     Morgan Appel (Downinsocal) | Wednesday, March 29, 2000 - 08:50 am 
Hello to all. This is perhaps the most useful forum that I have had the opportunity to peruse, although I certainly wish my circumstances did not compel me to do so.
At any rate, I work for a University in southern California, more specifically working with kids in inner city schools to raise student achievement. The problem with this position is that we exist on soft money, and in the midst of a move, the rug was pulled out from under me and I lost half my income (not even with one half hour's notice mind you). The work I do as a private consultant helped, except that schools are notorious for their delinquency in payment.
Enough of the sob story. I've been charged off like its going out of style, although my wife and I had paid off most of our debts a few months ago. To add insult to injury, my car was repo'd last night. As I am expecting no calls from Regis in the coming months, I wanted to summarize what I believe I've seen here and desire feedback for accuracy. Interestingly, I'm not upset about all of this, but truly desire to get on with it. So here goes--what I think I should do:
* As far as the charge offs go, unless the collection agencies or original creditors make me a sweetheart deal and agree to remove any record from the three CRAs, do nothing, and allude to the fact that I may be judgement proof or insolvent.
* As far as the repo goes, there is no way in God's green earth that I can pay off an entire loan, especially if its just a lease. As far as the deficiency goes, its unsecured, so I'll employ similar tactics.
In your expert opinions, what do you think the likelihood is that I'll be garnished for the deficiency from Wells Fargo Bank? I am not sure what this amount is, but I am sure that it will be under 10k.
The most useful thing here is not feeling alone with one's troubles. For that, I am very grateful. The only other aspect of this business that is more gratifying is how stunned the %%^$&% collection agencies are when they find out you know your rights (I was once told that the Cease and Desist letter was illegal!)
Thanks all! |
| K.Feathers-Carreon & Assoc. | Wednesday, March 29, 2000 - 10:07 am
Morgan:
You summed it up pretty well. Your plan is as I would suggest in lieu of a Bankruptcy and I am sure you have considered it and maybe you do not owe enough to file.
The chances of you be garnished are 50-50. Wells Fargo is pretty Pro-Active in legal maneuvers and may do so.
The Collection laws for Calif. are:
CALIFORNIA
INTEREST RATE
Legal: 10%
Judgment: 10% (Unless otherwise contracted)
STATUTE OF LIMITATIONS (IN YEARS)
Open Acct.: Reduced to writing-4
Open Acct.: No writing-2
Written Contract: 4
Domestic Judgment: 10 (renewable at 10)
Foreign Judgment: 10 (commencing with judgment debtor's commencement of CA. residence.)
BAD CHECK LAWS (CIVIL PENALTY)
Amount due, Treble damages - minimum $100 maximum $1500 per check
GENERAL GARNISHMENT EXEMPTIONS
See federal law. Exemptions for necessaries of life.
COLLECTION AGENCY BOND & LICENSE
No license or bond required. -------
You have to figure how the garnishment, if it happens will affect you. What will the total monthly amount add up to from the weekly garnishment? Are you exempt? (Ie: Other garnishments in front of them or IRS Garnishments and exemtptions for survival-living expense.)
All of the above is assuming no mistakes are made by Wells Fargo in the Repo Process. Little mistakes can happen that will work in your favor. Such mistakes are selling the car before the UCC hold is up,not listing it publicly as required if public or private sale,selling to an employee,not getting adequate fair bids and other various violations. Wells Fargo may not make any mistakes and if that is the case then you have three options. Set up a pay plan with them, negotiate the debt for a reduced payoff (requires a lump sum) or file Bk.
I am also glad to see you have a good attitude.
Kristi
Carreon & Assoc.
Notice: This is not legal advice. Consult an attorney for your options. |
| Morgan Appel (Downinsocal) | Wednesday, March 29, 2000 - 10:24 am
Thank you, Kristi. I always enjoy your posts and respect your opinion. In life we always have options, I guess, and self depreciation for circumstances beyond my control is just not OK with me. There are more important things in life!
I am just happy that the work I do is rewarding in itself. I have a great support system, and I guess in this world, you can't ask for much more.
Creditors and collectors are infamous for using fear as a tactic, and I'm (pardon the pun)just not buying into it. |
