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We are being sued for $4400

post #1 of 11
Thread Starter 


I don't know what we are going to do. We aren't going to win, and DH said that if there is a judgement against us it goes on our credit. We were hoping to buy a house in February. We don't have $4400. They are going to garnish our wages. DH makes a whopping $600 a month and I make maybe $1000 a month.

post #2 of 11
Can you settle? If you know you're not going to win, is there something you can do to make it right? Or is it just that they have deeper pockets than you do?
post #3 of 11
Thread Starter 
Well if we did settle, we don't have money to pay him. And we owe him money, although certainl nowhere near $4400.
post #4 of 11
I think the courts can help you with a payment plan... I know nothing for sure, though. As for your credit, you can write an explanation to attach to your credit report, which potential creditors will take into account when reviewing your application.

Do you have any insurance that might cover this?
post #5 of 11
And, ((hugs)) mama. I hope it turns out much better than it looks right now.
post #6 of 11
is this debt in both your names?
the MAXIMUM they can garnish is 25% of your gross pay. if you explain your circumstances most judges will go lower.
if this is a student loan, they can only take 10% of your NET pay.

i dont mean to sound rude or snarky, but if you are only making $1600 a month, and you cannot pay this debt at all, not even to settle, how were you planning to buy a house?
post #7 of 11
Talk with legal aid. I would suggest filing a response to the suit stating that you desire to repay the debt but need to work out a payment plan in order to do so. Either way there will be a judgement against you and your credit will take a hit...how big the hit is depends on how good it was before the judgement.

Can I be a little blunt? Your family is being sued for nonpayment and you don't have a great deal of income.. you really are in no position to even consider taking on a mortgage. I'm sorry if that seemed like kicking you while your down, that wasn't my intention... I simply think you need to take a hard, objective (maybe painful, even) look at your situation.
post #8 of 11
I think part of it would depend on what kind of debt this is for. Obviously, you don't to share it here, but I would advise talking to an attorney or Legal Aid office about this issue. You may not have originally owed $4400, but if the other party's legal fees are being added on, then it can quickly add up.
post #9 of 11
That stinks, I'm sorry We were taken to court for $3600 (it was originally a $700 hospital bill for our DS's stitches) and ended up being garnished $600 per month for 6 months until it was paid off. BUT, with an income of $1600 per month they wouldn't take that much. I hope you can get it settled and make payements so you don't have to worry about it anymore
post #10 of 11
Sorry to hear that. I'd strongly advise putting off the house buying until you have paid that off, and also any other outstanding debts. It does not make sense to pay a downpayment and take on a mortgage when you have debts that have not yet been paid.
post #11 of 11
Thread Starter 
We are going to call him and try to settle out of court, if he will agree to a payment plan.

Yes our income sucks right now; DH is in school and when he is done his income will be much higher than it is right now
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