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  1. #1
    Join Date
    May 2005
    Location
    ANAHEIM CA
    Posts
    3

    Default Is Bankruptcy The Best Option?

    Im currently 26 in Anaheim CA. I work for a loan broker on a full commission basis, some months i can make $5k some months, i make nothing.
    Basically when i was 19 i bought a civic- It was paid a few months and then i lossed my job and it went into collections. Shortly after it was stolen and didnt have full coverage.
    I had financed rims on it and those were charged off as well.

    I ended up moving and come to find out, i was obviously sued and a judgement was put on my record. The papers were served to my former address but never to myself, my former job was also served with wage garnishments for the original judgement. I requested copies from theoriginal court and it looks like at one point i was ordered to appear for an examination. Then 5 years later the Judgement was reassigned to a different collector with $5k in interest tacked on.

    I was once again "served" at my former adress with an assignment letter of Judgement.

    This collector obviosly did a better job of contacting me, because within 5 months they have slapped a LEVY on my SAVINGS AND CHECKING ACCOUNT. Luckinly, they hit was at a good time with checks clearing and days before monthly payroll, they got about $1k.

    Now the way the car was sold, the insurance offered and contracts were all shady- including the orignal car salesman- and even looks like the firm let this sit for 5 years to build interest- but i know that means very little at this point. I defaulted and owe a debt.

    I depsoited enough money to cover other debits in my bank account, but obviously will stop my direct deposits from here on until i settle this. My credit has been VERY TERRIBLE since this car, and to be completely honest- there is no way i can pay this 14k- i think its criminal!

    So i guess my question is this: I have these guys hot on me now, they have my account and im afraid wage garnishments are next. Im not a lawyer, but it also looks like i can be arrested and forced to show my financial stability!!! They want $14k. I believe i have another judgement in small claims for the rims, for about 2500+ 5 years of interest. I have a few medical bills that would push $3 or 4k. A few cellphones and small purchases that would bring another $2k or so as well. I have no reall assets, except a 401k accoutn with around $20k in it. The bank account is not going to be used but id say the ending average balance would be roughly $1k.
    I really want to get all this crap behind me and repair my credit, things from when i was a teenager have really screwed me- i cant even get a secured credit card.
    If BK is an option, to be honest id rather do that and start it over repairing it. I know i can be responsible now with my job and stability, but its tuff havin to worry about money being stolen from your account and not being able to pay rent.
    If its not, i definately need help to stop these actions. These collectors arent even calling me, theyre simply just attacking my bank accounts and i know its a matter oif time before im served with tthe wage garnishments....and i dont know if my firm would like that evry much. (possibly firing me)

    I either A. Need to be able to file for BK somehow and counseled how discharge as much debt as possible and rebuild. (which imhopin woul dbe the easiest for my credit and cheapest) or...

    B. Need to get some hardball negotiations done with these creditors (especially this car note that defaulted and is now a $14,414 judgement- and they have EVERY RIGHT to take ANYTHING from me) and work out a payment plan to repair my credit in a timely fashion (if possible) and allow me to live my life.

    Like i said, im on full commission at my work place. The last 2 years id say i made about $40 and $50k- so im not sure Bk would be possible if the courts thot i was just doing it do excuse some of this debt. The fact is these creditors are forcing me to consider this because of their collection practices and HUGE INTEREST that occured. The time it would take me to pay this off is crazy and im sure my credit would still look like a pile of dog doody.

    Please give me any immediate advice and we can discuss in further detail when you have time.
    FYI- the Levy was enforced on the 10th so i need to get started ASAP. Ive been digging up old paperwork and judgements.

    Thanks for your timein advance.

    714LEVY
    Mike M.

    My emails are:
    mmcneil@alliancefunds.com
    ogmrgreen1@yahoo.com

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Considering Bankruptcy

    We have posted an article to help you determine if bankruptcy is an appropriate option.

    In relation to the car, you may be able to attack the underlying judgment on the basis that you were not properly served. It is not clear how service was effected, or if proper procedure was followed - and if not, you may be able to attack the validity of the judgment. (If service was proper, even if in the form of substituted service, you're probably stuck with that judgment.)

    If you file for bankruptcy, you need to do so soon. Right now you can choose between Chapter 7 and Chapter 13 bankruptcy. From what you have stated about your income, given changes in bankruptcy law, starting in October you will be limited to Chapter 13 bankruptcy. Thus, if you are considering a Chapter 7 discharge, you need to get your case filed now and resolved before the Bankruptcy Reform Act takes effect in October.

    It wouldn't hurt you to consult with a bankruptcy lawyer about your situation - the sooner the better. It may be that after the consultation you will find that bankruptcy is not the best option for you. But if you wait, your options will become more limited.

  3. #3
    Join Date
    May 2005
    Location
    ANAHEIM CA
    Posts
    3

    Default Re: Considering Bankruptcy

    Quote Quoting aaron
    We have posted an article to help you determine if bankruptcy is an appropriate option.

    In relation to the car, you may be able to attack the underlying judgment on the basis that you were not properly served. It is not clear how service was effected, or if proper procedure was followed - and if not, you may be able to attack the validity of the judgment. (If service was proper, even if in the form of substituted service, you're probably stuck with that judgment.)

    If you file for bankruptcy, you need to do so soon. Right now you can choose between Chapter 7 and Chapter 13 bankruptcy. From what you have stated about your income, given changes in bankruptcy law, starting in October you will be limited to Chapter 13 bankruptcy. Thus, if you are considering a Chapter 7 discharge, you need to get your case filed now and resolved before the Bankruptcy Reform Act takes effect in October.

    It wouldn't hurt you to consult with a bankruptcy lawyer about your situation - the sooner the better. It may be that after the consultation you will find that bankruptcy is not the best option for you. But if you wait, your options will become more limited.
    Thanks for the advice, ive already left a couple messages with avrious lawyers for a consultaion.
    As for the Judgment- it was served to my original address, after i had moved months before that.
    It was delivered to the subject at that location and the ladies name is on the proof of service. Ive never met this lady before, nor do i know her. They also said they placed one inthe US Mail to that address.

    I was told by someone else that the judgment may be invalid because of the proof of service, but im assuming they will still be able to come after me by bringing fourth another lawsuit now.

    Basically, im just trying to free up the levy and prevent wage garnishments- but yeah..ive already began the lawyer search. I can probably afford a 200-300 payment amonth to pay off old debt, but more so would rather discharge it if it didnt matter with the credit rebuilding.


    Thanks for the help.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Setting Aside California Judgment

    Definitely speak to a lawyer about having the judgment set aside. It may well be that if you succeed in having the judgment set aside, further suit will be blocked by the applicable California statute of limitations.

  5. #5
    Join Date
    May 2005
    Location
    ANAHEIM CA
    Posts
    3

    Default Re: Setting Aside California Judgment

    Quote Quoting aaron
    Definitely speak to a lawyer about having the judgment set aside. It may well be that if you succeed in having the judgment set aside, further suit will be blocked by the applicable California statute of limitations.
    Yeah, a personal buddy did tell me that if the original judgment can be proven invalid they would have passed their SOL for the case. Im hoping this may be, but youd think they could find a loophole regarding it- saying i didnt make myself available or something.

    Like i said i did post my case to a couple attorneys already and i appreciate the advice, ill keep u posted any other advice is greatly appreciated.

    mm-

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Setting Aside California Judgment

    Quote Quoting 714LEVY
    ...but youd think they could find a loophole regarding it- saying i didnt make myself available or something.
    As previously mentioned, if they effected substituted service consistent with the court rules and any order of the court, the judgment would likely stand.

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