Kentucky Zombie Debt Default Judgment Attorney

by admin on September 10, 2010

You get served with a lawsuit in Kentucky and some attorney and company you never heard of, is suing you after you filed bankruptcy for a debt that is 20 years old and for a debt you can’t remember.  So you ignore it they get default judgment.  Bad idea.   Because a default judgment is just as good as any other judgment and default judgments can be extremely difficult to overturn as it gets older.   But Zombie debt collectors buy bad debts from credit card companies and then attempt to collect from people that have similar names often without enough documentation to prove that a debt even existed.   This is a billion dollar industry in Kentucky where large mortgage companies, banks, and credit card companies sell charged off debts to companies that buy “uncollectible” debts for pennies on the dollar.

Why would someone purchase such debt.   Answer: to collect the principle interest and attorney fees that often double or triple the debt from people that will repay just to stop the harassment.  Often the Zombie debt collector has no proof that you even owe the debt but they will put it on your credit report.   All the Zombie debt collector will have is just a computer record with a name, account number, and a balance.   No contract between you and Chase bank or whatever the company was.   No proof of your identity that it was you that signed for the debt, no record of what the charges were for or what payments were applied, no ability to breakdown the principal, interest, late charges, or any accounting of how the total balance was calculated.

The only way to win such lawsuits in Kentucky is to rely on you allowing a default judgment.  If you fight such debts they have a difficult or impossible time proving that you owe the debt.   But zombie debt buyers dont care.  Most people do not respond to lawsuits in Kentuck.  If there you fail to answer the zombie debt will win by default judgment and may collect by garnishment attaching a home or it is possible for you to even go to jail for contempt and the failure to respond.  Zombie debt buyers rely on your failure to respond.  So, when you get served with a  lawsuit, contact an attorney.  Just because you were sued doesnt mean that you owe the debt.  

Nick C. Thompson Kentucky Bankruptcy Attorney.

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Wage, Bank Garnishments Real Estate Liens

by admin on August 21, 2010

If you are sued it is important to see an attorney immediately before your wages or bank accounts are garnished or your real property property is attached by a judgment lien.  Standard creditor attorney practice includes sending out wage garnishments, bank account garnishments and attaching any real estate in your name after they sue and obtain a judgment.   It can take weeks to recover wages or bank account funds if garnishments can be recovered at all by filing bankruptcy.  The removal of a judgment lien normally requires the filing of a motion to have that lien removed and obtaining an appraisal.    

Only certain debts such as student loans and IRS Income taxes can garnish wages or bank accounts without first suing the Debtor and obtaining a judgment.  If a creditor files a non-wage garnishment upon a bank whatever money is on deposit in your account, up to the amount of the judgment will be attached and sent to that creditor.  The garnishment will often cause you to overdraft the account.  Non-wage garnishments are not supposed to levy against social security funds in the account but you will often have to go to court to have funds refunded.

Wage garnsihments are supposed to be limited to 25% and employers are supposed to not dismiss an employee for the first wage garnishment.   However employers have taken more than 25% and  found other reasons for dismissing an employee.  Wage garnishments often make an employer nervous about the possibility of employee theft.

Once a real estate lien or garnishment attaches it becomes hard or impossible to get property back.   While bankruptcy will stop a creditor from garnishing wages once the lien attaches to property is acts just like a mortgage or car lien.  It is far better to see an attorney as soon as you are sued. 

Attorney Nick C. Thompson Louisville Kentucky How to file for Chapter 7 Bankruptcy

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Checklist Manuals Audios Videos and Powerpoints

July 25, 2010

How to file for Bankruptcy We explain how to file Chapter 7, 13 and 12 Bankruptcy step-by-step.    The Bargain that the Bankruptcy Court makes with a debtor is that if you will provide the documentation and fully disclose your financial information they will discharge your debts and grant the bankruptcy.   It is difficult to file for [...]

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