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  1. #1
    Join Date
    Jun 2011
    Posts
    1

    Default Huge Debt, No Assets - What Are the Chances of Being Sued

    My question involves judgment recovery in the State of: CA

    I have a total debt over the past 5 years of approx. 60kUSD from a handful of (5) credit cards/banks.
    Last payments were made to these accounts about three years ago.
    I have been out of the country for the better part of four years but plan to return to the U.S later this year.
    I will be establishing a residence address again and I'm sure this will trigger an onslaught of letter and visits from CAs.
    This new address however will be in a different state than where my credit/debt is established (California).

    Obviously, collection agencies have been unable to serve me, if they have intended to sue.
    So if they file suit and win a judgement against me, sometime after i return to the US this year,
    should i expect that they will freeze my bank account,
    which for years has had an average balance of less than 1000usd?

    Also, being unemployed without any assests (not even a car)
    means they know that there are no wages to garnish or any other means of collecting.

    strategizing the next step is imperative - probably filing for chapter 7, but for now....

    Any thoughts on likely scenarios i may face post-return to the US, or likelihood of being sued at this point?



    thx

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Huge 3 Year Old Debt, No Assets, Likelihood of Judgment Still Being Filed Against

    First they have to find you and serve you. Then after they get a judgment, assuming you are still around, they order you to a debtor's examination and find out what assets you have, liabilities, etc. At that point they will probably give up. All states have exemptions, so generally they can't take your personal property. A cheap car is exempt. Here in FL the homestead is exempt regardless of the equity but they do can a lien. They can't freeze your account. They can seize money in it, but depending on the state, can only do it once a month or less. Of course they have to find you first and they have bigger fish to fry too. I doubt you debt is big enough for Chapter 7.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Huge 3 Year Old Debt, No Assets, Likelihood of Judgment Still Being Filed Against

    If they locate you and sue you, and obtain judgments against you, it is reasonable to expect that they will attempt to find your non-exempt assets to collect the money you owe. If you have no income or assets, then any judgments they obtain will go unsatisfied. See if you can get your credit report - I'm not sure if the annualcreditreport.com site works from outside of the U.S., but that's the official free source - to see how your debts are presently being reported and if there's any active collection.

    If you come back to the U.S. and are about to gain employment, you may want to discuss your situation with a bankruptcy lawyer as depending upon the wage you receive you may no longer be able to file Chapter 7 once you start work.

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