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Re: Does judgement proof mean. - Different for every case
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Posted by BeenThereStillDoingThat
(24.187.170.238) on June 27, 2004 at 07:11:58:
In Reply to: Does judgement proof mean......./What's in it for the attorney? posted by 2muchdebt on June 27, 2004 at 04:20:43:
Judgement proof just means that if they were to sue its not likely they would get anything, right now.
If you are truly judgement proof AND the CA knows it (somehow) they are LESS likely to sue. However sometimes a CA sees something that you dont. Could be you bought a car recently or came into money or your job history, whatever they can get their hands on through your credit reports, skip tracers and anything else out there. Some look at your employment history and see that you are likely to bounce back from your trouble. Sometimes they will sue if from talking to you they sense you have a supportive family and can get money if needed. CA's really need to talk to you and dig into your brain when you are panicking about all this so they can feel out who you are and what they can get from you.
Even if you are "JP", some will sue because a judgement is usually good for 10 years and they could resell your judgement. Also most people who are going through a rough patch tend to emerge from it in a couple years or less and the CA knows this.
If we are talking CC debt AND the CA is handling the account, they often will scare you and say "The creditor has authorized us to proceed with legal action". This means nothing in itself, they ALL use that threat. Most times they do not consult the OC as they have bought the debt and the OC has charged it off. It really depends on who is holding the debt and who is contacting you.
If the OC still has it and is using an attorney or inhouse collection then yes they can authorize a suit, but if your debt has been passed around like an old hand me down then its unlikely the OC has anything to do with the threat of the lawsuit.
Even if they sue AND get a judgement, many times they wont collect on it unless they can do something quick like raid a bank account or garnish wages. So thats why people here will tell you to keep very little in your bank if you think you might be getting a judgement. Most people are afraid of the Hollywood movie type of collection process where a truck pulls up to your house suddenly and they start taking all your personal belongings, it just doesnt work that way.
The threat of suit is very unpredictable so the best advice is to learn as much as possible, dont be afraid of the threats and ONLY act on facts.
Tell the CA's NOTHING and protect your assets however you can. If you do get sued, go into defensive mode and do not allow them to get a default judgement, even if you think you will lose. If you can afford a lawyer, consult with one and see if they can help you with the suit. Many times a decent lawyer can find a fault in a suit quickly and either get a lengthy stay so you have time to work on your defense or get the whole thing dismissed
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