A judgment is when you are taken to court for a debt.

A judgment is when you are taken to court for a debt…you pay the court expenses by the way…they don’t have to show up either….the judge decides what you will pay on the bill monthly and then he moves on to the next person…this is entered as a judgment against you and is on your record at the credit bureau for 7 years.

Is having a court judgment for debt affects employment? is there imprisonment for non payment of debt? how can i negotitate with my credit card companies to lower the interest rate or waive late payment fees.

It could affect employment if the prospective company runs a credit check. The judgment will affect your credit in a big way. There is no imprisonment for debtors, otherwise half the country would be in jail with all of our out of control spending.

Give your creditors a call and ask what they are willing to do for you. I like to get everything in writing first, but I don’t always get it, then I have to decide if I can trust them (stop laughing everyone!) or just insist on written info or don’t go with their proposal.

Thank you for everyones advice. I am waiting to receive the papers becasue my parents live in a different state than me( I live in New York and have for 6 years, they live in Ohio). Then I can see what this is all about. I’m not sure if my court date is even in Ohio or New York becasue my parents didn’t open it. Will I have to be there? I can’t take time off work right now becasue we are so busy. My mom did mention that the court date is Feb 14th- Happy Valentines Day haha.

I will definitely try to contact the creditor once I see who it is and try to make a deal with them. I hope there is no time limit that has run out already though and responding to these papers? What should I offer them- the full amount up front including fees? I am afraid that it will be much more than my original credit card bill.

The only debtors prison in the USA is the prison without walls that debtors may find themself in if they are unable to pay a creditor off in a timely manner . Loan shark interest fees, over the limit fees that usually got there because of the L S interest, and late payment fees are the main
reason for this prison.

I saw on Lou Dobbs this evening that the US Senate banking committee
is looking into unfair practices in the CC industry. My favorite author , Elizabeth Warren testified. Her book ALL Your Worth is a keeper. Lots of great info in this down to earth book written by the Harvard Professor.

Those who lobby for the CC and banking industry must be busy on the hill with this hearing going on. Hopefully they will not be successful and some changes will be made. Kudo’s to Elizabeth Warren and Democrat Senator Christopher Dodd of Connecticut!

Check your state laws

First, check your state laws to see if you (or your parents) were properly served. laws vary from state to state on the proper way to serve someone. (e.g. some require that you get physically served, while others say that publication in the newspaper and/or certified mail delivery will suffice).

If your state is one of the fortunate ones that have the law where they physically have to serve you, then the collection agency committed an FDCPA violation by “threatening to sue with no intention of doing so.”

I’d call after going and getting the papers you apparently got and see why they sent it to your folks instead of you. That sounds fishy.

As someone mentioned earlier, they will contact anyone they can find. I still get notices at my mother’s address claiming I owe some money and I haven’t lived there in thirty years!! (On a side note, since she passed away in November, bill collectors call while I’m trying to clean up her house. It’s a bit of a shock when I tell them she has died and can’t pay anything at this time).

In California, $5000 would be considered small claims (someone correct me if I am wrong) and no lawyers are allowed. I still have not seen an answer (or I missed it) to what it means to have a judgment against you.

Are you being sued or are they taking you to debtor’s court? Try the Free credit counseling services. Do you have an actual copy of the the suit and do you know the name of the credit card company that is suing you?

Call them up and tell them that you would like to settle

If you call them up and tell them that you would like to settle the matter they will work with you and set up a payment plan or they will drop the interest and tell you to pay the balance. But you have to call them and let them know you want to pay.

Also, I don’t know what happens if you are being sued, but I think if they can save money by not taking it to court, they may talk to you. Contact the creditor directly, see what they can settle with you and get it in writing BEFORE you send them any money. Maybe you have a Legal Aid type thing where you live and they may be able to help you…not sure how it works. People on this board have mentioned that the remaining balance is reported as income, but I don’t know anything about it. I never settled a debt, but that is the way I would handle it.

Good Luck. Amazing how they contact everyone you have ever known. Once, a long time ago when I couldn’t pay my bills on time, the creditors called my uncle, who I wasn’t really close to but I ran his TV repair business for a month while he was out of the country. They called him asking how much money he could send them to pay my debt.

What I did was called the office that was filing the law suit. They knocked off very little, and I was able to pay the amt. they asked for in full and avoid court. I did get a paper, that said the court date was settled before hand or something like that. At first they did offer me a monthly payment plan, however, they were still going for the judgment. All I could do to avoid the judgment was pay it in full. Well, with the amount they were allowing to discount. I think it was around $400 dollars discount on a $2500 bill. So my advice is call and see what’s up to avoid going to court. If you have the $$ and that is what you want to do.

Answer to the last quesiton.

I’m feeling pretty cynical today, so keep in mind that’s where thisresponse is coming from. ūüôā

But first, the positive stuff: give yourself a pat on the back formaking the first step and communicating! That’s major progress!

Second, I’m not so sure it’s a bad idea to scare him with fearful¬†numbers and show him he spent twice what was budgeted. If you do this¬†in a kind and loving way, it might get through. I’ve learned that with¬†some people (namely, my dear spouse) the nice, subtle messages just¬†don’t work. Saying very bluntly “I’m worried about our expenses from¬†last month–we spent double what we made, and I’ve got a real problem¬†with that” might actually work.

Again, I really really empathize with you on this. We are going¬†through similar struggles and it’s very frustrating. I’ll reiterate my¬†plea to the group: if anyone knows the magic formula to getting one’s¬†spouse on the same financial page, please tell us!¬†Scare him to death, before reality and life does it for you.

I was studying for a class and must have been thinking about your¬†situation in the back of my mind. Lately I’ve been trying to consider¬†each purchase in the terms of how many hours I have to work to earn¬†the money. Like my car bought a month ago is equal to what I earned¬†by working 341 hours. Compare your husband’s purchases in terms of¬†how many hours he works to pay for them.

For example, say he earns $10 per hour. He buys tools worth $1,500.¬†He must work 150 hours or 3.75 weeks (40 hour work week) to pay for¬†them. Or say the rent is $1,000 a month. That’s 100 hours or 2.5¬†weeks.

Don’t know if this helps you but it’s been helping me when I want to¬†buy things. There’s a book I want to buy that is equal to 2.5 hoursof my pay. It’s the only thing keeping me from buying that ¬†book;¬†thinking how long I’d have to work to earn the money to pay for it.

Oprah winfrey and suze orman ebook

I thought i may have seen something here about this not too long ago.

A few months back, there was a link on oprah winfey’s web site where you could download¬†an ebook of suze ormans. this book took you thru things one month at a ¬†time for, i think,¬†six months to get your finances in order.

Does anyone here have that link or the ebook in pdf format that they can share share with me.

I downloaded the book when i heard about it but, since that time i had a hard drive failure and lost the ebook and a lot of other things too.

This book seemed to be more for women but, i would like to read it if i can find it. in the mean time i search for it and see if i can find it myself.

http://www.oprah.com/community/thread/44532

This link may help. In need it myself. thats what i was looking for exactly.

Desperate please help! Part 2. Some thoughts.

Desperate please help! Part 1

Could you negotiate with your landlord at all to avoid eviction? It is vital to have a roof over your head. I have been in dire rent straits myself, and I called my landlord (maybe I am lucky, but I have an individual as a landlord and not a corporation) and told him the truth, but that I could come up with the money as the month progressed .I offered to have my boss write him a letter about my paydays, etc. I was so nervous, so afraid of being evicted Рbut he let me slide. There is also Legal Aid, as it takes a while to evict someone in most states and by then you can come up with  money.

Are you single? that would be nice, as you wouldn’t¬†have to worry about feeding the kids – I hope you¬†have some food money , but if not, there are often¬†food pantries and churches that can hlep out – its¬†embarassing, but I would do it if I was desparate.¬†The debt will have to wait. Shelter and food are¬†first.

Take heart Рyou are working, and there are resources out there. It is hard to take action sometimes, but telling the truth usually helps. I have been where you are and somehow I was okay!

The first thing you need to do is take some time and BREATHE. I have¬†been in what I considered to be desperate situations with money¬†problems myself and the only thing that got me through was diligance,¬†hardwork and trust in my own ability to get out of the financial¬†problems I had. Take some time out and think of it in the perspective¬†of what your life is worth… and if you start to believe in yourself,¬†day by day the financial situation can all be worked out through your¬†efforts. DONT… I repeat… DONT do anything to compromise your¬†safety, or that is against the law because it will not be worth it.¬†Even if you get away with whatever it is, it’ll be on your conscience¬†and what also will happen is next time you are in a jam, it’ll be¬†easier to that THING you really dont want to do. IT’s NOT WORTH IT.¬†If your rent is only a couple weeks psat due and you have a new job¬†now, can’t you reason with the landlord and ask for an extension and
the minute you get your next paycheck, make the rent a priority,¬†because the roof over your head is really important- one of the most¬†important things. Can you take a quick part-time job – in the evenings¬†to supplement the income of your new full time job? I mean, when you¬†take a job, you have to wait for money to come in, but atleast you will¬†know when it’s coming in and this way you can start to learn how to¬†plan what you will do with the money as far as getting back on track¬†with your living expenses and finances. Don’t despair- you can do it!¬†Can you give your landlord something you own (a valuable) as¬†collateral – so he or she feels easier about giving you an extension to¬†pay the rent.¬†You may also find out what the rental laws are in your area. I know in¬†some states a rental agent or landlord cannot evict a tenant unless¬†they are a month or more behind in rent. Take the time to research what¬†your rights are as a tenant.¬†As for why or how your credit got destroyed, this can be slowly turned¬†around if you really want it to. Ask for help on this group and I’m¬†sure you’ll get tons of great advice about finances and getting healthy¬†with your financial life.

First of all talk to the landlord about your rent. A couple of weeks past due may not harm you. They have to go through a court system to evict you. They have to give notice, etc. Contact your local renters commission or something. Ask around. Maybe seek assistance at your local Family Independance Agency. They may be able to help with rent and food to help you stay on your feet and in a home. It doesn’t hurt to ask for resources.
Local churches might also do free food programs so you don’t have to spend money on food and what you would have spent can go towards rent.

Re: Desperate please help! Some solutions.

I moved to Nevada and was suprisingly out of work 3 months. Finally, I got a good jub, but it may have come too late. My rent is a couple weeks past due and I am gonna be evicted if I dont get a loan in the next day or so. I just got married and have animals. I can not be homeless! here is the problem:
atrocious credit- it is bad. my fault. i was young and stupid no assetts- need an unsecured loan new job- no verifiable work history or time at my addressWhat can i do? i must have tried every online lender out there! all of them rejected me. on top of that, my credit must have been run 100 times. prosper.com is the common suggestion. they said no.

i am in a serious state of panic. no interest rate or other terms bother me. i will pay whatever. i can set up direct deposit to
have the loan paid first. that does not help me. anyone have any suggestions? if i can not get this done, i have been thinking of
some very negative scenarios to try to do something. and these are not something i want to do. please help
Do you have anything you can sell? Stereo, TV, ipod, computer? I’d¬†sell stuff rather than get any kind of loan.¬†Here’s what I would do. Remember, nothing is¬†hopeless. Nothing! Sometimes fear and panic gets in¬†the way of looking at all your options.
You have to decide what you are most comfortable with, but here are a few ideas:
  1. Contact a local church/synagogue/mosque and speak to¬†the clergyperson. They may offer resources you don’t¬†even know of. We’ve all been down and out at some¬†point in our lives in some way. I would do this¬†first, as soon as you can get to a phone. If you are¬†scared enough to write what you wrote, you need to get¬†a support system in place to get you through this.
  2. As far as your pets go, I understand they are like¬†kids to you. With this thought in mind, and knowing¬†that you want what is best for them and for yourselves¬†(getting back on your feet), I would work to find¬†homes or foster homes for them. “Best for them” might¬†mean being in a more stable environment, at least¬†temporarily. There are people out there (and¬†shelters too) who will foster until you get on your¬†feet. Seriously, the last thing you need to worry¬†about now is feeding and sheltering them–it is a¬†drain on finances that you do not have. See if you¬†can find a 6 month foster situation if you can’t bear¬†to part with them.
  3. Make a list of your options…staying with family,¬†friends, even the YMCA or a shelter if needed. Find¬†out how to get to them and what you can take with you¬†if you need them. That way, you know you are not¬†literally out on the street. Your clergyperson may¬†help with this also.
  4. Is your spouse working? Keep job hunting and do whatever it takes to start bringing in money (legally, of course!). Slinging burgers at McDonalds is better than where you are at now. If nothing else, it will raise your confidence that you are trying to do something.
  5. As soon as you are able, try to take a course on¬†budgeting. I’m taking a Dave Ramsey course now and it is excellent. I believe¬†in some cases they offer scholarships and so you don’t¬†have to purchase the kit, but I’m not sure. This¬†course gives you budgeting skills, motivation, and¬†hope, and it is nonjudgmental. I’m finding it is¬†changing our financial life.

This is a rough situation, but I think you still have some options.¬†I’ve never had to do this, but my bank offers an advance for people¬†who do direct deposit–it might be worth looking into with your bank.¬†I’d be more comfortable with that than with one of those predatory¬†“payday lending” places. (Don’t do that, by the way).

Can you negotiate at all with the landlord? Maybe put a payment plan¬†(that you can manage) in writing, and see if they’ll go for it. I’ve¬†never been a landlord, but I’d think that would be preferable than¬†just booting you out.

Otherwise, see if a family member or friend can give you a temporary¬†loan, and again, put the payback terms in writing.¬†Is your spouse working? Have family or friends willing to help?¬†Technically, if you’re married, it’s really everybody’s problem. That¬†can be both a blessing and a curse. ūüôā