This was an old outstanding loan I had with Plain Green that I was unable to fully pay back. I received a letter from Plain Green that they had sold my loan to Rocky Mountain Capital Management, LLC for collection. In brief my situation is this: I am an 81 year old senior citizen with no income other then my monthly social security check.
I have not assets--no car--no house--no savings. I am in an rented apartment. If they sue what do I do?
What follows below are excerpts from an answer I provided just the other day to some one who was in a similar predicament who was considering filing for bankruptcy. Sorry to be lazy and not retype it :). But the point is the same, if you are having anxiety you might want to consider a BKC to put the matter out of your mind.
OR, let them get the judgment but not lose sleep over it knowing your social security check is not subject to garnishment, even after it hits the bank.
Question: My husband is retired and receives Social Security. I am disabled and receive SSDI. In October a debt collector will go to court to get a judgement against us. I know they cannot garnish SS/DI. We do not own our home and owe more on our Honda C...
Answer: While a judgment against you may not be collectible, there may be certain advantages to the BKC so that you can have peace of mind. Can not put a $ amount on that.
Example: in my jurisdiction, a garnishment writ is FIRST served on a bank and THEN you can assert the protected status of the content of the account for SSDI, SS retirement, pension, etc.. Takes about 2-3 weeks to get the funds released from the garnishment but in the meantime....you are stuck without funds, and made all the worse if you have automatic debits taken from the account to pay for car insurance, car payment, etc..
Example: you may be required to make production to the judgment creditor, or sit for a deposition, or answer interrogatories. Nothing harmful, but still a "hassle". Those methods are typically referred to as "discovery in aid of execution", which is to say, your submitting to an examination for the creditor to try to figure out what assets you might have that they can take. In my jurisdiction, that can be done once a year or so.
Example: there is a knock on the door at 6:30am--it is a process server.
Point is, a bankruptcy filing would prevent all of the above from occurring. When I bankruptcy is filed, no one can do anything to seek to collect on a debt, not even the sheriff or a private process server can serve papers on you.
Not having to think about it--that is what I mean by peace of mind.
So, yes, you should consider a BKC filing. Get your information. See what it will cost. Then make an informed decision.
