Judgment/Community State/Questions

[Anonymous]

My husband was served papers on 7-2-09 for an old, unpaid credit card debt through Chase.  We have been doing research and trying to figure out what we are going to do.

The papers are asking for admission or denial of the debt within 15 days (tomorrow).  We are trying to work out a settlement directly with the collector's office (the debt was sold to Palisades Collections).  We haven't heard back from them, so my husband will call them again today to see if they will accept a settlement.

When you receive papers from the county court's office to admit or deny the debt, what happens after that?  Who do you admit or deny to?  Then what?

Also, Louisiana is a community property state.  My husband is out of work right now, but I am employed.  However, the credit card was obtained before we ever got married.  Does that make it my debt too?  Meaning, can they garnish my wages since he is unemployed?

[Anonymous]

Garnishment only comes if you don't make a payment plan with the plaintiff/plaintiff's counsel.  If you set up a payment plan, then they won't garnish you.  The court and plaintiff's counsel look at garnishment as a list ditch effort to collect from those people who just won't respond to anything.  So do you think it will get to garnishment?

The papers are asking for an "answer" and the answer would go to the court (and be served on the other side).  An answer consists of you admitting and denying each (usually, numbered) paragraph in the complaint.  Once you have the answer put together you should serve it on the other side (obeying service rules where you are) and file it with the court.  Really, the important question is whether this is your debt or not.

If you don't, you would probably be deemed to have admitted to the debt.  That's how default judgments happen.

Garnishment rules vary by state and sometimes by municipality, depending on what court the case was filed in.  So it's hard to answer your question about community states.  Basically, if the debt is a marital debt, then the parties in the marriage are responsible for it.  Including you.  But there are all kinds of exemptions and exceptions that may mean that where you are, they couldn't get to you and your salary/wages, or to your portion of the money in joint accounts, or your separate accounts.  There are just too many variations, and they are too specific to location to give a general answer. 

The question is whether or not you will force them to garnish you.  I would set up a payment plan just so I wouldn't have to figure out the answers to those (other) questions.

Message Edited by jesslyn on 07-16-2009 12:21 PM

[Anonymous]

Okay, I understand.  No, it will not get to that point.  We are trying to work out a settlement right now with them.  We would rather avoid court altogether.  They were supposed to call us back Monday to give us an answer on the settlement, but they never did.  So, my husband will be calling them today.

We will definitely set up a payment plan to get rid of this debt.  When they set up a payment plan, is it usually reasonable or not?  Does it depend on your monthly income or do they just come up with a flat fee and you pay it or else?

And yes, the debt is valid.  It is his unpaid debt. 

I am afraid we will run out of time to work with them (15 days) and he will get a judgment against him anyway.  If we miss the deadline to admit or deny the debt, what happens then?

Because we were served papers to admit or deny the debt, does this mean that we are getting sued and they will win, no matter what?  Or do they have a certain amount of time to do everything, also?  I guess my question is: is it possible that this could go away?  Haha, what a dream!

Thanks!

[Anonymous]

It won't just go away, so don't ignore this issue!!!  Not responding or showing will just give default judgment on the creditors behalf.

Since the debt is valid, you are responsible.  Next question, is it beyond SOL?  If so, part of your response could be that it is your (his) debt but it is beyond SOL and you request it be dropped for that reason.  If you are NOT beyond the SOL, then you must work something out with the CA.  Best case scenario, they set you up on a payment plan and DISMISS the judgment.

But either way, setting up the payment plan is key to avoid the garnishment.  

[Anonymous]

If you do not PIF prior to your court date, it is extremely unlikely that you could negotiate a payment plan with the end result of dismissal.  If it's not settled prior to your court date, you will get a judgment.  Once you have a judgment, it can't just be dismissed, the plaintiff would have to file a motion to vacate, that the judge could then grant or deny.

Payment plans will usually (almost always) still result in a judgment.  That way if you don't keep up your end of the bargain, they don't have to go back to court.

Is there an SOL issue here?  That's not just the next question, that's the first question.  If so, that would be an "affirmative defense" that you would have to raise in your answer.  If you don't raise it in your answer, then you would probably be deemed to have waived that defense, and wouldn't be able to raise it at the court date.

Here's another variation from the other day

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=73468

[Anonymous]

No, we definitely won't ignore it; we know that would make it worse.  And we do feel the need to pay this debt off. 

No, it is not beyond the SOL.  So, that's not an option. 

The CA offered us a settlement of about $6500 or we could pay $550 a month for 30 months.  The latter is not an option because it adds up to over $16,000.  We offered to pay them about $4500.  I'm hoping they will accept it, but they probably won't.  We shall see tomorrow.

There's no court date on the paperwork that we received.  It basically just states the debt amount and also asks for him to admit or deny the debt within 15 days. 

[astrangerwcandy]

Are you sure these are actually court papers? They kinda sound like a fake court paper trying to elicit a response. Definitely don't assume they are but I'd get it checked out. If they are not actually court papers I'd request validation. If they can't provide it then they are outta luck on making you pay in court since they are a CA, not a creditor.

[Anonymous]

Have you checked the SOL? In Louisiana it is only 3 years for credit cards...what was his DOLD? someone tried to come after DHs grandmother for her deceased husbands debt (she lived in texas at the time) without even getting in to all the other stuff we pointed out that it had exceeded the SOL in both Texas and Louisiana and that we would give them $500 (on a $5000 offer from them) to go away and take all info off of her report... alternatively we would be looking for a $1000 payment from them for inaccurate reporting. They took the $500.

[Anonymous]

Well, now I'm not sure.  I haven't dealt with any court before in my life, so I don't know if I could even spot "fake" court papers.  At the top, it does say that my husband has been sued, it lists the company who is suing him, and it gives the courthouse's information, but no court date. 

It might be a tactic to get a response.  How do I check the validity of them?

So, I can call the CA and just tell them I need validation of the debt?  And they can fax it over or something?

I'll get my husband to do that, and I'll also see if he can scan the papers to me so I can get more information.  Thanks.

[Anonymous]

Probably not fake papers.  A fake docket number is one thing (we've seen that recently too).  But falsifying a lawsuit could result in disbarment for the lawyers involved, and big fines for the civilians.

Some courts do not set a court date until the answer is filed (or not filed).  Remember, the answer would be filed with the court.  They're not asking you to send them something. 

If it will make you feel better, call the court to verify whether or not there is a case pending.  Are we past the deadline for the answer yet?

It is past time to try to get validation of the debt independent of the lawsuit.  They don't have to prove anything to you at this point.  They just have to prove this to the court.