Homesteading Forum banner

1 - 20 of 48 Posts

·
Banned
Joined
·
980 Posts
Discussion Starter #1
I recently went through this process in Michigan, so figured 'd let everyone else know the experience, so they may know what they are in for. it isnt a lickity split process by any means but it 'can' work, and I have to admit there were times when I felt I would never see my money again.

In my case, someone borrowed money from me, $3,000 actually (The limit for small claims in michigan is $5000) and also in my case I was dealing with someone who is stupid, which helped me a lot. smart person can actually maneuver in different ways to make the process more painful.
had a written agreement about borrowing the money as well as the specific terms of repaying it, which both myself and then signing and dating it. A notary would of been better too surely.) and also kept track of repeated attempts after those conditions were not met to get them to meet those conditions without hassling them. it is not harassment to attempt to collect a debt. in michigan in a non threatening casual way. and then I also waited 21 days after the payment date was not met to file a small claims in the court.The courts like this, as it shows them you attempted to resolve the issue first yourself, the court has you do a lot of this type of thing.
In my case, I filed at the district court where this person resides. you have to pay a fee to file, as well as a processing fee, came out to $90, and then you have to fill out the paperwork which includes their names and addresses, yours/etc. amount and reason, I suggest as vague o a description as possible, it allows less of the defendant to argue with that you cannot counter. you also have to provide 2 envelopes addressed to both you and the defendant, with postage and all the paperwork. They then give you a court date right then, in my case it was 2 months after. The court then tries to send them a registered letter informing them of the action against them. 'if' they sign, which my person did, because like i said they are stupid, then thats great, they have been served...if they do not, you have to then pay a process server, like a sheriff/etc. who can just tape it to their door 'officially'. but it costs yet more money of course.
you are then supposed to get a notice in the mail telling you they have received the summons, but they didn't send me mine...so always check back with the courts, and do it starting at least 3 weeks before the court date, because if they do not sign, you have to have time for the sheriff or whomever to serve them 2 weeks before the court date or they can request a delay, due to not being notified in time for due process or some crapola.
I arrived at the court 1/2 earlier. also a good thing, because the court was light that day and the judge wanted to go home...seriously. I seeded the case by telling them bailiff it was going to be a open and shut case, easy peasy. I do not doubt he mentioned it to the judge probably. the person arrived after I did, and I had all my ducks in a row, paperwork/etc. of course proving my case. We went in front of the judge and he told us generally they ask us to go in front of a ref beforehand but since there were no cases left they wasnt going to send for the ref and the judge would just fill in. that is good and bad... I didn't even get to speak, the judge asked them about the money, they knew I was prepared well (I was careful to flash a lot of paperwork and made it look like I was really prepared. remember war is fought on all levels, physical, mental and even spiritual, psychology behind showing the defendant is important.) the defendant basically started to claim the amount wasn't right, but I shook my head, and reached for a paper, the judge seen it and really over rode her on it without me saying a word.He then asked if they would agree to a payment plan, and the defendant said they guessed so. The judge then sort of took it from there, and as he did it
I sort of misunderstood for a second, but then caught on...
He asked the defendant if $100/mnth was ok with them and if starting payments on X date would be ok. the person said they guessed again, I was going to object because it had at this point been a long time since they were supposed to pay me already, and the date was 23 days after this court date, and the judge not asking me to talk at all just sort of sat weird with me...I mean this was my show after-all!
The judge then said "ok, we are in agreement then, you owe the amount of what you borrowed plus all fees and interest to date, in the amount of $3090.00 periodic payments are to be made once a month starting on X" and that was that, it was over he got up and hurried away...might of had to go to the bathroom who knows? the bailiff gave me my judgement papers and the defendant theirs and we left. it'd be nice if that was the end of the story...but no...prepare for it not to be....and as i left it did strike me why the judge set it for 23 days. In Michigan, a defendant first of all has the right to appeal the judgement, the stupid person didn't, mostly because they never planned to pay it. and afterwards the plaintiff, me, has t wait 21 days anyways to proceed with other collection methods 'if' they do not pay it...so there is nothing i could of done for 21 days anyways. The judge sounded like he was being nice to them, but he wasn't really.
ok, so the time comes and guess what? no payment. so now what? well lucky for me the person has a job, and I know where it is. So after the time, I go down to the court and ask them for the paperwork to collect judgement from their employer. a wage garnishment. The thing is, in order to do this, you have to file a affidavit of non compliance. basically a fancy name for asking the courts to stay the agreement based on the truth of the other party not complying according to judgement. the fee is $15. that paperwork generally has to be entered into their system which will take more time...but honestly I'm a good looking guy, and the secretary was a woman, and I am always very polite and accommodating when at the courts beyond measure...She told me they literally had hundreds of those things to enter, but she entered it for me right then and there. and she then gave me the form to file for garnishment, and entered that and stamped it from the courts as well. and handed me a form of garnishment which you have to fill out with the defendants name address, their employers name and address, your name and address and send it to them by legal means,with a $35 check to them for processing, which means a process server or by registered mail they sign for. along with their copies of the judgement and garnishment paperwork. but the good thing is, the garnish paperwork allows you to add the other fines you had to pay to do this paperwork as well as interest incurred from the time they didnt pay as well. so now the person owed me $3200 I know a process server who did it for free, the place to deliver it is like a block away from them, but they filled out the paperwork charging me, so it all gets added.
Now the person as well as their work can actually present a few different problems here, but they didn't. when the work gets the paperwork they have to send it within like a week or 14 days to the defendant as well as to me and the court. they can give some reasons not to pay, and after they send the paperwork to the defendant the defendant can object for various reasons as well, thus it would delay payment/etc. but the defendant didn't, and the law according to michigan law only allows up to 25% of disposable income, or 30 times the current federal wage, whichever is less. disposable income is income after taxes/etc.
So be careful lending people money. if they do not make enough you can't garnish anything. and they have to make over the $217 or 30 times min wage, and that is weekly. ie if someone is working min wage and only working 25 hrs/week...you get nadda....however interest does keep accruing, and in michigan you can try to collect the debt. for 6 years...so if they want to be jerks about it then they have to slight the system or not become better for 6 years. slighting the system can have its own risks, and you can also go after their income taxes. that us another can of worms....but last month was the last payment for me. I have been paid in full via this method.
 

·
Banned
Joined
·
17,259 Posts
It sounds like you have your ducks in a row but here in Illinois you would have missed a trick.
That is that when the judge issued a payment plan to ask for a “pay or appear” order.
That means that each month on the agreed payment date if they haven’t paid the payment They have to show up in court to explain why not.
The inconvenience of this to a work schedule means that usually they pay ,and if they’re not working they tend to pay at the courthouse on that date.
But it all happens automatically and you never have to do anything except show up in court for your money if they haven’t paid.
If they haven’t paid and they show up in court sometimes they’ll get a month to catch up but after a time or two of that they will get a weekend in jail to think about things.
If they don’t show up the sheriff will pick them up and their bail will become your payment. That one’s my favorite because people that can’t come up with a $25 dollar a month payment seem to be able to come up with $500 to get their butts out of jail !
 

·
Banned
Joined
·
980 Posts
Discussion Starter #4
wish we did have that here. That is only for fees and fines ordered to the court...of course. they get their money. caring if the people do is another story.
Holy wall of text, Batman.

I started to read it, and then realized you didn’t actually want anyone to.
My bad.
very perceptive of you, just move along..I know reading is difficult for so many who are used to comic books and one liners.
 

·
Banned
Joined
·
17,259 Posts
The court uses pay or appear here because court respect demands that you do as the court orders ,not paying the rent payment is a disrespect of the court thus the jail and bail for failure.
 

·
Hello, hello....is there anybody in there.....?
Joined
·
77,723 Posts
I know reading is difficult for so many who are used to comic books and one liners.
It wouldn't kill you to use paragraphs if you expect people to read your posts.
But you know that.
So many simply won't.
 

·
Registered
Joined
·
10,698 Posts
I know reading is difficult for so many who are used to comic books and one liners.
Not true Bobbo - when you first started posting, there was a whole thread on how you wrote. No paragraphs - run on sentences - yada yada. You sorta changed your style a tad, but underneath, it's true, you don't want people to read what you say. Now why is that I wonder??

BTW: when so many have the same complaint, you end up having to look at yourself.....
 
  • Like
Reactions: nehimama

·
Realist
Joined
·
2,738 Posts
How about a little clarification?? That account is way too brief, and doesn't go into any detail or explanation at all. for instance, do you normally make unsecured loans of $3000?? did they need exactly $3000, what for? and so on.

and that's just the questioned raised by one sentence.
 

·
keep it simple and honest
Joined
·
3,809 Posts
Generally, I think you (OP) are an intelligent guy, but don't understand why you'd loan someone $3000 when you claim the person is stupid. It makes you sound less intelligent, unless as someone asked about your relationship with this woman, there are special factors.
Also, besides the lack of paragraphs and long sentences, for an intelligent guy your grammar leaves something to be desired. I know...the grammar police, but think you mentioned you had a masters degree in another thread, and wonder why you never cleaned up your writing skills during that "education."
Each state has its own rules about small claims so readers need to check into their local courts to totally understand the procedure.
I once loaned $300 to someone who never paid, but I realized that going to small claims court was initially costly, took up time, and doubted I'd ever get the money back. BUT, it was a great learning experience. Since then I don't loan money to anyone, including relatives.
 

·
Non-Known Member
Joined
·
4,084 Posts
It's all an act to hide his identity but since he told such tall tales the last time he was here he's easy to spot.
 

·
Banned
Joined
·
16,491 Posts
Yep, you knew what you were doing in the court system and made it work for you.
There ARE many people who lose interest after a few words, oh well.
They are also the same people who get things wrong and can't figure out why.
;)
 

·
Registered
Joined
·
5,052 Posts
You may have missed a bet of two. After you have the small claims court judgement, and the person doesn't pay, you can notify all 3 credit reporting agencies. With an unsatisfied judgement against them, they can not get a loan for a car, cannot get a mortgage, and cannot get a credit card. It also makes it more difficult to get a job and rent an apartment if the employer and landlord checks the credit history.

You can also seize their possessions, like their car, and auction them off to satisfy the judgement.

Usually the deadbeat will pay if you threaten all the above. Otherwise you get the satisfaction of destroying their life.
 

·
Registered
Joined
·
2,133 Posts
I read the whole story. I can relate because I went to small claims 3 times. once as a defendant, which I won.
anyhow. I can overlook the non paragraphs and run on sentences because I do the same thing myself..
If you cannot read such a message without interjecting your own pauses and taking a breath because you read while moving your lips, it is your problem.
bottom line. if a bank won't lend them the money, then neither should you..
 
1 - 20 of 48 Posts
Top