[mommy2010]

Question:

When a default judgement is made upon you how do they come up with the payments you will have to pay?? And what if you do not make enough money to pay the amount?

Also can they take your tax refund even if you file jointly with your spouse?

Thanks

 

[ladytoysdream]

I believe they can take the tax refund unless you can prove the debt was before you came into the marriage by the other spouse. So you should be able to keep half of the refund, if you can prove this.

Not sure how they determine monthly amounts to be paid. Hopefully they look at what income you have coming in. I think they can take a certain percentage of it, but not sure how much.

 

[Paws]

I'm not a legal professional, but I -do- believe they can take your tax refunds even if you're filed jointly...although as stated above, I don't think they can take the entire refund if the debt was before you two were married....:cheerup:

 

[Saule]

A default judgment means that liability is determined - you are found to be at fault. I don't know about the refund, but they still have to prove up damages. For example, if you owe them 20,000, they cannot collect 50,000 just because they got a default judgment.

Default judgments can be vacated, if you do it very promptly and have some kind of explanation for why you did not answer the complaint. I would urge you to see an attorney about this as soon as you can.

 

[Greebo]

I was wondering why they got a *default* judgment as well. A default judgment means you didn't show up in court.

 

[mommy2010]

Well its a long story but the fact that I was in default I was told by an attorney not to go to court. They say I defaulted because I did not respond to papers that were served. There was no court date on them, but we did however contact the atttorney and try to work out a deal but that didnt happen. So I am not sure why if I contacted them I am in default? So confusing!

 

[Greebo]

Well its a long story but the fact that I was in default I was told by an attorney not to go to court. They say I defaulted because I did not respond to papers that were served. There was no court date on them, but we did however contact the atttorney and try to work out a deal but that didnt happen. So I am not sure why if I contacted them I am in default? So confusing!

You had an attorney tell YOU not to go to court?

Was this an attorney on YOUR side or on THEIR side?

 

[jennordhavn]

Once a creditor has a judgment, they will still have to try to collect on it. Most creditors will use a bank levy or wage garnishment. I don't believe they can take a tax refund unless it is a government agency. But once any refund was in your bank account, it is fair game.

The creditor files for a bank levy or wage garnishment through the courts, so the process will take a bit of time. It will save them (and you, ultimately) money if they don't have to file this, so you should call them and ask to make payment arrangements. If that doesn't work and they end up filing for a bank levy or wage garnishment, there is sometimes a process to list your income/expenses and tell the judge how much of a payment you can afford. It is harder with a bank levy, because once they have a levy and you receive notice, they can usually take the entire amount of the debt from your account. With wage garnishment, the percentage they can take varies by state (in CA it's 25% of net) and the garnishment will continue until the full debt is paid. But as I said, sometimes if you can prove 25% will be a burden, you can get the payment amount lowered.

 

[Frugallady2010]

You had an attorney tell YOU not to go to court?

Was this an attorney on YOUR side or on THEIR side?

My thoughts exactly!

Also from what I remember in school as far as taking your tax refund, was this a student loan or other type of Govt. loan? If yes, then they can take your refund. If a private company (i.e. credit card) I don't believe they can, but they can garnish your wages. Depends on the State how much % they can take. Also depending on the state, the black mark remains on the report for 12 to 20 years, with an option for the creditor to renew the negative strike at the end of that time.

 

[alarosalpn]

I had this happen and I didn't pay it cause I couldn't afford it.. They got a court order and took everything I had in my account twice! If they don't get the amount you owe the first time, they'll keep coming back until they get everything you owe.. on top of that, your bank charges you $50 each time!
They don't notify you until after it's done either...
It sucks. I'll never let that happen again!

 

[brainyblonde]

You should show up in court only if you don't owe the money and can prove it, thereby having a defense. The judge basically asks whether or not you owe the money. If you owe the money but can't pay, it doesn't matter. The judgment will still be granted. That is why the lawyer probably told you not to show up.

I suggest you contact the creditor to make payment arrangements first. Since it costs money and takes time to file the wage and bank attachments, they might be willing to take a chance. Keep in mind, though, if you send a check, they will have the bank information, and can file an attachment if you fail to keep up your end of an agreement. This is done without notice. One other thing, you will be paying the court costs associated with the attachments, as they are added to your balance.

 

[Greebo]

You should show up in court only if you don't owe the money and can prove it, thereby having a defense. The judge basically asks whether or not you owe the money. If you owe the money but can't pay, it doesn't matter. The judgment will still be granted. That is why the lawyer probably told you not to show up.

Whole heatedly disagree.

NEVER EVER ACT PASSIVELY ABOUT YOUR MONEY.

Even if you *owe* the money, yes you'll lose, but you may be able to get a reduced judgment - for instance if you can show that you only charged X and interest was Y and Z is all late fees and exorbitant charges, the Judge may throw those out and only hit you with X and Y.

And when they go to file for garnishment, if you show up with documentation about your income and what you've been paying and what you can afford to pay, the Judge may take that into account.

If you passively resign yourself to whatever the court decides, the court will grant whatever the creditor wishes. If you at least show up and are an active, honest, prepared participant, you have a decent chance that you will fare MUCH better.

NEVER advise anyone to "just sit back and take it".

 

[mommy2010]

So I spoke with an attorney and bottom line is regardless if I went to court or not the judgement will be placed because I could not pay, the judge doesn't care why. If I go to court I do not bring anything, again the judge doesn't care.

The judgement will be placed then later on I will have to provide my finances and monthly budget, if montly payments harm me (basically if I cannot feed my family and keep a roof over our heads because I have to pay them) then things will need to be modified. Not sure how but we will see.

Thank you everyone for your posts, I will find out more soon!

 

[Greebo]

Oh sure, absolutely you'll LOSE and a judgment will be placed - but again it may not be for the full amount requested.

 

[brainyblonde]

Summary judgment includes interest from the date of judgment (whatever the law allows), attorney's fees and court costs - all paid by the debtor.

If you have proof that you owe less than claimed, by all means, file a defense and go to court. Otherwise, *you* will be paying for the other attorney to show up, and as mommy2010 said, the judge does not care that you can't pay.

 

[Hamada]

I would suggest you go to a reputable credit counselor. They should be able to help you figure out all the finances, plus it shows you are honestly trying to figure out payment options. If the credit counselor can show that the payments are over what your budget allows it will only help you in court.

Go to a reputable non-profit credit counseling agency.