Midland Funding Default Judgment and Payment Plans

Being sued by Midland Funding and have default judgement against me. I am being sued by midland funding I did not attend the court and now have a defaul judgement against me. I received a letter for a prove up hearing. My husband employer only allows direct deposit and our accounts are joint. I want to settle this by making a payment arrangement with them.

I have a judgement against me for $4.500 from Midland Funding.. I would like to settle this before they levy our account. I do not work my husband is the sole provider but our accounts are joint. Can I still settle with them if the judgement hearing is next week? Will they levy our account even if they agree on a payment arrangement? Thank you


Generally speaking, if you are not going to settle the debt with Midland in 1 or 2 payments, I would suggest you get the payment arrangement as part of the court record at the hearing. I am suggesting this because of many instances where someone thought they had a payment arrangement with a debt collector or debt buyer who already had a judgment, and where they had paid on time, only to wake up one morning and see the checking account has been levied and now other bills were getting paid late.


You can settle debt with Midland Funding.

How much is the judgment for? Can you come up with half of that amount from any source? Loan from family member? That would be ideal if the judgment is against you only, and where you are not working and can take your name off of the joint bank account. Do you live in a community property state? Was your husband named in the lawsuit?


If you cannot come up with the money to settle with Midland, what kind of payment are you able to afford each month? Is it enough to pay off the judgment rapidly? Judgment interest is making the balance you owe – grow. Too small a payment can make it seem like you are not getting anywhere on the debt. This is another reason settling is ideal, but I understand that may not be an option.


Making a payment agreement with Midland Funding.

If all you can do is make payments with Midland, you may want to consider getting that set up through the court by showing up at the hearing. If you are trying to avoid the hearing, perhaps consider settling up the monthly payment agreement with Midland, and also removing yourself from the joint account with your husband (if he is not part of the lawsuit). This way you can remove the concern that they would take the monthly payments and still try to levy a bank account they find that you are on.


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  1. Thank you for answering..I live in Illinois and my husband is not named in the suit. I did contact Midland and the amount they wanted up front was impossible for me to come up with. I offered them $100 a month and they said they would send me an agreement but I’m still in danger of having a judgement against me. I am still planning to show up at the hearing next week..should i show the court the agreement papers? The total debt is for $5149.57. I will be taking my name off our accounts ASAP. My concern is our car that is under both our names and fully paid..can they go after that?

    • Michael Bovee says:

      Nancy – You should always show up for any court date armed with any and all facts of your situation and documents supporting any position you have. With the balance you commented that Midland Funding is suing for, I am not surprised they will not take the 100.00 a month, at least not until they realize there is no other money to get.
      Your car may be exempt from any forced collection based on state law. You would want to speak with an experienced collection defense attorney in your state to set your concern about this completely at ease. I will say that I rarely see efforts to enforce collection, like taking the family car, or other “stuff”.

  2. Also, our house is under contract to be sold in a short sale and they advised me not to file for bankruptcy until it is sold…we are supposed to be closing this month..as soon as that happens I plan on looking into filing for bankruptcy since I do have other debts under my name only.

    • Michael Bovee says:

      Nancy – Showing up for court, like you already plan to do, is something you should follow through on. But separating yourself from even a 100 dollars to give to Midland Funding, when you are preparing to file bankruptcy, and where chapter 7 will discharge the debt Midland Funding is trying to collect on, would be a waste. The 100.00 would be better used to pay for the bankruptcy.

      Given this additional information, if you would like to post a comment reply with your other debt amounts, who owed to, how long they have gone unpaid, and who is trying to collect on them, I will reply with more feedback that analyzes the alternative to bankruptcy. Given the fact that 100.00 a month is all you can afford to pay just Midland Funding as a priority debt (because you are being sued), it is apparent bankruptcy could be the best path to take. But if you are willing to drill into your debts a bit more, this page would develop into a resource for other people dealing with collection issues from Midland Funding and Midland Credit Management, who need to also weigh bankruptcy beside their alternatives. If you are able to post more I would appreciate, as would readers who land here later.

  3. Hi, I have been here before but I guess Im too dumb or honest to have taken the advice previous.
    I went to the judgement hearing and it was granted. Initially $500 but I could not pay then they offered to settle for 2500 now the judgement is for just over $5K my problem is they told me today that they want to know how much is in my bank account. They also told me that they put a lien on the house for the maount but that midland would prefer not to wait. I have insurance contractors money in the bank for work not yet done as the weather turned and insurance claim work halted. Can they Grab all this? Please help ASAP Im in wig out mode!

    • Michael Bovee says:

      Your money in the bank is at risk. If it were me, I would likely pull the money out of the bank until this is resolved. You can keep the account open, and use it, but just pull the insurance money. If you are worried about having too much cash, you can have the bank issue a certified check made out to your name. Once this is resolved, you can deposit that back. Just be aware of any “void by”, or check expiration dates (if applicable).

      Settling the judgment for half is a pretty good deal if you can swing it.

  4. Hi, I have a default judgment on my credit from midland funding. They started garnishing my check but after 4 months they stopped. I checked my credit and it states there is a hold on the judgment. I contacted midland funding to try to pay off the judgement but they gave me a incorrect amount for the amount owed. They state they do not have records of me ever paying. I have copies of the cancelled checks. They are requesting I send them proof of payments. Should I send them the requested information or use the information to help me get the judgement removed. This judgement is the only thing preventing me from purchasing a house. Please advise me on the best steps to take.

    • Michael Bovee says:

      Roughly how much is still owed on the judgment?
      What state are you in?
      Did Midland Funding ever remark as to why the judgment was “put on hold”?

      • There is $4500 still owed on the judgement. I am residing in Alabama. No, Midland has never remarked why the judgement was put on hold. I know it has been passed to three different attorneys. One in Alabama, Georgia and now the current attorney is in Mississippi. They are stating I owe them $9000. I am ready to pay them the remainder of the original balance but not the current incorrect balance.

        • Michael Bovee says:

          It has been a couple of months since your first post. Has there been any new developments? Have you contacted Midland to offer the payment you are prepared to make as settlement in full?

          With as many attorneys that touched this, it sounds like there is an internal records snafu and they have not fully investigated what happened. If you have not called them (Midland Funding directly, not the current attorney in Mississippi) since mid January, I would do that now if it were me. Post an update with the result of that call and lets go from there.

  5. I found that Midland Funding has a judgment on my credit report for 16k. It was filed in a court in AL. i have never lived in AL but believe my ex moved there after we broke up and the last kniwn address for him was in AL so perhaps they thought that was my last know address also. Anyway, I believe the judgment is for an old Citibank account that I had maxed to 10k and was stupid and scared and had trouble finding work so i stopped payments in 2006. I have been livig in NY since 2006, and the AL judgment happened in 2009. I was never served and have received no notices or calls on the matter. I cannot afford to settle in a lump sum but would like to take care of this in some way. I am afraid to contact Midland for fear of garnishment or bank account freezes. Should I just find an attorney on Long Island and have them attempt to settle this with a payment plan? I could afford 300 a month but with tons of interest tacked on to the original debt i fear they won’t allow such a long payment plan.

    • Michael Bovee says:

      I have a problem with you being sued, and a judgment entered, in a state you have never been to. If anything, I would contact an experienced consumer law attorney to see what you can do to undo the judgment. It could cost much less to work with an attorney to set aside or vacate the Midland Funding judgment in Alabama than it would to settle the debt.

      Call 800-939-8357 and choose option 5 for a no cost consultation about your options to deal with the issue.

      If it comes down to settling judgment debts with Midland, I encourage lump sum settlements over long term payment arrangements. What if Midland were willing to accept a fair amount less than the 16k, say less than half of that? Can you pull together resources to get that done?

      • I wouldn’t be able to come up with half of the judgment. The best I could try for is to pull money from my retirement account but that would be only about 5k. Which I would then make payments on to refund my retirement account over a couple years.

        If the judgment in Alabama were vacated, wouldn’t Midland just sue me again in New York?

        • Michael Bovee says:

          What can often happen, in cases where the judgment in the wrong jurisdiction is vacated, is that the statute of limitations to legitimately sue to collect in the correct state has expired. Talk that aspect over with the attorney.

          • Ok, I will. Thank you for your guidance. I called the number you gave me and left a message for a consultation. If you can recommend any lawyers in Suffolk county, NY (Lon Island) that is where I live.

  6. Sued by midland for about $1400..I have finally been able to save a little..I owe the debt…so I can pay about $1000 now…should I just call Midland directly?

    • Michael Bovee says:

      I would start by calling Midland Funding directly. If the collection attorney they had sue you is under contract with them, they may forward you to that office to get your negotiations and payments done.

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