I NEED SOME HELP! This is complicated, so any advice would be GREATLY appreciated! I am going to explain my mess and post a LIST of questions.I don't expect anyone to answer them all. Even if you only know the answer to one of my questions I would really be grateful. So for those of you who like a legal challenge; here it goes!
I am married with 4 small children and live in California. I (alone)accumulated a whopping $130 K in debt for my sole proprietor business. The business has now gone under. We are living on my husbands salary. I am not working.
This debt was in the form of unsecured credit cards and lines of credit and were in my name only. Most of these were form in the mail offers and approved over the phone. While the creditors (most, not all) asked me if their was an additional income in the household, they did not ask my husbands name. Only the total amount made in the household.
My husband was not a co-signer these debts and was unaware of their existence. At the time, my business was prosperous. I stopped paying the monthly payments about 8 months ago when my business went under due to my extenuating medical problems and eventual financial destruction as a result of my absence. Prior to that, my credit score and payment history was near perfect.
I wrote the original creditors about 6 months ago and told them of my situation and that due to extreme financial hardship, I was unable to pay my bills.
These debts have now been written off by the original creditors and sold to third party collections agencies.
I had hired a "debt consolidation/repayment" firm to negotiate these debts. They were supposed to do this prior to the debts being sold to outside parties. They did not. I am paying them a monthly fee to do this and a percentage of that debt. After further investigation, I have decided that this is not the way to go and is throwing away good money after bad.
One debt in particuliar really worries me. I have a $50K line of credit with B of A. This was applied for over the phone and is in my name only. However, we hold our mortgage loan with B of A. Can they tack on that unsecured loan to the loan for our home? They have given my unsecured debt to a third party collection agency who has put me in "pre-legal" action for the unsecured loan(Not the mortgage).
I personally have nothing in my name. All the cars we own are registered to my husband alone. We have no mutual bank accounts. I canceled all utilities, bank accounts, DMV and postal info, white and yellow pages info, tri credit bureaus: anything with my name and switched all correspondence and contact info to my mothers home. I have done this to avoid service with a law suit.
I want to pay what I can, but I just cant right now. We have four young kids and we're trying to stay afloat without filing a bankruptsy. We need at least one spouse with good credit! We have NO disposable income and are barely staying afloat.
My questions are:
Can the creditors and collections agents come after my husband under California law and hold him liable for my unsecured debts even if he wasn't on the application?
Can they sue me if they cant locate me?
Do they have to serve me in person?
Does my husband and/or mother have to sign for my service because they are related to me, even if they state that I don not live on the premisis?
Should I not respond to a summons if I get one? I've heard that sometimes doing nothing is ok, especially if I am "uncollectable".
So far the companies have been unable to reach me by phone. If they find a way or knock on my door, should I not admit to who I am and say I know nothing about the matter?
Does "I never received notice of service" hold up in court?
How long does a collection judgment stay on my record so they can collect?
What if we move out of state? (We are considering a move to Nevada for my husbands business).
If I am served, can my husband and mother state that I don't live on the premisis and they have no contact with me?
What if I am uncollectable but my husband is? Can they garnish his wages or put a lien in our house under California law?
If so, how long does it take (approx) to obtain a judgment like that if I don't respond to a summons?
Can that judgment be appealed once granted?
Can B of A attatch that unsecured loan to the balance of my mortgage?
Do I have any legal recourse or defense in this situation?
I UNDERSTAND THAT AN ATTORNEY SHOULD ANSWER THESE QUESTIONS. I simply do not have the money to retain one. So, I am asking for advice, knowledge - anything. I will not hold any info I get as absolute fact or legal advise. Simply as info. THANK YOU!
I know this is a lot of info but I am living in a state of fear, as is my husband and we are unsure of where to turn. HELP!
I am married with 4 small children and live in California. I (alone)accumulated a whopping $130 K in debt for my sole proprietor business. The business has now gone under. We are living on my husbands salary. I am not working.
This debt was in the form of unsecured credit cards and lines of credit and were in my name only. Most of these were form in the mail offers and approved over the phone. While the creditors (most, not all) asked me if their was an additional income in the household, they did not ask my husbands name. Only the total amount made in the household.
My husband was not a co-signer these debts and was unaware of their existence. At the time, my business was prosperous. I stopped paying the monthly payments about 8 months ago when my business went under due to my extenuating medical problems and eventual financial destruction as a result of my absence. Prior to that, my credit score and payment history was near perfect.
I wrote the original creditors about 6 months ago and told them of my situation and that due to extreme financial hardship, I was unable to pay my bills.
These debts have now been written off by the original creditors and sold to third party collections agencies.
I had hired a "debt consolidation/repayment" firm to negotiate these debts. They were supposed to do this prior to the debts being sold to outside parties. They did not. I am paying them a monthly fee to do this and a percentage of that debt. After further investigation, I have decided that this is not the way to go and is throwing away good money after bad.
One debt in particuliar really worries me. I have a $50K line of credit with B of A. This was applied for over the phone and is in my name only. However, we hold our mortgage loan with B of A. Can they tack on that unsecured loan to the loan for our home? They have given my unsecured debt to a third party collection agency who has put me in "pre-legal" action for the unsecured loan(Not the mortgage).
I personally have nothing in my name. All the cars we own are registered to my husband alone. We have no mutual bank accounts. I canceled all utilities, bank accounts, DMV and postal info, white and yellow pages info, tri credit bureaus: anything with my name and switched all correspondence and contact info to my mothers home. I have done this to avoid service with a law suit.
I want to pay what I can, but I just cant right now. We have four young kids and we're trying to stay afloat without filing a bankruptsy. We need at least one spouse with good credit! We have NO disposable income and are barely staying afloat.
My questions are:
Can the creditors and collections agents come after my husband under California law and hold him liable for my unsecured debts even if he wasn't on the application?
Can they sue me if they cant locate me?
Do they have to serve me in person?
Does my husband and/or mother have to sign for my service because they are related to me, even if they state that I don not live on the premisis?
Should I not respond to a summons if I get one? I've heard that sometimes doing nothing is ok, especially if I am "uncollectable".
So far the companies have been unable to reach me by phone. If they find a way or knock on my door, should I not admit to who I am and say I know nothing about the matter?
Does "I never received notice of service" hold up in court?
How long does a collection judgment stay on my record so they can collect?
What if we move out of state? (We are considering a move to Nevada for my husbands business).
If I am served, can my husband and mother state that I don't live on the premisis and they have no contact with me?
What if I am uncollectable but my husband is? Can they garnish his wages or put a lien in our house under California law?
If so, how long does it take (approx) to obtain a judgment like that if I don't respond to a summons?
Can that judgment be appealed once granted?
Can B of A attatch that unsecured loan to the balance of my mortgage?
Do I have any legal recourse or defense in this situation?
I UNDERSTAND THAT AN ATTORNEY SHOULD ANSWER THESE QUESTIONS. I simply do not have the money to retain one. So, I am asking for advice, knowledge - anything. I will not hold any info I get as absolute fact or legal advise. Simply as info. THANK YOU!
I know this is a lot of info but I am living in a state of fear, as is my husband and we are unsure of where to turn. HELP!
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