CC Debt Confusion!

HerewegoinNJ

LoanSafe Member
Apr 2, 2011
12
0
0
We are in the process of dealing with a monthly minimum payment of $640.00 to cc companies as well as dealing with the beginning of foreclosure proceedings. We have not paid the April mortgage of $1500.00 but are reluctant to not pay the cc companies. The debt is in my wife’s name and my credit remains clear and free for now! My name is on nothing related to the house or the credit cards but I believe the cc companies can still come after me for non-payment if her accounts default. If we just stop paying everybody I feel that the cc companies can garnish both of our wages destroying our ability to possibly rent someplace else post foreclosure.
Has anyone been in a similar predicament? If so what maybe the best way to proceed?

Thank you.
 

shortsale973

LoanSafe Member
Mar 2, 2011
234
0
0
Here's how it works. CC companies will send your account into collections after 180 days delinquent. A collections agency will pick it up and try to collect the debt. Then a lawyers off will pick it up, and try to settle. If no response from you, they will take you to court. You then have 30 days to respond to the filed motion. You can then plead your case as to why you haven't paid. If you do not respond they will enter a default judgment against you. Once that judgment is placed then they can place a lien on your accounts, garnish your wages...etc...
But from now until then will take a good year+.
You may want to call them and see if they have any forbearance policies, to help someone out. If they don't have any programs in place for you, then you do what you gotta do. Just be aware that they will pursue you. I was pursued over a 3k debt, my wife was pursued for a 6k debt. There are money hungry lawyers out there, looking to bury people.
 

shortsale973

LoanSafe Member
Mar 2, 2011
234
0
0
O....
& as far as renting post foreclosure, dont worry too much about it. Remember money talks. Most owners & management co.'s are looking for evictions. If they ask, just tell them what happened. You are not the only homeowner to go under.
 

HerewegoinNJ

LoanSafe Member
Apr 2, 2011
12
0
0
I had no idea it took so long for the process to take place. It looks like CH7 may be the way to go for us. Either way we are still looking at the possibility of wage garnishment once a judgment is served. I suppose right before a judgment is served or the case went to court we file CH7.
Thank you for your response.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
We are in the process of dealing with a monthly minimum payment of $640.00 to cc companies as well as dealing with the beginning of foreclosure proceedings. We have not paid the April mortgage of $1500.00 but are reluctant to not pay the cc companies. The debt is in my wife’s name and my credit remains clear and free for now! My name is on nothing related to the house or the credit cards but I believe the cc companies can still come after me for non-payment if her accounts default. If we just stop paying everybody I feel that the cc companies can garnish both of our wages destroying our ability to possibly rent someplace else post foreclosure.
Has anyone been in a similar predicament? If so what maybe the best way to proceed?

Thank you.
HerewegoinNJ
Thanks for your post. However I must disagree with your strategy. If you cannot afford both, you should stop making payments on your CCs and continue to make payments on your mortgage. Otherwise you will eventually lose your home to FC. If that's OK, then save your money and don't make payments on anything. I agree with the advice in shortsale973's post. You cannot have your wages garnished without a creditor having a judgment. And you haven't been sued. And to get a judgment the creditor must win in court to be awarded a judgment. In case you ever get sued by anyone, always answer the complaint to preclude the plaintiff from taking a default judgment.
 

HopingtoFind

LoanSafe Member
Oct 7, 2008
2,084
28
48
Bay Area, CA
We are in the process of dealing with a monthly minimum payment of $640.00 to cc companies as well as dealing with the beginning of foreclosure proceedings. We have not paid the April mortgage of $1500.00 but are reluctant to not pay the cc companies. The debt is in my wife’s name and my credit remains clear and free for now! My name is on nothing related to the house or the credit cards but I believe the cc companies can still come after me for non-payment if her accounts default. If we just stop paying everybody I feel that the cc companies can garnish both of our wages destroying our ability to possibly rent someplace else post foreclosure.
Has anyone been in a similar predicament? If so what maybe the best way to proceed?

Thank you.
If the accounts are not in your name then they cannot come after you, only your wife... and it will not affect your credit. So if you stop paying on both and decide to rent later on just apply for rental using your credit.

With the way things are right now it might take a long time for lenders to foreclose, during this time you can save enough money by not paying your mortgage and ccs to settle with CCs if it comes to judgment and garnishment.
 

nikfrz

LoanSafe Member
Aug 28, 2010
59
1
8
You might want to check your state's statutes for garnishments. Not all states allow garnishments on unsecured debt judgements.
 

rudderman

LoanSafe Member
Jan 27, 2011
8
0
0
We are in the process of dealing with a monthly minimum payment of $640.00 to cc companies as well as dealing with the beginning of foreclosure proceedings. We have not paid the April mortgage of $1500.00 but are reluctant to not pay the cc companies. The debt is in my wife’s name and my credit remains clear and free for now! My name is on nothing related to the house or the credit cards but I believe the cc companies can still come after me for non-payment if her accounts default. If we just stop paying everybody I feel that the cc companies can garnish both of our wages destroying our ability to possibly rent someplace else post foreclosure.
Has anyone been in a similar predicament? If so what maybe the best way to proceed?

Thank you.
If I had to choose between 4 walls or CC I would not pay the CC. That is unsecured debt so they dont have leverage against you a person without adequate income. Usually people will stop paying the CC and stockpile cash to offer settlements to the CC companies before they charge it off ( sell it to a third party collection agency). That gives you at leas 180 days to save for the settlements on the CC's.
 

shobam

LoanSafe Member
Nov 25, 2010
373
1
0
Massachusetts
We are in the process of dealing with a monthly minimum payment of $640.00 to cc companies as well as dealing with the beginning of foreclosure proceedings. We have not paid the April mortgage of $1500.00 but are reluctant to not pay the cc companies. The debt is in my wife’s name and my credit remains clear and free for now! My name is on nothing related to the house or the credit cards but I believe the cc companies can still come after me for non-payment if her accounts default. If we just stop paying everybody I feel that the cc companies can garnish both of our wages destroying our ability to possibly rent someplace else post foreclosure.
Has anyone been in a similar predicament? If so what maybe the best way to proceed?

Thank you.
They can't touch you for your wife's debt unless you have co-signed on something. Even the mortgage, if you are not on that note in any way you personally have no interest in the house hence no responsibility to the mortgage. Who ever told you that a Credit card company or CA can hold you responsible for your wife's debt gave you the wrong information. I'm going through the same thing only in reverse of you. Maybe the laws are way different up here in Mass, but I think not.

They cannot garnish your wages either for your wife's debt, that's a federal statue. You sound nervous and for good cause, so read the collections and garnishment laws for your state. Every state in the union has laws that dove tail off of the federal laws. Even so the Federal law holds that, in a garnishment, the first 75 percent of the debtors disposable income cannot be garnished - period. Here in Mass, the State laws protects the first 80 percent of a persons income.Then there are hardship clauses that the court can take into account. Every state has amendments to that law which depending on what state that you live in it may simply refer to the Federal law or have a more protective law. Some states do not permit garnishments at all. Moreover, to win a garnishment judgment the Creditor has to win a judgment first. That will take at least a year even if you didn't show in court , but if you are served do show in court. At your first appearance the Judge will likely tell you and the creditor to try and work out a payment plan or settlement and then hold the case over for review latter. If nothing can be worked out then the creditor would have to take you back to court and ask for a garnishment. That another 6 months to a year down the road. This all on your wife too not you.

Do not ever send the creditor or Lawyer any financial information if they demand it if you and your wife start working on a settlement. All that the lawyers will do is run a simple test and see if you qualify for BK7 or BK13, plus it will go on file and be used for other collection purposes. If you are out of the limits then they will be more forceful in their collections demands. Please go and learn the BK laws so your wife can have that as a last resort. BK should only be a last resort but do learn the laws, you maybe surprised to learn that your wife will be protected.

If in the end your wife files a BK 7 or BK13 you can still easily get an apartment or another mortgage in your name. This BS about an OC, CA or collections lawyer attaching anything of yours is pure BS, joint ownership maybe. Simply put if you are NOT cosignee to any or your wife's debt then you are not responsible for any repayment obligations.

Cheers
 

DELL1

LoanSafe Member
Aug 4, 2010
391
5
0
You've been reported and will shortly be banned from this site.
Hey there Tom! Still in the wheel? lol!

Okay so quick question...WF was awarded a judgement against me about 1 year ago. it was recorded. haven't heard a word..

but i did make an inquiry about leasing a car for business...will that inquiry trigger action on their part?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Hi DELL1

Good to hear from you! Yes, I'm still here (and on the Wheel).

No, the leasing company's checking your credit shouldn't trigger any action by WF, the judgment creditor. But nothing surprises me anymore.

I wouldn't worry about it. Good luck and have fun!