Beyond bad credit-struck by lightening twice

[august_snow]

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 any is bad, too much is bad, maxed out cards are bad, paying minimums is bad...we all get it. So anytime that I have had a credit line, I have been careful, used it wisely and paid it off in a timely fashion.

So why have I been struck by lightening twice? Here goes-

STRIKE ONE

In 1999-I bought a computer. Was paying on it and the company I worked for closed. Literally, I walked into work one day and was told we are no more as of the night before. Wham! No job, no income.

So what to do with this computer? My father's wife needed one terribly. Took it and was making the payments. No big deal. Trusted her completely, no reason not too.

Fast forward to last week-call from collection agency. Bank has not received a payment since 2003, I had been in collections since 2004 & if I don't clear this up, they are taking legal action.

STRIKE TWO

In January of this year-I had a college bill due in February. I had the money, was getting ready to pay it and husband asks if he can use for some bills his check couldn't cover and he will pay with next weeks check.

Fast forward to tonight. I am going through the pile of bills and way in the back are not one, not two-but five letters from this college because it was never paid! The last one was never even opened! So I open it and it is dated for September and says that on November 9th they are turning it in to the State Attorney General for legal action! I AM FURIOUS!!!!!!

I cannot believe this happened twice and it hurts that people, within my own family, has let this happened without talking to me when they were in trouble!

Both companies want to sue me not only for the amounts, but for the court fees and their attorney fees plus interest! I am in school- I have no job, no money and no assests! My husband has been out of work due to re-aggrivating an injury from when he was in the NAVY. There is no money right now! And now, my credit is gone!!!!

So it goes beyond bad credit. Two different companies have turned me in for legal action. What in the world does this do for my chance at a license and/or a job? At this point, I am more worried about the legal action being taken showing on my record then I am the actual credit. Help!

Please help-I think I am going to be sick!

[jodyangel, RN]

http://www.creditboards.com/forums/

Read here and become empowered!!

[Sheri257]

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.

[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.

[Sheri257]

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.

[Lisa CCU RN, RN]

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 really judgement proof.

If you are permantly disabled, then you will never be able to work again and make anymore money than the disability you collect; this could make you judgment proof. If you are judgment proof for the length of time it takes for your statute of limitations to run out, then they won't get anything because the time is up. You could go out and get a 50,000 a year job the next day and they couldn't touch it IF the statute has run out. If they already had a judgment they WOULD get it though. this is if and only if they had secured a judgment BEFORE the SOL had run out, They may have to wait for you to make some money or gain an asset for them to garnish however. Sadly, some people will try to remain broke or hide assets just to avoid paying. Just ask someone who owes child support! I'm not saying that this person should do this, all I was suggesting by bringing it up was that she may be able to avoid being sued and having it further ruin her credit. According to the information she provided me on the amount she owed, I seriously doubt they will sue her over such a small amount. I am not a pro or anything this is just my opinion. She is best off just making a payment arrangement and getting it in writing. One more idea for the OP. If you do make payment arrangments, ask them if they will remove the collections denotation off your record and as you continue to pay as agreed ask them if they will note this on your credit record. Be very nice and let them know it was a mistake and you'd like to fix it. I did this when I was sick once and missed a lot of work. I asked the credit card company if they would remove the missed payment if I paid on time for 3 months. They did it after I made ONE payment. The other credit card company wouldn't do it though, so maybe I didn't ask them nicely enough. I hope this clears it up.

Another situation could be a person who just lives with people who pay the bills for them ( I know people who have it like this) and they don't have a job, but they just live with them. Since they are not married, they can't attach anything to them and they get away with it. Now, when the statute time is up, then they could go get a job, but it would be too late for the creditor to get a judgment. There are ways around everything. Yes, I know quite a few people who were not so honest, but then again I some just used the laws to protect themselves and paid later when they were able. The creditors don't care that bad things happen to good people, they just wan t their money NOW.

[gauge14iv, MSN, APRN, NP]

As I posted previously....

If you choose to pay off an outstanding debt (less than two years old) mark the back of the check “accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit” You may be able to use this canceled check if the outstanding debt is not removed.

[august_snow]

First let me thank you all! I received some WONDERFUL advice on here!

I ended up setting up payment plans with both of them. I am going to request from my father's wife that if she cannot come up with proof of paying it off-then I would appreciate her footing the bill, but if she doesn't then there is nothing I can do but pay it myself.

My husband feels terrible and has marked every month on his calendar with when the payments are due to my previously attended college.

So it has all worked out. Again, thank you all! I really appreciate all your help!

[RosesrReder, BSN, MSN, RN]

First let me thank you all! I received some WONDERFUL advice on here!

I ended up setting up payment plans with both of them. I am going to request from my father's wife that if she cannot come up with proof of paying it off-then I would appreciate her footing the bill, but if she doesn't then there is nothing I can do but pay it myself.

My husband feels terrible and has marked every month on his calendar with when the payments are due to my previously attended college.

So it has all worked out. Again, thank you all! I really appreciate all your help!

Glad to read this. Best wishes to you. :)