Beyond bad credit-struck by lightening twice - page 4

Ok-I really need to know how this not affects not only getting a job, but my being able to get a license! It is long! I have ALWAYS been careful with my credit. Credit is too picky. Not having... Read More

  1. by   Lisa CCU RN
    Quote from lizz
    Wow. I didn't know that some states set limitations like that. My husband just collected the remainder of a judgement involving a car accident that went back to 1998. That also involved a property lien. So ... I guess it does vary state by state.

    He had the judgment already? This would be different because the order to pay was already in place. So he would have however long to collect an already in place judgment. What I'm speaking of is actually getting a judge to palce an order to pay. There wouldn't be a limit in how long it actually takes to collect the money though. In reality, big companies are not going to sue every single person that owes them money. To do so would be inefficient and costly. If they are unable to collect immediatley, they have just put themselves in the hole because they will be out time and court costs until they can sue and collect that amount from you. If the company doesn't think they can get it from you they are less likely to sue. Now a small company with few clients is more likely to sue because they have less clients and more time. If a creditor is not in your state then they have to send representatives to you and take you to court. A company like wal-mart may have the money to send a lawyer to sue you, but they also may have thousands of people whao have defaulted on their credit obligations and each must be dealt with one at a time. You have to get court dates, send out notices to appear in court, you have to find the person, pay court costs. If the time and money spent to find someone, pay court costs, etc to sue someone over a small amount ( like less than $1000 dollars) would exceed that amount, then they are less likely to bother and will probably just charge off the debt.
  2. by   nurse4theplanet
    Quote from lizz
    True ... but at what rates and fees? Usually you have to pay through the nose on those deals when you have bad credit. It's very expensive. One way or the other, you end up paying the debt ... really. Might as well pay the bills on time and save your credit.

    That will depend on the lender and the unpaid debt in question. I am not saying that she should not try to fix the problem. But what is done is done so she needs to relax and figure out a plan to deal with it. It's not the end of the world. Like another poster said she may not help her credit even if she paid it off, so its best to see a financial counselor who can help her mull through all the options.
  3. by   Jo Dirt
    Quote from lizz
    BTW ... the unpaid bill does stay on your credit report, even when you pay it, for seven years. There's no way around it if it's a valid debt. But, of course, it looks better when it's paid than not paid.

    Stays on your credit report but has no effect on your score. I had some unpaid bills and before I could get the mortgage on my house I had to pay the bills and it took 90 days to get them removed from counting on my score. But anymore I don't do credit, so I don't sweat my credit score.
  4. by   HitmanCFYA
    Quote from menolly_33
    Go to www.daveramsey.com.
    I've spent so much time and energy in my lifetime worrying about money and debts. I am finally in a place where I have no worries. I have a plan, know where my money is going, what is coming in and what is going out. I have read so many books about money management and most of them were ok. They all said you need to budget and plan, but most of them never laid out how you go about doing all that. Because of the advice and tools I learned from Dave's books and tapes, I finally feel have financial peace. I know I will be able to retire someday, something I never thought would happen. I just wish I had found his books and tapes years earlier.
    Dave's the man. I listen to him everyday. It makes life so much easier not having to worry about a bunch of credit card bills, or student loan payments, or whatever. He's starting to get more and more mainstream. Oprah, Today Show, 60 Minutes, etc. Just fundamental stuff too. Nothing gimicky.

    Debt is dumb. Cash is King.

    Scott...doing better than I deserve.
  5. by   Faeriewand
    hmm
    Last edit by Faeriewand on Nov 2, '06
  6. by   nurse4theplanet
    Quote from Faeriewand
    I did read your post thoroughly the first time and I still stand by what I said. You did create your own situation, (going on the supposition that we all create our own "situations").

    Some people live by the belief that if one cannot pay for an object with cash up front then one cannot afford it. It's just a way to keep out of debt.

    It's understandable to help out your husband and expect him to pay when the time comes but where you come in is by checking that did he in fact pay that bill?

    I'm not saying these people did not do you wrong. Sure they did.

    I have no doubt that you are a responsible person and just felt blindsided by these financial situations. If one can see what their part is in a situation however, then one can see more clearly and learn from life's experiences.

    This coming from one who has made many mistakes....financial and otherwise.
    I think that you meant well but your wording took on a sort of tsk-tsk kick em when there down tone. She doesn't need to hear what she did wrong, bc it doesn't matter....what's done is done. She needs advice on what to do about it NOW. See my point?
  7. by   Faeriewand
    Yeah. I stand corrected. My apologies.
  8. by   airis
    [quote=LPNtoRN]First of all, do not let bill collectors be successful in scaring you with their tactics (often which are not legal). Bill collectors are scum. This isn't saying you should be excused from owing the money, but a bill collector's job is to get you emotional so you feel you must take action right away, even before putting food in your mouth or keeping your lights on.
    They will get nasty with you. They will threaten you, but keep in mind you are talking to an idiot in a cubicle probably 500 miles away who has NO authority whatsoever.

    THEY ARE NOT GOING TO TAKE LEGAL ACTION. Don't let them bully you.



    I used to believe that collection agency wont take any legal actions. They used to send my husband nasty letters saying they were going to garnage his wages or take him to court. So, oneday we got a letter from the court saying he had to appeal on this date but he didnt. Few weeks passed we havent heard from the court but we still kept getting letters from the collection agency. Last friday when my husband got paid, his paycheck was reduced because the credit company garnished his wages. When they say they will take legal action they are telling the truth.
    My husband stopped paying this credit card 8 months ago and now the company garnish his every paycheck. The solution is to file bankruptcy.
  9. by   airis
    Quote from LPNtoRN
    First of all, do not let bill collectors be successful in scaring you with their tactics (often which are not legal). Bill collectors are scum. This isn't saying you should be excused from owing the money, but a bill collector's job is to get you emotional so you feel you must take action right away, even before putting food in your mouth or keeping your lights on.
    They will get nasty with you. They will threaten you, but keep in mind you are talking to an idiot in a cubicle probably 500 miles away who has NO authority whatsoever.

    THEY ARE NOT GOING TO TAKE LEGAL ACTION. Don't let them bully you.

    Second, if bad credit kept people from getting a license or a job there would be about half as many licensed and employed people as there are. The only thing you might be concerned about is your loan from school, as the school does have the authority to garnish your wages until the bill is paid. But so what? When the bill is paid it is paid and will be off your credit.

    I personally do not believe in credit. So my fica score (or whatever it is) means nothing to me. Contrary to what some people will try to make you believe you can exist in a world without credit and do it well. But whatever you decide to do don't let those bill collectors put fear into you. They are full of hot air, that is all.

    I used to believe that collection agency wont take any legal actions. They used to send my husband nasty letters saying they were going to garnage his wages or take him to court. So, oneday we got a letter from the court saying he had to appeal on this date but he didnt. Few weeks passed we havent heard from the court but we still kept getting letters from the collection agency. Last friday when my husband got paid, his paycheck was reduced because the credit company garnished his wages. When they say they will take legal action they are telling the truth.
    My husband stopped paying this credit card 8 months ago and now the company garnish his every paycheck. The solution is to file bankruptcy.
  10. by   jodyangel
    http://www.creditboards.com/forums/

    Read here and become empowered!!
  11. by   Sheri257
    Quote from airis
    So, oneday we got a letter from the court saying he had to appeal on this date but he didnt. Few weeks passed we havent heard from the court but we still kept getting letters from the collection agency. Last friday when my husband got paid, his paycheck was reduced because the credit company garnished his wages. When they say they will take legal action they are telling the truth.
    My husband stopped paying this credit card 8 months ago and now the company garnish his every paycheck. The solution is to file bankruptcy.
    As this post demonstrates, you should always show up in court but, a lot of people don't. You can ignore lawsuit threats but you shouldn't ignore court notices because the court will automatically give the creditor the judgement if you're not there. If they've gone to the trouble of getting the judgement, they're going to use it.

    It's always best to show up in court and try to work out a payment plan. The terms are usually more favorable than the judgement plus interest, penalties and court costs. And, it's also important not to let the appeal process expire (which is usually 30 days) because you might get better terms on appeal.

    Last edit by Sheri257 on Nov 28, '05
  12. by   Agnus
    Magic words to say. "I am judgement proof."

    Use these words with collection agencies and collection departments. They will back down as you have told them you are savy.

    They can file suit and be awarded judgements against you all day long for any amout of money. When a person is judgement proof the other party sseldom actually files a suit because they know they can not collect on that judgement. IT will cost them a lot of money to file suite for something that they can not collect on. They are not stupid.

    Judgement proof means this. You do not have the means to pay it and it is unlikely that you ever will have the means.

    The last part is important for you to know because some might say to you that they (it is true) can collect on any future earnings (garnishment of wages if you ever improve your situation)

    Since you aparently owe the school you will not be staying in school long if you do not pay. So they know your future earning potential is doomed.

    With other creditors all you have to say is that you have no hope of future prospects for a higher income.

    I would write (not verbal) to the creditors (not the collection agency) and explain what happened. You have the right to tell the collection agency never to call you again and they must obey or you can sue them. However, they can still file judgement against you so let them know you are judgement proof before you tell them to stop calling.

    Depending on the size of the debt if it is small enough they will never file against you because the expense will far outweigh the debt.


    It is really useless to discuss anything with a collection agency. On the other hand the crditor is another story.

    I would also talk to the relative who was suposed to be paying this. Maybe they did pay it. In anycase you need to know how much they did pay.

    I would send a letter to the credit bureaus and explain the circumstances of these debts and ask that it be added to your credit file.

    Finally I would take charge of any debt where you are held responsible and pay those bills myself. If your spouse is withholding mail from you then get yourself a post office box or you can rent boxes at places like Mailboxes Ectera. Your name only should be on the box and all creditors that you are responsible to should send mail there. Only you should have the key and your spouse should not have his name on the box. That way you know exactly what bill comes and what is done with it. You should have all mail sent to that box. Do not even give spouse the # of your box.

    You have been struck twice. Now it is up to you to make sure this does not happen again and only you have the power to do that.

    Generally BON will not ask questions about such things. If you feel that it may be an issure write them an explaination and tell them what you are doing to fix it. As far as jobs go if judgements etc come up again expain and tell them what you have done to correct the problem.

    As soon as you can make arrangements with the school to pay off your tuition. You may be able to get loans etc. Go in and talk to a financial aid person in person and see what you can work out. YOu may be surprised once you explain your situation and tell them why this wont happen again and make a good faith effort to remidy it asap. Getting a job will be the first responsible step to fix this. It will be tough but that is a vital step. As long as you are not disabled you must get a job.
  13. by   Sheri257
    Quote from Agnus
    Judgement proof means this. You do not have the means to pay it and it is unlikely that you ever will have the means.
    I still don't understand this "judgement proof" thing ...

    So you have to remain poor the rest of your life so they can't collect a judgement on you? That doesn't sound very promising.

    What do you do ... not take a job because you want to be judgement proof? Or not a buy a house because you don't want to pay the judgement?

    As soon as you do make some money, they can garnish your wages. Not to mention put a lien on your house, bank accounts, etc.

    I don't know anyone who plans on being poor for the rest of their life so, I'm not sure anyone is judgement proof, really.

    Last edit by Sheri257 on Nov 28, '05

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