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what can collection agency allowed to do?

Discussion in 'Bankruptcy Law' started by sosa, Nov 22, 2019.

  1. sosa

    sosa Law Topic Starter New Member

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    Jurisdiction:
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    I have a judgment against me due to a car accident. I heard the collection agencies cannot harass me by calling me and popping up at my place. So, what can they do to collect the amounts put on judgment?
     
  2. army judge

    army judge Super Moderator

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    A judgment will begin to erode, then destroy your FICO.

    The judgment holder could levy against your wages/income, your bank accounts, without boring you with all the ways it could harm you; a judgment can ruin your life and/or the ability to improve your life.

    You can be contacted by your creditors, some consider that harassment.

    A chapter 7 BK is one way to extinguish the judgment and MOST other debt.

    Another way to extinguish a judgment is pay the judgment in full.

    This article provides a detailed explanation about the impact of a judgment:

    Creditor Gets a Judgment Against You — Now What? | Credit.com
     
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  3. Tax Counsel

    Tax Counsel Well-Known Member

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    Federal and California laws restrict what debt collectors can do. See the California Attorney General's page on Debt Collectors for more information on that. The debt collector certainly may call you or even visit your residence to collect, but may not do so in a manner that is harassing, e.g. calling you or visiting you at 2 am, calling you multiple times a day, etc.

    Also, note that the judgment holder may record the judgment as lien against you and may attach any income and assets you have that are not exempt from attachment under federal and state laws. So the judgment creditor may attach your bank account, wages, etc., to collect the judgment. In addition, since the judgment is from an auto accident, the judgment holder may also apply to have your driver's license suspended if you do not pay. See the Los Angeles County Department of Consumer and Business Affairs page on Suspending a Driver's License for more on that.
     
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  4. adjusterjack

    adjusterjack Super Moderator

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  5. flyingron

    flyingron Active Member

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    California's laws are similar to the federal law with one major exception. They apply to anybody trying to collect a debt, even the owner of the debt. The federal law only applies to third-party collectors.

    Here's what they can't do under CA law: Codes Display Text.
     
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  6. sosa

    sosa Law Topic Starter New Member

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    I do not have a house or a steady job. I just have some money in my bank account. So my question would be how they can find out about the assets I have in my bank account if I don't talk to them. Are there ways they can trace it without my assistance?
     
  7. army judge

    army judge Super Moderator

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    Debt collectors have many ways to discover what assets you possess, and which of those assets are subject to levy to satisfy the judgment.

    What is probably already known to the judgment holder is: your full legal name, date of birth, address of residence, drivers license number, social security number, other creditors, all of your credit bureau files/records, educational history, criminal history, place of birth, relative, friends, associates, place of employment, employment history, social media footprint, vehicles owned, real estate owned, medical history, other debts that might be delinquent, civil court record, criminal court record, marital state, and probably much, much more.

    The judgment holder (his or her representative) probably know where it is, or they are busily searching for that information right now!
     
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  8. Tax Counsel

    Tax Counsel Well-Known Member

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    It's possible they may already know where you bank or can find that out either through information that is publicly available or through some investigation. They also have the option of forcing you to provide financial information by summoning you to a debtor's examination.
     
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  9. sosa

    sosa Law Topic Starter New Member

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    I heard they can come after my wife's asset as well in California if they find out I am married. I am thinking about prenuptial to avoid the financial responsibilities of spouse... What do you think?
     
  10. mightymoose

    mightymoose Moderator

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  11. flyingron

    flyingron Active Member

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    If you incurred the debt after you were married, the debt is part of the community estate. They certainly can come after the other community assets and possibly even her separate ones.
     
  12. sosa

    sosa Law Topic Starter New Member

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    the debt incurred before the marriage. Wouldn't the prenuptial reconcile the obligations that I have caused before the marriage if it is still possible to do it?
     
  13. Zigner

    Zigner Well-Known Member

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    The creditor is not a party to any prenuptial or postnuptial agreements between you and your spouse/ex-spouse. That means that it doesn't matter what's in your prenup...
     
  14. army judge

    army judge Super Moderator

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    You could delay the marriage until the debt has been settled, or otherwise addressed.

    If your funds are low, your finances in state of flux, it might be time investigate a chapter seven bankruptcy.

    You can buy a book on the subject, or do your research online, as there dozens of sites that offer a person useful information.

    You can do the bankruptcy yourself, if you educate yourself.

    The federal bankruptcy court sites all across the land offer information for "pro se" (DIY litigants).

    Bottom line, if you are successful at your bankruptcy, many, IF NOT ALL of your debts would be wiped clean by the court.

    In essence, in about 90-120 days, you'd owe nothing on the judgment.

    You'd also owe NOTHING towards any other creditor.

    This is the court nearest you.

    Here is some information to get you started:

    Don't Have an Attorney | Central District of California | United States Bankruptcy Court


    FAQs | Central District of California | United States Bankruptcy Court


    For Debtors | Central District of California | United States Bankruptcy Court
     
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  15. zddoodah

    zddoodah Well-Known Member

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    That's wrong.

    A creditor who has a California judgment against you (or the agent of such a creditor) can seek to enforce it in any of the myriad ways permitted by California law and do anything else that is not expressly illegal under federal or state law.

    The creditor can haul you into court for a judgment debtor exam.

    Yes.

    What do we think about what? California law provides that a debtor's separate and community property (including a spouse's interest in community property) is subject to enforcement of a judgment against the debtor. The debtor's spouse's separate property is not subject to enforcement of a judgment against the debtor. Obviously, if you're not married and don't get married, this won't be an issue.

    That's wrong.

    Also wrong.

    A prenup can prevent the existence of any community property.
     
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  16. sosa

    sosa Law Topic Starter New Member

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    I am already married, but my wife and I do not have any shared assets. We both manage our money separately in our disparate bank accounts. Then, my wife does not need to worry about her money taken by the debt collectors in the state of California? So, I do not need to bother with getting a nuptial agreement?
     
  17. zddoodah

    zddoodah Well-Known Member

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    Then it is, by definition, impossible to do a prenuptial agreement, so I'm uncertain why you raised that subject. A postnuptial agreement might be a possibility.

    Where did that money come from? If your answer is that it was earned subsequent to the marriage, then it is community property.

    The procedure for levying on money held in an account standing solely in the name of the judgment debtor's spouse is found in Chapter 3 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.
     
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  18. army judge

    army judge Super Moderator

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    No one can assure what another person or entity will or will not do.

    That decision is one best discussed with your wife.
    If you're already married, a "prenup" is out of the question.
    A "postnup" might be possible.
    Again, a precise answer will only be derived after you retain and visit with YOUR attorney.
     
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  19. sosa

    sosa Law Topic Starter New Member

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  20. Zigner

    Zigner Well-Known Member

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    You can't
    Due to the comingling of the funds, the date of deposit doesn't really matter.
     
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