asked me what number they called me from? when I told him my brothers number he proceeded by giving me my social security number and date of birth which did match, so he told me he was calling on behalf of credit 1 bank visa which I never recall ever ever having a credit card with them, so I asked him if he can please tell me the adress they had on file for me and he started acting rude telling me he didnt have that info and that i owed one thousand and something from a card that originally was for a limit of $200.00 dollars, so im telling him about me never having this card and he started talking at the same time I was so I couldnt hear him nor him me but he started geting more rude and I told him yet again I think this is fraud cuz I have never heard of this card and he told me well our investigators found the number we called you and they dont make mistakes and its weird how someone who doesnt take out a credit card makes payments on it? so I am still asking him for more info and he starts talking over me that I told him I would like to speak to someone else and he didnt allow that and started saying they will proceed to put a court order in my county and he finished off by telling me in a sarcastic voice, well I hope not to hear from you again saying I made a mistake and that it was me and hung up!! So I took out my credit report with equifax and experian and its on my report but I also have 2 adresses I have never lived at in my life so what can I do as I already called credit 1 bank to investigate this and collections says they dont have anything on me to call back tomorrow to speak to special accounts which I am cuz I need to get to the bottom of this!!
Can debt collectors or creditors obtain my overseas address from SSA (I receive disability) or from tax returns? I really don’t want to leave forwarding address to the creditors.
Thank you.
Hi, I recently received a citation served by what my father said looked to be a cop uniform but was in a regular car, he just gave him the paper to give to me, I don’t know if this is a court date or what but it says at the top CITATION, and its by a debt collection agency, this is what it says on the small slip notarized on the front along with the notarized papers following, to me, attached to this citation is a certified copy of Petition which tells you what you are being sued for. You must EITHER do what the petition asks, OR, within (10) days after you have received these documents, you must file and answer or other pleadings in the office of the Clark of this Court, (address here locally) If you do not do what the petition asks, OR, if you do not file an answer or legal pleading within ten (10) days, a judgment may be entered against you without further notice. This citation was issued by the clerk of court for the city etc…. on so and so date, then signed and notarized by the deputy clerk. In the copy it states that im indebted unto the plaintiff the amount of $4,473 plus interest from date of purchase which is more etc.. to the date of this petition, plus interest thereafter at the rate of 18.000% per annum until paid, then 6 pages of legal jargon as stated above on the following pages. I am really shook up about this, because I don’t understand if this is a “court date” in which i have to appear or what, I had a friend who received way higher amounts 6 of these totaling $29,000 the same way 6 years back and said he didn’t go or do anything and they didn’t do anything, and advised me to do the same, but i don’t know what to do. I have had a major surgery 3 years ago on my brain and alot of other illness problems, still waiting for disability, I am living with my parents, do not have any income, assets, job etc… his wife works for a firm and told me not to do anything that im pretty much exempt from it because i have nothing. I don’t think i can even make the meeting if its just a meeting because of my illness’s, so can i go to jail for this or get sued for more money, I thought i would ask and try to put my mind at rest because the mental problems along with the physical have gotten worse after receiving this letter, i cant afford a lawyer and i have no transportation so any advice on what to do and what it is about would be extremely helpful, as im confused as to if this is a summons to court or just a judgement hearing, thank you in advance for the information and help!
Charlene,
I don’t think you have anything to worry about. Let’s look at the facts.
1) this company is in Florida… and you live in Wisconsin… which means I doubt they are taking you to court… because they would have to take you to court in Wisconsin.
You cannot go to jail unless you ignore a court order. Unless the collection company has sued you… and the court has contacted you (meaning the court has sent you a summons for a court date because you are being sued) you cannot go to jail…. you are a long ways from that happening.
First off the collection company has to sue you where you currently live. This means that if they are in Florida they will have to hire a lawyer in Wisconsin and I doubt that will happen.
If they call back don’t answer.
If you get a summons for a court date in Wisconsin then I would go before the judge and explain that you never signed such a contract for a credit card…. that you are a victim of identity theft and have been working to clear this up.
Meanwhile you should go to http://annualcreditreport.com and get a copy of your credit report and see if any collections show and also what accounts are open under your name. If there is an account open in your name that you never opened then you need to hire a lawyer to begin the process of getting this removed from your credit history. It is very important that your credit history is accurate and that this negative mark (which isn’t your fault) is removed.
so i get a call today from the credit card company telling me i owe them 2100 dollars never had a credit card some one else got it like my ex boyfriend and now ihave to either pay them 600.00 by tomorrow or i go to jail because i live in wisconsin and the court case is in florida and i can not make it there cuz i have four children great government we have i am the victim of a crime and its my fault
I have a credit card balance of about $3,000, and I live in Maryland. I spoke to a lawyer who wants to settel this before the staute of limitations is up this coming December. However, I do not have a job, or assets. Im currently living with family due to a disability. I first had the credit card in 2005 – 2007, and was making regular payments each month, so I was not trying to defraud the credit card company. I was in a bad car accident, which has since kept me out of work.
The lawyer is giving me a few days to pay something, or else he is filing a judgement and credit card fraud. He says he can attach my assets, have me criminaly charge for fraud, as well as have my drivers lisence suspended. Doe’s anyone have some feedback, that would be helpful? Can he really do this, if I just have a roof over my head at this time, and nothing else.
Thanks, Jim
my sister is power of attorney for my parents. She got a call today saying that there is a loan on a card for 18,00. She then got a call from our sister-in law saying it was between our dad and my brother. My dad is in a nursing home with Alzheimers, plus he never would have let him do that with a credit card. Our parents didn’t use them. Now my sister who is in charge of their finances doesn’t have a clue to what is going on. What can she do? Help!
My bro said he’s been sued for a few hundred dollars in unpaid credit card debt that now totals $4000.00 and the judge in WY said they have to pay a grand a week or go to jail for 3 days at a time. He is hitting mom (elderly on fixed income) up for the cash. She’s frantic over it. I don’t buy it. What’s your take?
If they send you a court notice to show up, you should go there and see what happen. If you did not any wrong, then no people can force or put you in the jail even judge at court. If someone threaded you or said something they will kill you, just report to sheriff or record their voices or collect proof of evidences then send to the court to let them down. No people can threat you or annoy or listen your phone or check your mail or get involve your personal life. Those are illegal action. If you don’t have money to pay, they can not kill or threat you because if you are worry and then you sick or stress, they have to pay medical care for you.
Hey,
I an international student and i use to live in IN, i got sued by not paying for my credit card i only have 2o days to write them back, but im overseas now and i cant do nothing, im welling to pay off my credit card and at the same time i want them to close the case.
also im about to reenter the u.s next year and i want to renew my student visa. do you thing that will effect me of getting a visa?
thanks
hi
my name is gerald. i’m african who just got american citizen. i’m using so many credits cards and was paying them so good that my credit score pass to 780. now i lost my job and can’t afford them. my parents decided to come back home and run theirs small businesses. i’m leaving soon without paying all these credits. i’m so afraid if i come back to us one day, they can put me in jail or be deported? is this possible? i need a lot of helps and advises. Can i call them 1 by 1 to let them know so if i come back i can start the payment?
OK I have a similar situation to a lady above. I am a single mother. My mom passed away in November. My brother and his wife went against my mother’s wishes to have her cremated. They picked out a casket, and opted to have the services at the funeral home instead of my church which would have done it for free. They put their own prejudices against my belief system ahead of the immediate need. My brother and his wife both handed me the contract. I told them at the time, “I cannot pay this, I am on SSI and get child support from my ex through the VA in the form of an apportionment for my son.” The funeral director told me, “well, you can make payments, try to get a loan from the bank, or give me info on your mother’s insurance policy.” My brother also sat there and lied to me and said, “that’s OK, we’ll pay it.” I have witnesses to this effect. My cousin and his wife (who will both be going to court with me) both asked the funeral director about pauper’s services and the funeral home gave them some sort of excuse as to why it could not be done.
I gave the funeral director my mother’s insurance policy. The bank refused to give me a loan. I have no assets or collateral. I don’t own a car, I don’t own a home. (I rent.) My ex owns my former home but the city I live in condemned it and already took possession of it for the purpose of cleaning up the property. So my ex and I both got screwed out of that deal. The insurance company refused to pay her burial policy (and any hospital bills) because the premiums were taken out of my mother’s paychecks at work and since she resigned due to her illness, the premiums were up to the beneficiary named on the policy: my brother.
Here’s where it gets weirder. I had a bank account but plan on taking a letter from the bank where they closed my account due to excessive overdraft fees. I am making an effort to pay it all back a bit at a time, but my gov’t check just covers the overdraft then I don’t have enough money left for rent and bills. My rent check bounced last month so I am a month behind on rent, and paying my landlord back at an extra $100 a month for the next five months.
The funeral home cannot call me because I can’t afford a phone right now. I can’t call the funeral home. The contract originally had the floral arrangements and stuff as part of the bill, but the florist came knocking on my door, in person, demanding money. I told her I had none, but she ended up walking away with a $178 check which is what put my bank account into a tailspin in the first place: she was not leaving until she had her money or else she was going to go get the cops and have me arrested for theft. My sister in law had told her that I filed and got a big fat income tax refund on my mom when I filed her taxes. I did in fact file the tax return for my mom, but because of the issue with the insurance, the hospitals garnished it. So I did not see a dime of that income tax money.
I received a summons to court today AT CHURCH! (So I broke down in my pastor’s office afterward and he told me he’d deal with the judge as well, to let her know I’d come to him and asked for some help from the tithing fund set apart for members who needed a financial boost.) This month, my rent and electric bill alone exceeded my total income by $40, and that is not counting the extra $100 I owed on top of it and my water bill. I still had to find a way to get toilet paper, shampoo, dish soap, and laundry soap! I simply can’t live on what I make.
The problem is, our judge has a reputation for throwing people in jail when they, like me, have no way to pay anything because there’s no bank account to seize, no assets to seize, and they can’t garnish my SSI. The solution is to sit it out at a rate of $7.50 per day plus court costs, and/or a cash bond for the full amount owed.
The attorneys I spoke to told me to talk to the funeral home. (Which I have, several times.) They tell me they never should have had me sign the contract knowing full well that I am on a fixed income and can barely make ends meet. My brother should be ashamed of himself. He has a job. He has four cars. He posts on his Facebook wall regularly about his new house, his new vehicle, drinks a case of Bud every night, or the various costs associated with his dirt track racing hobby. He and his wife both have a job. They promised to help and have not, but yet they tell people they have been paying it. I’ve been getting the bills.
There’s a small claims cap on things so the bill for small claims is actually lower than the original amount. I WAS paying for a while. I told the funeral home I’d pay what I could, when I could…and paid them $5 here, $20 there a few times. I put about $250 toward this but they tacked on interest and late charges and last time I received a bill from them, it was $2000 more than when I started. Even when I was making an effort that was apparently not good enough. I, and several others, feel that my brother took advantage of me. I am a mentally ill lady who’s been struggling to keep my son from being taken away from me again….I had just lost my mom, I signed that paper without really even knowing what I was doing. I was on some anti-stress meds at the time I signed the papers. I told the mortician over the phone that I had no money and we discussed cheaper options and I feel like I was subjected to a used car or snake oil salesman…he kept telling me, “well the bill is going to be high anyway because we charge so much a day to put her in the fridge and she was embalmed at another home..and the plastic transport box costs about as much as a regular casket and since your sister in law asked for burial at so and so a place a vault will have to be used….” I told them to donate her to science to save money and he kept explaining why he could not do this as my sister in law already gave instructions to have her buried and we’d need all the stuff to do it…she picked one of the most expensive caskets in the whole funeral home….not me….
I don’t mind paying, and would if I could but I simply can’t. They are threatening me with jail because they know I don’t have any money or assets to garnish and they want to put it as a cash bond so they’ll get their money either way. That’s what this judge has done in the past even though debtor’s prisons in the US went out when the dinosaurs died. My pastor is going to write the judge a letter (he’s a doctor so has likely sued patients for not paying their bills before I am certain.) asking her if there’s any way she can consider asking the funeral home to rewrite the contract and go after my brother too. The whole bottom line is that I know my brother, my aunt, and others in the family can afford it. Any time I try to raise money to get things done, I get accused of being obsessed with money by selling this and that…I told my aunt to shut up or open her wallet. She blocked and deleted me on Facebook, so did my uncle…and I haven’t seen my brother since the funeral. When I do bring it up, he just has a lame excuse that he doesn’t have it, or tries to tell me that he IS paying on it. (BS. I have the bills from the FH.)
When I talked to the funeral home on many occasions they would not work with me….I thought if I made an offer and they refused it, then the debt was considered paid??? I told the director when he demanded money immediately on one occasion that all I had handy were a few food stamps and he accused me of being crass.
My internet has been shut off but I have a neighbor who has graciously loaned me a wireless networking beacon to connect to his Wi-Fi so that I can research this and try to get things done. I, like many others, don’t know what to do. A friend of mine is going to try to get an attorney to talk some sense into someone at the courthouse and funeral home in a day or two, but I am certain they’ll just tell him to get lost and that they don’t give a rat’s behind about any of that issue with what my brother did to me, as it’s a family matter. We’re all just getting the runaround. …as proceedings have already gone against ME. They don’t want to go after my brother because the contract is in my name, not his. That makes ME solely responsible for a debt that I cannot pay…I don’t have an extra few dollars to spare. I really don’t. I wish I did have the money but I can’t even pay my bills. I had four different friends pool what little money they had to get my son his school supplies….my friends are poor too.
Not sure even if I can do some community service if it comes to that, but I’ve always wanted to be a mortician. I’m web savvy…perhaps I can write online obituaries for them and work them off. The way they botched and misspelled my mother’s suggests that they’ll need this help!
hi im angelie, i have a problem about debt…im just concerned about my mom…she had a personal debt to the person….she only credit 20,000 then that person already deduct an interest of 20%.. so my mom got 16, 000 pesos only… then a month ago my moms debt climb to 96, 000 pesos because of the interest… how can we lessen the interest for that??? we already paid 11, 000….and my mom cant afford there interest,… do they have the right to put my mom in prisoned??? it has nothing to do with any government or bank loan is just a personal loan to a person….my mom only signed in a pcs of paper to assure that mom get that kind of amount…what is the best thing to do???
I owe the municipal court, city in Texas, criminal fines. I told them I cannot pay the Huge fine they access on me. Class C misameaner crimes, tall grass, leaking facuents, rotten wood, etc. Given to be by code enforcement officers. 14 citations at 1000 each. I tried and tried to tell them to reduce this fine so I can pay them in smaller amounts monthly they refused to help all 5 different municipal court judges. They offered community service but 1 week for each month for 18 months will not allow me to keep even a part time job. Plus I cannot travel to where they want me to go to perform this service. They arrested me later and I spent time in jail that equals a certain amount per day around 100 dollars a day to pay arouond 3000 dollars of the fine. Lost my only source of income and almost my home. Besides having a child to raise. The Texas consitution states that I cannot go to jail for debt. It is pretty clear language. Since I am going to jail for debt owe to the state or city evidence by the fact I get PAID while I am there. It that a violation of that basic right? Bankruptcy will not stop them. It can maybe slow them down a bit and maybe stop them from collecting post petition fines civil and criminal by federal law. It will not reduce or discharge the fine. What can be done to reduce this problem?
.hai.!!!
.this is cherry,from the philippines..!!!
.i had a debt from a loan company here in my country, but during that time i am a student and i do believe that im not capable to pay that amount…the loan company is now forcing me to pay a big amount which includes the interest and the interest is increasing everyday…will i be in prison if i cannot pay my debt?
My mom got threatend with being arrested. Theyve been trying to take money out of her account which she cancelled. She offerd to make payments and they said no, they want the full amount. what does she need to do……
Hi Debt Prison!
First of all thanks for all you advices here, anyways, I’m from Malaysia, I visited the USA for a vacation last DEC., unfortunately i had an accident with my Rent A Car (5 car pile up in California Highway), the good thing I got a LDW with the car, so no problem with the RENT a car, and I’m safe thank God. After the accident I gave the address of my Cousin who lives in LA. to the Police., I went back here in Malaysia last February, My cousin told me that I got a Letter from the superior court of california, county of LA, that i Need to attend a Case Management Conference on November, one of the cars insurance that got involved is suing me, I don;t know what to do, should I attend the conference? I wont spend just to go attend it, or hire a lawyer, 1st of all its not my fault, and I don’t live in the US. and my lawyer said they could not touch me if i’m here, and it would cost them alot to sue me.
MY ONLY QUESTION ARE.
1. if I go back in the US? for another vacation, will get arrested in the Airport even I arrive in a Different State?
2. could they go after me even I’m here in Malaysia?
3. could I just ignore the letters, I don’t even live in my cousins house, I only stayed there for 2 days.
4. what should my cousin do if they receive more letters?
Hi, I am a citizen living in United States for almost 8 years, but after personal circumstances I had to leave U.S and go back to my original country (Ecuador), leaving a big debt in credit cards which I can’t afford that to pay, I had been unemployed maybe a year, but now I got a job in Ecuador which the salary is very low, so I start paying the school I went, but it is a little amount of money, they helped me out with low payments (Thank God). Actually, I am living with a little amount of money.
My ex roommate send me an email saying that I am getting letters from the debt collectors and other people, saying that I am being sue for not paying my debts and I have to go court. In the meantime, I want to go back to United States and fix this problem, I want to get rid of my debts and live in peace, but I am really scared of going back and they cant even let me go through the airport and take me to jail… Can I go to jail for this? I dont even know when I will be able to go to United States again, for economical issues, so of course I wont be on time for the Court day they told me…. Please I need to know what to do to fix these…. I dont want to go the jail for this…. I need answers!!! Thank you for reading this and for your time… Any advice is welcome! =)
Sorry I forgot to ask if I can send the paper from the court to the credit bureaus to delete the accounts out of my credit report. My letter asked them not to send copies of my private court paperwork to anyone. Even if they/the credit company ask for any of my paperwork that I forward to them nor to give any. You think is ok to send it to the 3 credit bureaus? Thanks again,
My question is, I went to court and the magistrate entered judgement in favor of I. I don’t have to pay the debtor/credit card company. But it says that the plaintiff/credit card/debt company doesn’t have any right oof appeal from this judgement. But the Uniform Small Claims Rule 8 provides that for good cause any party may file a motion within one year of judgment, with notice to the other parties, requesting the court to vacate or amend this judgment. “Have you seem any debt/credit card company after a judgment coming after anyone?
Thanks
I have another question…..I am a stay at home mom, I have a small income from having a very small business that brings in no more that 400 a month…Apparently my husband took out an online loan from 4-5 years ago in my bank account…now the bank account I did default on. It was awhile ago so I cant remember exactly what but I believe I had overdraft fees and I couldnt afford to put it all back so they closed my account. He took it out in my name, which I did NOT have a problem with, however I did think it was taken care of…and he believes he took care of it. How ever if he did not, we never not once received an email or piece of mail or phone call saying this was still a debt. I had no idea until today….
Now a third party investigator(or so they say) says that they are putting a warrant out for my arrest for check fraud. They some how got a hold of my parents and Brother and my in laws.
Can they arrest me for this? I have had identity theft before but I never dealt with it…I reported to who I cant remember but I never did more than that. I wish I had but when life slaps ya with 3 kids and countless moving and then a husband who gets laid off….its not a top of the pile for me. I dont do credit cards…I have had 3 and I was bad with them and now I dont trust myself to get any…and I have medical debt…but who doesnt really. So….This is scaring the bejesus out of me. Can they really arrest me for this?
I have a secured loan. I don’t have the money to pay them and also the property I signed over, I no longer have. The creditor came to my house to collect the property. I told her I don’t have it any longer. She then said If I don’t pay I can go to jail for 10 days for each item I singed for on the contract. Is this true?
Well I have a sort of different question. I had to leave the US for Europe last year and I had about 15,000 dollars in Credit Card debt. The last payments I made were in April. Now that I am settled here and have a decent job, I would like to pay off the money I owe. How do I go about this? Do I have to contact the debtors directly, or do I have to pay throught the collections agencies?
Mary in Europe: I also left the US with some huge credit card debt in 2006. I came back there this year for a short visit. I was able to obtain a visa and accepted at the airport without getting weird questions about debt. Sure I didnt use my SSN anywhere during my visit and paid everything in cash and my foreign credit cards.
Nobody’s looking for me in my home country regarding the debt I left in the US.
Oh how now I diligently paid in full for all of my credit card bills in my home country. Never want what happened in finances in the US happened again to me anywhere I live…
I am a green card holder, due to a family issue (medical) I had to go back to my country in Europe suddenly. At the time of departure I had $10000 debt in my 2 credit cards. I could not pay the due. In my current situation I am not going to be back to USA in the next 10 years. I am wondering whether the creditors take any action against me or take me to jail. Please advise.
Discover (or their atty) is suing me for about 2,900. Original amount was 1,900. I have not received a summons. The only reason I know about it is my brother was looking up records, and noticed I have a pending suit against me.
My question is this, since I am on disability and as I understand it they can not take that, can I just ignore any summons I receive? Don’t know if it costs anything to answer a summons but I am sick of being harassed and they just do NOT GET IT. I have NO money!
I just got a summons for a $1,563.00 debt I owe…I wrote a certified letter to the company to tell them what i could afford in order to satisfy the debt..I am unemployed, getting mimimal assistance from Unemployment, and offered to send them $5.00/ month…they refused my offer and are now taking me to court…can they do that since I have offered to pay?
A bank that I used is taking me to Civil Court to garnish my check. When I banked there I worked but now I draw a disibility check. I owe a neg bal and they said because I stopped my direct deposits and didn’t tell them that I was defrauding them and now they want to garnish my gov check. Can they do this?
okay…
i left my husband in 2009 and i got a lawyer for a devorce,well a month later i went back to my husband and he was having some health problems and was in and out of the hospital so neither of us had a job.i called the law firm in january of 2011 and set up a payment arrangement for $70 a month.i couldnt afford it so i wasnt able to pay and they sent me papers saying i had to be in court today(which is 06/16/2011)and i couldnt make it,cause i live so far away.i called them and they said that if i didnt come then i would be thrown in jail.i dont know if it is for not showing up for court or cause i didnt pay them,but i am 8 1/2 months pregnant and cannot get a job right now,and my husband is still having health problems.
My question is…..
am i goin to have a warrant for my arrest?
Will they suspend my liscense?
If i drive in a different county or state and get pulled over will they take me to jail?
This is the first time i have ever been in trouble and i dont know what is goin to happen.please give me your best advice.
thank you…..
Question: Days after my husband shipped out (deployed) he received a letter and Warrant In Debt from a collection agency here in VA. We are in a Debt Mangement Program and are trying hard to pay down all debts…but the WID was for a debt not in the program. I responded to the letter right away via a certified letter and made an offer to settle for 53% of the debt. About 10 days later they (debt collector) sent me a letter stating that they would accept that offer as “settlement in full”. 2 days after that I hand delivered a certified check to them and requested a receipt, which I got. What I’m worried about is the court hearing. When I asked the debt collctor if that hearing would now be cancelled, I was told no….but the attorney would state to the judge that the debt was settled. I don’t trust that scenerio at all and do plan to attend the hearing anyway (I have power of attorney while husband is deployed). From all the horror stories I’ve read about these ruthless debt collectors, my fear is that they will attempt to get a judgement against my husband to collect the remaining amount. Can they do that? Even when there is documented proof as to the agreed and paid settlement?
Hi -
I was just contacted by a “law-firm” that is notorious for debt collection. They claim I owe an old credit card (maybe 2) for quite a bit. I think they claim each card went into default for over 5K, maybe more. I started receiving these letters back in 2004 or 2005 when I was living in Texas.
Can you help me regarding how the Statute of Limitations works if I move? I moved back to Illinois in December 2010 but was living in Texas for the previous 15 years before that. Which states laws apply to my case?
Also, what actions would you recommend I take? Ask for them to validate the debt? Send them a cease and desist letter?
I know that they are trying to include a huge amount of interest into the amount they are trying to collect. Is this legal? If I get taken to civil court should I bring this up to the judge or is it a done deal already?
Finally, I am not working right now. Is there a minimum amount of income required before they can win a verdict? Can I just go to court and tell the judge that I have ZERO income currently?
Thanks a bunch. Great blog, I know it’s helped me.
Hello,
I have about 16,000 in credit card dept prior to 2005 and that is when I went on permanant disability and am on a low fixed income so I couldnt make the monthly payments anymore. I’ve recently been recieving letters from the sheriff’s office/my local town court that one of the cc’s I owe is sueing me. I got threatened to be arrested. I know this cant happen but why do they scare people by threatening an arrest? I rent, I dont own a home. I make enough moneny a month to cover my rent and bills. I have no money in my bank account. I owe on my over draft with my bank. Sometimes have to ask my parents for help and i’m 39. thanks for any advice…
Joe,
No, you cannot get arrested for not paying the debt. However, you should make sure you attend court if you receive a summons (that would mean the bank is suing you in court for the debt).
Barry
just wanna know if u owe the bank only 100 dallor and if u dont pay can u get arrested
Rob,
‘Teaspoons against the ocean’… that’s a good one (I’ll have to remember that line)…
Rob if you want to send me your phone number… send it through the contact page…and I’ll give you a call…
http://debtprison.net/wordpress/contact/
I’d be glad to talk with you my friend.
Barry
Rob,
I don’t see how you’d see ‘jail time’… just make sure that you respond to any communication from the courts. Bro, I feel for you and the troubles you’ve had with mental disorders… they can be hell I know. Keep me posted and let me know if you need anything.
Best, Barry
There is another scenario:
The crooked lawyer sends you a notice of a court hearing. Then you get in the mail a summary judgment against you in favor of the plaintiff. WHY? because the crooked attorney reset the court date for a summary judgment hearing and did not send you any such notice of that hearing, thus you do not show up and the court automatically rules in favor of the creditor/plaintiff. If you contend that you never recieved the notice of the court hearing, the damned crooked attorney then files a letter to the court CLAIMING that he did send such notice to you by FIRST CLASS MAIL!! He puts himself out on a limb of PERJURY but who can prove THAT?? I filed a complaint against the court but they ignored that! (So we filed bankruptcy, and that cost over $1,600.00!! Like everyone in debt has that cash lying around!!)
Well, I’m paying all I can but its like teaspoons against the ocean. I’m reaching the inability to buy food. I have the six-figures of legal bills to show any vulture that drops on my plastic-covered floor. I’ve fully given-up…as in FULLY GIVEN UP! I’m going back to issolation, unpluggin the phone and ready to fend-off any invader.
I have no idea what more to do than to retreat to what always worked through many years of my younger days.
If anyone has anything to offer, PLEASE tell me something. If it all looks grim, please tell me. If I need to prepare for a caged life, please tell me (i’ll stop that from happenning).
I’m considering going into a day-program at one of my prior mental wards for help with the PTSD meds, but that will only be used against me to take my kids away…another terminal event for me alone.
I am on Soc Sec Diisability for Post Traumatic Stress (ptsd), severe depression and bi-polar disorder. It all came from 7 years of severe sexual abuse as a child and teen. I was hospitalized twice for “suicidal ideation with intent.” Then my wife threw me out and it cost me all I had to keep visitation with my kids $140K during a two+ year divorce. I am now FULLY destitute and living in a hovel on my Soc Sec Dis income only. I have a TV and this laptop. I WAS a six-figure earner until the PTSD came home to roost and took me down for the count.
I had many Credit Cards with large limits. Having to pay the lawyers, the court-ordered psych exams et. al., I used the cards freely as I considered keeping my cery young children an emergency by any definition. I took out cash advances and even bought exchangable gold to keep the case alive.
The final verdict (and plan all along) was that the marital residense would be liquidated. With my half, I would pay the cards off and get on with impoverished life with no debt. Well, the judge thinks not telling my wife about my childhood was a crime against humanity and gave her 60% of the house, which she is not selling.
Just my basic living with doctors, meds and rent, I am in deficeit spending.
Anyway. Will I see jail-time for this use of my credit cards?
Thank you for your answer
I had planned to offer a small 20 a month payment when I went to the trial. I cannot afford even that. I only make enough for bills and food and since my rent will increase in a few months, I will have to buy less food and pay more rent. It is worth it though as i’m living in a great comunity. That’s probably what helped bring on the suit after all these years. I live in an affluent area and you have to make several times the rent in monthly income to get in here. I could have never got here on my own being that I don’t make near the monthly income requirements and with my horrible credit but I met a really nice person over a year ago that seen the place I was living in (gang infested run down place) and help me move. He prepaid my rent for the lease and I was able to bypass credit checks and income requirements. I paid rent to this person for the lease period and then i was established and could pay month to month from then on. That’s the only reason I can live here. My utility bills are much lower and override the difference in rent, which is really only a 100 more a month than my former residence although it was twice the square footage.
Well today I checked the court site and they have filed for a judgment against me. it says judgement, final judgement not signed.
so from what i understand they can get it without me even getting a chance to have a word. I made the mistake of responding to the summons and being honest on the intergories. I couldn’t lie as that would be purgery. I also included a letter to the court and the plaintiff explaining my financial situation.
I am worried as this creditor has been aggressive since day one when I started making smaller payments, since they were calling me several times a day, i stopped making the payments. This firm is raush, strurm, isreal, etc and they seem to be really out to get me. I noticed most of the dozens of suits they filed the day they filed mine, have been dismissed or have a trial 6 months away but there are really in a hurry to come after me.
Thank you for your answer. I know i’m going to be awake all night now. I have a hard day at work tomorow and not getting any sleep doesn’t help.
AT,
I am not a lawyer, nor do I administer legal or financial advice. The following is simply my opinion based on what you’ve told me.
I know how you feel about your home being your escape from the outside world. I feel the same way about my home.. it’s mine and is truly my escape from everything that divides me from who I really am. I can also, most certainly, relate to your struggle with depression and feelings of hopelessness. If it wasn’t for modern medicine I would be in real trouble myself. I went through a very difficult time two years ago and the struggle back to normalcy has been a difficult one.
Even with a judgment against you to repay a debt… I’ve never heard of any law enforcement showing up at a debtors house to ‘search’ it for assets. You don’t have to worry about that. The only thing you would have to worry about would be a judgment from the court stating that you owe $7,000 (or whatever the amount) and that they expect you to repay the amount on monthly terms…. unless you can explain to the judge why you cannot make any monthly payment of any kind.
Barry
Hi
I’m currently beng sued by a very aggresive lawfirm representing the original creditor. They filed just a few weeks before the sol would have been in effect. I had been threatened with lawsuits twice from their previous lawfirm, when I wrote and told them of my situation, both dropped it and the creditor assigned it to a new lawfirm a year or two later. this current one has been known to be very aggresive. i’m just a simple person with no knowledge of the matter and cannot afford a lawyer or to pay anthing. I closed the account and then continued to pay on time every month for the next 3 years but 4 years ago I had to drop my debts in order to be able to live. I had lived with my parents most of my life and didn’t get out on my own till my early 40′s. I had always paid my cards but when I got out and had to live on my 800 a month income, well my living expenses has to come first. I work at a low paying job and am not able to work more as I can barely hold on to my job as it is due to my mental issues and depression as well as being a slow worker. I have been mandated to counseling in the recent months in order to keep my job, and its a struggle to keep myself under control everyday.
I answered the citation and filed my answer. however the creditor is trying to get a judgement based on some latin term, that means basically that my response was worse than a default one, I have no defense. The did lie in the form to the court about when the served me with a copy of the papers by mail. They ceritifed that they mailed a copy to me on april 20, however they did not mail it to me till may 18. I made a copy of the document and the envelope and sent this to the court. turns out the same day the attorney got a court order for trial in a couple months. it’s really stressing me out and I didn’t sleep at all last night. I have serious depression, and been on the edge of a breakdown these past few months, and this doesn’t help. I live in texas so I don’t think they can garnish my wages and being that all my money goes to bills, my bank account is always empty, haven’t had anything in it in months.
I have no assets , rent an apartmnent, no car, no savings, and my furnitue is 6 years old and cheap to begin with. I have a couple cheap tvs, both several years old, and a 3 year old computer that costed 300 dollars. so I have not big assets but i’m scared of when they get a judgement and they will, that the sherif will show up at my door and start searching my apartment. I live in a very quiet neighborhood and don’t want my neighbors or the apartment management thinking i’m a criminal or they;ll evict me.
I am also facing a rent raise in a couple months when my lease espires, about 80 more a month which means I ‘ll use my food money for that, nothing is more important than my apartmetn as i’m near family and work. As far as me coming into anything in the future, well I don’t play the lottery, my 2 relatives are dirt poor. Not much chance of me getting any large pile of money in the future. I’m trying to balance my mental health so I won’t lose my job but with all this going on i’ve been thinking alot about just committing suicide. It’s been on my mind the last few months and I am at the point of hopelessness. This creditor is getting nothing from me, I’ll throw my furniture in the trash and run out in traffice before they will take what little I have so why can’t they just leave me alone.
I know i’m going to lose but i’m going to show up, I just worry about when they show up and search my home. I live a very quiet life and never even have company, my home is my escape from the outside world and the only good thing in my life right now.
Sharon,
Sounds like you know what to do. Just make sure and show up in court. If you have the money hire a lawyer to represent you. If not, then just show up and simply be honest with the judge. Remember, do NOT agree to pay more than what you can realistically pay. When you attend court you should already have a dollar amount you can honestly afford to pay each month to satisfy the debt.
Barry
Barry,
Well, it looks like my notification situation is moot at this point. I finally received a citation today….a guy from the county clerk’s office hand-delivered it to me. I have 20 days from today to respond and the trial date is set for Oct. 31, 2011.
I will respond to the questions on the citation and then appear in court on that day unless I hear otherwise from the court.
Thanks for your help.
Sharon
Thanks Barry!
I owe around 20,000.00. I will go to the court house to ask about the notification. Although I am moving around alot right now staying with different family members as I do odd jobs that are near them, my mailing address (which is my sister’s house) has remained the same for more than 4 years. I do feel nervous about showing up without a lawyer, but I am more nervous about not showing up at all. I want the court to know that I’m not running from this and I definitely don’t want to go to jail. I have a job lined up for tomorrow through the weekend, so it will be next week before I can go to the court house. If I don’t receive another reply from you before next week, thank you for your help so far. I appreciate it!
Sharon
Sharon,
1) How much is the total debt you owe?
2) You should go to the court, tomorrow, where the suit was filed and talk to someone in person. Ask them why you were not notified that a suit had been filed. (Perhaps they didn’t have your address?).
3) Yes you can go to court without a lawyer, if I knew how much they claimed you owe I could make a better suggestion.
4) Even if they get a judgment against you (and you SHOULD appear in court to represent yourself) you’ll be able to explain your current financial circumstances to the judge, and which case he should somewhat understand and offer you a monthly payment which you can afford.
5) Let me know how this turns out…
Barry
Debt Prison,
I came across your website about a week ago and you seem to provide thoughtful and accurate debt advice. I hope you will be able to answer my questions here in the comments.
I have a large credit card debt which because of loss of income I have only been able to pay anywhere from 10.00 to 50.00 a month on for about a year (I now know, from a previous comment you suggested that one should just stop paying when not able to pay the entire minimum monthly payment, but at the time I thought paying something was better than nothing). Well, my account was charged off a good while back and is now in the hands of a collection agency. The collection agency sent me a letter several months ago letting me know that they are handling my debt, but I have received nothing from them since then.
About two weeks ago I started receiving letters from attorneys trolling the internet indicating that they would like to represent me in the lawsuit filed against me by the collection agency….this was the first I heard of the lawsuit; the collection agency hasn’t sent me any kind of notification. I went to to the local county court website and found that indeed a lawsuit was filed on April 27, 2011. My question….should I contact this collection agency asking them if they were gonna notify me and/or what date I should appear in court? Or should I just leave it alone and wait to hear from them? I have absolutely no assets (actually I would be homeless if it weren’t for various family members taking me in and my taking odd jobs here and there until I find permanent employment), so I am not worried about having my assets seized…..seriously, all I have are my clothes and toiletries….I have no checking or savings accounts, no IRAs or pension plans, no car, no house, no television or stereo, no real property.
I just don’t want to go to jail for failure to appear in court. Another question…..I have about 200.00 to my name at the moment so I have no money for an attorney, so is it possible for me to show up at court by myself without an attorney? As I told the credit card company in several letters to them as well as to the collection agency, I have had every intention from the beginning and I continue to have every intention of paying this debt, but it is not possible to pay it all now….it may take me forever, but I do want to pay it back, but I don’t want to go to jail.
Any advice that you can give me is appreciated. Thank you.
Sharon
N’dea,
The same thing happened to my cousin years ago. You need to hire an attorney now! This is not one of those things that you should try and do on your own.
Sorry, but you desperately need legal council in this case.
Barry
Hello Please help…
I just checked my credit report and realized that someone that stole my identification documents years ago has been using my identity and I have a judgment on my credit report that I knew nothing about and also shows that I’ve lived and worked in places that I’ve never worked or lived at.
Can you tell me what I should do…. I know I have to get an attorney, but maybe I can do something else to try to save money and not pay the attorney fees.
Thank you so much
KNB10503,
1) you need to talk with a bankruptcy attorney. Sorry I couldn’t help more. You might fill out this from to see if ‘clear bankruptcy’ can help
http://debtprison.net/wordpress/free-evaluation/bankruptcy/
2) Since Hawaii is in the U.S. it may be possible for them to acquire legal rights to your property there.
3. Not to my knowledge. The repo on the van should be it’s own separate deal depending on when you made your last payment and when the creditor says you owe. They would much rather you keep the thing and pay them when you can… providing that you can actually pay them in a reasonable amount of time.
4) Stop looking for free advice on the internet and go talk with lawyer. Seriously a lawyer can save you a lot of money and can help you negotiate with these creditors.
Overall, my best advice is for you to go and seek legal council. You need a lawyer to help you navigate this mess that’s been created.
Best regards, Barry – please keep us updated. I’d like to know what you decide to do!
Please Help!
I know we will need to speak with a lawyer ASAP but I just really wanted to get some of your advise and any thoughts on our situation. It’s pretty complicated so I will try to sum it up as quickly as I can.
My fiance, 2 girls then (now 3,) and I moved from Vegas to Hawaii to help out my in-law’s businesses (they were having trouble due to employees constantly stealing.) Before moving we were very careful about our credit and I was very proud to have perfect credit and was about to purchase our first home at age of 20. They placed the businesses and multiple other loans under my fiance’s name because the in-law’s credit was bad. He worked as an employee only making $1500 a month but they provided a home for us to stay in. (home was also under his name but they treated it like it was theirs, not ours) Unfortunately due to the recession, the business stopped making money and they lost one business and had to sell the other.
The in-laws also moved to Vegas a few years ago to pursue another business (yes…also under my fiance’s name) and that has also gone to hell and my fiance just received a writ of execution with a levy totaling $1.1 MILLION!!! He is now in a HUGE amount of debt which started from businesses that were not even his, and most of the employees were even making more money than he was!
The in-laws have been not much help at all and often times saying “you’re young, you’ll be okay” and we are now left to fix this mess by ourselves. We are obviously no longer on good terms with the in-laws. We were hoping to save the house that they originally “housed” us in by getting a loan mod, and hopefully lowering the mortgage to payments we can afford, and hopefully by the time that goes through (if it does) that my fiance may have found a job. Now I don’t even think that it’s possible because of this writ of execution. A few questions I have is…..
1. If he files for bankruptcy, will it save the house?
2. The writ of execution was filed in Vegas…can they take the house we live in here in Hawaii or any other property?
3. We just started using my father-in-laws car (yep under my fiances name) because we had to get rid of our car that we could no longer afford and still owed a lot on. This car is almost paid off and we wanted to sell it because we are expecting another baby due in September and need a van…can this car get repossessed due to the writ of execution?
4. Any advice would be greatly appreciated as we cannot afford a lawyer at the moment and would just like to know what could happen to us, and what we should do. We know ultimately we will be taking a huge hit!
We are good people who just moved here to help, got taken advantage of, and now trying to figure out how we will take care of our growing family. My fiance is also too kind of a son and would never think of getting his parents in trouble, so prosecuting them is out of the question. Any advice or thoughts or warnings would be greatly appreciated!!! Thank you so much in advanced!!!!
oh another thing…the mother-in-law took a credit card under my name and my credit was also screwed! I am now left to negotiate the $23,000 debt with the collectors by myself and I have not even once received a call from her to check if everything is okay. =( *sigh!*
Larry,
I suppose the original mortgage satisfied your obligation by selling the property and that is how they made their money. The second mortgage doesn’t have that option so they can only come after you. With the interest driving up the debt owed each month, I see no reason to continue paying.
You need to hire a lawyer to help you negotiate through this. Even with a judgment you can still settle this debt or even get it reduced. I have to recommend professional legal advice in this case. The cost of the lawyer will save you much more than continuing down this road alone.
Let me know if you have any more questions… and good luck. Please come back and let me know how this turns out. I don’t think I’ve had a reader with a question quite like this one.
Best regards, Barry
Rommel,
I’m sorry but I don’t understand your question. Are you saying that you are currently in the Philippines and need a clearance from NBI to leave? what is N.B.I… I haven’t heard of this before.
Barry
Hey Lemon,
A) You are completely responsible as co-signer.
B) Yes they can take you to court while you are away and even obtain a judgment. When you return you could ask for the court to reconsider the judgment because you were out of the country and was not aware you were being sued. Good luck with that.
If you do return to the UK I do NOT see how the judgment could follow you there as there is little ‘international collections’ going on for now. My advice would be to not use your American SSN when applying for credit in the UK. If you don’t use your American SSN then you should be fine. P.S. leave no forwarding address behind in the U.S..
C) You should request for validation of the debt within the first 30 days of them contacting you. For more information on this look at the following article:
http://debtprison.net/wordpress/49/sample-debt-validation-letter/
Let me know if you have more questions…
Barry
When a condominium that my wife owned was foreclosed on in 1999, there was a second mortgage for a home equity line of credit. Apparently, there was not enough funds to pay off the 2nd mortgage. To make a long story short, the bank was given a judgement in favor of them. We have been making small payments each month since then. Until recently, I didn’t realize that because of interest, the balance owed keeps going up each month. The amount due now is actually double what the original home equity line of credit was for. No matter what we do, we will NEVER pay off this judgement. i don’t have the funds to offer a settlement, so what would you suggest my options are ? What happens if i just stop paying ? How far can they go to collect a debt that was secured by a piece of property that I no longer own ?
I have the same problem. I applied for an N.B.I clearance today and I got a hit and have to come back after a week. I am worried that this is because of my default payment from a credit company.
Can N.B.I refuse to give me a clearance for not paying a credit card? I live in the Philippines. TY
I guess I have a few questions. Here is my situation.
About three years ago, I signed on a co-signer for my now ex-boyfriend. We broke up and he agreed to make payments (which being young and naive, I never got into writing) I have credit problem of my own, and debt which I am settling just fine. I checked my credit report a few days ago, and turns out he hasn’t been making payments (according to the credit report, over three months.) So I attempted to contact the number provided on the credit report, left my name and number, with no return call. Low-and-behold, today my dad calls me, and says that there was a credit collection agency wanting to speak to me about the same debt.
So I call them, totally different number. They tell me that he hasn’t paid since July of 2010. This is the FIRST time they have contacted me, or that I’ve known about the debt/missed payments. They go on to give me options, first is a settlement (total debt is about 4k) for about 2,400. Next is payments for 600 for six months. Now, I asked if there were other options, like payments for a year, and they told me there was nothing they could do because the debt sat around so long.
A) Is this fair, can they do that? I mean, this is the first time I’ve been contacted, and as much as I’d loooovvveee to get this under control, what should I do? Am I completely responsible as a co-signer?
B) I’m also moving out of the country (this has been planned for a while) to the UK for five months. I plan to come back for a few months, finish paying my debts, and moving permanently by next spring. Can they try to take me to court while I’m gone? What happens if a judgement is put against me while I’m in the UK. If I never settle a debt regarding this specific incident, will it follow me to the UK, or show up on my UK NIN? (ss#).
C) Can I also ask for a validation of debt only being the co-signer? They said something about if they didn’t get a payment by the end of the month, they were going to take me to court. If I ask for the validation, will they be able to “take me to court” without proving the validation first?
Anything you could tell me could help. Hope to hear from you soon, and thanks!
Long-winded-lemon
J,
You will not have any problems at the airport so don’t worry about that. If I were you I would go to the court, take your paperwork with you, and try and talk with someone there.
It sounds like a bill collector got a judgment against you and the court wants you to come in and discuss a payment plan. They don’t want to put you in jail. The collector is just being pushy so the court has to get you to show up to discuss payment on the judgment. Everything will be fine you just need to go and talk to the court.
I’d drive down there today and start talking with anybody I could. I’d even try and speak with the judge if possible.
Barry
DP,
Last week I received a letter (not certified just regular white envelope/odd :/) from the superior court/ special civil part. The information was regarding a warrant for my arrest, 3 pages total. This is the first time I see any letters in regards to this issue. The first page has a docket number and states the following “I have been issued a WARRANT FOR YOUR ARREST in the above captioned case. Enclosed you will find a copy of a warrant for your arrest and an information subpoena. As you can see your immediate attention is required. Fill out the subpoena and return in to my office within 7 days to prevent any further action against you. Your cooperation determines the courts next action.” The second page details a copy of the “warrant “commanding my arrest at my address between the hours of 7:30-3:30 and bring me before the judge! Local police departments are authorized and directed to provide their assistance in executing the warrant.
And of course the last page is the information subpoena. To make a long story short I spoke to a paralegal /debt collector who informed me that the arrest warrant was issued because I did not answer the judgment. They are requesting I arrange a payment plan with them and fax the subpoena. I’m unemployed. I simply informed him I will call them back. I began my research and contacted the court. I spoke personally to two individuals who informed me I will not be arrested they just wanted the information. I am still not at ease. I have an emergency trip (death in the family) on the 25th will I be detained at the airport because of this? I have never been arrested and I’m not sure how to proceed with this issue.
I constantly receive phone calls at work from one person and there was one day a few months ago where he called and told me that he was sending paperwork to my job and i was going to lose my job and that i was going to court and then he wanted me to fax over a paper and he told me what to write on it, plus my social security number and a copy of my license. I was like ok. (i never did it) I also asked him to send me copies of the information and he told me he wasnt able to do that, and i also asked for the number to the credit card company, and he said ” They dont want to talk to you, they are done talking to you that is why i am calling you.” and then he wanted my credit card information, i refused to give it to him i told him to call me back in an hour and he never called back. I was nervous for weeks and very jumpy at the sight of cops driving by. But till this day i have never seen any papers stating i have to go to court. I also talked to a bail bonds man (just to be on the safe side) and he told me that i shouldn’t worry because he said its probably a collector trying to scare me, and that is what really relieved my stress.
Rita,
I wouldn’t worry about bill collectors trying to get a lien on your trailer. Go ahead and put it in your name. Also, they cannot garnish your disability if you get it. I don’t think you have anything to worry about. If you get some extra cash later on perhaps you can ‘settle’ the debt for pennies on the dollar.
Barry
Hello i just have a question to ask , i am laid off and trying to get my disability and i owe credit card debt from over 4 years ago they keep calling and have gotten judgement on me for one of the credit cards, my mother paid my trailer off and i need to put it in my name but im afraid to not sure if they can take it from me, the credit cards or 700.00 to 2500.00 , can u pls tell me what u sugest . thanks
Alex,
I am not sure what they can do if you don’t repay a bond.
Sorry I couldn’t help more. You need to talk with the court as they should know.
Barry
Got a judgement against me. I paid a 1000 bond and my girlfriend sign a contract where that we will pay 100dollars a month. He wanted her to sign a another form for her income tax. She didn’t. Well we miss a payment. She told him that she lost her job so shell try to make pyment as soon az she can. Well he got angry and said that she was in contempt because she was suppose to not spend her tax income. Also she miss a court date but went to onerecently and he told her thatif she doesn’t come up with a co signed she s going to jail for six months can that happen and what can she do.
Sam,
You can check with this bankruptcy attorney advertisement:
http://debtprison.net/wordpress/free-evaluation/bankruptcy/
They should be able to answer your questions concerning bankruptcy from abroad.
Barry
Dear Debt Prison,
Thank you for clarifying the concern for me in regards to prison upon arriving back to the US. Do you think I should file for bankrupcy in the US. I not have any assets but at least I can start over when I come back in the next two to three years. Also how can I find an attorney that will file for me while I live broad. Thank you.
Hey Sam,
NO!!! You will not be arrested at the airport. Put arrest out of your mind – you will be fine when you return. $25,000 is nothing as far as debt goes here in the U.S. – However, your U.S. credit report will reflect your defaults. Your creditors will not know that you have returned to the U.S. nor where you live. When you apply for new credit in the U.S. then they POSSIBLY might end up with your address/phone if they find it on your credit report. For now… I wouldn’t worry about the debt. Once you return to the U.S. – I would concern myself with the debts when and if they make contact with you.
Barry
Dear Debt Prison,
I have about $25,000 in debt including $ 11,000 balance on a defaulted vehicle lease. Now creditors are trying to collect. One creditor also called my expand told him he has been trying to serve me a subpeona for a serious legal matter. I haven been able to pay due to two layoffs. I was not even able to feed myself so my family bought me a one way ticket to go live with them. I still have no job and no assets. I live overseas and intend to come back at some point to the US. Should I file for bankruptcy? Can I do so from another country as I don’t have the means to come back right now. Also when I come back will I be arrested in the airport! How do I look into this to protect myself.I am really worried.
Maria,
Fraud is a difficult thing to prove. That would mean that you took out the loan with no intention of paying it back whatsoever. And with the loss of income that would prove terribly difficult to convince a judge. Have these collectors called you and threatened suing you for fraud? Or have they actually filed a suit with the court? I’m willing to bet that they’ve only suggested such nonsense to you over the phone. Is that right?
Barry
I have a collector that is trying to sue me for fraud because I took out a loan with this company that I havent paid them back. this is not the first time I took out a loan from them, but I have previously paid them back until this last time because my husband lost his job and my income is only 32000 and I have 3 dependents. I closed my checking acct because I didnt wanted to accrued more return fees. what can I do?
Most important thing to know about debt collection is ALWAYS SHOW UP IN COURT
otherwise YOU LOSE. The debt collectors are hoping you don’t show up since that will tell them that they are dealing with someone who isn’t too smart. Don’t miss your court date for any reason. Make a point to get there no matter what.
Don’t admit to the debt – request the proof of debt first from them. This can be an expensive proposition for debt collector.
You can file motion to delay hearing if your not ready.
There are plenty of resources on internet that will give you technical details what to do in court and
even before court.
You don’t need a lawyer for most debt. You become your own lawyer. You can educate yourself about what to do.
David,
They won’t exercise extradition over credit card debt. Nor is the U.S. court system going to exercise a ‘long arm statute’ over a judgment for a small debt such as this. A foreign government is not going to get involved in a lawsuit like this over credit card debt.
Does that answer your question?
Barry
Dear Barry
Thank you for your reply, but can I sue this guy and request FBI or federal government to report to that country’s government about this lawsuit?
But I am just not clear that if there is no extradition treaty between that country and U.S. is there anything we could do about it
Thanks
David
David,
Basically nothing. Nothing happens. You can’t collect a debt like that from someone overseas.
Barry
what if the guy is from other country, owes a huge debt, such as $30,000 to credit cards, and returns to his country forever,
what could happen next???
Indiana,
Sounds like this guy has taken up junk debt collecting.
http://debtprison.net/wordpress/254/what-is-a-junk-debt-buyer/
He might be an actual lawyer. He could also be just a plain ole liar. If he’s a lawyer and is practicing law in that state then he should be listed as a registered lawyer with the state. You have be licensed to practice law in the state in which you operate.
Sounds like he has no judgment against you. You could call the court and ask them if anything turns up for your name/ssn. I assume you checked your credit report.
You can call this rascal back and tell him that you contacted the court and there’s nothing on record with your name and information and that he’s lying. Ask him in what court was this so-called ‘judgment’ issued.
Or you can do what you probably should do and just ignore him. If he is going to sue you then you or someone in your family should end up with the summons. Then you’ll know where to go and what to do.
As far as getting this guy to leave you and your family alone… most likely you’d have to record the conversations with him talking crazy and then use it as leverage (threaten to sue him for breaking state and federal law). You could mail him a copy of the c.d. with his ridiculous lies and let him know that if he doesn’t leave you and your family alone you’ll be forced to seek legal action against him and/or his employer. Before recording any conversations you need to see if it’s legal in your state to record conversations without informing the other party.
Barry
Karen,
You aren’t going to jail. And NO – going to jail wouldn’t remove your debt. This guy is a local collector. They are just trying to intimidate you. Until they summons you to court and sue you… there’s nothing they can really do.
Barry
So – called this “attorney” in Indiana. He told me he had legal proceedings, and I had not shown up to court. (Remember he told family/friends that I was going to jail for 15 days for contempt of court.) He clearly stated he was a lawyer, ***, and worked at ***. (Although, his phone number goes directly to his “desk” and answers the phone ‘hello’. He was more than happy to volunteer my ss #, creditor he represents, etc. When I asked him for the docket or any other court numbers, he refused stating he just couldn’t give THAT information to just anybody over the phone without verification. Mind you, court information that is public, but he wasn’t too concerned about providing financial information or ss# to the unverified caller — me! I called my old place of work — a lawfirm — in Indiana. This “lawyer” is not listed, nor the lawfirm, nor is my name listed in any court cases. Hmmmm. I googled *** phone number ***-***-6888, and it is for ***and listed for a residence of *** in Walden, Indiana. The last statement I have for this creditor he is representing is from 2008 — balance $480. Mr Lawyer, ***, is stating I owe $7000. Huh? This guy – whether a lawyer or not – lied, threatened distant family/friends, threatened me with rotting in jail. Other than reading thru the FDCPA and knowing want they can’t do… what is my recourse? Do I contact the original lender — discuss my case and report this guy to them? My loan was a secured loan yet original loan document stated late fees could be $15.00 but over the life of the loan, show a statement of them charging $40-75 per month on a $100 payment. I think I paid the loan in full but have been in disputes with them over the allowable late fees.
Much thanks.
I owe a total of 4,000 debt and I am debt free. I have been unemployed for a year. Capital one is taking a lot of people to court in my county. I was approached by an investigative company that they are trying to summons me and said something about fraud which my only crime is not paying all these debts off at one time. I paid a lot of debts in the last year. My last one was my car. I have been working with the hardest hit ones first and then going on to the next. i currently have 3 creditors wanted to be paid. I pulled my credit report in Late Jan and decided to work with the local debt creditors which is 45% of my debt and has 7 marks against my credit. Only now one week from paying them off, I got a threatening call back from the investigative service also a local realtor making me HATE REALTORS. So, shady! saying they were going to turn this over to the sherriffs office on the summons and there would be a warrant for my arrest. The total bill is $1,069. the credit card limit was 500 dollars so they have imposed over 569 dollars in interest. I called two weeks ago to the clerk and recorder. I had her do a name check for them and for me. There was nothing on file. I will again call today. There has been no judgement in my county and nothing on record. I am wondering if I spend a few days in jail does that get taken off the total bill when I go to court. I was thinking; free meals a warm bed and a few days might be better than what I owe. Or would I owe the jail time plus the credit card debt plus interest and attorney fees. I will make it cost them as much as I can and pay at the last minute. I can not believe they are going after me. They charged this debt off. i live with my windows closed and fear answering my cell phone which is listed openly on my credit report. I lived in my dads horse barn up to november this year. The debt would again leave me homeless. I worked a few weeks as a temp to hire. Today I am again unemployed. I am piling the money because of this action. Thinking of clearing my bank account.
Indiana,
I think the State Attorney General would love to hear a recording of those conversations. Sounds like scare tactics to me. The only way you could go to jail would be if you were in contempt of court. And if it hasn’t even gone to court yet, then you can’t be in contempt (disobeying the court).
It might not hurt to write this company a ‘cease and desist letter’. I have one in the following article:
http://debtprison.net/wordpress/49/sample-debt-validation-letter/
Another great way to see what’s going on (with your debts/creditors) is to examine your credit report, which you can do for free.
Go to http://annualcreditreport.com to view your credit file by Equifax, Transunion, or Experian. Collection details (and judgments) should appear on your file.
Barry
Greetings DP:
I just received phone calls from a couple family members back in Indiana tonight. Apparently a man claiming to be an attorney back in Indiana told 3 family members (3 separate households) that he is having me arrested and sit in jail in Georgia for 15 days and refuse to have me extradited back to Indiana until the maximum time expires for failing to respond. I am not aware of any summons, pending/past court hearings or any other kind of pending legal matter. I do receive collection letters and have attempted to make financial arrangements but to no avail (unemployed). I do NOT have any bad checks or fraud just cc debt that within the year will become zombie debt. Typing this makes it sound even more absurd. Funny enough, I was transferred to Georgia from Indiana by a big financial company who’s CFO went to jail. Really no question other than to ask if this even sounds even remotely legit or just scare tactics.
Noel,
Well there’s a lot of ways to lose $20,000. Hiding the money would mean lying under oath to the court and that just ain’t right. Of course banks loaning folks money that shouldn’t have credit in the first place isn’t right either… but here we are… the banks get bailed out and the consumer goes through hell. If I were you I’d try talking with a local bankruptcy attorney. You can also fill out this form and they can give you a free consultation and connect you with an attorney in your area.
You should also check out this article http://debtprison.net/wordpress/1306/understanding-the-changes-to-bankruptcy-laws/
Barry
Haven’t seen this mentioned on the net maybe I can get some opinions . Knowing that the day you file Bankruptcy, the balances in your bank statements are now owned by the bankruptcy courts the day you file. And for the sake of conversation you pretty much brought your balances down to nothing along time ago like six mnths ago. In-other-words wiped your account because of down the road your thinking here comes your bank in the near future cleaning out your twenty grand $$$. Good idea to of taken the monies out or another idea ? . I haven’t seen anything on this one. Is this an issue when your at you meeting in court and they say what the hell happened to that 20,000.00 six months ago or enough time has gone by and it really doesn’t matter.
Janine,
I’d take to court whatever the court required me to bring. I would contact the collection agency and talk with them. There’s no law stating you can’t contact someone who is suing you. Anyway take a copy of the check you just mailed also, and just explain to the judge (if it gets that far) what has happened.
I think you guys will be alright.
Barry
In approximately August 2010, we got a letter stating that a local collection agency had “obtained” a debt my husband owed. They stated full pay should be remitted in 10 days. The amount stated exceeded what we thought the debt had been, it showed $595 when the original debt was $265. (It’s a long story but we thought it had been paid) Before we could respond, he got a summons stating he had 10 days to respond there would be a judgment against him for the debt. We do not have money for an attorney but make too much for legal aid. We are behind in rent because we have a special needs 3 year old. It went through before we could respond. Then we got a letter stating garnishment of wages to pay the debt which was now $655. We were actually ok with this…we didn’t really have the money but we wanted to pay. However, the garnishment info went to my husband old work. The paperwork stated we were not to contact the collection agency. We called the sheriff’s office, which was listed on the paperwork, but they refused to take the new information, stating that the garnishment information would come back and we’d get a letter requesting new information. Several weeks later we got a letter from the collection agency, remember we were told there would not be contact with them, stating we should pay the full amount. My husband wrote them and stated we would make payments every 2 weeks for 3 months and pay it off. He requested a letter accepting or denying this arrangement. We heard nothing. This is now December 2010. I was pregnant and we lost the baby at 19 weeks. My husband had to take time off to take care of me & our little boy. The first week of Jan. he got a summons stating that he was hiding assets and to appear in court in April with four years of tax returns, pay stubs, etc. We wrote asking for a print out of exactly what we owed. We got nothing. Now it is March and although we are still trying to catch up in rent (we’ve even borrowed from his retirement to pay rent twice since September) we wrote them stating that we managed to get money together and would send $450 with payments of $100 and $105 at 2 weeks after and 4 weeks after to pay off the debt. My husband requested a letter agreeing to this and requested the financial evidence hearing be dropped (we were told by the county clerk they could do this up to the day before). Again, we have heard nothing! Not knowing what else to do but acting on what the county clerk suggested, we sent the $450 in money order form (after we took a photo copy of it) by UPS (so we’d have tracking info and could see it was delivered). The court date is set for April 7th, this Thursday.
We can’t not go to court but we are trying to pay this off! The county clerk said we should have no contact that isn’t in writing. But we want them to drop the case. If we get no letter, we are tempted to call on Tuesday. Is it true they can drop the case as late as Wednesday? Also, when he does go to court, does he need the 4 years worth of stuff (most of which we have not been able to get copies of yet but we have tax returns) or just proof he IS paying this off?
Any help is appreciated. Thanks so much!!
Michelle,
I know in some states debts are considered ‘joint’. So if you have a debt, it might as well be your husbands debt (if you live in such a state). Next time you get sued by a creditor, go ahead and hire an attorney to negotiate for you. If the court orders you do something, and you won’t… that is considered ‘contempt’ of court. Granted, sometimes the court may command you to do something that you cannot do (as often occurs in cases of child support).
Still though, I’m quite surprised to hear of a judge demanding jail time for a debt.
Barry
Yes, you can go to jail for not paying your debt!!! I was just ordered to do 10 days in jail after the judge found me in contempt of court for not paying. I currently have no income of my own and the judge asked me if my husband was employed and I answered yes… My husband is not a party in my case and she said that she found it impossible that I could not afford to pay $110.00 per month toward a debt that totals $2800.00… I am not being thrown in jail for failure to appear but “FAILURE TO PAY” and she’s counting my husbands income and telling me that I do have a way to pay..
Beware… I would be happy to show my case as proof that this is not a failure to appear charge, it’s contempt for not paying and I don’t know what to do..
Yeah, I have all my information on the account. And I have a card from the Debt Collectors with their number. I’m just having a hard time figuring out what they’re really having us pay on. At first, they said the Mustang and now they say it’s a credit card. But they changed it when I confronted them. My only problem now, is that they won’t take my calls or send me any information. I’m definitely getting a Lawyer now…
Audrina,
Sounds like you’re pretty confused about what you’ve been paying on. In the future, make sure and get documentation and always know what you’re paying for. You need to take a few days and get all this straightened out. Try and calm yourself and get organized about these debts. Who have you been paying? What were you paying for? How much is left on that debt? What are the account numbers? Etc.
You need to make a list of each different account/debt that you owe money to. Figure out exactly who is in possession of that debt and how much you owe them. You need to do this with all of your debts so you are crystal clear who you are dealing with.
A bill collector doesn’t care who they are collecting money from or if that person is aware they’re paying on the wrong debt. A bill collector works off commission based on how much they collect. And it’s pretty much a free-for-all lying game for the uninformed debtor.
Barry
UPDATE:
The paper that I mentioned in my first post about me being a bill collector coming after me for being on my mom Jeep that was repossessed luckily came out to not be it at all. I was looking through hers and my Credit Reports and saw where they said she only owed a little over 2k for it, which more than likely they won’t come after her for that small amount. So I looked closer at the paper and realized it was for the same amount as the other Debt Collectors (Hosto Buchan Prater & Lawrence) took us to court over… $7,200 for a Repossessed Mustang. So I called the Company that the letter was regarding , Santander Consumer USA. I told them I was already taken to court over the Car and they Stated that they never sent anyone else besides the one mentioned on the letter. They told me to Contact that one I was paying and ask them who they were and where was the money going too. Well the lady that I’ve been talking too now claims that they are collecting for a credit card that was in my moms name. On her credit report it stated she had $0 balance and didn’t owe anything. So I then told the lady from Hosto Buchan…. that I was going to need all the receipts since I’ve been paying, which they kept telling me they’d send them and I need ALL information regarding the account that they have on us and too I told her I’d call her back when I looked over everything else. Well, not to my surprise, when I went to call back, they wouldn’t take my calls, I left numerous messages for them to call me back and now, 4 days later, they still haven’t. Another payment was supposed to be sent to them by tomorrow, but because of them not responding back, only makes me question whether they were even legit to begin with. That or they illegally went after my mom for some extra cash in their pockets. I’ve sent them $1k already, thinking it was going on paying back my Mustang and now I found this out. How did the Lawyer they sent, have all the information on my repossessed car in the court room and claimed it was from Citi Financial Auto, when it was , from what they recently came up with, a debt on a credit card?? I
I’m really hoping I can take these idiots to court because I WANT all the money I have sent them and I’d love to see them go down!!!
….Any ideas???
Parisin,
I really don’t know… the procedures are different state to state. Here in Mississippi we go before a judge and each side presents their facts. That’s what I’d expect you to experience. Just make sure you’ve got your facts and budget together and you’ll do fine. If it’s already made it to this point in the collection process I would think you couldn’t make payments to the original creditor, though you could certainly call them and give it a try.
Please come back and give us a follow up report on what happens.
Barry
Thanks again for your advice!
I basically created a personal budget yesterday and came up with being able to pay them $150 / month. I was wondering if it was possible for me to call Capital One today and try and settle it today instead of going to court tomorrow.
What should I expect when I go to court tomorrow with this warrant? How long will the hearing be and will I actually go in front of a judge? I’ve heard / read many different things and I just want to be prepared.
The debt with Capital One is most likely around $3000 now with all of their fees, interest, etc but the limit was $1500 from what I could remember.
Thanks again for your help
Stacey,
Anytime a collector starts using words like “special investigator” and “court date”… while at the same time refusing to send you anything in the mail… relax… they are just bluffing you. The following is a good video which shows how the bill collectors do it.
Never give them any information over the phone. And call the original creditor directly and ask them if you can just make a payment to them. Try and bypass this collector all together.
Your debt is a pretty small amount and isn’t high on anybody’s radar… which is why they are using these border-line illegal tactics to collect the debt. They probably don’t even have their paperwork together… if they did, why not just mail you an official notice of the debt?
Next time they call, tell them you are requesting validation of the debt, as your right under ‘federal debt collection laws’. Tell them not to call you again until they have provided you with validation of the debt via U.S. mail.
Barry
Parisin,
You should go to court but be prepared. I wouldn’t file bankruptcy yet. Do you know what debt you are being sued for? How much is it? Can you afford to make monthly notes on it? How much income do you have left over each month? These are the questions you need to ask. Besides filing bankruptcy may not help you any as the laws on bankruptcy changed in the last few years.
http://debtprison.net/wordpress/1306/understanding-the-changes-to-bankruptcy-laws/
Basically you need to know what the debt is about and how much they claim you owe. I wouldn’t simply walk in and say ‘yes’ to everything their lawyer says. In fact, I would ask for documentation of the debt and the amount they claim you owe. I would then explain to the judge that you were not aware they were trying to contact you (as you hadn’t received anything) and that you need a chance to review the documents and possibly seek legal council of your own.
Anyhoo, just don’t agree to anything you cannot pay. If you don’t know what you are paying for then don’t agree to anything. If you do agree to pay, make sure it’s a payment you can actually make each month. That’s general advice based on what I know about the details of your debt… which is very little.
Barry
Thanks for your help! I just called the district court and the clerk verified that it was in deed valid and that there had been three attempts via mail to get this resolved. They had the right address so I dont’ know why I never got the other notices but they were sent regular mail like this one – my roommate gets the mail because she is home every day and has the same first name as me, maybe she misplaced it, who knows.
However, i thought you had to have a summons to be brought to court. I never received a summons and when I mentioned that to the clerk she said there wouldn’t be one, just notices. I thought that was really weird. She said that the attorney’s are “reasonable” guys (ha!!!! somehow I doubt that) and that I would have a chance to speak to the attorney when I show up at court and explain that I never received the notice.
Any suggestions for me? I’m a little overwhelmed and now I have to reschedule an interview I had just set up yesterday and I have no idea what to expect etc. I asked the Clerk if there was anything I needed to bring, etc even mentioned the Financial form to show income, expenses etc that I had learned about online. She said no, just the warrant notice.
I emailed an attorny last night that I am going to call later on during my break from work but I’m just really scared. I’m thinking of doing emergency bankruptcy to stop all the harrassment I get from this and other creditors.
Thanks again for leanding an ear to my issues…. I was up until 3am trying to figure out what to do….
I keep getting phone calls from a collection agency that says I owe their client 1300 dollars and I am to go to court. I even had a special investigator call and leave a message. When I called they would not let me talk to the original creditor only through them. They insisted on me paying them and giving my info over the phone. I asked for paperwork to be sent and they refused. They keep on talking about a court date but I have not seen anything in the mail about it. I am scared and nervous and don’t know what to do. I recently lost my job. I don’t even have money for a lawyer.
Parisin,
First thing in the morning, get on the phone with the court you think mailed you the letter and go from there. Those types of warrants are normally produced to bring someone who owes money to a creditor into civil court. It could be that a creditor sued you in court a while back, got a default judgment against you (cause you failed to show), and is now forcing you into court to discuss payment option or something along those lines.
Either way get on the phone in the morning and get it figured out. It may be legitimate. I’ve been running this blog long enough to not be surprised anymore when weird things happen.
Come back and let me know what is happening.
Barry
I just got a notice (unsigned) saying it was a Capias Arrest Warrant from Somerville District court in Massachussetts. It is in regard to credit card debit in civil court.
It gives a court date and time – only three days from today! – There is no signature and it came through general mail with no proof of receipt.
There is no signature, just saying I have to show up to court at a certain date and time and to call a certain number to talk to a certain Constable. However, there is no signature and the number on the “warrant” is not the same as the one for the district court.
I’m very scared and I’m not sure its real or not because I had read that it needed a signature to be valid.
I am so confused and I’m not sure what to do at the moment!
Please help
THANKS!!!!! Me and my mother will be sure to talk to a Lawyer this week about all this. Thank you so much for responding! You are the first person that has actually helped!
Oh and about the Repo, no we never talked to a Judge because their Lawyer told us it’s be easier and less stress on us if we saw him directly, face to face before the Judge came out. So the Judge never even saw our case and now I wish he had…
Audrina,
I have no legal advice but here’s my opinion for what it’s worth.
Anytime someone is coming after you for SEVERAL thousands of dollars, and you aren’t experienced in dealing with bill collecors, then you need to hire a lawyer. They can often save you a lot of money and stress.
First off, on the Jeep, if you never signed the loan, then they cannot come after you on that loan. You should have copies of the loan agreement, and even have a loan #. If so, you need to find out who the bill collector is and where their office is located. I’d write a simple letter stating that you are not affiliated with loan # ***** and for them to cease immediately attempting to collect such a debt from you. And that for them to continue to attempt such an illegal collection will be considered fraud and defamation of character. You will then have no choice but to contact the Secretary of State in the state in which their office is located and possibly pursue legal action against their company.
I would mail the letter registered with return receipt (this way you get proof from the post office that they actually received your letter).
Now in regards to the repo debt. Repo is a funny business. Often the company already got their money out of the car and are just coming after you for the interest that they would have received over the life of the loan.
So did you make an agreement with the collectors attorney or did you plead your case to the judge? In your case I would have talked to the judge. Your Mom is on the hook for the debt and they always come after the co-signer because they are ones, usually, most able to pay back the money.
If you are still on the hook for the $7,000 then you need legal council. Go and talk with a local lawyer in your hometown and see what your options are.
After a review of your case, you may end up owing nothing.
Let me know how it turns out.
Barry
I have a question involving a car being repossessed… I can’t find any help on this so I’m hoping that it’s ok for me to be asking you…?
back in 2006 or around that year I had bought a car from a local car lot. The car was financed through Citi Financial Auto. When I signed for the car, I signed as the buyer and my mom signed as the co-buyer. Well, when the first payment came, it was in my mother’s name. So I called them and told them I wanted it switched to my name because not only was I the Buyer, but I was the ONLY one paying every month. I payed regularly and on time till 2008 when I suddenly lost jobs. (I’m a house cleaner) I tried getting help with payment arrangements, which they did help somewhat, but after they’d lower the payments for a few months, they’d shoot them back up without letting me know. I tried asking if they’d refinance because that was the 2 car i had regularly payed on through them and they refused. I was pretty much in a battle with them till mid 2010. I told them I didn’t want to lose the car because not only did I need it for transportation, but I knew losing it would’ve put me in even more debt… and it did.
A repo man showed up looking for the car at my mom’s and threatened to put out a warrant for both me and her if we didn’t surrender the car. She called me and I told him to come and get it. A day later, I went home (after getting back from a week long trip) and found a letter from Citi Financial Auto stating that they’d help me with the payments and all I had to do was call. You can just imagine how upset I was at that point because the car was just repossessed the day before. I then called them and they told me there was nothing they could do because it was in repossession already..
Anyways, to get to the main problem, a collection agency now is coming after mom for over $7,000 for the car. They don’t even have my name anywhere on the car, which I don’t understand?? I called and told them I signed as the buyer and they refuse to change the name and told me if I wanted it done, I’d have to hire my own Lawyer.
They’re making me pay $250 a month and I only make, if lucky, about $400-$450. When they took us to court over this, their lawyer (fore the judge came out) told us that if we wanted to settle it fast and easy to see him at that time so we could leave. We did so because, well honestly, just didn’t think it’d make a difference. I, at the time, had the original paper showing that I signed as the buyer and my mom as the co-signer. Plus we had proof showing neither of us make enough to pay $250 and not struggle over doing so. If I had that kind of money to spend a month, I’s still have my car right now.
Now we have a whole new problem involving my mothers jeep that she had to give back because of her too losing jobs. I NEVER signed any papers on it but they have me as the co-signer on it and these people are trying to come after both of us on that!
We both are to the point where we’re beyond confused and feel like we’re going in circles because no one wants to help….
Do you have any Legal Advice for us?? Is there anyway we can have these Agencies back off or at least settle for less payments a month? Although to me, neither Company deserves anything because they treat us like dirt!
I hope you can help, but if anything, I thank you for reading this.
Alsamont,
Thanks for the thoughts. I may actually use your comment and turn it into an article. A ‘featured post’ on the front page of the site.
Of course I’ll have to break it up into paragraphs
Barry
I have always taken credit and debt obligations seriously and have had a sterling credit history. Then my wife and I had a perfect storm of financial problems befall us which caused us to fall behind in some credit card debt, debt owed to the IRS, and our mortgage payments. We have always been very high earners, but also, unwisely, have over-spent and under-saved. In order to deal with our mortgage bank and the IRS, it was necessary to file for a chapter 13 reorganization. What surprised both of us was how well behaved the collection people were, although a lot of that is due to changes in the law. Some of the people I spoke with were actually friendly, sympathetic, and non-judgmental. However, I did have one interesting experience with an in house collection agent. When we previously refinanced our house, the new loan was made by the same bank that held the original note, but a different arm of the company. The new loan was a cash out refi and required that the old loan be paid off. I had decided to let my last payment on the old loan lapse by a couple of weeks beyond the grace period, knowing that it was going to be paid off in full from the proceeds of the new loan. Because of a delay in processing the new loan, we began to receive very forceful calls from the in-house collection officer who wouldn’t listen to anything I said. He just kept asking me when he could expect my payment. Every time I would explain the situation with the new loan, that they would be receiving the payoff funds within a day or two, and that the new loan was from the same bank, he would keep asking me when I would be sending them a check. It became very clear that these people operate within a very narrow range of programmed comments and responses. Our conversations became very heated to the point that he threatened me with physical violence to which I responded in kind. It just happens that I enjoy physical and verbal altercations and told him to bring it on. I finally just had to stop taking his calls as I knew the payoff was imminent and the guy just wasn’t going to listen to me. The point of this is to tell people that they don’t need to be intimidated by these jokers and when they cross the line regarding propriety, call the manager to report them. Or call an abuse hot-line. You are also not required to take their calls or to even have an active phone line in the house; you only need to provide them with a mailing address where you can be reached. As long as you have provided them with an up to date address where they can contact you by mail, they are legally barred from being able to speak to neighbors, friends, family, or workplace. People just have to learn what their rights are. People also have to stop allowing creditors to define them as deadbeats or other pejorative labels. There has been a discernible shift in America, as part of a pro-business and increasingly powerful banking and credit industry lobbying effort in Congress to brow beat and intimidates consumers into believing that they are powerless against these forces. The three credit reporting agencies are a good example of this; just peruse internet forums devoted to credit issues and you will see that this is true. Banks, insurance companies, and investment companies have gotten to the point where they have seemingly eliminated nearly all the risk and shifted it over to the consumer. This situation will only worsen until consumers take back their rights. Ironically, we seem to have more consumer protection efforts in place than ever before; however, these powerful business entities have become so emboldened that they either ignore the laws or get Congress to weaken the very laws that were passed to prevent abuse in the first placed. Americans just have to wake up and see that our freedoms are being lost because they have joined in a silent conspiracy to trade control over their own lives for the illusion of a material happiness fueled by high debt, a new luxury car every three years, unnecessarily grandiose homes, endless supplies of fancy processed foods and fast food restaurants. We are now beginning to see the ugly underbelly of American style capitalism that enslaves a middle class culture besotted on a misguided belief that the crumbs of a wealthy over-class will somehow make their way into the pockets of individuals self-deceived into believing that they too will one day become “rich.” It is unfortunate, and not widely understood, that it is the nature of this über class of American “nouveau riche” to disdain those earth crawlers believed to be beneath them. It’s the classic case of the last admitted into the “club” takes in the welcome mat. This attitude is especially puzzling when coming from the “Christian Right” when one considers that these self-anointed übsters want nothing to do with this narrow minded, religiously motivated hoi polloi whose value is solely in their mindless allegiance to conservative causes which, ironically, can be counted on to keep these same folks in their proper place. It is, therefore, contingent upon the middle class to try to seek greater understanding of what it is that truly makes us great as a people, separate and apart from those ideologies that would divide and weaken us. There is never anything wrong, in and of itself, to aspire to, and achieve, wealth. It is only what we lose of ourselves, individually and collectively, in the pursuit of that wealth, that needs to be laid bare and subjected to our utmost scrutiny. We must each ask ourselves these questions: Am I my own person? Do I turn a blind eye to the actions and manipulations of others in order to get ahead, knowing it to be morally or ethically wrong to do so, for personal and material gain? Do my actions cause harm to others? What do I consider to be reasonable wealth for myself and my family? After the needs of my family and myself have been met, how can I best use my excess wealth to make those less fortunate than me better? Do I always “vote my pocketbook” or do I go beyond myself to consider the issues that affect all Americans when I cast my vote? Do I try to see the “larger picture” by educating myself on the facts rather than accepting popular belief, following the crowd, or voting the party line? I appreciate everyone’s understanding here. If I have erred in judgment or if someone disagrees, that’s good, as long as it contributes the dialogue between thinking individuals. We aren’t always going to agree and , in fact, don’t need to nor be able to. It’s only in the trying that it matters. If this writer seems to be implying that rich people are bad, I’m not. Contrary to what Nick Carraway said, that “The rich are different from you and me,” rich people can be just like anyone else; good, bad, or indifferent to the world that spins around them. It’s always about the choices we make, how those choices affect others, and how we want to be remembered when are days are at last counted to their fullest. Stand up, be your own person, don’t be bullied, love your neighbor (even when he’s behaving like a jerk), spread some of that “moolah” around, if you got any to spare, and don’t discount the idea that you “are your brother’s (or sister’s) keeper. To make America, or the world, a better place to be doesn’t need to be all that difficult and we can do it regardless of whether we live in a red state or a blue county, a coastal urban center, or the flat farmlands of the Midwest; whether we are the “great unwashed,” the “hoi polloi,” the top 3%, the bottom 10%, the right, the left, the crazy, the brainy, white collar, blue collar, or as the TV commercial states, no collar at all. We are all Americans and there are forces at work today in American that would pit blue against red, rich against poor, and divide and conquer the middle class. Just keep in mind that it is the great American “Middle Class” from which the wealthy rise and to which the poor rightfully aspire. Let’s set an example for the rest of the world and for ourselves as well.
Tim,
Absolutely not true.
Barry
Dear Debt prison, Question???
It’s true? You own your own debt (it does not belong to creditor). The bank/creditor can not sell your debt to a collector agency or third party without your authorization.
Mason,
I am not familiar with the details of bankruptcy law. I would start by talking with a local lawyer that you trust. I would discuss the debt problems and if he/she thinks bankruptcy is a valid option.
Barry
Selly,
If you haven’t already requested validation of the debt then I’d do so first.
http://debtprison.net/wordpress/49/sample-debt-validation-letter/
If you are beyond the point where validation would do any good, I would simply go to court on the assigned date (when they sue you) and explain to the judge your circumstances. I would go from there based on the decision of the judge.
Barry
I owe $1100 on a credit card (more than half of that amount is interest & “fees” that built up over a short time) I don’t have any assets, other than making a payment on a car which I still owe 7k on. I don’t have a job & haven’t had one for over a year. I am not married, but I live with my boyfriend & his father. I have a joint account with my boyfriend but he doesn’t make that much monthly. I got a letter from a law firm (from the collection agency the debt got passed onto) saying they will sue within 30 days if I do not respond to the letter (and even if I do, they will continue to attempt to collect the debt by suing)
What can they do to me? Like I said, I have no assets, no money & I am not legally married so money from a “spouse” can not be accounted for.
in reply to your to your comment i also have about 3000 in medical bills total its about 10k in debt. My parents said it would be in my best interest to file bankruptcy?? would i be able to keep my house if i do this?
Mason,
In this case, with an amount this high, I would consider seeking legal council. You may end up on the hook for the full $5,700. Whatever the outcome though, I really think you’d be much better off if you sat down with a local lawyer and discussed this matter. A lawyer might can help you get the amount reduced. That’s where they come in handy. They can also help negotiate a payment plan (if it turns out to be necessary) that you can deal with.
DP
hi i have a question i hvae been summond to civil court by a creditor for a debt of 5700, i dont no what to do im scared as hell. i’m affraid they will try to take my house or garnish my wadges, when im already living pay check to paycheck with my wife and son. It says date on it is feb11 2011 and i just got the letter from the courts on march 9th 2011 saying i have 28 days to decide or something?? it says if i fail to appear and defend judgement by defualt will be rendered against for the relief demanded in the compaint?? what does all this mean there was no date to appear??? please help
If I’m reading this correctly you broke a contract and left a debt of $7,000 that may or may not actually exist if the company rented out the property to someone after you moved. This would be a civil matter, not a criminal one and there’s nothing to be concerned about with immigration. I’ve never read anything, anywhere, that has ever indicated a blemish on a credit report is related to your not being able to travel internationally – unless you are in Dubai. You aren’t a criminal… you just broke a lease agreement. If there is nothing on your credit report at this time then that would seem to be a good thing. It could be that the company decided not to report the breach of contract (and may never report it). Or it could be that it will appear at a later time. You can check your credit report at http://annualcreditreport.com every four months. I see no reason why you cannot move to Canada, nor how this debt could follow you there.
**Also, make sure not to fill out any credit applications as this will automatically update your credit report as to your most recent life data. Creditors often check on your credit report to get your new address, phone number, etc.
Hmm, your articles are very informative, but that’s just the thing. I don’t know how to go about this mess I’ve gotten myself in, I really can’t tell fact from fiction very well.
Basically, due to personal issues, my sister ran off on me and left me by myself to pay the bills on our apartment. This didn’t sit well with me, because I barely made enough to actually pay them off every month, my sister and I split the bill.
When she left, I went to the company that I had gotten the lease from and explained the situation. I asked if there was a smaller lump sum I could pay instead of the roughly 7k I would owe if I left. They told me no, that I had to pay the whole thing or rent it out to someone else. That didn’t work well with me either, cause I was flat broke and did not have enough to pay even the next month.
Needless to say, I ran off, and went to live with my parents until I felt I was in better mental health. I cleaned out the apartment of food and other crap before I left, but left everything of value I had in there for them. It included a 32 inch flat screen TV a new couch, and a computer. Yeah, I know, not much of value, but it was honestly all I had. Now I work and barely get $600 a month (less than 30 hours a week…)and I still have nothing of value, no car, no house, nothing except this laptop. I doubt it’d even sell for $100. :c
Strange thing is, the company hadn’t put anything on my credit report. I haven’t heard a peep out of them. Granted, I did not inform them of where I went or even my new phone number as I was in so much stress at the time, but still. Is this the calm before the storm, or did they just decide to let me go? (that I highly doubt but I dunno, its kind of a small company, it’d hit them in the wallet pretty hard to track me down and such) How would I be able to tell if anything showed up on my criminal history for this? D:
This is just so frustrating, its not a matter of me not knowing how to spend money (i haven’t missed a payment since I moved and never spend more than I absolutely need to, never had problems up until that issue) its my inability to respond when under stress or pressure, and my inherent dislike for paperwork and bullshit. >< I would be more than happy to get this out of my hair so I can move to Canada to be with my love in peace. Speaking of which, would this affect my immigration? o.O;
I recently received a letter about a lawsuit that was brought up against me on a debt that I owe. I just cant pay it. I lost my job back in 2007 and due to our economy I havent been able to find another one. I dont have any assets or own any property and I Live with my parents. My question Can I get in trouble for not paying credit card debt since
MY CREDIT CARD DEBT IS 13,800.00 DOLLARS I PAY ONE YEAR THE AMOUNT 141.00 DOLLARS ON HARDSHIP PROGAM.BUT SAY AMOUNT IS NOT GOING DOWN FAST ANOTHER. SO THEY WANT ME TO COME UP OF BACK PAY OF 900.00 DOLLARS.
Your creditors can take you to court and get a lien against your home and any other assets you have if you cannot pay them. I’d sell the house, pay my debts, and start over. Your other option is to deal with these creditors one by one. If you go that road I must go ahead and recommend you hire a lawyer to act/negotiate on your behalf. With the amount of debt you have, combined with a home which has considerable equity…. if you want to remain in the home… seek legal advice and let your lawyer walk you through the settlement process.
I love my house. I ran up debt renovating it. I want to keep it.
Hey Jenni,
Sell your house and pay off your debts.
I owe about $100,000 in credit card debt. I haven’t paid many cards since August 09. I have a house that is worth lots of money. Creditors call every day. I don’t want to file for bankruptcy because they will take my house. Got into this situation due to the failed real estate market. Properties didn’t sell that would have paid these bills. Because I owe so much, will they take me to court? I have gotten several notices of settlements which have reduced what I owe to some creditors by more than half but I don’t have to money to pay the settlement amounts. What should I do? Is there some company that will consolidate my debt and make one payment that I can afford?
Steve,
Depending on the state you live in, typically you can only have 25% of your disposable income garnished. Taxes first, then child support, finally vendors. Chances are they won’t be able to take anything more out of your check because of your child support. Good Luck.
You need to gather all of your paperwork and go and sit down with a lawyer so you can sort through this. You need to come up with some money for this legal advice, which may end up saving you money.
need help on a old morage. was married had purchased home through FHA, seven months into home we split, company contacted me about purchasing home, thought I sod it to Sothern Investments, but they did not tranfer the title. In 2000 the Goverment started taking money from me saying the house went into forclosure and I owed 38,000. They have taken so far almost 20,000. They now want the rest or they are going to garnish my Pay. Any one out there that can help? I do not have the money for a lawyer, I feel I am dumb and now I am going to be so broke.
Hey Steve,
They always do this, nothing new. Pay if you can and if not just tell them. If they keep making ‘demands’ just hang up… they’ll back tomorrow.
About a year ago I went through a divorce and lost my job (yeah double hit) I had 2 cards with 3000 a piece on the balances 6000 total. I wasnt able to make payments and have recently found a job, its been a year now and suddenly Im getting calls from the creditors they sold the debt to. Worst case scenerio can they really force you to pay the balance back even when you are only working a part time job, my income barely covers living and child support expense, Ive told the creditor I will make payments once my job goes full time but they demand money now, how can they get blood from a turnip?
AG,
They are coming back to collect the debt. We don’t know if it will be the CC company (via a hired lawyer) or if they will sell the account to a collection agency. If they keep the account and sue you, they may or may not settle. They may opt for a judgment against you in court. If it is sold to a collection agency, I’d offer 25%.
http://debtprison.net/wordpress/170/collection-agencies-get-everything-in-writing/
OK, question. I owe over 20k on 1 credit card. I stopped paying on this card around April of 09, after not being able to make the monthly payment and after they raised my % rate when I HADN”T missed a payment. I’m never late on anything else, (Car, Mortg, other CC all paid on time) A few months back I received a collection notice from a Lawyers office in Mass (I’m in GA), Stating that If I do not agree with the amount owed to write back in. I sent them a basic letter stating that no i didn’t feel I owed the total amount. I never heard anything back from them, nor have I heard from the CC company. First part do you think at some point they will continue to collect, if so in what time frame. Again I owed about 23k, if they do come back what do you think would be the lowest amount they would take as a settlement? What I’m doing now is saving up money to pay when they come back. Second thing is if I do settle at what point will that come off my credit report and how much do those letters help (letter stating this debt has been paid) when applying for other credit(mortgage, car)?
Thanks
Hey Bule,
I’d go to court and at least explain to the judge why you haven’t made payments. You’ll get a judgment placed against you whether or not you go. But you need to go so you’ll be more aware of what is going on. Also, if the bill collector tries to continue to add monthly interest to the dollar amount they claim you owe, ask the judge to please not allow that. And that you will make payments on this debt when you can, but at the time you have no money, assets, or a job.
Hey Anita,
I’d stop going to school and pay off these debts first. It’ll put you a year behind but it will clear things up. Yes they will harass anyone on the contract, so if your dad was a co-signer then they consider him the responsible party. If you make no payments then this will ruin your fathers credit if he doesn’t make payments. It will likely be a year or more before it goes to civil court.
I have never heard of anyone being stopped by immigration because of old debts in the U.S. they did not pay.
I have a question to ask,
I recently just got sued today by a collection agency and my friend who lives with me gave me the court date notice. He said a guy with a sheriff badge in his chest gave it to him when i was not home. The notice said I owe a total of $2671 dollars. I dont deny the debt, I do owe them money but I just dont have any right now. what will happen if I were to show up or not show up on the court date? could I get arrested and put in jail if I were not to show up? I’ve been out of work for more than 2 years and I just dont have any money to pay.I was in school and i just got done with my associate degree. I dont have a bank account either and also no house, car or other valuables except for an old computer that prolly only worth less than 100 dollars..I just wanted to know what will happen on the court day. Should I call the law office that filed the suit and tell them I dont have any income?will they drop the suit then? Please help
Thank you so much , so much to whomever put this information out here. Where do I begin. I went to a lawyer to file bankruptcy a year ago, I was told I make “to much money” to file a 13 and would have to do a “repayment” plan but for only 5% of what I owed. Plus I was told I could “cram down” what I owed on my vehicle as well. To make a very long story short. I stopped paying the credit card companies a year ago. I saved and saved to pay the attorney around three grand and that took a year not to mention that my outstanding debt accumulated another almost twenty grand in interest and fees. Now I am not filing and am trying to negotiate with each creditor to pay back a portion of the debt by settling with each one. A painful but necessary process. My attorney knew how much I made, what my debt was and I was not told all the options that I could pursue or what would ultimately be in my best interests so he got his money and I am another one third extra in debt and make even less money now (in sales). Bankruptcy is still an option but have I learned the long and hard way.
I now have read nearly all your articles concerning me and my debt. I have (or at least had before I stopped making payments) $15,000 in debt. That is (was) $7,500 on one credit card and $7,500 loan. I was making payments until June 2009, but then lost my job and stopped making payments to both. In August my dad (cosigner to the loan) was getting harassing calls from the bank to make a payment ASAP. Since I knew it was not my dad’s responsibility, I called the bank and started making payments with them again. However, as I am a student and barely have money for normal expenses (let alone my loan payments) I haven’t made cc payment since June. I am residing in Canada and am afraid of what can come of my cc debt. I am a citizen of both countries. What would come of if I still don’t make payments to my credit card? I still have bank accounts open in the US but never use them. I travel frequently down there to visit my family. If they are not able to find me (present a summons), will my case still be taken to court? Will my family get phone calls? My hopes are to finish school, but if I have to pay towards my cc debt (especially in a lump sum of what I’ve missed these past 6 months), I’m afraid I won’t make tuition.
Do you have any advice? Should I worry when I drive across the border? How long typically does it take before they send the issue to a civil court?
I know it is my responsibility, but it just not possible at this time. If I could go back and never get a credit card, I would. But now I’m trying to look forward and don’t know how. Help please!
Thanks for your time!
Ryan,
Communicate with your student loan companies immediately (they don’t bite). I’m in a similar situation as you. They have a program for economic hardship deferment where they can give you a year or more of a break from paying your student loans. It would also help if you could consolidate your student loans in to a Federal consolidation program. If you have received an economic hardship deferment from one program typically you can convince other programs to follow their example (in the case you have student loans from multiple lenders).
Ask your credit card company to put you on a payment program. Be sure that the program does NOT include having them close your credit line. This is negatively effect your credit. Most payment plans include a lower APR and no penalties. They may even go back six months and reverse penalties you have already suffered.
Remember, student loans do not directly affect your credit but your credit cards DO! So pay credit cards before student loans. If you are able to get on deferment and on payment plans you should have lowered your total monthly bill CONSIDERABLY.
At this point you should be feeling a lot better. Use the time to just relax and think about your next step. Pay down principal on your credit cards with the highest APRs and work your way down.
Hope this helped…
Hey Ryan,
Just stay at your parents house. You need this break from bills to get your finances in order. If you don’t get the stuff on track it’ll haunt everything else you try and do in the future.
Well rest assured there are many people in your situation. There’s most likely nothing, for now, that you can do about the student loan debt. Toss it up as lessons learned. What you can do is get pro-active. Get a job, any job, and get your mind busy. Work hard and exercise, go jogging in the morning or evenings, work out, and get busy. This will help with your depression and also give your mind a break from worrying about this debt. I’d focus on this credit card debt for now. If you live with your parents, then put all of your money each month towards your cc debt. Get rid of that junk first. Pay the smallest one first and move up to the next biggest.
The student loan debt, like my own, is one of those things in life you’ll be paying for, for many years (decades?) to come. Either way there’s not much they can do with you if your broke and living at home with parents. But I’d talk with them, on the days when my nerve was up, and try and keep them from adding any unnecessary fees or interest. Keep the lines of communication open when you feel like you can handle the converstation. But in time, you’ll be able to pay down on this student loan debt.
For now, get out, get any job, get some exercise, take a multi-vitamin. And make sure you are getting enough sleep each night. Just get up and do it.
Debt prison (sorry thought your name was charles embarassing)
I have a pretty intense situation for you. I graduated from colllege and have a ton of student loan debt. estimated 80k and I have 15k more in credit card debt. I have always paid minimums on my cc bills and on a few of my loans was paying intrest only on my student loan bills while they were in their grace period. I since lost my job my family had been helping pay the minimums on the cc bills but there is just no way I can begin to handle the student loan debt. I feel terible even having family help with the cc minimum payments and even that wont last for long. The stress of the phone calls has put me inot a depressionand I think about the huge mountain of debt I have to overcome to even really begin my life. I am 26 stil at the parents house. I have 11 dollars to my name. What can I do to get some grip on this situation? the cc bills are all 30 percent cause they were maxed and student loans are mostly 9-10 percent. please offer some advice
Hey Charles,
Well they can get a judgment against you. But, go to court and if it’s a collection agency, instead of the original creditor, then demand to see the original contract with your signature.
There’s a decent chance they won’t sue because this is such a small amount. If they get a judgment against you, nothing they can do until you get a job. Then you can just call them and work out a payment plan or try and do a lump sum settlement for like $300. They might take it.
I am pretty much in this situation. I owe the credit card company some $643.44. I currently have no job and havent had a stable enough job for the past 7 to 8 months to pay for this debt. I have no money in my bank account for them to take out and i dont have any assests for them to take since I really dont have a stable place to live.
what would be my outcome? I already know that I wont go to jail, due to the fact that I plan on going to the court date. I just dont know what they can do.
Nothing you can do about the debt. Contract law and you signed a contract stating you would adhere to their conditions. You can ignore them and try and settle later on though. Or try and come up with enough cash (somehow) to get your debts back under the limit. But even then, guess what, they’ll still keep that interest rate at 33%.
(edited by Admin for language – haha)
I have a serious question to ask, it may have been covered but I would like to hear it for your mouth.
I recently heard of a Florida or Arkansass’ man have his debt cleared by a State judge. Is this a way to have your debt cleared or is it a bunch of crap? I haven’t read the story due to the fact I really don’t have the money for the lawyer.
Is there a way that I can fight the Credit card companies that have charged me Juice (Juice Rackeetering) on my credit cards. Juice is the interest paid on a loan, I’m sure you know that. I really feel it unfair that i had a nice 9.9% fixed credit card and cause of EXTREME financial dificullties I missed multipy payments. My interest in 2 months went from the comfortable 9.9 to 33.6% interest and I also kept being charged 17 late and over credit balance FEES. Totaling over 1224 dollars incurred from the credit card company itself. Excuse my ENGLISH, F**k THAT!!!! I did not open my a****** to a shelling like that. Soory, I am pissed off and want some better answers cause the United Socialist Regeim has not returned my calls……… Need a good writer, I’m cheap!!!! LMAO