Credit Card Debt Judgement

amother

Goldenrod

Tue, Jan 15 2019, 11:05 am

Been through hell and back financially.
We have so much credit card debt. We defaulted because we had no money to put food on the table.
One of the credit card companies filed a motion for judgement which was approved. I can still go to court tomorrow to settle.
Thing is. I don't have money for it, even if I settle. And I don't have money for the lawyer either.
Anyone have any advice?
If I wouldn't have kids I'd take my life right now. I'm in such a black hole financially , and it just keeps piling up. No matter what I do.
I don't have the energy to do this anymore.
If you know of anyone that can advise me please let me know.
Thank so much in advance.

ra_mom

Tue, Jan 15 2019, 11:15 am

Can you file for bankruptcy? With hard work you'll be able to rebuild your credit over the next 7 year's. Maybe a JCC can help you figure out the process. Or Achiezer can help put you in touch with someone probono.
Hug

TwinsMommy

Tue, Jan 15 2019, 11:21 am

We settled with a credit card without court or a lawyer. We made sure that was the FIRST bill we paid each month. Are you and your husband both working full time? Can either take on more work for more income

ra_mom

Tue, Jan 15 2019, 11:24 am

amother wrote:

Thanks ra-mom. Just your response made me cry. At least someone cares.
What's Acheizer?

Of course I care. Hug

Achiezer Community Resource Center is a community center in Far Rockaway. Rabbi Bender runs it and is a big baal tzedakah. I know a professional (unrelated profession) that was approached by Achiezer and asked to take on a case pro bono. Neither the professional nor the recipient of the work was from Far Rockaway so I'm sure you can reach out even if you don't live there. Maybe they'll be able to help anyway or know who you can reach out to instead.

amother

Goldenrod

Tue, Jan 15 2019, 11:39 am

TwinsMommy wrote:

My husband works more than full time. I work part time but can't take on more now with my baby. Not worth it.
I think I'm beyond paying off if I defaulted.
I don't even know anymore.
Is a judgement terrible? Maybe I'll just have to let it run it's course and reach out to Acheizer about the rest.

amother

Goldenrod

Tue, Jan 15 2019, 11:39 am

ra_mom wrote:

Of course I care. Hug

Thank you so much. I'll look into it

amother

Aquamarine

Tue, Jan 15 2019, 11:51 am

amother wrote:

Is a judgment terrible?

Well, let's put it to you this way. Do you own a home? Because they will put a lien against it, and could potentially force a sale if your equity exceeds its value; if not, they will take it when you sell. They could attach any bank accounts that you have. And they could attempt to garnish your wages (they would probably wind up taking a couple hundred a week, or 25% of your after-tax income, whichever is less, if they do that, but not everyone does).

The judgment will continue to accrue interest, and lasts 21 years (IIRC). So they can keep after you that long.

You really want to pick up a phone and call the attorney, to see what can be worked out in terms of a payment plan. See if you can get a loan from a gemach to make a first payment, then go from there.

If not, think about bankruptcy, or call a credit settlement company. Or something.

amother

Hotpink

Tue, Jan 15 2019, 12:29 pm

amother wrote:

With a judgement - there is potential that your assets can be seized to pay off the debt. Reach out for help.

Its going to get better.

ra_mom

Tue, Jan 15 2019, 12:29 pm

Aquamarine has a great point about homeownership. If you own a home or other assets, bankruptcy may not be for you. I have a friend who had to go through this years ago. She didn't own a home and BH when she got back on her feet she was able to restore her credit starting at 7 years and was eventually able to buy.

amother

Aquamarine

Tue, Jan 15 2019, 12:36 pm

ra_mom wrote:

Most, maybe all, states have homestead exemptions that allow you to save your principle residence. That's what makes consumer bankruptcy attractive to a lot of people.

The important thing is that OP understand that this is not "oh well, they have a judgment, what good does that do them" kind of thing. If it doesn't get worked out with them, and there is no bankruptcy, they will get their money, sooner or later.

thunderstorm

Tue, Jan 15 2019, 12:36 pm

A judgement will affect you if you own a home and want to sell it, because it becomes a lien on the property. Which means it will have to be paid off and satisfied in order for the property to have a clear title. It will also affect you if you try taking out a mortgage in the future, the title search will turn out the judgment on your name and the lender won't be willing to give a loan without a clear title. It's pretty common that people pay off their judgments when taking out a mortgage or when selling because the property needs a title free and clear of judgments or liens.

amother

Forestgreen

Tue, Jan 15 2019, 2:00 pm

Can you contact a debt consolidation company. They contact the credit cards and try to come up with a payment plan, even sometimes removing some of the debt entirely--just to recoop some of the money. I don't believe you pay for the service, but could be wrong.