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  1. #1
    Join Date
    May 2008
    Posts
    1

    Default Settling After Summons

    My question involves collection proceedings in the State of: Michigan

    I have debt with a credit card in the amount of $4000 and have just been sued by a firm that bought the account from the original creditor. It's been four year since the last activity on the account so I know the suit is within the Michigan statute of limitations (6 years)

    I am self employed and the only asset I own is a car that is not exempt from seizure (value more than $1000). My bank account rarely has more than a $100 balance

    My question is should I attempt to work out a payment plan with the attorney for the collection company immediately? Or file a sworn denial with the court first and wait to see what happens and then try to work out a payment plan.
    Are there any good tips for negotiating a payment plan?

    Also, if a judgment is awarded, what is the likelihood that they would seize my car if I have no wages to garnish and nothing in my bank account. And if they can't find my car, can they prevent me from renewing my registration

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Settling After Summons

    My question is should I attempt to work out a payment plan with the attorney for the collection company immediately?
    Yes, if at all possible. You may even be able to convince them to settle for a bit less than what you owe.

    Offer to pay at least half of what you owe, to start.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Settling After Summons

    Agree, try to work out a payment plan. However, the creditor does not have to accept one.

  4. #4

    Default Re: Settling After Summons

    Almost all states have a homestead exemption so I doubt they can take your car.

  5. #5
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Settling After Summons

    Michigan-post judgment asset exemptions:

    Homestead: Real estate to $31,900 ($47,825 if 65 or disabled). Property cannot exceed 1 lot or 40 acres rural. Property held as tenancy by entirety exempt against debt of only one spouse. Spouse or child of deceased owner may claim exemption.

    Pensions and Retirement Benefits: Funds exempt for ERISA-qualified plans, firefighters, police officers, legislators, public school employees and state employees. IRA exemptions for conventional, Roth, education, SEP and SIMPLE plans. IRAs limited to contributions that were made more than 120 days before filing, and limited to tax-deductible contributions for non-Roth IRAs. Roth IRAs and regular IRAs up to $1,095,000 per person.

    Insurance: Life, endowment or annuity proceeds if cannot be used to pay beneficiary's creditors. Life or endowment proceeds if beneficiary is insured's spouse or child. Life insurance proceeds if beneficiary is married. Fraternal society benefits. Disability, mutual life or health benefits.

    Personal Property: Building and loan association shares up to $1,075 par value, in lieu of homestead. Burial place, church pew, clothing. Family pictures, appliances, books and household goods, up to $3,000 total. Food and fuel for 6 months. Motor vehicle up to $2,950.

    Tools of Trade: Tools, implements, stock, motor vehicle or other items that enable the debtor to carry on his business up to $1,000.

    Miscellaneous: Business partnership property.

    Wages: Head of household debtors may exempt 60% of weekly wages (but not less than $15.00 per week) plus $2.00 per dependent other than spouse. Other debtors may exempt 40% of weekly wages (not less than $10.00 per week).

    Public Benefits: Veteran's benefits. Workers' compensation. Unemployment compensation. AFDC. Crime victim's compensation. Social welfare benefits.

    Wild Card: None.

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