What are the chances? Husband and I summoned for same day, different debt

[Beyondworried]

October 15,2008. Live in IL. A couple of days ago, we received summons from, as my husband would put it "Dog the bounty hunter". I have spent hours trying to educate myself on the lawsuits for credit card debt and am extremely overwhelmed. We have a court date for the same day, different credit cards (from before we were married) on Oct. 30. Total amt. $21,000. From what I have read, I believe we may be "Judgment Proof". We really don't have assets to liquidate, of course, we do not have enough money to pay this amt - or for lawyer. Questions:
1.Even if your are considered judgment/collection proof - will they haunt you for the rest of your life?
2.We have small amt of money in bank that would pay 1 month of bills. I'm thinking should be closed for fear of it being frozen or taken?!
I really would like this nightmare behind us, just am unsure how to handle in court. I'm sure you have to have good reasons for not paying. Hardships? Almost had a foreclosure a while back, my husband took money from 401K to get up to date - then had to pay IRS $10,000+ penalties. Took remainder out to pay the 10,000 for this. Bad move..I know!
3. SOL- I don't think it's been long enough. Will they at least work with you and knock off compound interest?
Scared of the unknown that will face us on court day.
Any help would be greatly appreciated.

 

[Michael Wechsler]

1) Judgment proof doesn't mean you have a 401K and a home and want to keep the lifestyle but can't pay the bills. I don't know your situation but judgment proof typically means bankruptcy, which is a seven year period and on the public record.

2) The nightmare is unfortunately not just for you but for the rest of the country that is suffering from the mass number of people who were given credit cards and homes that they really cannot afford. It's difficult to say whether a judgment creditor will freeze your assets with an information subpoena with restraining order or another instrument.

3) There is no statute of limitations issue, if that's what you're concerned about here. Debts don't just vanish by avoiding them.

I'm very sorry about your situation but you need someone to look over what your financial picture is and think about potentially filing for bankruptcy if that is the option. Otherwise, it's going to be time to pay the creditors with what you have.