Hounded by lawyers for old credit card debt

[starrg]

Several years ago I got a credit card for $1600, which I used mostly to pay doctors bills and such. I never used all of it, only about $800, and was paying on time until I had a setback in finances and couldn't pay for several months. During that time the credit card company added on overage and late fees until there was no way I could pay at all. I tried, I really did, but for years I was unable to pay anything. For a long time, years, I heard nothing from them. Then, suddenly, I got a call from a lawyer in Memphis, Tn, asking me about the debt. I had never heard of them. They said they represented a company called Unifund CCR Partners, and that I owed them a staqgering, to me, debt of $4178.44. I told the person on the line that I had never owed that company any money at all, and for them to send me proof if they had any. They didn't.
A few months later they got a judgement on me for the full amount. I paid, for over a year, an initial payment of $400 and then $150 a month. A total of $2504, much more than the original card was worth, and much more than I had ever used. Then I went on Social Security, and could no longer pay them anything. I explained this to them in a letter I sent. Now, and this is the problem I need help with, they have had a sheriff deliver a paper saying that they want me to fill out a questionaire telling them all my private information, including bank information, social security number, and everything I may own. Am I legally bound to send them this information? I don't give out this info to anyone, but I can't afford a lawyer to tell me whether I have to or not. Please help. Thank you.

 

[despritfreya]

The judgment creditor is looking for information on what you own so that it can determine if it can execute on anyting. What you are describing is similar to a judgment debtor's exam in my jurisdiction. My guess is that if you do not answer the questions a "civil" warrent will be issued but you need to check with an attorney in your area.

From what you describe however, you may be judgment proof. You are not working, therefore have no wages to garnish. My guess is that you do not own anything of real value and that most, if not all, of your assets are protected by your State's exemptions. You need to verify if you have any property that is not exempt such as too much equity in a vehicle.

What you do have is Social Security. Social Security, if handled correctly, will be beyond your creditor's reach.

If you are not already doing so, you need to place the Social Security money in a segregated bank account. NOTHING and I mean NOTHING but Social Security is to be deposited into the account. Social Security cannot be garnished so long as it is not commingled with anything else. If you have been depositing the Social Security into a commingled account STOP. On Tuesday go to the bank and open up a NEW account. The ONLY funds to be placed into the NEW account are to be Social Security.

Good luck with all of this. Again, my guess is that there will be nothing for the creditor to get. But you must explore what your State allows you to protect from the creditor's reach.

 

[army judge]

Social security income can not be attached or levied against. I wouldn't answer the questionnaire. The unscrupulous law firm was nothing more than a scavenger debt collector.

You need not have ever paid them a dime. The statute of limitations had run. The debt was uncollectable.
The judgment may be a piece of crap, too.

You need not worry. You might want to contact AARP. They might be able to assist you or advise you.

Bottom line, do not fill out the form. The worse that will happen is they'll place a lien against your home. But they can sell your home out from under you. Even if they place a lien against it, it'll just sit there until your demise. Why would you care after that?

Don't worry, your social security is untouchable. So, rest easy knowing that Obama sits at the helm of our ship of state. Other than that, your social security will flow like rain!!!


Sent from my iPhone using Tapatalk

 

[despritfreya]

The OP needs to be cautious over advice given.

1. While the original debt may have been subject to a Statute of Limitations argument, that boat sailed when the OP failed to raise the defense BEFORE the judgment was entered. An affirmative defense is wiaved if not properly raised.

2. The judgment is not "crap". Judgments in Tn, if properly recorded as a lien (which I am sure collection lawyers know how to do) are valid for 10 years under Tenn Code 25-5-105.

3. The OP should not take unsubstantiated advice not to respond to the questions. The OP needs to 1st investigate if the failure to answer could be deemed contempt under Title 29 of the Tenn Code. In addition, under Title 25, Tenn Code, a judgment properly recorded as a lien is a lien against real and personal property (subject to any allowed exemption).

4. Social Security is only protected 100% at the source. It is also protected 100% through to a traceable bank account. If the funds are comingled they are not traceable therefore an unqualified statement that Social Security is not attachable is not correct.

The OP really needs to seek the advice of competent counsel. While AARP might be able to refer the OP to a local attorney the OP should also contact the State Bar Association to see if there are any low or no cost legal aid programs.

 

[mightymoose]

I believe the OP has the option of appearing in court rather than returning the requested documents. At the court appearance the OP would be obligated to provide the same information... this is a creditor's exam as mentioned above.

I agree that the OP should never have paid anything... once the payments resumed it was a whole new ballgame.

I am curious though, it sounds as if the OP had no knowledge of the hearing at which the judgment was obtained. If the OP is able to go back and prove improper or no service made regarding that hearing, is it at all possible to put an end to this, or is it even too late for that since payments resumed?

To the OP- I too highly doubt you were ever contacted by an attorney. You were likely contacted by tricky collections scum.

 

[despritfreya]

In response to mightymoose

"it sounds as if the OP had no knowledge of the hearing at which the judgment was obtained. If the OP is able to go back and prove improper or no service made regarding that hearing, is it at all possible to put an end to this, or is it even too late for that since payments resumed?"

__________________________

Unifund CCR Partners purchases paper from the original creditor. I have dealt with this entity many, many times. While once in a while the attorney for Unifund may have screwed up, my experience has been that the attorney gets it right. When a client tells me "I know nothing", they usually mean "I ignored what was served." Further, in OP's case one would have to check the court file to see if service by publication was allowed if he/she truly was not personally served.

Arguing over proper service may be an option but my guess is that it will cost OP a ton in legal fees, something the OP clearly does not have. Further, depending upon how much time has elapsed, the OP may be looking at latches.