I got served papers today by a bank where i got a loan 4 years ago. I owe them $10,000 and now they're suing me. I'm not working that's why i haven't paid. The last time I paid was about 1 year ago. My question is this- My husband is the only one working, we did not get this loan together and we just bought a house last year too. The house is in his name only. When I go to court for this, will HIS income get garnished, will a lien be placed on the house? Is there any chance that the bank will reduce the debt just so they can get some cash? I don't want to get a lawyer if i can settle this by myself, but my husband says i may have to file bankruptcy cuz i have outstanding credit card debt, $5000, and medical bills. I live in TX, so I'd appreciate any input anyone has to offer.
2006-06-27 17:21:08 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
Your home (even if your name was on it) and your husbands wages are exempt. Per Texas state exemption statutes.
I would suggest that if you have your name on any bank accounts (checking, savings etc) close those accounts ASAP. Then either open new accounts with your husband as primary or leave your name totally off of them.
Be sure to answer the summons in the time allowed or they will get a default judgment against you. Also, if they have violated your rights, by any action, such as - if they are violating your rights in the way they report on your credit reports, if they have violated your rights in any way when they contacted you etc etc etc, file counter claims.
Since you are going to deal with this yourself, I would suggest going to the FindLaw link I've provided and read your states rules of civil procedures (RCP). You will need to go by those rules not only when answering, but during the case.
I also suggest checking out the next link. It is a free self credit repair site that has a vast data base of info. And there are many threads on how others have dealt with law suits, dealing with bad credit and medical accounts.
Plus, you can find out what constitutes violation of your rights faster and easier than reading through the FDCPA and the FCRA.
edited to add: Think long and hard before you decide to file bankruptcy, since it looks like you may be judgment proof. They cannot take what you don't have or what the state exemption laws say they cannot take.
2006-06-27 17:50:00 · answer #1 · answered by echo 7 · 5⤊ 0⤋
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RE :Being sued by bank where I got a signature loan?
I got served papers today by a bank where i got a loan 4 years ago. I owe them $10,000 and now they're suing me. I'm not working that's why i haven't paid. The last time I paid was about 1 year ago. My question is this- My husband is the only one working, we did not get this loan together and we just bought a house last year too. The house is in his name only. When I go to court for this, will HIS income get garnished, will a lien be placed on the house? Is there any chance that the bank will reduce the debt just so they can get some cash? I don't want to get a lawyer if i can settle this by myself, but my husband says i may have to file bankruptcy cuz i have outstanding credit card debt, $5000, and medical bills. I live in TX, so I'd appreciate any input anyone has to offer.
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2016-10-05 19:06:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you're married, then the house belongs to both of you. Typically, if you defaulted on a loan and they carry you to court, your guilty. They will get a judgment and eventually a lien against your property. However, you said you live in Texas....I know that Texas has some kind of homestead act or something where they cant take your property from you like in a typical foreclosure. I'm not sure how this relates to a judgment lien, but I would call up a local attorney and ask a few questions. Pretend you want to hire him and get him to tell you the answers and why he should represent you on this. LOL It may be worth a shot!
2006-06-27 17:30:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The question is what the 10K was for. That will go first and yes you are in this together in Texas. I would contact the credit company and see what you can work out with them. Basically, they just want their money. Having ignored them for a year is not too smart. I'm guessing the medical, unemployment go together. It better be legit. Sometimes they will even fore go interest if you show good faith. I would start by taking all of your credit cards, spray Pam on a baking sheet, set the oven at 425 and place all you credit card on the sheet & bake 30 minutes. They probably cannot take your home but everything else is up for grabs. Forrest said it best," Stupid is as stupid does."
2006-06-27 17:37:35 · answer #4 · answered by The Principal 1 · 0⤊ 0⤋
bank loan is secured or non-secured? if it is non-secured you can negotiate some sort of settlement. You have to contact them and spell out what your offer is. If they accept, get it in writing! if the loan is secured, then they will most certainly put a lien on your house. court verdict will also garnish HIS wages. Do not file for bankruptcy for so small a debt. You can solve this, unfortunately, you should have confronted this as soon as you knew you could not make payments.if you have some small cash amt make that your offer. medical bills can also be negotiated. do it before it goes to collection. collection agencies are more ruthlees and heartless.
2006-06-27 18:34:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Echo is right on the target again!
Texas is a community property state. I'm not up on how that effects judgements, but I know it can really throw a monkey wrench into your court case. You need to consult a lawyer on this one.
I'm not sure about Echo's advice on bankruptcy is good. I believe household income is used to calculate whether you qualify for chapter 7 nor not, so you may not qualify for a BK. The key here is your husbands income.
Again, I'm not up on Texas laws but I recall that you can't garnish wages in Texas. So that should protect his income from any lawsuit. But if they win a judgement (sounds like they will) they can continue to hound you for many, many years.
Good luck
2006-06-29 09:38:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You live in the state of Texas. It is a community property state but not a community debt state. And the only way you are going to understand how that works is by talking to someone, such as an attorney, that may know the difference. But do not walk into that courtroom unprepared, hoping that the judge will be sympathetic. He is there to dispense justice not mercy. You walk in unprepared and the bank's attorneys will sock it to you.
2006-06-27 18:01:45 · answer #7 · answered by Sugar Bear 1 · 0⤊ 0⤋
You did not state what state you're in. In Washington State what she did was perfectly legal. She had power of attorney to sign your name on loans and many other things. So long as she was married to you and not going through a divorce at the time she signed the documents. So you'll have to check the laws in your state.
2016-03-27 06:30:55 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If you are husband and wife. Your debt is his debt, his house is your house, his income is your income.
Get the picture. His wages will be garnished and they will take the house. You can settle this by yourself by paying the debt you owe.
In what world can you take out a loan and not payback the money. It is inmoral and wrong. Just wait untill the judge gets to you two.
2006-06-27 17:27:17 · answer #9 · answered by Dee 4 · 0⤊ 0⤋
You are solely responsible for the debt! They can not attach his pay nor can they place a lien on the home.
With no income, bankruptcy may be the way for you to settle the situation!
2006-06-27 17:34:49 · answer #10 · answered by fire4511 7 · 0⤊ 0⤋