I received a final judgment for City Bank. I was sued for credit card debt. Can I fight this?

You have to answer the questions in the interrogatories that seek information about assets or the creditor will file a motion to find you in contempt. Have you considered bankruptcy? When you file Bankruptcy you create a financial estate. That estate is “administered” by a Trustee. There are very different paths to the same outcome if you file a Chapter “7” or a Chapter “13” Bankruptcy, but the result is the same: you get rid of “unsecured” and maybe other kinds of debt. Bankruptcy is filed by creating and filing a Petition. In the Petition you list all of your assets and income for the household; and all of the debts and obligations for that property or person who is filing. After everything is listed your attorney applies “exemptions” to the property. Exemptions are creatures of State law in New York. Quite simply, they are the “things you get to keep” as defined by specific statues and laws. EXEMPTIONS There are many exemptions. It does not matter if a person files a Chapter 7 or a Chapter 13 Bankruptcy. These exemptions apply to all cases: Homestead exemption: This is where the homeowner who is on the Deed and living in the property gets to protect $50,000.00 (in New York…other States Vary!!!)each (up to two) of equity in the property. So, if one person is on the Deed and they live in the house and the home is worth $50,000.00 and is paid off, they get to keep the home and no one can try and take it if they file Bankruptcy. If two people are on the Deed and reside in the home the house can be paid off and worth $100,000.00 and nothing will happen to it if they file a Bankruptcy. Personal property: The vast majority of people do not have to worry about losing property when they file Bankruptcy. However, it is your obligation to report all property. Most people’s furniture, bedroom sets, dining room sets, clothes, etc. are normal consumer items that we list, but since the PERSONAL PROPERTY EXEMPTION IN NEW YORK IS $10,000.00 DOLLARS (In New York…check your State) we have found that it is not worth the trouble by the Trustee appointed to oversee your Bankruptcy to take and sell the property. DON’T: Take out a second mortgage to pay credit cards; Transfer property to family members or friends to “protect it”; Take money out of your retirement account to pay credit cards. Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship. The opinions expressed herein are those of the author only and the fact that he has worked as an Assistant District Attorney; State Supreme Court Clerk; Special Assistant United States Attorney (Hawaii); Assistant Cornell University Counsel or Judge Advocate, United States Marine Corps should not be relied upon to assume that these statements reflect the policy of these organizations.

It sounds like City Bank have a judgment. The next step is for them to file collection actions. Usually that is a garnishment. Who can be garnished depends on who was sued. If the judgment was not against your husband, then he can be the subject of a collection action. Unemployment is not subject to garnishment. As far as the order goes, if it is an interrogatory issued by the court, then you must appear and answer. If not, you do not. Seek legal advice for more information. Find me at http://www.linkedin.com/in/mpgoldstein [This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]

It sounds like you are well past the fighting it stage, and in fact you probably owe the money. At this point you need to consider your bankruptcy options depending on the rest of your financial picture. Bankruptcy will put a stop to the judgment immediately and will eliminate the debt in most cases. Take some time to research and read about bankruptcy and then go see a bankruptcy attorney in your area. For more information, visit www.freebankruptcyinformation.info or checkout my legal guides regarding this topic posted on my profile. Legal Information is Not Legal Advice My answer provides information about the law based on the limited information provided in the questions asked and is not intended to be legal advice. The law differs in each jurisdiction and may be interpreted or applied differently depending on the location or situation. I highly recommend that you consult with an attorney to discuss the specific details of your situation so you can get legal advice tailored to your specific circumstances. The information in my answer is for educational and information purposes only, and is not legal advice or legal opinions. The answer provided to the question asked does not constitute a lawyer-client relationship.

Based on the information you have provided, the creditor is now a judgment creditor. A judgment creditor, and the court, can require you to give information about your current income, assets, property, and employer (usually through deposition, testimony or request for production of such information). In your situation, it appears you have been served with a request for production – this is common and you are required to respond. Failure to respond to such requests may cause the court to hold you in contempt and sanction you. They are seeking this information in an effort to determine what, if anything, they can obtain from you to satisfy the judgment (wages, assets, personal property, etc.). Based on the information they ultimately obtain from you, the law allows for the judgment creditor to seek a continuing writ of garnishment, writ of attachment of a bank account or a lien on your personal property until you have paid off the judgment. But you may have some protections/exemptions defenses available, especially with respect to wage garnishment as public benefits are further excluded from wage garnishment – unemployment benefits are public benefits. The creditor will review their actual ability to collect the judgment amount. Based on their determination it is unlikely that they would seek wage garnishment if you and your husband are both currently collecting unemployment. This means they will, if anything, attempt to attach to a bank account you currently own or lien any property that may have value if sold at a later time. They may even elect not proceed further once they have information from you in response to their request for production. Regardless, there is always the option of negotiation and settlement for less than the full balance of the outstanding judgment – if the creditor is willing to negotiate. While you have limited leverage, the creditor will always evaluate the cost associated with continuing their collection efforts. They will also evaluate the cost of receiving a settlement amount (usually best if a lump sum payment) from you today versus only obtaining a lien on property that may never be sold. You should consider engaging them again in negotiation and settlement discussions and hopefully you will be able to reach a resolution that will get this debt resolved. Otherwise, you may want to consider consulting a bankruptcy attorney given your overall family financial situation. Scott Silver, Esq. Credit Advocates, LLC Toll Free: 1-800-ABC-DEBT (222-3328) Fax: 866-577-1240 Email: [email protected] Website: www.fl-debt.com ** The general information provided above is made available for informational purposes only and is not intended to be legal advice, but merely convey general information related to common legal issues. This communication does not create an attorney-client relationship, nor is it intended to do so.