Legal ? In an effort to assist a client of mine, I have a question about what happens when someone i

sued by a creditor. My client is disabled, and has no income. Although he did at one time. He is being sued for monies due to a credit card company. He actually has nothing of value with the exception of a vehicle that is worth roughly $2,000, which his is trying to sell in order to at least be able to offer this amount of money to the credit card company. His debt is roughly $40 thousand dollars, I am uncertain how old the debt is. The gentleman is mentally ill, and has given me written permission to seek out information for him (so this is not a breach of his confidentiality).

Specifically, I am wondering what will happen in this hearing?

What rights does he have? What can he (we) offer to do to show that he indeed has good intentions, but is very limited financially for the obvious reasons? What part does his disability play in this process, if any? Should I bring this to the courts attention?......as to interact with this gentleman in his %26quot;stabilized%26quot; condition one would

Legal ? In an effort to assist a client of mine, I have a question about what happens when someone is being?loan company

The first question is whether he owes the money or not. If he owes it, a judgment may be taken against him for the amount owed. All a court can do is enter the judgment, it cannot forced him to pay, especially since there are no assets. You should also check the state statutes on exemptions, that is each state allows a certain portion of an individual%26#039;s assets to be exempt from attachment or garnishment. My guess is that if the car is his only asset, he could claim that as exempt and keep it. You may also want to show proof of the disability to the other attorney to establish that he does not have anything and will not likely receive anything in the future. If a case is uncollectable, and you show it, the creditor may stop pursuing it. Now, some questions to anticipate, is how is the person living day to day, and how is he getting money for a place to stay and food to eat. If he is receiving SSI disability payments, those are also exempt and cannot be touched by the creditor. If he is unable to handle his day to day affairs, why is there no guardian for him, i.e. someone to manage his daily affairs. Is he actively seeking treatment for his mental illness? If so, perhaps he may have a defense to the claims, that is was he mentally competent to agree to the terms of the credit card in the first place. These are all questions that need to be answered. You should check with your local bar association for legal aid clinics who would offer advice at little or no cost depending on the ability of the person to pay. They would be in a better position to answer your questions, and see whether there is something that can be done in this case.

Legal ? In an effort to assist a client of mine, I have a question about what happens when someone is being? loan

i%26#039;ve been sued by a credit card company before. I didnt have the income to pay anything. All that they can do then is 1. if you get a job put in a court order to have your wages garnished 2. take your state income taxes. But that%26#039;s about all I know. If he is getting any income from the state (ie disability etc-) they usually have a formula they use and say %26quot;this is what a man can live on%26quot; and the rest will go to the credit card company. Lots of times- they are happy if you pay SOMETHING- even if you can only afford 10 dollars a month- to them it%26#039;s better than nothing. Often time too- (although it may be too late now) they will offer to settle for less than the original amount owed if the amount can be paid in one lump sum. Sounds nice- but when you cant afford the 50 dollar minimum payment- you sure as heck cant afford the 1500 lump sum- so instead you pay 10 a month to pay off 3500..... sucks... sorry cant be of more help. I am sooo against bankruptcy-- but his case there might not be any better option.|||You need to get legal help. There are agencies that will help. This question is too complicated and dependant on your states laws to be answered on YA.|||the court will see him as he is..cant get blood from a stone..or he can always declare bankruptcy if he has no money|||He is disabled and mentally ill. He can probably file bankruptcy, or, just not pay off any of the debt and let it all go into default.

Is there a -need- for him to pay it off? Hes disabled, mentally ill. What use is he going to have in the future for any credit? If he feels absolutely obligated, he can sell off everything to the clothes off his back, but its not going to matter if hes never going to attempt to get credit again.

Good feelings, and good intentions don%26#039;t matter. His disability should not pay for past debts, though he probably could use it to. Thats not its intent though.

Finally, he could have worked out a reasonable payment plan with the creditor. However, if the debt is $2,000, I highly doubt the credit card company is suing for that. It will cost them considerably more, and with his current mental state, the chances of them getting anything is about nil.

Edit: As the above answerers said: This is a complicated question. Seek other legal advice. And secondly, they will probably be happy with $10 a month. :) It IS something.

Edit 2: You said dont assume hes mentally ill, but in your original question, you said he was!|||Has he not filed for Bankruptcy? The standards in 1997 were the individual was allowed to retain $2,000 worth of car and $2,000 worth or personal property, based upon garage sale prices. Bankruptcy lawyers are expensive and would want a retainer, which he obviously cannot afford. An alternative is to find a Paralegal that handles Bankruptcies. They%26#039;ll charge about $350 to do all the paperwork, it will just take you or your client the effort of compiling all the debts, addresses, phone numbers, etc. The paralegal will give you the forms to fill out. Then, they prepare it EXACTLY as it needs to be presented. You go to the courthouse, pay the filing fee (in 1997 it was $175), and at the time of filing you are giving a Bankruptcy filing number. From this point forward, ANY people seeking to collect a debt, you give them the # and they are required by law to cease calling. The court will notify of the date for the Bankruptcy hearing. A mediator will be there, usually not a judge, and any creditors have the option to appear. The mediator will see the circumstances and usually grant the Bankruptcy. And it%26#039;s over. Bad credit for 10 years, but all those debts are wiped away. Forever. I hope this info helps.|||Not sure why there is a hearing? On the outstanding amounts? I doubt they will seize his car and if he has no income he will just have a $40,000 judgment against him and that will follow him until the end of time unless he files BK.|||What kind of %26quot;client%26quot; is this? If you are not a lawyer you cannot represent him in court and he should be hiring one. If you are a lawyer, you should refer him to another one that knows what the heck is going on.|||I second Bob D. I%26#039;ve gone through this with my mother. Our solution to keeping her SS from being garnered was bankruptcy. However, we live in Florida, a very bankruptcy-friendly state. This may be a terrible decision for your client, as many states treat bankruptcy very differently than Florida does. We are rated as a %26#039;bankruptcy shelter%26#039; state.

Get a lawyer. The hundred bucks for an hour consult to know, exactly what your options are in your state is invaluable. No one but a bar-certified lawyer in your area can tell you for sure what you can legally do.|||It sounds like he%26#039;s what a lawyer friend of mine used to call %26quot;judgment proof%26quot;, which is to say that he has nothing that they can legally take away. If he does get a job, then can ask the court to garnish his wages, but they can%26#039;t take away his transportation.

If he truly has no income (not even social security or disability), then they might decide that whoever is paying for his housing and food is responsible for him and go after them. That%26#039;s when you probably need to get a lawyer.

As usual, I%26#039;m not a lawyer so you might want to ask one.