Q: I have a $13,000 debt to a credit union Over 2 years their law firm has served papers on me I phoned them to resolve
They were advised I have suffered PTSD, complications from brittle Type 1 diabetes Disabled Social Security is only income I own a 1999 car They never return my call after I ask them to relay circumstances to credit union and have debt set aside The IRS has set aside tax debt due to my condition. I thought because I contacted them there was no need to file an Answer now no recourse? I have only my car am 66 years old I’ve tried to resolve this and feel they have harassed me Is there anything I can do at this point? I stand to inherit a sum of money if my mother should expire before I do please guide me
A: Unfortunately, contacting the law firm and requesting they set aside the debt, may not be enough to prevent a judgment against you. You will need to file an answer within 30 days of being served and the answer should include sufficient defenses. If an answer is not filed within the required timeframe, the credit union can move for a judgment by default. The good news is, if you don’t own real property, it appears you may be judgment proof at this time. Judgment proof simply means you do not have enough assets for a creditor to seize and/or the assets you do have are protected from being seized. If the credit union does obtain a judgment against you, they are unable to garnish your social security income. If your mother passes and leaves you a sum of money and you deposit those funds into your bank account, the funds would be subject to garnishment by the credit union. I suggest you immediately hire an attorney to assist you in responding to the initial complaint and for overall representation on this matter. It will also be helpful to have a conversation with your mother and encourage her to seek legal representation about the best way to transfer her assets to you so that they will be protected from your creditors.
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