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Ely
Ely, Counselor at Law
Category: Consumer Protection Law
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Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I am being sued in small claims court. They have offered a

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I am being sued in small claims court. They have offered a payment plan if I sign a confession of judgement. First, what is a confession of judgement? Second, if I don't sign and go to court and a judgement is handed down, how long do I have before they may garnish my wages? I am thinking I may need to file for bankruptcy since the debt is very high and I cannot pay it. Thank you.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Ely replied 1 year ago.
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my reply.

I am very sorry for your situation.

First, what is a confession of judgement?

A confession of judgment under CHAPTER 21-26 is an admission of responsibility, i.e. that you are responsible for whatever the Plaintiff claims. This is then filed with the Court. Essentially, a confession of judgment ends the case in the Plaintiff's favor.

What the Plaintiff is asking is that if you agree to a confession of judgment, they will agree to a payment plan.

Second, if I don't sign and go to court and a judgement is handed down, how long do I have before they may garnish my wages?

Likely a few weeks or so. They can garnish up to 25% of one's net pay. SSA and other support income from the federal or state governments cannot be garnished.

The difference between simply a judgment in their favor and a confession judgment is this - in a confession judgment, they cannot garnish any wages provided you continue and keep up with the payment plan. However, in just a regular judgment, they can, unless you pay them a lump sum.

I hope this helps and clarifies. Good luck.

Please note: I aim to give you genuine information and not necessarily to tell you only what you wish to hear. Please, rate me on the quality of my information and do not punish me for my honesty. I understand that hearing things less than optimal is not easy, and I empathize.

Gentle Reminder: Use the reply button to keep chatting, or please rate and submit your rating when we are finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of the top three faces and then submit, as this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects poorly on me, even if my answer is correctt. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.
Ely, Counselor at Law
Satisfied Customers: 89139
Experience: Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
Ely and 6 other Consumer Protection Law Specialists are ready to help you
Customer: replied 1 year ago.

Thank you for your swift response. I am scheduled to be in court tomorrow but am very much considering bankruptcy since I have other debt that is looming and am unable to keep up with payments. The confession of judgement that they wish for me to sign also has other debts that have been assigned to their collection agency but are not part of this lawsuit. The total debt is around $7500. They want $1000 down and have it paid off in 2 years. I sincerely XXXXX XXXXX my current financial situation, that I would be able to afford this. I am wondering.....A. Do I need to show up in court tomorrow if I am going to file for bankruptcy? B. Does bankruptcy, in your opinion, seem like my best alternative? My current debt load is between $15,000 and $17,000. Thank you for your help!

Expert:  Ely replied 1 year ago.
Friend,

Thank you for your swift response.

You are most welcome.

I am wondering.....A. Do I need to show up in court tomorrow if I am going to file for bankruptcy?

The answer is YES. You do not know what they will state in Court if one does not show. Then, the whole field is theirs, so to speak. They can add on whatever amount of money they may wish to try, and/or, add other causes of action, etc. Even if one plans to file a BK, one should not give the other side free reign by defaulting on a hearing. So yes, it is best to show.

B. Does bankruptcy, in your opinion, seem like my best alternative? My current debt load is between $15,000 and $17,000. Thank you for your help!

My friend, you are putting me into an awkward situation. I cannot choose for you, of course. So it would be hard for me to say what would be best for you in such circumstances. Originally seen as the last resort option, a BK is becoming increasingly a choice for many Americans. The good news is that within a year, your credit rating begins to rebound. Many people have found it beneficial. There are two main types for individuals - chapter 7 and chapter 13 - see here.

If one wishes to purchase a home or a vehicle within the next few years, the BK may not be best. If one does not, then it may be an option.

Gentle Reminder: Please use the reply button to keep chatting, or rate and submit your rating when we are finished. You may always ask follow ups at no charge after rating.
Customer: replied 1 year ago.

I do realize I put you in an awkward position but I certainly appreciate your candid response. Thank you for your assistance. You have been very helpful! Have a great day!

Expert:  Ely replied 1 year ago.
You are very welcome. I know it is a hard decision. One step at a time, my friend.

Good luck, and please don't forget to rate my answer in one of top three faces and then submit – it is the only way I get credit for my time with you – or, please reply to keep on chatting – I want you to be satisfied.

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