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

—Nancy

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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Comments

  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.

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