Being Sued For Consumer Loan

Vincent

Member
Jurisdiction
Illinois
Hello,

Thanks for the advice beforehand!

I dont have that full amount to pay back at once.

I am on SSDI and that is all my income coming in per month.

No job income, W2 or 1099.

I am being sued for consumer loan taken out that is currently at about $7500 according to the court document.

Loan was taken out about 1 year ago from One Main Finical.

Court is coming up next month.

Is there any type of means test for lack of income in my state or County (Cook County) that could possible lower my judgment amount owed back?

If theirs a means test for this type of matter where can I find it online?

(The only means test I can find is about Bankruptcy, I am not at that point as of now)


If there is a way to negotiate a lower amount per month to pay back instead of the entire amount as one payment of the $7500 plus any court fees?



If they dont let me pay off the amount in payments is there a limit in my state of how much money they can garnish either from my SSDI payment each month or from my bank account?

I still have to pay rent, have money for food, ect.

Any advice appreciated.

Thanks
 
Is there any type of means test for lack of income in my state or County (Cook County) that could possible lower my judgment amount owed back?

No. You borrowed the money. You agreed to repay it. You are obligated to do so unless you get the debt discharged in bankruptcy.

If there is a way to negotiate a lower amount per month to pay back instead of the entire amount as one payment of the $7500 plus any court fees?

You certainly can contact the creditor or its attorney and make a proposal for a payment plan. We obviously have no ability to predict whether the creditor will accept any particular plan.

If they dont let me pay off the amount in payments is there a limit in my state of how much money they can garnish either from my SSDI payment each month or from my bank account?

Federal law limits wage garnishments to 25% of take-home pay (less for very low-income persons, and I don't know if Illinois imposes lower limits). There is no limitation on bank levies. However, "[g]enerally, Social Security benefits are exempt from execution, levy, attachment, garnishment, or other legal process, or from the operation of any bankruptcy or insolvency law."
 
Is there any type of means test for lack of income in my state or County (Cook County) that could possible lower my judgment amount owed back?

The short answer: no
Most creditors and debt collectors cannot seize your Social Security benefits, as long as you receive them via direct deposit to your bank account. If you receive your benefits on a prepaid card, these funds are generally safe as well. This protection applies even if a company sues you, you lose the case and a court enters a judgement against you.

The following benefits are protected from garnishment and bank levies thanks to federal law:

Social Security benefits.
Supplemental Social Security Income (SSI).
Veterans benefits.
Federal Employee Retirement System.
Civil Service Retirement System.
Federal Railroad Retirement, Unemployment, and Sickness Benefits.
When it comes to third-party debt collectors, they cannot even threaten to take your Social Security benefits if they know that's your only source of income. If a collection agency threatens to take your Social Security income, it may be guilty of violating the Fair Debt Collection Practices Act.

Your SSDI can't be attached to satisfy a consumer debt.

Social Security benefits and Social Security Disability Insurance (SSDI) payments can ONLY be levied against to pay child support and alimony; court-ordered restitution to a crime victim; back taxes; and non-tax debt owed to a federal agency, such as student loans or some federally funded home loans.

It can't be levied against to satisfy other garden, variety consumer debts.

For most types of debt, including credit cards, medical bills, and personal loans, Social Security cannot be garnished to pay the debt.

If your Social Security check is directly deposited in the bank, the bank is required to protect Social Security benefits from garnishment, levy, or attachment in satisfaction of common, consumer debts.

In short, if this a garden variety, common consumer debt, you need NOT fear the creditor touching one penny of your SSDI transfer payment.

Can Creditors Take Your Social Security? | Bankrate

https://davidgantt.com/can-my-socia...efits-be-garnished-or-seized-to-pay-my-debts/

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Is there any type of means test for lack of income in my state or County (Cook County) that could possible lower my judgment amount owed back?

No. The court will only determine how much you owe the creditor per the contract you have with the creditor. The court doesn't take into account your financial situation in determining what you owe.

That said, if the creditor gets a judgment against you, all it can do with that judgment is attach income and assets that are not exempt from attachment. Your SSDI payments are exempt from garnishment and remain exempt while they sit in a bank account where they can be clearly identified as SSDI funds. For that reason I recommend you have the SSDI payments deposited into an account that is used only for SSDI funds. Any other money you get should get deposited in a different account.


If there is a way to negotiate a lower amount per month to pay back instead of the entire amount as one payment of the $7500 plus any court fees?

You can ask, but the creditor may be unwilling to do that if you've been having trouble making payments with the idea that you might not be able to make the smaller payments either. But it doesn't hurt to ask. If the creditor does go for it, it will likely also want you to confess judgment for the amount owed so that it doesn't have to sue you again if you default on those payments.

If they dont let me pay off the amount in payments is there a limit in my state of how much money they can garnish either from my SSDI payment each month or from my bank account?

As I said before, federal law prohibits garnishment of the SSDI and attaching the SSDI funds in a bank account, too.
 
Out of curiosity, have you informed the plaintiff that your only income is SSDI?
 
Out of curiosity, have you informed the plaintiff that your only income is SSDI?

I doubt that would do a great deal of good. Creditors are going to expect that debtors are going to say anything that might allow them to avoid paying up. Telling a creditor that you plan to file bankruptcy or that you are judgment proof therefore often is not believed by the creditor. Moreover, even if the creditor believed the statement that SSDI was his only income that does not rule out that the debtor might have assets (house, car, savings, or whatever) that the creditor could reach.
 
Hello,

Follow up question.

Is there a way to request more time from the court to have more time to possibly get an attorney if I can find one I can afford, and/ or just more advice before my court date?

Is there usually a fee to file such request for a different court date for more time to be prepared?

I looked up the court house I need to go to and their website had a bunch of forms.

Court Forms | New Website for the Cook County Clerk of the Circuit Court


Are any of these forms the correct one to request more time or an extension on the court case date?

If not what should I be looking for?

Thanks!
 
Hello,
Are any of these forms the correct one to request more time or an extension on the court case date?

No. But then those are also just the forms used in Cook county. You need to also look at the IL court forms approved for statewide use to see if there is a form available for what you need. If there is both a statewide form and a local court form for the same thing then generally you use the local court form.

If not what should I be looking for?

Rescheduling a trial to a later date is called a continuance. In order to request a continuance, you need to file a motion to continue. A request to reschedule a trial to some later date is called a motion to continue. See the instructions for filing a motion to continue that explains what you need to do. The actual form is motion to continue.

If the other side agrees to the continuance you're almost guaranteed to get it. So you might try asking the attorney for the other side if he or she will agree to the continuance. If so, you can put that in the motion and that will help you get it approved. Otherwise, you need to give the court sufficient cause for why you need the extra time.

One thing to bear in mind. The first continuance is relatively easy to get (though not automatic, you still need a decent reason for the continuance). However, judges tend to not like repeated continuance requests that would keep punting the trial back. So you don't want to use continuances unnecessarily; if you use it early and then later you really need one, you may find it hard to get that later one.
 
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