I am Judgment Proof. Creditors cannot take anything from me. Really !!! Think Again !!!

10/4/2013

A potential Client came to see me in March, 2013. She had a boat load of credit card debts. Her house was in foreclosure. She was being sued by at least 3 credit card companies. There were at least 2 recorded judgments against her.

Her attitude: I am Judgment proof. I do not have any assets. I have 3 minor children, and in Florida they cannot garnish my wages, or take my home. I explained to her that she should consider getting rid of her debts by filing a bankruptcy and get a "fresh start."

This morning I get a text from the same Client at 5.00 a.m. [Yes, all my Clients have my cell phone number] "The Sheriff is at my door. He wants to take my car. He says he has a Writ of Execution from  "creditor XYZ." What should I do ???

The first thing that came to my mind was "I guess you are not Judgment Proof after all."

Creditors have rights...sometimes more rights than Debtors. You may think you are Judgment Proof, but you are not.

 Here is some of the things that the Creditor can do to you once a Judgment is entered against you:

    1.   Garnishment of wages: (25% of monthly disposable earnings) unless you qualify as a Head of Household with a Dependent. A Judge has to rule that you are a Head of Household. Your "JOB" is your biggest asset. If you are single or do not have a qualified dependent, your Wages can be garnished.

    2.    Garnishment of bank account(s): Social Security and pensions cannot be garnished. However, the burden is on you to show that the money in the bank account is from Social Security or Pension. Don’t mix monies in bank account.

    3.    Seize and sell vehicles even if they are not owned outright. Seize your personal property [Yes, folks, I am talking about your furniture in the home.]

    4.    Force the sale of real property even if it is not owned outright: Creditors cannot force the sale of a Florida Homestead.

    5.    Place liens on Florida Homestead: preventing a future refinance or sale unless certain legal actions are taken.

    6.    Report to the Credit Bureaus: for seven to ten years.

    7.    Suspension of your Drivers License if the Judgment is from a vehicle accident.

If any or all of the above apply to you, you are not “judgment-proof”.

Under Florida Law, Creditors have 5 years from the date of last payment to sue you and
get a judgment. If they have not sued you within the 5 years, the debt cannot be collected because of the Statute of Limitations. However, the debt will remain on your credit report for 7 years from the date of last activity. Tax Liens can remain indefinitely or as long as 15 to 20 years.

A “Judgment” gives the Creditor  the right to garnish your wages, levy on your bank accounts, vehicles, CD’s, and other personal property for up to 20 years from the date of the award of the judgment,  and while you  may be broke now, your financial situation will improve in the next two decades, and the dormant  “Judgment” will come to haunt your. A judgment once recorded in the county records becomes a lien on any other real estate or personal property that you may own in that county. Once the Creditor obtains a “judgment,” it can force you to disclose your assets and finances in court every year.

Most people who have judgments entered against them are qualified to file a personal Chapter 7 or 13 bankruptcy, and get a “discharge” of their debts, and get a “fresh start.” A “discharge” is a legal forgiveness of debt. Once the Court issues you a “discharge” nobody can collect this debt from you. You are now able to go forward with your life and “start over.” The filing of a bankruptcy is a “financial” decision not a “moral” decision. Even though the fact that you have filed a bankruptcy remains on your credit report for about 7 to 10 years, most people see increased credit score within 12 to 18 months. Most people are also qualified to get another mortgage within 2 years. In fact most people get credit cards with small limits within a few months of the filing of the bankruptcy. Bankruptcy has lost the stigma that it had long time ago.


Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com


Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling and Landlord-Tenant law. We Sue Debt Collectors under the Fair Debt Collection Practices. 

MY MISSION:
I am very passionate about helping consumers protect their rights, reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, quality representation, and excellent follow up. If you would like to learn more about your options, contact me as soon as possible for a FREE CONSULTATION.