Archive for the ‘Stop Collection Lawsuits’ Category

Is the worst that can happen being thrown in jail for an unpaid medical debt?

Friday, July 5th, 2013

Question: I had to go to the community hospital, as I was really sick and thought I was going to die. I applied for county indigent assistance on my bill and thought that they would take care of it, as I was unemployed. Then I received debt collection calls demanding that I had to pay more than the original bill. I could not pay it, but now I have been sued and they want to also be paid interest and the court costs. What is the worst? Is jail time possible, if I cannot pay?

My Response:

The question of debtors prison and county jail should be the furthest thing from your mind on an unpaid personal debt. When the Constitution was written and ratified by the states, it allowed Congress to provide a safety valve of filing for bankruptcy, as a last resort to discharge most debts for those who qualify. (Article 1, Section 8, Clause 4.) In 1833, federal law eliminated prison for private debts and the states followed. Now, it would be amazing to find an instance where a person is jailed in any state, simply for not being able to pay their personal debts.

Nevertheless, fear of debtor’s prisons are stoked regularly by the news media, even CBS news uses provocative headlines to catch more readers. As recently as 2012, CBS ran a report with the headline: “Jailed for $280: The return of debtors’ prisons.” In fact, the report had nothing to do with the headline. Someone reading the headline would probably believe that not paying a $280 bill or credit card may result in a jail sentence.

Upon reading the entire 2012 CBS News Report, however, it is clear that there is no return of debtors prisons in the USA. The people who were threatened with or spent time in jail were there because they failed to appear in court when ordered, for criminal acts, or they failed to pay court-imposed fines associated with criminal convictions. The other issue in the CBS report was that several states allowed collection charges to be added on top of already expensive court fines.

A judgment is not inevitable if a debt collection lawsuit is filed against an individual, particularly if defended by an experienced debt collection defense attorney, who will handle the case to get it resolved before trial, either by settlement or dismissal. Moreover, even if a money judgment is entered by the court against a person, there are numerous ways to get that judgment resolved and NO chance of jail time, provided that, when so order, the debtor appears in court, answers questions truthfully, and does not commit any criminal acts that are punishable with jail time.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler
Facebook: www.facebook.com/SoCalConsumerLawyer

Debt Collection Lawsuit for Unpaid Balance of a Car Loan Contract

Friday, March 8th, 2013

Question: About three years ago, I was unemployed and did not have enough money to keep paying for the insurance, gas, and installment payments. I contacted the finance company and they told me to surrender my car at the dealership and they would take care of the paperwork. The car was in great condition and I got a notice from the lender after the drop off that they would sell the car at an auction if I did not want the vehicle back. I thought that it would be over, but it wasn’t. They sent me a bill for the unpaid balance, reported it on my credit reports as a repossession, and now they hired a debt collection law firm from Orange County, which is pursing me in court. I was served with the debt collection lawsuit yesterday.

My response:
Please review my legal guide on Avvo.com which explains the California consumer’s rights following repossession of a motor vehicle. The fact that you took it yourself to the dealership and voluntarily surrendered it during business hours rather than have a repo agent come to your home at night to seize it does not change the fact that it was a repossession and the finance company’s duty to give you proper notice before they may sell the vehicle at auction or private sale. Essentially, before the finance company may sell the vehicle and then have the right to the unpaid balance, they must send you a proper notice of intent to sell or dispose and then perform the sale in a commercially reasonable manner. More details are in my repossession legal guide.

Once you have an idea of the substantive law regarding repossession from my legal guide, now you can review my blog on your options and the civil procedure for defending a debt collection lawsuit, in my “Next Steps” blog posting. That blog posting provides guidance on the defendant’s options when receiving a debt collection lawsuit and how much time is appropriate to avoid a default judgment, as some people confuse a hearing date with the due date for a proper, written response. Usually, the defendant has 30 days to file the defense papers in court from date of personal service by a process server.

To reduce the risk of losing and a money judgment entered against you, I’d recommend hiring an experienced consumer attorney who handles debt collection lawsuit defense. Most of these cases are settled or dismissed, once the consumer and his or her lawyer see what documents the debt collection law firm has or is missing. Sometimes the notice of intent was missing a required disclosure or the amounts were not correctly stated or the vehicle was not sold in a commercially reasonable manner. These are challenging arguments to present in court and not for the do-it-yourself types, even if you’ve been in a courtroom before.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Facebook: www.facebook.com/SoCalConsumerLawyer

I was just served with a credit card collection lawsuit. Now what?

Monday, March 4th, 2013

Question: I stopped paying on my credit card a while back, because I was tired of paying a high interest rate and I did not have enough money to pay it all off. I sort of suspected that this debt would be sold to a debt collection agency for pennies on the dollar, but the papers are asking for me to pay the full balance, plus the high interest rate that I thought I was going to avoid. I contacted the company and they are holding firm on that number. I don’t have the money for this and my income is too high to qualify for a Chapter 7 bankruptcy.

My response:
First, please check out the short videos on my home page. The first video is a quick overview of all options that are possible to the situation of being served with a debt collection lawsuit. That will help you narrow down your options to the one or two that suit your situation and your own preferences. Your posting did not specify what bank had the original credit card or when you last paid it, which will help determine if they filed the lawsuit after the statute of limitations period had expired. That is very important in these cases and makes a big difference.

I’d then suggest reading my blog posting on the defendant’s Next Steps when the consumer has been sued in a debt collection lawsuit on a defaulted credit card. That blog explains how much time is appropriate to avoid a default judgment, as some people confuse a hearing date with the due date for a proper, written response. If you want to defend this lawsuit and have a good chance to settle for much less or possibly get the case dismissed, do not miss the deadline for filing a response or having a lawyer do this for you. It is usually 30 days from the date of being personally served, but please don’t wait for the last minute.

I don’t suggest that consumers or non-litigation attorneys try to handle the lawsuit defense for themselves, as I have seen too many people either pay way more than they should to settle with the debt collection law firm or they file papers with the court, which get stricken as being defective or improperly admit most or all of the debt collection lawsuit. Almost as bad, is when the debt collection lawyers press the case very hard against the defendant, using court procedures and formal discovery requests to overcome the defendant’s attempt to get the case to trial. I have some of these as PDFs on my website, in the Case Examples tab.

To avoid the risk of losing a money judgment for the full balance in the lawsuit plus accrued interest, I urge you to contact an experienced consumer attorney, who regularly handles debt collection lawsuit defense. An experienced attorney should be able to help negotiate a satisfactory settlement or get the case dismissed, depending on the admissible evidence that the debt collection law firm can obtain or not obtain.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Facebook: www.facebook.com/SoCalConsumerLawyer

Collection Call from Out Of The Blue for a Credit Card Not Paid In Five Years

Saturday, February 2nd, 2013

Question: Is there any chance that I can be prosecuted for not paying credit card from five years ago? I have been clean and on probation and received a call out of the blue that they have sued me for $2000. Help, I need to stay out of jail. They said they would not dismiss until I make a large down payment and sign an agreement for monthly payment until paid in full, but I cannot afford this.

My Response:
I am very suspicious when a consumer gets phone calls from collectors from out of the blue. If I read your question correctly, you have not heard from these people, never received any collection letters from them, and you were not served with the summons and complaint. Though you did not pay this debt in almost five years, there are those debt collection agencies which prey on consumers for old debt that are expired, because of the statute of limitations.

In California, a debt not paid in more than four years is almost always past the statute of limitations, provided that a debt collection lawsuit was not filed within the correct limitations period for the particular account. Thus, the filing of an untimely lawsuit or threatening to sue you for an expired debt also violates the Fair Debt Collection Practices Act (FDCPA) for harassment and misrepresentations. FDCPA violations can allow the consumer-victim to recover in court his or her actual damages, statutory damages, court costs, and attorney’s fees.

Since you have not received anything in writing from this collection agency, please advise this collector that you need something in writing and to send you the required initial letter, which contains the mini-Miranda statement, required by the FDCPA, for initial contacts of a consumer regarding collection of a debt. Verify that they have your correct mailing address. I do not believe that you should give them your cell phone number or email address, to protect your privacy, but you regular mailing address should be fine. You really don’t want them to contact you in too many ways, regular mail and regular phone calls at home are more than sufficient.

Assuming that they did file a debt collection lawsuit within the proper statute of limitations period, you need to get a copy of the lawsuit and understand your options. The first video of my website’s home page is “Understanding Your Options” when sued on a credit card debt. Please watch my video and a few of my blog postings, such as “Next Steps,” which explains what steps to take and the timing involved, so that you will understand the deadlines that are coming up for you. Please consult with a debt collection defense attorney to ensure that you have covered your bases.

The short answer to your question about going to jail for a probation violation is that our society does not have “debtors prisons.” We did away with that at the time we founded this Country. I would want to review the terms of your probation, but it is doubtful that missing payments on a debt or being sued for an unpaid debt would violate probation. Also, I would not tell the debt collection agent about your probation, as it is none of their business. If you discuss this, I can assure you that they will make all sorts of statement to belittle you. If they threaten you with trying to use this to get you in trouble criminally, that may also be a violation of the FDCPA.

Until you verify whether or not a debt collection lawsuit has been filed, I would ask for the documentation of this lawsuit, the debt collection letter, and check with the court’s online to see if you can determine if the documentation is genuine. Also, reviewing your own personal credit reports may help yield information about this debt collection agency and if there are outstanding judgments against you. I have a legal guide on Avvo.com that help people navigate case information that they can get for free or almost free online. Otherwise, you may need to take a trip to the local Superior Courthouse to ask of any civil cases have been filed against you.

When a debt collection agency calls out of the blue, be ready to ask for everything in writing and refuse to give in to their demands for your credit card number or banking information so that they can take your money over the phone. Until you have verified everything, you don’t know if the person on the phone is a scam debt collector or worse: an identity thief, who will take your credit card number to charge your credit to the max and your bank account information to clean out your account. Also, don’t provide this person with your SSN, DOB or DLN. All of these are private and should not be disclosed by phone from someone who happens to call you, even if they appear to know so much about a particular debt or other credit information about you.

A regular debt collection agent will understand and want to ensure that you get the information verified and in writing. A scam artist or identity thief wants you to give them the money now, right now, without anything in writing. Do not give into high-pressure tactics and risk becoming another victim of identity theft or bogus debt collection operations, collecting on time-barred debts.  Verify everything and consult with a lawyer. You could be waiving many rights by agreeing to pay on a time-barred debt from a high-pressure phone call.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Facebook: www.facebook.com/SoCalConsumerLawyer

If I file a Really Good DIY Answer, Is it 50/50 that I Can Win at Trial?

Saturday, December 1st, 2012

Question:
I’ve read your web site and many law blogs. Now that I have all this information, I feel that I can file for myself the form answer in court, pay the fee to the clerk, then wait for trial to see what the judge does with my case, when I show up. The lawsuit is for under $6000 plus the collection complaint wants interest at 29% from November 2010, court costs, and attorney’s fees. Maybe I’ll get lucky and the judge will dismiss. One of the other web sites said that at trial, the judge will probably throw out the evidence, because they don’t have original documents. Is it really 50/50? Sound like a plan?

My response:
As the first video on my home page makes clear (home page link), representing yourself against the debt collection lawyers is one option. However, as stated in my blogs in the category DIY Lawsuit Defense, many people who try DIY Lawsuit Defense get picked off by the debt collection lawyers, who know the drill and are in the civil courts almost every day on debt collection cases.

I have had many people come to me, while trying to represent themselves. The common situations when the DIY consumer-defendant contacts me are: (a) they don’t know what to do with the interrogatories, document demands, and requests for admissions received from the Plaintiff’s lawyers; (b) they did not respond to something that they received or do not recall receiving it, so now the Plaintiff’s lawyers have filed papers with the court for sanctions (a form of penalty on a party who does not follow the rules), on top of the judgment for the unpaid debt; ( c) the Plaintiff’s lawyers filed papers in court to get a judgment, even though trial has not been scheduled or is months away; (d) the court granted a money judgment for the full amount, after appearing at the trial to do this DIY Lawsuit Defense.

Certainly, there are a small percentage of debt collection cases in which the Plaintiff’s lawyers dismiss, after the defendant has filed a valid response in court, to prevent the entry of a default judgment on the complaint, or the case is dismissed shortly before trial, because the Plaintiff does not have their evidence ready for trial. More likely, however, is the likelihood that if the Plaintiff’s lawyers receive the paperwork from a DIY consumer defendant, they will look for and exploit any weaknesses, given their considerable experience collecting from DIY consumers. In my experience, the consumer-defendant’s papers are almost always defective. Even if the consumer-defendant’s court papers are excellent, the consumer later makes other big mistakes, which result in entry of a full money judgment against them at or before trial.

What is the basis for those web sites that claim a DIY consumer can get their case dismissed at trial or even before? Do they have verifiable results, or is it merely anecdotal? How many money judgments do those web sites acknowledge are entered against people who try DIY Lawsuit Defense? Often, the web sites don’t rely on actual statistics, they make unsubstantiated claims or have only a handful of favorable results. When the dust clears, the DIY Lawsuit Defense typically yields to the plans of the plaintiff’s lawyers to get a money judgment against you, if you did not agree to the terms they proposed. Otherwise, the debt collection clients will be dissatisfied with poor results and hire other lawyers who will get better results.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Virtual Law Firm Prepared Legal Papers for Debtor Pro Per, Money Judgment Now Imminent

Thursday, November 1st, 2012

Question:
I found an attorney online and used my only good credit card to have his firm prepare and file the legal forms for me to prevent a default judgment in Superior Court. This was a lawsuit on an old credit card which hired debt collection lawyers in San Diego, California. I read that the collection agency paid pennies on the dollar for my account.  My attorney said they did great paperwork, and that I can handle the rest of this myself, since their papers were so thorough, and that I should win a dismissal at trial.   Now the collection lawyers filed papers for a full money judgment, plus they want their attorney’s fees, too.  I don’t know how to respond to this and my lawyer now wants more money to prepare the papers, otherwise it will become a money judgment. No trial, just a judgment. This is very upsetting and no one told me this might happen and now I may need to explain this to the judge.  Help!

My response:
Virtual law firms preparing legal papers, without representing the debtor consumer, is a new low for lawyers.  In my 19 years as a lawyer, I understand why you should be upset. Lawyers are supposed to take responsibility for handling the case, not dump a bunch of papers onto their client without any guidance.  When a lawyer prepare the legal forms for someone as a “pro per,” then the client is 100% responsible for what happens next and for dealing with the debt collection lawyers and their debt collectors.

Did you know that the collection lawyers still call you and file papers in court to get a money judgment without trial?  Who would be comfortable with that. If you have a lawyer on the case, then you should not need to deal with debt collection calls. Filing the initial papers and sending some written requests is the tip of the iceberg, it does not win the case, without an attorney backing up those documents with actual, legal representation and efforts.

Also, what happens if the case goes to trial?  Do you know how to object to improper evidence, when to object, and what are proper objections? These are legal skills that lawyers take years to develop, even after several years studying at law school and passing the bar exam. I have read trial transcripts of a debtor who represented himself at trial, and he objected at all the wrong times and did not object to the evidence that resulted in a full money judgment against him.

I agree with you. Filing the documents for you and then leaving you to defend this lawsuit is shocking. Perhaps I am too old school, but if a judgment for the debt is entered against you, then I don’t see how this lawyer helped one bit. They charged you money and gave you some sheets of paper that looked really nice, but now you must hire an attorney to see if the case can be salvaged, before the court enters a judgment for the full balance against you. You should call me or another experienced lawyer to oppose this motion and take the immediate steps, before the trial date and to prepare for trial.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Asset Acceptance Did Not Serve Its Debt Collection Lawsuit, Monitoring Online

Friday, October 12th, 2012

Question: Per your fabulous on-line instructions – I looked on-line to find out about a lawsuit against me.  I noticed that Asset Acceptance, LLC filed a collection lawsuit against me to collect a older debt.  Unfortunately, they have not served me. What do you suggest I do? This is in California Superior Court and there is a hearing set in a couple of months. I was thinking of going to the hearing to see what they say.

My response:
First, it is not “unfortunate” that you were not served.  It is actually good news, as your time to respond to a lawsuit does not begin, until you (the defendant) have been served.  See link to my blog on deadlines to respond to a collection lawsuit. Thus, there is due date for you, until you have been served.

Second, I would not do anything. Fly below the radar and wait to see if you are ever served. It that occurs, marke that date on your calendar, so that you know exactly when your response will be due in court.  Until then, let’s just see what progresses and I certainly would not advise you to just show up in court, when you have not filed a formal response in the case.

Third, to be safe, every couple of weeks, I would visit the Court’s web site for this collection case for any activity, such as the filing of a proof of service. If that occurs, then you need to take action, even if no one has really come to serve you, because that is a formal representation to the court (though false) stating that the process server had served the summons and complaint.  Stay on top of this, because many times the process server states under oath that the defendant was served, when that never took place.  A default judgment may be entered after that, unless you take proper action.

Update:
Congratulations.  I checked online with the Superior Court’s web site. A recent entry shows that Asset Acceptance has dismissed its case against you without prejudice. They never served you, but for whatever reason, they dismissed their collection case.  It is unlikely that they will refile the case, now that they have decided to dismiss.  Thus, in my opinion you have dodged a bullet.

Once again, this proves that staying below radar, such as with my “Don’t Pay a Dime Strategy,” sometimes works and can save thousands of dollars and avoid bankruptcy. Had you been served, you would have contacted me, no doubt. I really appreciate your kind words.

Robert Stempler
www.StopCollectionLawsuits.com

Twitter @RStempler

Three Common Mistakes to Avoid when Negotiating a Settlement of a Collection Lawsuit

Friday, August 17th, 2012

Consumers routinely try to settle a debt collection lawsuit, which is something that I believe should be explored, before deciding which option is best (see the first video on my web site’s home page, “Understanding Your Options”)).  Below are the three most common mistakes that consumers make in the settlement process.  There are plenty of others, but from the horror stories that I have reviewed after the fact, these are the most common regarding settlement.   Often, these pitfall prevent a settlement and risk a money judgment for the full balance and other charges by the debt collection law firm, which then shows up on consumer credit reports.

Mistake 1.  Whatever settlement you negotiate and accept, be sure that you can comply with the payment terms, or you may probably end up with a judgment for the full amount (less credit for payments), if you miss a payment or are late.  I often caution people to look carefully at their finances before entering into a settlement discussion.  I also warn against very long term payments, even if the seem affordable. This is not a car that you can at least drive around for several years.  If anything happens financially, such as unemployment or illness in the family, and you are unable to make the monthly payments, the collection attorney can enter a judgment on the full unpaid balance, which is almost back to square one for this lawsuit, but now there will be a money judgment on your credit reports.

Mistake 2.  Be aware of the little things that can add up to an enormous settlement, if agreeing to make payments over time.  In particular, the rate of interest on the unpaid balance.  The current legal rate in California on a money judgment is 10%, which is what money judgments earn, even if the debt was originally at a higher rate.  Not only that, but many creditors and debt collectors will not charge any interest (0%) on a long-term payment settlement agreement, provided that the agreed payments are timely received and don’t bounce.  Consider the rate of interest and try to get interest waived (0%), before agreeing to make long-term payments, as an interest rate  adds many payments to the settlement.

Mistake 3. A few people believe that they can negotiate a lower settlement of a debt collection lawsuit by misstating their income or other financial information, or not providing it at all.  Debtors must be accurate and avoid misleading statements when negotiating. Debt collection agencies and their lawyers often have a copy of the debtor’s credit report and other available information to help root out inaccurate statements.  For instance, if the debtor claims to be swimming under a load of debt, but their credit report shows only two low balance credit cards, then that will be viewed as a bad faith settlement tactic, and probably be rejected.  Another example is to claim that the house has no equity, which is easy to verify using free online databases of housing values.

Please also be aware that credit reports contain inaccurate information or are missing key data, which the debtor may need to clarify or explain, if aware of that.  For instance, some credit reports show the debtor at a different address in a good area, but if you have moved or it is only a private mail box, perhaps the debtor should clarify, so they understand your circumstances are more dire than once assumed.  Some credit reports also show employment information, which can also make a big difference in negotiating a settlement.

Hiring an attorney to negotiate and defend against a debt collection can make a difference, but I try to encourage consumers to try this for themselves, to see if they can save the legal fees and courts costs.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

How much should I offer to settle a debt collection lawsuit?

Friday, August 10th, 2012

Question: I’ve never been sued before, this is all new. I read your Settlement Guide #1 on Avvo.com, which explained many of my questions. I’m sure that I will read your other two Settlement Guides, once I know how much to offer to settle. Should I offer 10% of the amount stated in the lawsuit?  Bankruptcy is something I want to avoid.  I have a home with some equity in it, but not much. The lawsuit is not by the bank, but filed by a debt collection agency, so shouldn’t they be willing to settle for much less?

My response:
How much to offer is probably the top question on everyone’s mind.  First, understand the debt collection agent’s perspective.  The goal of the collection attorney and their agents is to maximize the recovery from each case and turn a profit for a particular portfolio of debts.

Time is money, so the sooner the funds are received, the less costly a settlement proposal can be.  If you can pay the settlement funds soon (such as within 30 to 90 days), that will usually make the settlement a lower dollar amount.  Settlements can often be approved with payments for 12 to 36 months, sometimes longer. Some companies will agree to waive interest, so long as the payments are received timely and don’t bounce.  Some debt collection agencies insist on full payment of the principal amount, if the settlement payments are made over a year or more.

Then, there are those debt collection agencies who like to squeeze everyone, because they believe they have the upper hand over unrepresented consumers.  They squeeze the debtor consumer into paying every cent, even obnoxious rates of interest and attorney’s fees.  Why bother settling if there is almost no difference between what would be the result if you go to trial and lose and making settlement payments of the full amount plus interest, etc?

The risk of heavy-handed debt collection practices is that when push comes to shove, people will learn their options (see the first video on my website’s home page).  Once they know their options, if the debtor cannot get a reasonable, affordable settlement, they may reject settlement and see if the judgment will be enforced, file bankruptcy, or hire an attorney to defend them in the collection lawsuit and likely negotiate fairer settlement terms.

Ten percent up to half of the amount in the lawsuit might be accepted by the collection company, if the debtor can show at least one good reason why the company risks get nothing and wasting its time and money in the case, if they don’t settle.  For instance, perhaps the lawsuit was filed too late, well past the statute of limitations, which should result in immediate dismissal if proven.  Perhaps the debtor has many debts and their income is such that they qualify for a Chapter 7 Bankruptcy, in which case if the debtor is faced with an unreasonable settlement posture, the bankruptcy option may be explored and the debt collection agency may get nothing.

Even if the debt collection agency purchased the debt for less than ten percent of the amount of the unpaid principal, unless the lawsuit was not filed timely or the debtor is a good candidate for bankruptcy, I would not expect the company to accept 10%. That is because they speak with debtors every day who are unable to pay.  In their view, they must turn enough accounts into a profit over the purchase price, or they will no longer have enough income to pay employees and other business expenses.

There really is no magic number to offer or that all debt collection agencies will find acceptable, each case can be negotiated, if a difficult situation is properly and accurately presented.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler

Options following Entry of A Default Judgment by Credit Card Bank

Friday, July 6th, 2012

Question:
I was sued by Capital One on an outstanding credit card debt.  The debt collection attorney filed a request to enter default judgment for $7000. The Court granted a judgment and I believe that they are now trying to get into our bank account.  What are my options at this stage of the case?  We have no real estate or assets, except for Social Security.  What happens to this on our credit report if we don’t file bankruptcy and are unable to pay it?

My Response:
The picture that you have painted, so far, is someone whom experienced lawyers would likely term “judgment proof,” with sufficiently low income to qualify for a Chapter 7 Bankruptcy.

Following entry of this default judgment, here are your options:
a. Promptly file motion to set aside the default judgment within the proper time limits, to be able to defend the court case on its merits. The Courts insist that the defendant file this motion soon after learning of the default judgment, if they had not been served or had actual notice.
b. May a large payment or several payments towards the default judgment, until they file a satisfaction of judgment. Borrow the settlement funds, if needed. You may should have an understanding in writing of how much in settlement payments or a fixed sum this would be, or you may end with a misunderstanding of how much it will cost to satisfy this judgment in full.
c. Do nothing, which would let them to try enforcing their judgment against whatever they can find to lien, that is not exempt, though it does appear to me that your bank account is exempt if it is only from Social Security benefit deposits.
d. File bankruptcy.  If you qualify for a Chapter 7, then this and your other unsecured debts would be discharged.  If you don’t qualify for a Chapter 7 for whatever reasons, then you could file a Chapter 13 Repayment Plan Petition and make payments through the trustee and pay it off over several years, interest free.

The benefits of resolving this judgment soon are that you don’t want this $7000 judgment sitting out there gaining (accruing) interest at the rate of 10% per year, which is $700 every year in your case, plus possible other costs and attorney’s fees, as applicable to the judgment.

Also, if they enforce this judgment by levying your bank account, it can be very embarrassing to have your checks bounce and to go to the store with a debt card that is refused, if they enforce a levy and the bank accepts it.  You may be entitled to all your money back, by filing a claim of exemption, but having bounced checks is considerably damaging to your reputation. Plus, and unpaid judgment can be appear on your personal credit reports until paid.

Robert Stempler
www.StopCollectionLawsuits.com
Twitter @RStempler