Possible to break Rn Residency contract

[blueeyedboxer]

Hi all, OK well I signed a contract that says I will do the two years. I haven't taken NCLEX, so of course there has been no orientation. I did however take a drug test. I need to rescind the contract. Anyone familiar with this type situation or who can share their story? They haven't paid me one cent. Thanks

[Horseshoe, BSN, RN]

What communist state do you live in that would let a judgement go on a credit report?

You can't get a judgment put on credit report in Texas.

Hmm, do I just take PinayUSA at his word, or should I believe a lawyer familiar with Texas law?

The granting of a judgment against you does show up on your credit report, and can legally stay on your credit report for 10 years, even if it's later paid in full.

In Texas, they cannot garnish your wages to fulfill a judgment. BUT:

Now, it's important to understand that once you deposit your paycheck into your bank, it's no longer considered wages. In fact, once it's in your bank, it's fair game and a judgment creditor can have a Writ of Garnishment issued from the Court, which freezes those funds. You have the right to a hearing, but normally the money ends up going to the creditor.

As to taking one's home: They cannot come after your primary home. BUT:

Now, your homestead, so long as it meets the definition of homestead under Texas law, cannot legally be sold to pay the usual judgment creditor. However, you'll find it difficult to sell your homestead if you have a judgment against you, because a title company will not insure your title.

AND:

But if you have any non-exempt real estate, such as a lake lot, rental property, or any other real estate that is not your homestead, then it's fair game, and can be sold by the sheriff to satisfy the judgment.

And finally, EVEN IN TEXAS:

In short, having a judgment against you can be a real hassle. And you're never getting anywhere. The interest keeps ballooning how much you owe, and if you ever get anything, an inheritance or if you start a business, the judgment creditor may show up with a court order to grab it. Your credit will be goofed up with the judgment for as long as it's on there.

Texas Lawsuit and Judgment Basics | Law Office of J. Thomas Black, P.C.

All that said, I doubt the OP's employer is going to go after her, since she hasn't started and they haven't yet paid. But of course, look at the contract.

[Julius Seizure]

Yes, I did. I just have to repay. Nothing has been paid out. Its contingent upon me passing boards.

You could always fail your boards on purpose then

Not that I'd recommend it!

[Pangea Reunited, ASN, RN]

Incorrect

Texas is very debtor friendly state. Very hard to collect a judgement and many things are exempt from judgements such as house, car, etc. Never have I heard of anyone getting a judgement from small claims court placed on a persons credit reports, and I have filed and won in small claims court only to understand it is a waste of time and effort.

I'm from Texas and I've had a judgement from a Texas court placed on my credit report while living in Texas. It only turned up on one of the big three, but it did turn up.

[steppybay]

Incorrect

Texas is very debtor friendly state. Very hard to collect a judgement and many things are exempt from judgements such as house, car, etc. Never have I heard of anyone getting a judgement from small claims court placed on a persons credit reports, and I have filed and won in small claims court only to understand it is a waste of time and effort.

Once any kind of funds (be it from your friend, from your employer (wages)-even in the state of TX) goes into your personal bank account (even a business account), it's available to any creditor who has a judgment against you. It's fairly easy to file the "writ" with the court ordered judgement in hand and collect the owed monies.

Not knowing your particular small claims you obtained but this is done all the time to go around the debtor, I'm surprised you haven't collected yet.