How to Settle Credit Card Debt with a Judgment
One of my credit cards I fell behind with sued me and has a judgment.
Can you settle credit card judgements like other debts
—Stressed
The short answer to your question is – YES! CRN does assist in settling debts like credit cards where there was a lawsuit and then a judgment entered against you. Settlements can be negotiated at all stages of the collection cycle.
There are challenges to settling credit card debts that have reached the lawsuit and judgment stage. Before I address the challenges, I want to point out that the best time to settle credit card debts is before a lawsuit is filed, and even before the account is placed with a debt collection attorney.
Watch my brief video about some of the differences between settling credit card debts with your bank and debt collectors compared to negotiating with collection attorneys whether they have a judgment or not.
While this may not be instructive to your judgment debt, you may have additional credit card debts that have gone unpaid and I want you to be aware of the following:
- Settling a debt with your original creditor (the bank you had the credit card with) after having missed a few payments is not only possible, but in your best interest. In fact, reaching settlement early will often achieve the best savings result when negotiating is done correctly.
- You may end up with credit cards that are charged off and placed with outside collection companies. This is the next best (sometimes the best) opportunity to settle a credit card account you could no longer afford to keep payments current.
- If your overdue credit card account lands in a collection attorney’s office, you can still settle the debt before any court action is filed, or at a minimum, negotiate favorable payment terms.
There is a science to navigating the collection stages I briefly outlined above. Timing, balances, who your credit card debts are owed to, and your ability to come up with the money needed to settle the debts – all will affect the strategic design of which account to settle with first, second, third etc…. It is important to have a plan to follow if you want to systematically and successfully settle debts and save the most money in the process. CRN is excellent in assisting people in this regard.
If you want to learn about how to settle your debts no matter what stage of collection you are in, we have a ton of resource pages to help you. I recommend starting at the beginning of my debt settlement section.
If you are floating out there with several unpaid credit card accounts with no real financial resources to handle the situation, or a plan for doing so, you owe it to yourself to learn if you would be better off filing for chapter 7 or chapter 13 bankruptcy before a lawsuit is filed, or now that a judgment exists. You can consult with a bankruptcy attorney for free. I recommend talking with more than one.
Collecting on credit card judgments can be challenging too.
The primary ingredient found in any debt settlement recipe, whether there is a judgment or not is… money. If you have enough of this ingredient you need to be aware of a few things.
A judgment is just a piece of paper. It’s the court sponsored enforcement of that piece of paper that is the problem. You could end up with liens placed against your real property, your bank account levied and wages garnished directly from your employer. There are even instances where a sheriff can show up to take a look around at your “stuff” and inventory personal items that can be taken to satisfy a judgment (this happens, but relatively rarely).
Judgment debt, whether past due credit card bills, personal loans, medical bills and other debts, are easier to negotiate and settle while maximizing your percentage of savings results if:
- A bank account to levy cannot be found because one in your name does not exist, or does exist but is maintained with little money in it;
- If a W-2 wage source cannot be located to garnish and;
- Where there is no real property lien, or where the lien is filed, but has been in place for some time and remains unpaid.
The one thing you can control is whether you have a bank account with your name attached. If you do keep a bank account open, realize most bank levies are attempted at the beginning, middle and end of the month – when you are most likely to have deposited a pay check, or other money to cover bills.
If you have sources of funds electronically deposited, you may want to elect to have paper checks issued to you until the credit card judgment debt is resolved.
The lien on property will generally not involve forcing the sale of the property in order to satisfy the judgment. You should look to resolve the judgment prior to selling the home (negotiate a settlement before listing if possible), or refinancing (settling before a lender does a hard credit pull is often best).
Wage garnishment is a major concern. Once your wages are attached the creditor has little reason to work with you at resolving the debt for less because they will continue to get paid unless:
- You prove you meet garnishment exemptions in your state
- You leave that job
- You satisfy the judgment
Warning: Your credit card judgment debt grows from interest and can often be renewed!
Interest is accumulated at the rate set by the court, or the maximum allowed by law in your state for judgment debt. While you may be able to be creative in how you avoid paying the judgment you must realize that the balance of the judgment is likely increasing.
If you are struggling with overdue bills and other expenses and are unable to come up with a plan to get rid of the judgment or lawsuit through a negotiated settlement or payment terms you can afford, the fact that the debt is increasing should concern you. Stop and consider what your options to resolve the credit card judgment will look like next year. The year after that.
Judgments do have a “best collected by” date, but can be renewed. Judgments have a shelf life with a time frame specific to your state. Most states allow for a judgment to be renewed prior to expiration. For many, this is a ten year time line and renewal allows for an additional 10 years. That’s a 20 year shelf life!
Identify all resources you can tap to fund a settlement offer or payment plan successfully. If you cannot reasonably come up with the money to settle the debt, or make payments after reaching agreeable terms, look to bankruptcy to stop a bank levy, wage garnishment or lien on property.
Those are the unfortunate realities.
I highly recommend anyone with a judgment, that needs to be resolved in order to buy or refinance your home, to watch this video interview I had with a former debt collector: https://youtube/QpdDks73QUw
It is always best to put a plan together to address delinquent debts before a judgment becomes the concern and you are forced into crisis mode. If you have other debts, you can still put a plan together that includes resolving the judgment too, but it is important to not waste any time in doing so.
Need some personalized help?
If you would like confidential help you can use any of the boxes below to connect with me. You can also post in the comments below for feedback. I answer those regularly.
Not sure where to start? Click on the big blue “Get Debt Help” button at the top of the page.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I had a judgment filed against me for a credit card debt six years ago. I contacted the attorney handling the judgment in hopes of settling the debt and was told the case was closed and referred to another credit card company that acquired it through a merger. I have contacted the new credit card company, but they have advised that they are not able to negotiate a settlement and any payments I make will be considered voluntary. What does this mean? If I pay will the judgment be satisfied. Should I request terms in writing?
Joyce – Can you offer more details? Who was the account with originally, and is that who sued? What is the name of the judgment creditor? Who is it you were told now has the debt? Did the new debt owner put anything about voluntary payments in writing to you? Do you have any credit goals you are trying to accomplish in the next year? If so, what are those goals?
Here is my situation: I was served a complaint from the Deputy Sherrifs office on March 11, 2014 for debt collection from Discover Bank , the attorneys are Weltman, Weinberg & Reis CO. LPA Discover is suing me for a total unpaid balance of $4,852.38 plus court costs. ( court costs not listed) Prior to this I fell behind on my payment and asked to make payments of $100.00/month which Discover took directly from my checking account this was from March 2012 through Feb. 2013 at that time they stopped taking payment without giving me any reasons or explaination. The card was considered a charge off while I was making those payments. No payments have been made on the balance since the last one they took out Feb. 2013. I cannot afford to make any monthly payments higher than $100/monthly and cannot make a lump sum payment. I contacted the court today and they gave me a name of a consumer attorney that will give me a 1/2 consultation for $25.00 , however, after that they have a set fee which will be discussed with me .. I have an appt. with this attorney on Tuesday 3/18 so that I can talk to them about answering the complaint and go further to know what my rights are and what I can do about making payments on this debt. My main concerns are that my paycheck gets automaticlly deposited from my employer each payday. My daughter receives Social Security which gets deposited into that same account. I also have a joint savings account with my husbands name, and my name is on my daughters savings account. I am very worried that if a judgement is brought against me they will freeze my accounts and there is no way that we can live just on my husbands paycheck. I own an older car and also am listed as an owner on a car that my husband bought. I am very worried that we will lose what little we have due to this lawsuit and am not sure I can even afford the attorneys fees at this point. I have never so much as had a speeding ticket let along brought a lawsuit against me. Can you help me understand what steps are next? I live in PA, and understand that they cannot garnish my wages but am very concerned about not having any income to pay my bills and care for my daughter. We live paycheck to paycheck as it is. Any advice you can give on what I should expect is appreciated. The debt collectors for the attorneys office are still calling me and leaving messages to call them back, I am not sure if this is wise at this point.
Amy – You have the appointment set with the attorney. I would want to go to that before doing anything else.
You can take yourself off of your daughters account. Someone else can go on there if need be (under 18, other). You can come off of any joint accounts with your husband. The cars…I just do not see much auto jacking by judgment creditors.
None of those concerns are a worry without a judgment entered. And you do have an opportunity to reach an agreement with the collection attorney working for Discover. It would have been better to catch this prior to a lawsuit being filed, but debt happens.
Do you have any options to pool together 50 to 60% of the balance owed so you can settle with Discover.
At this time I do can not pay %50- %60 of the total to settle the case. I don’t have the means to pool that together.
Hello,
My wife and I are in the process of buying a home and found out she has two judgments against her from 2008. The one is $3300 and we are prepared to pay in full. The other is a credit card originally for $4400 which has ballooned to $24000. We are trying to negotiate to around $8k which would be the original balance plus 10% compounded interest. The lawyer said he would get back to us but it has been a week and no response. We have called and left messages and no call back. Do we have any other options?
we are in Washington state
Dan – Who was the original creditor on that larger balance judgment? Is that who sued, or is their a different plaintiff listed, and if so, who?
I had a credit card with a $500 limit on it that I stopped paying on in 2002 after a really bad car accident. Apparently a judgement was placed on me in 2005 for $13,800, which I didn’t know about until today when I received a Garnishment Summary on my door saying I owe $22,100! I’m really freaking out because I just cannot afford for them to take 25% of my wages. And I just don’t understand how a $500 credit card bill can legally end up being worth $22,100! Is there anything I can do other than to file bankruptcy? I’m just getting ready to start a business and I don’t want a bankruptcy to affect my new business. Any advice you can offer would be greatly appreciated.
April – What is the interest rate set by the court for the judgment? Can you show with documentation the correct amount charged off by the original lender? What is the name of the company that sued, and the attorney they hired? Is that the same company and attorney pursuing the garnishment?
Are you working for anyone else right now, or just focused on the business? What state are you in?
I’m not sure what the interest rate is but here’s the breakdown:
Judgment Principal: $13928.21
Interest: $8130.26
Judgment Costs: $38
Garnishment Costs: $97
I do not have documentation showing the correct amount charged off by the original lender. Is there a way to obtain that information?
The original lender was Direct Merchants Bank. On the Summons under judgment creditor’s name it says, “Worldwide Asset Purchasing LLC assignee of Direct Merchants Bank, NA. The attorney’s office pursuing the garnishment told me they purchased it from another company, not sure who that is, but under Garnishee’s Name it says “City National Bank.” And the Judgment Creditor’s Attorney’s Name is Protas, Spivok & Collins, LLC.
I live in Virginia and I do have a job that doesn’t pay bad. The 25% of my disposable earnings will come to approximately $675/month. I have a husband but we keep our finances separate. We have bills to pay and I just cannot afford to have $675 taken every month. I’m starting a dog training business but I plan to work at my job until my business becomes busy enough to quit.
At this point is there a way to appeal the original judgment from 2005? And why wasn’t this on my credit reports? Over the last 5-6 years I’ve really been trying to get my credit straightened out and I never saw this on my credit reports. I’ve not received any correspondence from the attorney’s office going after the wage garnishment. Do they not have to contact me?
As for bankruptcy, my husband has a clearance and says that I can’t file a bankruptcy because it will cause him to lose his clearance. Do you know if that’s true?
I really, really appreciate any advice you have.
April – After this long, it would be unlikely you would be able to get the information from the original creditor. If you had an old copy of a credit report?An old box full of statements?
With all of the answers you provided, and the additional details, the next step in my opinion would be to talk with an experienced debt defense attorney about your options in court with the judgment. While I am not optimistic about any efforts in court being of much use this far along, I do not mind being wrong, have been wrong, and hope that I am here. This type of attorney will generally offer an initial consult at no cost, and may have dealt with Protas, Spiok and Collins in the past, so will have those insights. I can refer you some contact info for attorneys with this experience. Just post the name of a nearby larger city, or email that to me.
You can indeed file bankruptcy separate of your spouse. I would encourage you to talk to an experienced bankruptcy about how that would work given the clearance concern, the household income and assets, etc.
You also can look into your options to reduce or eliminate the amount they are able to garnish by contesting it with the court. If the notice did not have instructions about how to do that, call the court clerk and ask about how, and then get that ball rolling.
Of the figures you shared, the judgment amount concerns me. But as mentioned, I am not sure what can be done about it 9 years later. But another option will be settling this for a lower amount, but only after you know that will make the most sense (better than chapter 13 bankruptcy, or affecting security clearance, no way to argue this in court).
Yesterday I called Tyler, Bartl, Ramsdell & Counts, P.L.C. in Alexandria, VA to make an appointment, but I had to leave a message for Mr. Counts and I’ve not heard back from him yet. Do you have any other recommendations for attorneys in that area?
Thank you very much, Michael. I really appreciate you taking the time to offer advice.
April – I sent 4 experienced attorney contacts to your email.
Thank you kindly!
I received a warrant-in-debt for a FIA credit card in the amount of 3,859.00 yesterday. I live in Virginia. I had this credit card for many years, & always made payments regularly. However, in 2010 when the economy took a dive, my income was reduced significantly, as I am a sales manager & my income is based on sales. Glass & Glasser law firm is handling this account. Is it possible to set-up payment arrangements directly with the attorney prior to going to court on April 10, or do I have to attend the hearing & ask for payment arrangements at that time? Also, is a payment arrangement that is made prior to the hearing date still considered a judgement, that will be reflected on my public record? I am still employed, & would definitely like to prevent garnishment as well as a levy on our bank account. Any information you can give me will be greatly appreciated. Thanks in advance.
C – You can call Glasser and Glasser and set up payments, but you should indeed be prepared for them to want you to sign off on a consent to, or stipulation to a judgment. Different deals, law firms,and creditors like FIA Services suing, can mean the stip does not become part of the public record as a judgment unless you fail to make an agreed payment on time. I have also see these docs filed straight away, and show up on credit reports shortly after.
When you are talking to them be sure you cover this area, and your concerns, with clarity. Get all questions answered ahead of time. If not answered to your satisfaction, I would get this hammered out at the court house.
You would be in the best shape if you could come up with an amount to offer as a settlement in full. How close could you get with raising, say 60% of the amount they are suing for?
Michael,
I was recently sued for a medical hospital bill they put a garnishment on my check however im head of household for 6 kids and my spouse what can i do ? I offered them to pay 3000 in full to cover the 7000 i owe? is the the right thing to do. Also i do no recall getting previous letters of court order ? so i was charged with default judgement?
Michael – I would first call the clerk of the court the judgment is in (you could go the court house too), and find out the protocols for getting a hearing to show you are fully, or partially, exempt from garnishment. It is at this hearing where your income and expenses will be weighed, and a determination made, about what they can take.
Trying to negotiate with a dbet collector when they have a wage garnishment is going to be a waste of time in most cases. They are guaranteed to get paid the full amount of the judgment while you have that job, unless of course, they cannot garnish as much, or at all.
Once I put things in motion about contesting the garnishment, I would start looking into my concerns regarding a judgement against me where I knew nothing about being sued. When you are at the court house, pull the case up and look at what the docket says for when and how you were served, and by whom. Does it say you were served at the address you live? Is there a generic description of who was supposedly served?
When was the judgment entered into the court record? When was the date that a medical service was received?
There was a judgement against me in the amount of $2792 in 2008. I called the Kanter Law Firm (working for CCR Unifund Partners) and made payment arrangements with them. I would pay $200 a month until the debt was paid in full. I paid $3000 total and never received a receipt or any other correspondence from them. This week, I found out that there was a lien on my bank account and that it was garnished in the amount of $792, plus a $100 processing fee. My bank and I have called the Kanter Law Firm several times to see if I can speak with someone there, but no one ever picks up the phone. The bank provided me with copies of all 15 cancelled checks. Yesterday, I received a copy of the judgement that they used in order to garnish the amount, but it says that I only paid them $2700. I don’t know what else to do.
Nita – Was there legal/judgment interest referenced in the court record? Were there monthly payment fees? If so, what was that set up like?
If you cannot get a return call from the Kanter collection attorney (and calling Unifund will get you nowhere), I suggest filing a debt collection complaint with the CFPB against both. You can file your complaint here.
I filed bankruptcy and thought I didn’t own property. It turns out my mom put my name on her house thinking if she died it would make things easier for me and I wouldn’t have to go through the legal process. Now that she is trying to get a loan using the equity in her house she has found that there is a lien in my name for a judgement of $12,000 even though it was wiped clean through my bankruptcy. Seems they filed it before and didn’t remove it. After calling my attorney he says he can’t really help me because I didn’t disclose to him that I owned property. I told him I didn’t know I owned property. He says he would have to reopen the bankruptcy and let all of the creditors back in and the judge could choose to liquidate my assets since there is equity. So now what do I do? My mother is devastated.
Catherine – I am not sure how that would be viewed by the court, but what your attorney said makes sense. It would not hurt to get another opinion from a different BK attorney. If you cannot/will not open up that can of worms, are you able to fund a settlement?
I can fund a settlement. Do you think they would negotiate at this point and if so what amount do you think would be reasonable for me to offer and think they would even consider or does it even work that way 😉
By the way this lien is from 8/2011
Catherine – I can better answer about the willingness to negotiate if I knew more about the creditor or debt buyer that sued, and what condition your finances are in today.
In general, yes, judgment creditors are willing to negotiate. Once you get a deal put together over the phone (can take a few calls), you get it documented, then pay the agreement. Either party can update the court and/or county records (where necessary), but it is better to have the plaintiff do all that.
My concern is looking into whether your states home equity exemptions are in your favor, and all other parameters of the BK stay the same. Judgment debts can settle for a varying amount of the balance owed. I see 50% as fairly common. That means 6k, where reopening the BK and going that route (if advisable) may cost much less.
I would talk this over with a different BK attorney than the one you used prior. Get a fresh perspective on this. Post what you learn and lets go from there. Settling the judgment if you have the money is not complicated. Just be sure that is the right path to take.
I have a judgment against me from capital one and brachfeld law group for $3,300 dated june of 2011. I am in escrow tying to sell my house, now they want $4,400.00. Is it too late to settle for less? I don’t even remember what the original amount is. Thank you.
Joe – If the title company already sent Brachfeld Law or Capital One a demand request, I really do not like your chances of settling for less at this point, unless the home is under water and you will get nothing from the sale. Do you know if they are aware of the pending sale?
Yes, unfortunately that’s how I found out I had a judgement against me. Went to escrow company to sign some documents and that’s when they showed me the letter from Brachfeld Law.
Joe – In that case, it does not look good.
It does trouble me that you were not aware of having been sued by Capital One. If you do have time to dig deeper into that, let me know. But most folks with a pending sale do not want to lose the buyer.
I guess I will just suck it up and pay the judgement. No one’s fault but mine. Thank you very much for all your helpful advice.
Hi, We are wanting to buy a house.We live in NC. Our house now is in my name. My credit is good but my husband makes all the money and he has a judgment against him. It is for credit cards. I think it was like $8000 dollars (in 2007) . I recently called the court house and they said he now owes $ 22,000. Do you think they would settle for the $8000 now? and how do I go about finding out what they will settle for. Thanks for your time, Pam
pamela – After this long, it is very possible that the debt can be settled for the 8k. You can use much of the feedback throughout this page to negotiate your own settlement, or hire someone to knock this down. If you do want help, you can consult with a specialist at no cost by calling the settlement number in the right column.
Is your husband paying other debts on time that show on his credit report? If so, how many?
Michael,
You had helped with a question previously – thank you.
I have a follow-up question.
Is there some general amount of time that a creditor will look for and attempt bank garnishment, before giving up? And what sorts of events would cause a renewed interest in searching for assets?
My specifics – Barclays won a default judgement on me for $5100 in July 2012.
I have no income or assets other than my garnish-proof SSI payments. No property or vehicle of any type.
In February 2013, I received court documents that the attorney garnished (serve only) 2 bank accounts (which had already been closed). Their interrogatories on the accounts would have revealed that I had only a few hundred dollars in them when they were open.
I had since opened an account with a big bank (November 2013), and have not yet received any court documents to reveal that it has been pursued by the creditor/attorney.
Am I able to assume that my new bank account will not be garnished because the attorney’s past searches revealed an absence of assets?
and
What sort of events would cause a renewed interest in searching for funds of mine? like Changes to my credit report, How about income reported to the IRS, or a Car loan, or Bank loan?
JJ – Debt collectors, whether trying to collect on a judgment, or without having sued you, are often paying attention without you knowing. Your credit report is the main way they do that. Changes to the credit report that show you settled with another debt collector; applied for a loan; new employer was added, etc., all could be cause to see you as more collectable.
I would not say there is a specific time a judgment creditor will give up trying to levy a bank account. I have seen bank levies attempted in rapid succession, then cease for good, and I have seen bank levy attempts years later.
When it comes to a bank account with only SSI deposits, and assuming you are not letting many months of it build up without use for bills etc., those monies are protected. When the money is mingled with non exempt deposits, not so much.
I had old cc debt that I had been making payments on through an arranged settlement, I thought I was done but just rec letter to reentry a judgment against me. I have the balance due can I call them and pay to keep out of court
Billie – You can generally offer full payment on a judgment at any time. Was this a stipulation to judgment agreement you had that you were paying on?
I recently received a notice of levy on my bank account which is in my deceased husbands name and mine. I filed a notice of exemption and then contacted the collection agency to ask if it was possible to settle this judgment. The collector explained that since I filed the notice they can’t discuss a settlement. I talked with the supervisor and this is the same response I received from her. What is your suggestion for the next steps?
thanks for any help,
Elaine – Was the judgment against you and your husband, or just your husband? What state do you live in? What is the premise for your filing the exemption notice?
I have debt incurred when I became ill and had to sell my home and because unable to work. However I have not been successful in getting disability which I anticipated to use to assist with settling my debt. I have several judgements and closed credit accounts with balances due. I live in VA and have the possible ability with assistance from my family to try to settle these debts. What do you feel my best course of action would be. Start with the Judgements and try to settle first.
Kwarner – I could better offer feedback if I knew the amounts of each collection, who is collecting on them, and which ones are judgments. Post your answers in a comment and lets go from there.
My immediate goal is to get my credit score to a minimum of 620. We are hoping to buy a new house using my husband’s VA benefits in the next year. As of two weeks ago, my credit score was 587. My husband’s is 640, so we are good to go with his credit. I am looking at my credit report, and of course the judgement was the biggest obstacle on it. However, we have a $1300 closed Capital One credit card balance, a $380 HSBC closed credit card balance, a $359 Old Navy closed credit card balance along with about $3400 in 11 different medical bills tht have been reported to my credit. That was the end of the derogatory items, thank goodness!!! Our home is in my name alone. (Ironically enough when we bought our home, our credit situations were reversed.) We have 2 vehicles and a $6300 loan in both our names that is helping my credit situation. We owe about $3000 on that loan (We will be paying off as soon as we have the judgement situation taken care of.) I have a Capital One credit card, a Best Buy (Capt One) Card, and a Credit One credit card in just my name that have ZERO balance on them. Soooo, after all that, can you suggest a quicker route to increase my credit score? THANK YOU AGAIN FOR YOUR ADVICE!!!
Michael,
I have 2 judgements filed on my in the state of CA in 2008 while I was no longer living there. I moved to Oklahoma in 2006 and now have two foreign judgements filed, which I was never served with proper paperwork. I want to buy a home but now I show 4 judgements on my credit report. Can I pay the original ones filed in CA and by doing so will the foreign judgements be voided. Can you please help me.
Lilly – I would encourage you to talk about your options with an experienced debt collection defense attorney. If the only thing holding you back from buying a home are the judgments from 2008, resolving them would help you over the goal line. You may want to connect with a local broker, or loan officer (if you have not already), and talk to them about how underwriters view your scenario once the judgments are paid or settled.
How much are the judgments today?
Hello
Thanks for your very helpful information! I was one of the lucky ones who was able to negiotate a cc debt settlement with very low monthy payments.
They did enter a judgement against me, but stated in writing they would take no further
action on it if I kept my account current. I have done so for over 2 years.
Out of the blue 2 weeks ago, I got served a Notice of Right to Have Exemptions Designated.
I contacted the cc company -they had made a clerical mistake.
In writing, they ackowledged their error & stated “no further action is necessary on your part”.
(I had asked them if I needed to still submit the Notice to the court). I assume their reply was in answer to my question about submitting the Notice, but I want to be sure from another source that I do not need to submit this now. Would the court have any stipulation of me still submitting this? Would I loose any rights by not doing so?? Thanks for any advice.
tara – your best resource for an answer to your courts procedures, and making certain you are not waiving any rights, is contacting an experienced consumer law attorney in your state.
Hey Michael, just a quick update for you. The atty’s ofc that actually sued me for Citibank (Sears credit card) gave me a bottom dollar settlement amount of $3592. It wasn’t the $3000 I was hoping for, but it’s much better than 70% of the entire debt. In fact, the total balance was actually $7200 that included the court costs and interest fees. Thankfully we will be able to pay the balance in the next month or two. I verified with the attorney’s office that they will send the “Letter of Satisfaction” to the court so the judgement will be taken care of. Now, my new question is how will the satisfied judgement improve my credit? Will it help to increase my credit score at all?
Amanda – Great job, and congratulations on putting this behind you.
It is hard to say how one thing is going to impact your credit score. There are many things about you, and your credit profile at the time any new information is added to the mix that makes a confident reply a moving target.
Generally, I have seen credit scores improve after a judgment is shown as satisfied, and I have had files settle a judgment, and have the credit score drop for a few months after the credit report shows it is satisfied.
Is there a particular credit goal you have right now, or in the next 3 to 6 months?
My pay has been garnished for about 8 years from a credit card I had from College. The original company was Citibank. The principle amount was 4035.21. Int, court costs, and attorney fees made the total 7049.66. They filed July 26, 2005 and have been garnishing ever since. Before I called the Law office in 2013, I was just letting them do it because I figured by now after all these years I have to be close to settlement. When I called the office, they stated the amount has gone up to 16k due to int. I was thinking I would die by the time they received their money. As of today, the amount is 11,676.08 and Ive paid 8608.32 into the debt. I have a family of 5 and now its getting overwhelming to have them deduct out of my pay. Since working the last 16 months, they have taken over 4k from my pay. Ive paid off the principle date and now I feel that I’m just giving them money for no reason. Ive tried to settle and they will not do so. Ive paid 1558.66 over the principle and I want this to stop. Please Help!
Kevin – Contact the clerk of the court where the judgment is entered and ask about the process for you to contest a garnishment as being too much of a burden for your family. Each state has garnishment exemption limits. If you can show how, with your income and expenses, you qualify for full or partial exemption, that is how you can get this to stop.
Also, what state do you live in? What is the interest rate you are being charged according to the final judgment in the court record? Who is the plaintiff that sued if not Citibank? Who is the law firm handling this?
Thank You!
I live in DE.
The interest is 24.99%
Dahlink Financial Corporation
Clark C. Kingery, ESQ
Kevin – I found conflicting information about the interest rate limits for judgments in Delaware. It is clear that judgment interest can be set at 5% over the federal reserve discount rate, but I found additional references to contract rate allowed if certain requirements are met. It is the former that would be the result of your debt increasing to the size it has, even while some payments are being made.
On top of looking into your garnishment exemptions, I would also encourage you to run your situation by an experienced consumer law attorney with experience handling collection lawsuits (for answers to the interest rate limits).
Thanks again,
So you are telling me (if Im wrong please explain better please) that I’ve been paying more for this than what I was supposed to pay?? Because you stated conflicting, means to me that they are doing some illegal things in regards to this debt and since no one ever contest, they get away with all that they are doing. I want to get this taken care of as soon as possible, not just for me but for my family as well. This has been going on for way to long and they are taking food from my families mouth.
Kevin – I am not implying that. Just sharing what I found and encouraging you to look into it and verify what is, and what is not allowable. The contradictions I refer to are not unusual in law. This equals this, unless that…. Hard to keep track of for most of us. Get to the bottom of it as soon as you can. It would be great if you post an update with what you learn.
i have just negotiated a one time payment on 2 credit cards at 25% of what i owed the creditor is cash,llc & the attorneys are rsie&h llc i am happy with the settlement but what i need to know is what do i need to get from them before i send them the check i am going to send them a certified ck. what would be your advice from this point forward? thank you terry
terry – Great work on getting those good settlements negotiated. Check out the these reports:
For details on what to look for in a settlement agreement: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements/
Options for paying your settlements: https://consumerrecoverynetwork.com/paying-your-credit-card-debt-settlements/
I took your great advice & checked out the websites you gave me, they really were exactly what I was looking for. Especially the list of the things that must be on the letter. So i called the gal @ the law firm & told her that i would accept the settlement & what i would like on the letter i’m sure it was a form letter but i got what i wanted. I wasn’t so sure @ first as after I read all of the things I was looking for, the letter stated that additional settlement offers may be made to me in the future . If made they may be more or less favorable to you than this one. iI dont understand why they would say that but i think its incase this one falls apart. thank you so much again terry
I have a judgement against me with an attorney and have been sending the attorney a payment for 4 years now and would like to know does he have to by law report payments toward the judgement to the credit reporting agencies.
Dudley – It is generally not the attorney that reports. It is the court records that are being scanned by data brokers who the credit reporters, like Equifax, get their info from.
Neither the attorney that sued and is receiving payments, nor the judgement creditor that is ultimately who that money goes to, is responsible for updating the court record each month a payment is received – at least to my knowledge. That would be nice, but is probably cost and resource prohibitive.
Hi.
I just found out that I am being sued for 7,862.00 and called the credit card company and they referred me to an agency that bought the debt and I called them and they said I can call the law firm. They were not even willing to negotiate just referred me to the law office. My question after the attorney has filed the suit against me….will it be worth my while to try and negotiate a payment plan or to pay off the debt with the law office? Also can they go in and take my Roth IRA account? I have heard a lot of horror stories about garnishments…
I think it is worth a shot to try and settle with the lawyer…before going to court. What do you think?
Thank you!!!
Lisa – It is pretty common to have a lender or debt owner refuse to speak about the debt once they have it placed with an attorney for collection. Depending on the circumstances, it is very worthwhile to call and set up a payment arrangement, or to negotiate a pay off amount. I encourage settling for less than the balance owed in a single lump sum payment whenever that is possible. You can often resolve this at any stage of the collection process in the courts.
The collector would need a judgment in order to garnish, lien, or levy anything. Your IRA is typically not going to be something that can be touched.
Now that you have been sued, it is a good idea to consult with an experienced consumer law attorney with a practice that focuses on collection defense. Many of this type attorney offer an initial consult at no cost, so connecting with one makes sense. If you need help locating one, post the name of a larger city near you and I will email what I find.
I got a call tonight fro daughter in ga saying a cop was there to serve me papers from an old credit card. Merrick from 2007, which after i received it became ill and had surgery and did not work, and still not working. I called the cop and he said it was from an attorney in at. that account was charged off, but they are telling me I owe 1,424 .. I dont know what to do, someone told me if it was charged off and that old that its the company that bought old accounts from Merrick, and they are just trying to get their money back.. I cant work , and sure cant pay that amount
cynthia – You mentioned the Merrick bank collection account is from 2007. Can you document when the last payment was made to the debt? If you can, what is that date? Is Merrick still showing it on your credit report?
I have a judgement against me from Javitch, Block, and Rathbone LLC from 05/2007, the original amount was $3380… I had no idea I was even sued or had a default judgement against me until last month when I applied for a mortgage… I haven’t heard anything from this attorney’s office in nearly a decade, but once I was made aware of this settlement I wanted to get it taken care of so I can purchase a home. An attorney I talked to called them to talk settlement for me and they said they could do it for $1900, which I was fine with. My problem is now that I set aside the money to pay them I can’t get in touch with anyone to pay it and they’re asking for information that they didn’t ask the lawyer for when he called for me… As we never got anything from them in writing from them I have no confidence that if I give them the info that they’re asking for (address, SS#, phone#) that they won’t just try to hit me for the full amount all over again (totaling $4700 w/ costs added)… I would like to get this matter settled ASAP, so I was wondering if you had any advice on how to go about taking care of it at the initially discussed $1900 and what info I should stay away from giving them as I am not “judgement proof” anymore.. oh and I live in Ohio if that makes any difference… Thanks in advance for any information
i meant “made aware of this judgement” in the third sentence, not settlement
Mike – The questions you are being asked are general enough, and pretty common. Its the questions about your current income, assets, and expenses, that can harm your efforts.
You may want to consider having the attorney continue the negotiations. Is there a reason you did not?
What does your credit report look like? Are there other accounts being used and with current payments? If so, what types of accounts are they?
I didn’t actually retain the attorney, he is kind of just helping me a little because he’s close with the family that I work for, so I guess in a sense I’m still working with him. He’s trying to get in contact via mail with them to get everything in writing right now but it’s been almost 2 weeks with no response (I can’t really complain since he’s doing it for free) and time-wise my back is against the wall because I have another 2 1/2 months left on my lease so I need to get going on things to purchase a home
As far as my credit report, it looks pretty decent (scores range from 673-690). That judgement against me is the only bad thing on it, and the only other things are credit cards I’ve long paid off and my student loan which is almost paid off with all payments on time.
I just really wanted to see what I could do to hurry it along without getting myself into more trouble with these people. I just don’t want to end up with my bank accounts frozen, or assets seized because I’m being impatient. But, as I said, my impatience on the matter is due to the small window I have to get out of the place I’m in instead of ending up having to wait another full year to move.
Thanks for responding, and thanks again for any advice on the matter
Mike – 9 times out of ten, at least in my experience, you negotiate over the phone first and get a verbal agreement, then follow that up with documentation outlining the deal. This applies to virtually all types of accounts, and all stages of the collection cycle.
I understand wanting to push this along with the goals you have. Perhaps you would benefit from working with a specialist who can help you through this. If you would like to talk to someone about that call 800-939-8357
I have an outstanding credit card debt that’s been charged off ($2900.00). It has not reached judgment, though I was served last week that it’s now been filed. I called the attorney immediately and made a $100 payment with them. I was advised to call back on FEB 20th. The following day, after the phone call, and being served, I received a letter from the attorney stating that I could use my tax return to settle at a discounted rate and they told me to mail / call back with an offer. The request to settle was dated AFTER the court papers were filed. Does that sound strange to you?
Kyle – No, it does not sound strange. You looked less collectable to them before you made the 100 dollar payment, so a computer algorithm probably determined sending the settlement offer letter was a good idea. You can still call and look to settle this in a lump sum rather than monthly payments on the balance. You may still even save as much as you would have otherwise. If you go that route, post an update with how that all shakes out.
Ok, I checked the paperwork. The plaintiff was Citibank South Dakota. I live in Texas.
Amanda – I think you have a shot at settling the Citibank judgment for half of the balance owed, but not a great one. The medical bills on your credit report right now could prove helpful. If I were in you shoes, I would negotiate and start with something like – “I am trying to get a grip on all of my financial challenges in 2014. I have very limited resources, most of which I am lucky to have family willing to help with. This debt is the largest of all I have out there unpaid, but my medical collection debts are smaller and more affordable to pay. Before I figure out which debts I can tackle, or even if I can afford to, I want to know if you will settle with me? I only have 3000. If you are open to accepting that as a full pay off, I may be able to get that” – or something like that.
Judgment debts are not as negotiable as debts not in a legal status. I think it would be more realistic to prepare for a 70% settlement, but have seen 50%-ers enough to encourage you shoot for it. Owning a home and having open credit accounts make you appear more collectible, the medical debts offset that some, but only some. Judgment creditors have time on their side, your goal may mean you don’t. Which brings up an important point: Be patient if you can. If you do not get a deal to settle on your first try, call back the following week or month.
A satisfaction of judgment is what will occur in the court record once your case is paid, or resolved via the settlement you are targeting. They should be the ones to update the court that the judgment was settled, but you can too, with proof of the agreement and payment.
I don’t have the paperwork with me, so I’m not positive on who the plaintiff was. I believe Citibank is who shows on my credit report. I just kind of found your thread here while trying to research the whole judgment issue, or I would be more prepared to answer questions. Thank you so much, by the way, for your website. It really gives people like me a fighting chance to understand where we stand. I have two other credit cards that are current. They both have zero balances. I literally only put $50 or so on them to keep them going, and then turn around and pay it at the end of the month. I have 5 or 6 less than $500 outstanding medical debts on my credit report as well. How exactly does the judgment become satisfied?
I have a $6000 judgment against me from a credit card. I didn’t understand what it all was, so I didn’t go to court; now I realize how incredibly stupid that was. I think the judgment was made in 2009. The original limit on the credit card was $2000! How likely is it that the credit card company will settle with me? I am willing to lay down about 50% of the total in cold hard cash if they will. To us, $6000 might as well be $20,000. Literally the most we can offer is to use our income tax return to pay whatever we can of the judgment We are working on getting our finances in order to sell our current house and buy another one. If they settle, how will it all effect my credit?
Amanda – Who is the plaintiff that sued and got the judgment? Does your credit report show that you have other accounts that are current (other than house and car payments)?
Whether or not you have a good shot at settling for half will depend on a few things. How collectable you look is one of them.
In today’s home lending market you could find you have to get the judgment settled, and showing as satisfied, in order to get approved for a new loan. So settling the judgment improves your credit, but maybe not your credit score immediately (though that is possible). Do you have other collections on your credit?
I had a “friend” who had her own business that went bankrupt. She wanted to open again but needed a merchant account. I had no idea what that was, but she knew I had good credit. She explained to me that it enabled her to use credit cards of her customers. I honestly can’t remember whether the merchant account was in my name or hers, but it was her business. Long story short. She used the customer credit cards before they received their product or they weren’t satisfied and she spent the money in excess of $50,000 that was charged back to this account. She forged my signature and company records indicating I owned this company. This was all explained by me to an investigator that came to my home from the card company and their lawyers. It was out and out fraud for which I was ready to sue her. I also, unbeknownst to me, when she called my house from her cell phone and got my answering recording she left a message and didn’t hang up and the rest of her conversation was recorded since her cell is on and I hear her talking to her husband about the forged signature and he says”if you don’t get her on your side, you are done” and he says my name. Once again, long story short, I haven’t heard anything once I explained what had gone on, until today. A law firm collection agency talks about a post judgement arrangement. There was no judgement as far as I know. I was served. I responded to the court and their attorney. I had no attorney nor funds to get one.
Did I get the call today because the debt was probably sold to another collection agancy? This is extremely stressful to get these calls. I can’t go through all of what I did before to prove myself. Can I just ignore the call?
Carol – What was the date you were served, and what day did you file your response? Did you properly notify the plaintiff of your answer? Did you do any discovery after answering the complaint?
It is possible that the debt was sold. Who is the the debt collector contacting you? Who was it that sued you?
I would not recommend ignoring anything to do with the debt. Staying on top of this should be a priority.
Judgment date is 2011, yes, many other creditors. I saw an atty in 2005 (before the laws changed I was going to file for bankruptcy, but didn’t have the $$ to do so). The atty told me to stop using the CCs and stop paying them and that is what I did. Dealt with an illness that prohibited me from working for a long time, but now am back full time. They have not gotten any $$ since 2011-that is when I saw the Levy/Judgment-could have happened before then, but how would I know that? All I have is something sent to me from my employer that was filed through our local Sheriff’s Dept. Original creditor was MBNA, now it is a collection agency called Allied Interstate. Principal is $18,600 and last Aug. it said debt was 35K+. At that time they were willing to accept $8800. I want to call and offer $5K…I can go higher, but don’t want to, of course. There is one other Judgment that I know of from Chase–no idea amount, it is filed in a county where I used to live. Guess I will have to contact their Sheriff’s Dept. to find out. The $18/35 is my largest so I will start there. I do have a plan…to try to get everybody to settle and get out from under the debt and start regrouping my credit. I used to make alot of $$ that is why I was afforded so much credit. Realistically I will be at my former level of salary in the not so distant future so I have no need to file bankruptcy. I will be able to pay, but right now there is a lump sum that I cannot invest and I need to do something so that I can at least bank it somehow!
Leigh – 5k settlement on a 35k judgment, even if it has been 3 years since they saw a dime, is just not all that likely. When that type of savings can be negotiated, it is usually due to some documented hardships, or fixed income scenarios.
There could be alerts set up through different technology by some of these debt collectors. Changes to credit reporting and public records (settling and judgment being updated as satisfied in the court record) can bring things to a simmer on old debts pretty quickly.
I would encourage you to call in and talk with a specialist about how to coordinate your settlements as much as possible with the cash you have on hand: 800-939-8357
I could use some help here.. Back in 2008 – 2009 I fell on some hard times and have been slowly but surely digging myself back out. I have paid off 5 different creditors in full without settling to the tune of 24K since then. I have 2 left. One is in “pre-legal” status according to the notices I get in the mail and JC Christensen & associates are the current attorneys/collectors, original debtor was HSBC. Statements currently show 13K due last payment 9/16/2009. The other is for 20K with Portfolio Recovery Services, originally MBNA/BOFA and Weber and Olcese is the collection attorney.
I was recently served with court papers and had 28 days to respond to the Portfolio Recovery Services debt. I decided to try to settle with them since I got a little bonus this year and was expecting my tax refund. I offered 5K, was countered for 12K, and so I inquired about payment arrangements instead. We all agreed 600 a month would work, which is feasible for me since I JUST paid off another old debt. Its not comfortable, but then I haven’t been comfortable in years, haha. Nothing new. Weber and Olcese was very nice, told me at any time if I came upon some cash I am more than welcome to try to re-negotiate a settlement. A few days later I receive a form from the State of Michigan that says “Notice to attorneys and/or plaintiff: Default judgment request is required to be filed with the court” because I failed to answer the complaint. My question is…what does this mean exactly? Wage garnishment would be a very bad career move for me in the position that I hold and I am very concerned. If I continue to make payments as arranged, am I ok?
You see, I would like to take the cash I have and pay off my other debt. That would leave me with this last one I am making payments on. I actually have 9K to work with but would rather spend 5 to get rid of the other guys and leave myself a cushion for emergencies OR if anything unexpected comes up I don’t want to miss an agreed upon payment. Plus I think at the end of the year I will be able to settle the remaining balance with Portfolio and be done once and for all. I’m afraid to pull the trigger on my master plan because…I believe if they garnish my wages, they will get more than 600 per month (Michigan) if they can get 25% of my net pay, and garnishment would be a very bad career move for me. I also don’t want them getting into my bank account for the reasons mentioned above, taking all my cash and then garnishing my wages. Then I end up with another judgment from HSBC because I see that is where that one is headed as well.
So basically my question is…What does “Notice to attorneys and/or plaintiff: default judgment request is required to be filed with the court” mean? Am I on my way to garnishment already even though I just made a payment arrangement with them? Or am I safe to assume that as long as I stick to my agreement I might survive this?
Brooke – From what you shared, and the collectors involved, I am of the opinion you will be fine if your payments continue and are made on time. Miss one by a day though, and your file could see extraordinary collection efforts that can result from their being a judgment in the courts.
I get your thinking about having the money in reserve. I would have looked at those accounts opposite of the way you have, preferring instead to settle the lawsuit with Portfolio Recovery for the 12k (or countered with say 10k), then set up a payment system on HSBC account with JC Christensen, who can be reasonable too.
Does that deplete your set aside funds for these debts? Yes, but you can more aggressively save up with the PRA debt out of the way, and be rid of the full 20k overhang you will be stuck with moving forward, and eliminate your concerns about the extra collection tactics afforded a judgment creditor.
Have you already paid PRA, or signed off on any agreement?
I know I’m more of the asking for help type on here, but this one struck a bit of a personal chord with the judgement/worry about garnishment bit and being in Michigan!
I had firm obtain their judgement years ago, but in a panic, before any garnishment was done I agreed to a payment which was reasonable enough to work with. I paid on time and faithfully for a year. Trouble was that at the time we agreed to this they suggested (mind you nothing was in writing!) that we revist the payment schedule later.
in other words they wanted get more but were willing to accept what I offered at that time. My hope was for a tax return, but that never materialized, so I kept on paying. Sometime in early summer the law office called a few times and left very non-descript “call us back” type messages. Probably coudln’t leave much detail, but they also never really did call back. The proceeded to set me up for wage garnishment!! A few months after those calls I come in to find that they’d done that. I immediately contacted the courts and learned that, well, at least here in Michigan, you can submit a payment shcedule with the court, even if they have a judgement. If the court agrees to that schedule/amount, they are locked into it. I’m sure there is that possiblity that you miss one or are late and they can try to push for garnisment, but I felt ambushed.
I asked them why they did that when I was still sending them pyaments (2 months worth after they attempted to contact me half heartedly) and they fell back on some lame excuse of how we had agreed to negociate this again in June and when I didn’t I basically “faulted” on the agreement in their eyes. I aksed them if they normally cash checks from people who have faulted on agreements and they told me those were “good faith” payments.
The good part? When I went to obtain the payment schedule from the court they reversed what they THOUGHT they were going to get out of my check… rihgt back to me so I can pay my rent and other bills (idiotS!) .. the bad part? The embarassment of having to go through that when you thought you were doing the right thing.
So my advice? Contact the court where the judgement was filed, ask about setting up a payment plan. I’ve found the clerks there to be very helpful, at least at our court, and much better to deal with than the law firm I was stuck talking to.
Thank you SO much for the responses, this has been so helpful to me.
To answer the question if I have signed an agreement, or where exactly things stand with PRA:. I verbally agreed over the phone to pay 600.00 on Monday, they have not withdrawn the funds yet (I don’t know why) today is Wednesday for those reading. I verbally agreed to have the 600.00 payments begin to be withdrawn in March, and I was told that he would mail to me our agreement. He didn’t say anything about me signing and/or sending anything back to him. I haven’t received that yet, but it is still early.
Based on your advice, and the experience that Bill was SOOO kind enough to share (Thank you!), I feel that settling with Portfolio would be the best course of action. JC Christensen will probably allow a lesser monthly payment amount and I can begin to rebuild my savings for emergencies and to try to negotiate a pay off at a later date. Its a little scary have been a cash basis broad for so long to wipe out my bank accounts in one swoop, but at least this way I have some control over what happens going forward.
Based on my response, do you think that Portfolio will still settle? Keep in mind that the judgment may have been crossing in the mail during prior negotiations. I would like to counter with 9K and buy myself a little time, in case I really need 10. If 10K is what it will take to get it done I may be able to swing it somehow. I discovered this website after some of my dealings, and I will be sure THIS time to get whatever agreement in writing before giving them any money!
If I can’t settle it out anymore I will most certainly take Bill’s advice and make sure that a payment plan is set up with the court itself. I am so glad I found this website and thank you both Michael and Bill for your help!
Brooke – I do think you will be able to settle for a lump sum still with PRA. You may be able to get them to 9k, but I would have been more optimistic for that figure if you had not already had a payment plan discussion with them. If you can get the deal done in that range, I hope you can take advantage of it.
I have a large outstanding judgment that I am ready to settle. I am afraid to call them because once I do they will know that I have $ from somewhere and I am worried that they will start garnishing current wages. They did garnish before, but I think they only got 3 payments of about $5 because I only had part-time work. What do I need to ask for from them besides something that says it is paid in full? Could you explain 1099? How low can I start? Do I base my offer on Prinicpal or amount I owe now which is more than twice principal? Attorneys that return calls all want to talk me into a bankruptcy and I am not willing to do that. Do I need an atty in order to settle all this stuff? Thank you in advance!
Leigh – It is better to approach negotiating debts with a plan, and realistic targets you can settle for. How much is the total owed today? How long has the judgment existed? When was it they last garnished or levied an account and got any money? Who is the judgment creditor (name of plaintiff that sued)? Does your credit report show you are current on any other loans, or does it show you have other collections?
You are going to want to get any agreement you make to pay documented. Here is an article dedicated to the topic of getting your settlements in writing.
Here is more about taxes on forgiven debt, and how to figure out if you will owe tax, or are what is often referred to as technically insolvent.
You do not need an attorney to negotiate and settle this debt for you. It can be a good idea in some instances though.
I had written before and you offered an 800# to talk to someone. I left messages and never received a call back. It’s been a few weeks and I still have no ‘professional’ who has been willing to speak with me about trying to settle two judgments–1-MBNA via Allied Interstate–Principal $18,600 + Int = $35K+; 2-Chase Bank via attorney–Principal $4600 + Int=$8200. I also was unable to get a credit report online so I sent all my identification three weeks ago and still have never in my life seen my credit report. They said it would take no more than two weeks for me to receive it via mail. Do you have any other suggestions where I could get a copy? I asked my Credit Union and the only way they will give me one is if I apply for a loan. Only one attorney out of 8 that I called returned a call and they want $125 for an hour consult, but their specialty is bankruptcy and they really want to talk me into that. I will not file bankruptcy. There is no reason to. I just want to settle these judgments but from every thing I have read I really need to see my credit report before I talk to them. Is there a website or reference document where the high points are listed in a concise manner? The internet is overywhelming with conflicting information. Thank you.
Leigh – The judgment information you will find on your credit report is not going to be all that instructive toward the goal of settling those debts. The court record where the judgments were entered is where the bulk of usable information will be.
I am not sure what happened with the message you left prior. I am going to send an email reply to this comment notification copying you, and one of the specialists that pick up calls. You two can coordinate a time to talk all this over.
As far as a concise manner of obtaining; then dissecting; followed by actionable information to improve credit; I like http://www.credit.com and the credit report card product, combined with their many articles. They have paid credit monitoring products available similar to other sites, but try the free version for a start.
I recevied a letter notifying me about a suit over $965 of credit card debt. I called the attorney and set up a payment play to pay the debt off in 6 payments. They said they will send me a judgement agreement to sign and send back. Since I have a payment plan set up with this collector, will I still have to appear in court? What exactly is a judgement agreement, they did not do a very good job of explaining it to me.
Thanks.
Tom – It sounds like you are agreeing to a confession of judgment entry in the court record (and thereby your credit report at some point), in order to have the convenience of the monthly payments that you can afford. These are good reasons to try to come up with the money you need to settle the lawsuit, and get the lawsuit dropped. Do you have any other method to pool together the money to settle this?
If you get the agreement reviewed and signed you are agreeing to a judgment, so going to court may not even be a formality, because the document will be filed in the court record shortly after you send it back.
It is a good idea to run any legal questions and concerns by an experienced debt collection defense attorney. If you need help locating one, send me an email (same address these comment notifications come from), with the name of a nearby large city. I will send you back contact info for any I find close by with experience in this area of consumer law.
I was served with papers about a credit card bill of 3100.00 and went to court. The lawyer spoke with me in the hall and we made an arrangement for me to pay 100.00 per month til it as paid off. I paid 1900.00 over the next 19 months, but was in a car accident and stopped paying it. I received a Notice of stipulation default which gave me 10 days to pay it. I called and asked if I could pay 400.00 in eleven days and 100.00 per moth after and they said call back when I had the 400.00. Now, ten days later I got A Motion for Entry of Judgement for the remaining 1200.00. They have agreed to accept the 400.00 and 100.00 per month thereafter, but does this new paper mean I will have a judgement in court against me? and does it mean they can get into my checking account?
Linda – It is always a good idea to talk with an experienced debt collection defense attorney about your concerns with collection events that reach this stage (in the courts). Generally speaking, and based on the little you shared, you would end up with a judgment against you. That judgment is a prerequisite to a bank account levy. All of that said, once you have an agreement in place (get it in writing), it is less and less a concern to have any extra ordinary collection efforts take place if you are paying as agreed.
I just received a letter today stating that I lost in a suit with capital one .This was over a credit card dept 23,400. I need to negotiate a settlement with this attorneys office. I need some advise on contacting them. I did watch the video but need more advise. I live in WI. My credit
score is in the tank. I most likely will call you as well. I assume the sooner I deal with this the better.
Thanks
Dan
Dan – You can best schedule a consult using the contact box in the right side bar, or by submitting the longer form here.
Did you defend the lawsuit?
Michael,
I have settled three credit cards. As you may already know, when settling i had to give the debt collection agencies my bank account number. During the time that i was settling i kept whatever extra money i had “someplace else” for lack of a better word. Now that i have settled and the agreed upon amounts have been paid do you think i can go back to using my bank account or is that not wise? I have even received Form 1099-C, Cancelation of Debt from the credit cards. I don’t want to wake up one morning and see whatever i am able to save being wiped away.
I have a bank account with BoA and two of the credit cards i settled were BoA credit cards.
Your feedback is always appreciated,
Thank You
Adie – You should not have any issues with using your bank account. Hopefully you have each settlement you did documented in written agreements, and have proof of payment readily available too. These will help you if anything weird happens from here.
Not for you, but for other readers: I do recommend you set up a specific bank account, even at the same bank, just for use during the time you are negotiating and paying off settlements.
Hi, I live in California and several years ago lost my job and was forced to take SS early, I have no job or income or assets, I was unable to continue to pay my credit card debts and now just received a letter from a law group that states unless I despute this amount within 30 days they will get a judement against me and will mail it to me, I am very upset about this and freightened, can you please inform me in what I can possible due, I barely make ends meet now and am afraid they will garnis my social security.
Thank you for your help.
Sherry – The letter wording is what is often referred to as a mini Miranda in debt collection. It is worded the way it is for CYA purposes (keeps um out of trouble). If you read it carefully you should see it says something like “if” there is a judgment, which is to say if you already have a judgment against you. In other words, they cannot just go get a judgment. They have to sue you first, and that is a process.
If that attorney collection letter you got is from an attorney licensed in your state (has an address in your state is a good indicator), you are at a high risk of being sued for collection. But even with a judgment, your social security cannot be garnished from the source (directly from the government before it hits your bank account), and if your SSI goes to an account that is not mingled with any other non exempt money (wages, gifts etc), the money is protected their too.
What is the amount they are trying to collect from you? Do you have other unpaid bills out there? If so, what is the total of all those bills?
Hi Michael, thanks so much for responding, the debt amount is $2,624.32 and yes I have more debt all totaling around $5,000.00, during the recession lost my job and haven’t worked since and was forced to take my SS early so have been unable to pay those debts. The company that sent the letter is Winn Law Group who states this law firm is a debt collector, as defined by 15 u.s.c. s1692 (a) (6) and this is an attempt to collect a debt, any info will be used for that purpose, they are in California as I am also. They also state if you notify us in writing within the 30 day period that the debt or any portion thereof, is disputed we will obtain a verification of the debt or a copy of a judgment against you and mail a copy of such verification or judgment to you and they will upon my request within the 30 day period provide me with the name and address of original creditor if different from current creditor.
I have no judgments against me that I know of and have not been sued that I know of!!
I don’t work so have no income or assets and no savings or home. Just a little worried about all this.
Truly appreciate all your help!
Sherry
Sherry – Thanks for the additional details. Sounds like no lawsuit has been filed, but one may be. If you are served a lawsuit, post an update to this comment string and lets go from there. If you are concerned about receiving a legal sounding collection letter from an attorney, I would encourage you to look up a low income legal aid office in your area, and ask their opinion.
My account has been levied by the Sheriff Department because I was sued by Cache LLC. I never got a letter to appear in court but was told by Cache attorney that I was properly served because the papers were served to my sister. My money from my checking and savings has been taken and I don’t know what to do from here. I tried contacting the attorney for Cache but spoke to a rude person who told me I couldn’t and won’t get my money back and will continue to do what they have to until the balance I owed is paid off.
– What are my options and what should I do now?
lou – When things advance to this point, you want to see what can possibly be done to undo the judgment, or accept it, and resolve the debt. If you want to try to undo something like this you need to be talking with an experienced debt defense attorney. If you want to resolve it, what is the remaining unpaid balance, and what are you prepared to do by way of settling it in a single lump sum, or can afford in monthly payments?
Michael,
Throughout 2013 I was trying to settle three credit cards, BoA, Chase, and Discover. I discovered your website by accident and it was the best thing that ever happened to me. You were very prompt answering all my questions and any doubt I had along the way. Credit Card debt , i know for a fact, can be very overwhelming and if you don’t know how to approach the situation it can be devastating.
I personally wanted to thank you for everything that you do. Your help and guidance was the best thing that happened to me in 2013. With your prompt feedback I was able to avoid two lawsuits, and most importantly, I knew how to negotiate with debt collectors and the expected outcome.
Thank you very much
Adie – You made my day with your post. I am glad I could be a part of your success!
Hi, I’m in Florida…
can a summary judgement allow them to come after your wife’s accounts ?
can head of household or homestaed stop them from touching principal property ?
thanks.
avner – You do have head of household exemptions in Florida, and great property protections if you are living in the home. Can you be more specific with what is going on and who you are dealing with?
I owe 10,181 on a credit card with Allegacy Federal Credit Union. As well as a line of credit with them for $2000. They are about to send my credit card account to a lawyer. They would like me to pay up and get current but that is a big chunk of money than I would have to borrow to do so and than I would have to pay that person back. There is no way to get current without getting further in debt, I owe out my whole monthly pay check to bills. I tried to settle with them to pay off a chunk if they would forgive the debt but they stated that they would not consider to do that unless there is a judgement against me. Should I wait till the case goes to the lawyer and settle with him or what?
Jessica – Credit Unions, especially smaller more local and regional ones, rarely offer great settlements. You are looking at 70 to 80% of the balance in some of these situations. And that they want in a lump sum, or only over a few payments.
You will likely have better (or any) opportunity to make arrangements with the collection attorney, or with the courts if need be.
Have you thought about chapter 7 bankruptcy in order to get a fresh start? Anything preventing you from going that route?
First of all I live in Michigan, and I recently received a letter from Stillman Law Firm saying they are trying to collect a debt for their client FIA Card Services. I have 30 days to respond or they assume the debt is valid, I had a card with BOA is this now FIA?, the amount is $3200 and my credit report says the account is closed. I know the debt is mine and I want to make it right, it started at $11000 and I was on a 5 yr. repayment plan when I lost my job for a couple months 2 yrs. ago and fell behind. I tried to settle with them then for a lump sum and they said they couldn’t because I was on the 5 yr. plan. I don’t want this to go to court, so should I contact BOA or call the attorneys office that sent me the letter. I don’t have enough for a lump sum settlement now but could knock it down in a 1 year payment plan with no interest, will they do that? Please help
james – FIA is BofA collections, but now they have contracted with an attorney debt collector, so you will likely have to negotiate the deal with the attorney.
It is possible to settle with payments of 12 months, but that is much more common with third party debt collectors and debt buyers. Are you trying to set something up where you pay the full balance back over 12 months, or get say, 50% discounted and pay the half you agree to over that time?
Michael- it would have to be a reduction at least 50%. what are my chances of that, or would I get a better deal on a lump sum settlement. what are my chances of being sued in your opinion? Any advice is greatly appreciated. Should I even try to contact BOA?
james – You can contact BofA, but they will send you to FIA or the Stillman collection agency for any discussions about the debt. Your chances of being sued or quite high at this point. I do not think you will be able to set up a payment plan for 12 months and get 50% off of the balance owed. I do think you have a good shot at settling in a lump sum for that amount, or even a touch lower. Lump sum settlement is better at this point, and before you get sued. Payment plans that last as long as you need them to are definitely an option when paying the full balance, and also when settling in certain situations (not this one in my experience).
If you want to get coached up on how to get your deal done, consider filling in the consult box in the right side bar and submit. I will get that over to a specialist you can talk to.
I’m going to try to start with BOA see where that gets me, I will post any interesting progress that I may make, or not make, with the hopes that it will help others in this situation. The reason I’m here is because they kept increasing my credit limit knowing that I was going to use it, meanwhile still only a minimum payment every month. The account started at $3000 and went to $15000, then I was late twice within 6 months and BAM they increased my interest to default rate and I simply couldn’t afford it. Then I was set up on the 5 yr. plan and paid the balance down to $3176 and that’s when my employment situation changed. While I am now working again with all my other expenses I do not have that kind of money saved up, but could come up with around $1200 now. I was considering talking to an attorney about going to court and defending this as a predatory lending practice what is your opinion on this.
Thanks
Called BOA and found out that the attorney that I received the letter from is no longer in the picture, they gave me the name of another attorney Hanna Associates that is who has the account now.
I have always found Hanna and Associates negotiations to be simple and to the point. Let me know how it goes.
james – I think the cost of the attorney to defend, using a predatory lending angle, would be a waste of your resources.
Hi Michael, I live in NJ and my wife and I stopped making payments on a capital one credit card in January last year. The account was sold to a collection agency in May, but we didn’t have any money to offer/respond to settlements. We received a letter in the mail from the court as well as from an attorney that are we are being sued for the full amount – $4800. I’m wondering if I still have any settlement negotiating power. I’m pretty sure there hasn’t been a ruling against us yet and we have some money that we could pay now because of a bonus. I’m wondering whether I should contact the law office holding the account and if so what would be an amount you think they might be agreeable to.
Jason – Your current situation with Capital One is covered on the site here: https://consumerrecoverynetwork.com/question/capital-one-lawsuit-negotiate-with-bank-or-contact-their-attorney-other-credit-card-debts-tracy/
Once you read through that page, and some of the informative comment exchange, post any remaining or new questions in the comments on that page and lets go from there.
He went through a consumer proposal and is making payments for the car loan which we gave back and the credit cards which were in his name. They could not add mine or do this because there was not enough money to add mine in. I cant do a consumer proposal or even declare bankruptsy because I have no income.
Did you get a chance to see the reply I sent about my husband. Just hung up from Capital One threatening legal action. Why do they say to call your mortgage company and let them know about this. I told her I wasent going to call them. There is no equity, but, back to my original question, Our mortgage is with First national which is uptodate. It is up for renewal this coming december. Should we be worried at that point? I am sure they will do a credit report. Payments are updodate on the mortgage
ssm – Do you live in the US, and if so, which state?
What happens if you have a judgement against you in ontario for unpaid credit cards. There is absolutely no money coming in for me. Our house is in both my husband and my name. He has gone to consumer proposal and has a repayment set up for his card and loan but they could not combine them because i have no income at all We have a mortgage coming up at the end of the year. My questions is, Will we have a problem renewing the mortgage with the same company. Is is an automatic renewal. Mortgage payments are fine no problem with payments
ssm – Is your husband working with a credit counseling organization in Ontario Canada?
My name is Cassandra, Im 25 years old, live in New Jersey, and am being sued from Capital One for $5,600.00 of credit card debt.I obtained the debt when I was married. I was a stay at home mother of two kids and my husband was the bread winner and paid my bills. We separated approximately 2 years ago and our divorce was finalized in February of last year. Since then, I was pursuing college again for auto mechanics using Financial Aid. I had just been approved, when I found out I was pregnant and couldnt attend the program. My son was born in November.
I was served papers from New Jersey Superior Court Special Civil Part on January 13th. I just picked up the answer packet today and am wondering after researching online- whether I should answer and how I should answer. Even more than that, Im wondering how do I resolve this debt when I have no money, no income, and only own a 2003 sebring that kbb states is worth $2,250. What is going to happen in court?
Cassandra – You should look to local low income legal aid resources, or perhaps a nearby law school program, in order to get some hands on help with answering the lawsuit.
Is this the only unpaid bill you have?
Michael,
Thanks for getting back to me. Yes, its the only outrageous one. The rest are under 500 dollars so I dont think they can do much.
Hello Michael,
I am a current student trying to finish school and settle old credit card debts. I currently have a Judgement on me that totals about $5300 includes all court fees and such. The original debt amount is about $2556 without the interest. The judgement was filed back in March of 2011 and at the time had an agreement with the attorney collecting the debt to pay $100 per month. I have been paying that and a little bit more when ever I could every month since 2011. Till this day the amounts paid for have totaled $3850. I no longer see the original collections amount on my credit report by the collections company like I did back in 2011 and all I see on my credit report as of today is the single public records of a Judgement amount for $2556. Is it normal to not see the original collections debt on your credit report in this situation? I am concerned at how it disappears without any notice from all three credit reporting companies.
Boon – It is normal for collection accounts to fall off of your credit reports. It mostly happens because of laws that limit how long negative personal financial info can stay on. Collection accounts for credit cards will typically stay on for 7 to 7.5 years from the date you last paid your creditor. The judgment is part of the public record and has its own shelf life for reporting (normally 7 years). It will age off your credit report with no notification too.
Hello Michael, I am in a bit of a bind I have been subpoenaed for deposition for getting in debt with a capital one credit card and am due in court or deposition office this Friday…This all started in 2009 I lost my fulltime job and fell behind in my payments. Over time they sold the debt to Rubin and Debski who in turn filed a motion for Judgement for me to appear in court.. I took some bad information off a family friend who said I would be better off not
showing up and hope it gets written off..I know how bad that sounds but I did just that and never showed up..nothing happened, the letters stopped coming etc..until 2 weeks ago when I was served ( or my wife was served on my behalf ) to appear for deposition…I’m from the UK originally and am unfamiliar with the practices over here…Just what can I expect in a deposition, Im worried they will garnish my wages or force me into a payment I cant possibly afford ( I apparently owe 2378.80 an increase of 1500 $ from where it started somehow ..im not sure quite how they came up with that figure)..I have never fully recovered financially since loosing my fulltime job and currently work part time,i rent an apartment which my landlord
is my boss I also don’t own any vehicles or expensive household items. Just how far can they push things with regards getting into my bank account or my wages..Also what are the consequences for not showing up for deposition with things of this nature, could I wind up in jail..Any light shed on the matter would be hugely appreciated…Thankyou Dennis
Dennis – First, it is always wise to speak with an attorney when you need legal advice of this nature. That said, there are instances where not showing for court for an asset discovery deposition like this can result in a bench warrant being issued. So show up at all court dates. It sounds to me, at least from what you shared, like you are fairly insulated from their forcing payment. You do not have “stuff” they can take, and may not make enough to be garnished, or can meet your states exemptions, so that leaves a bank levy. Just bank carefully until you resolve this judgment – it is not going away and will grow.
Hello Michael: My mom is 84 and in a nursing home (stroke). She has a small rental income $800 and Soc Sec. The rental income will end this year due to reverse mortgage rules and her not living there the bank will foreclose. The house is for sale 8 mos., the agent thinks he may have to get the bank to take less than owed to market it. So no $$ there to get. We hope to have her on Medicaid soon which will take the $800 she gets anyway and her Soc Sec. She has a card with Capital One – many years with GM first. Owes nearly $20K on it. I have been helping to pay it but cannot any longer. I would be able & willing to continue to pay if they would go to 0%. What are my chances of getting this in your opinion and where do I start or how do I go about it? I believe she would be judgement proof now.
Thanks for any suggestions or help.
Joe – It does sound like your mom is judgment proof at this point. If payments were not being made there would not be much they could do to collect, as social security cannot be garnished.
You could probably get a monthly payment at close to zero percent for the life of the balance through a credit counseling agency. Call the number for a credit counselor in the floating box to the right of any page on this site and talk to them about what that payment might be. The payment may get as low as something like 340.00.
Dave- Just was served today from American Express for $4800.00, the debt is over 1 year old. What are my chances with settling with the local attorney that will represent them? What should I expect and what have you seen with American Express settlements lately? I have over 90k in credit card debt and am working dilegently to get everything settled in the coming year or so. I have no judgements yet as I am trying to settle them before they even have a chance to do that. Should I wait till everything is settled to start trying to rebuild my credit or is there something I can be doing now to start the process and get it going. What are the best ways to rebuild my credit, what do you recommend. My parents might be willing to cosign on a car loan or piggyback on one of their cards to help me out. Thank you for your time.
Michael,
I have received in the mail, a “Notice Of Court Proceeding To Collect Debt” for an Aspen Card which is in the amount of $1,845.77. I live in the state of Ohio and it was dated 1/7/2014. I assume it is the last step before garnishing my wages, which are small, and eventually commission only. Thus, I assume I have 2 days to contact firm or is it 15 business days? I have a little cash saved, but clearly nowhere near the amount listed. I remember never having a credit limit greater than at most $800.00 with them, so why the amount and I thought is was unsecured?
Undoubtedly, I should have done something sooner and I am gravely concerned I have no time to prevent this. Do I have any options at this point? Contact law firm tomorrow etc.
Any feedback would be greatly appreciated. Thank you.
Pete – I apologize for the late response. I was called out of town last week unexpectedly. Did you find an answer to your solution? If you still want feedback please post a comment update with all that has happened with the collection account (if anything).
It is not uncommon for collection balances to balloon from late fees and default interest rates. Smaller balances can quickly double. Add court costs and attorney fees to that and smaller balance collections when sued can get way out of hand.
Michael,
No apologies needed. Thank you for the response. Sadly, I allowed this to go beyond the 15 days as shown on Notice Of Court Proceeding To Collect Debt. I am to assume they can now directly garnish my wages or do they have to file a formal law suit in Ohio? I never really made much, do not have much i.e. older car, no property and such. Financial duress can render one helpless, depressed and feeling worthless. I will have to deal with this, as it seems the law firm representing the two parties, Jefferson Capital and Aspen Card will continue to seek the bloated amount. Honestly, I was even paranoid they comb these websites for information.
Once again I appreciate the response. Upon my return, I assume I better step to the plate and take action with my financial train wreck of a life.
Thank you greatly.
Pete
Pete – Do not allow any of this stuff to get you down. You can bounce back from it when finances are better; use chapter 7 bankruptcy to discharge all of these debts; or navigate the collection process without assets, meeting garnishment exemptions etc.
I would encourage you to speak with a nearby consumer attorney about your options. Most offer no cost initial consults. I can help you located one if you like?
Pete – It is not paranoia if you know they are watching….
I have a medical debts that was passed to a collection agency. I do not have a judgement yet, and I’ve been making payments every month. The original debt was $1,200, but now the balance is $400. Today I called them to pay off the debt. I asked for an agreement letter saying they will change the collection status to “Paid in full” in my credit report. They said they can’t do that, but they will for sure to change the status when it’s paid off. They suggested to pay my debt over their web site using my credit card. Is this safe?
Dave – Who is the collection agency? Have you verified they are legitimately collecting for the service provider? If you are confident about who you have been paying already, paying on line is not likely going to be an issue. How have you been paying them up to now?
As far as negatives on your credit report go, it is rare to get a collector to agree to remove a negative they are reporting. Some of the instances I have seen this happen (admittedly fewer and fewer), are with medical debts. They not only should change they status to paid and show a zero balance owed after you have paid, but they are required as a furnisher to provide only accurate, current, and complete information. They are not doing you any favors with the reporting, they are doing what they are supposed to.
The collection agency that I’m dealing with is “Berks Credit and Collections Inc” (berks credit dot com). Yes, I verified that the debts came from my doctor’s office. They put 20% fee or interest, but they said it was applied by the doctor’s office, not by them. I must have signed the agreement with them for this fee. So far, they’ve been taking agreed monthly payment from my checking account.
When I complained about them not giving me the agreement about changing the status on my credit report, they suggested to call credit bureau after 3 business days I submit the payment and have them to change the status. At that time, the credit bureau will see that the balance with this collection agency is zero, so they will be able to change the status to “Paid in full”. I’m not sure if this true.
Dave – You can dispute any information on your credit report, but only sorta like they said. Online disputes, and sending in written disputes, are more the norm, not calling. If Berks Credit is doing the credit reporting you can wait a few weeks and you will likely see them updating the credit reports. Is it someone else showing up on the credit report?
Hi Michael,
I have multiple judgements against me and have been on a monthly payments. My family is willing to help me and let me borrow some money to resolve all my debt, so I called the collection law firms and tried to make a settlement. Most of them are saying they can do 10-20% discount, but I still cannot afford it. I heard that one of the debt settlement strategy is telling them about my hardship. I do have a job and make decent money, but my expenses are very high since I have many family to support. I was not sure how convincing this was. The question to you is if I exaggerate or lie about my hardship to settle with less money, can they find it out? Is this a good strategy?
I actually tried this with one collection firm. I said I’m currently in between jobs and am in a different financial situation. Then, I tried to settle 40% discount. The agent said he will turn in hardship to his manager. I was afraid of they will try to check my job situation or bank account and find out I lied, so I stopped him saying I will try to see if I can get some more money and hang up.
Your advise will be very helpful. Thank you in advance.
Andy – I do not like it when there is a need to fabricate anything in order to negotiate an affordable settlement. Does it work? Yes, and it is difficult for them to verify certain things you could say. They have real time access to your creditor reports, the ability to skip trace public records, information you may have provided creditors or collectors along the way etc. You can often accomplish the same things without stretching your condition by just being more vague and artful at the same time.
What complicates things here, or at least the savings you can realize from settling, is that some or all of these are judgments. Are any not court judgments?
Debt negotiation is not for everyone, so perhaps working with a professional would be better, but that has a cost too.
If you add up all of the debts you want to settle, what is that amount?
What amount of money are you able to pool together from family in order to settle with?
Michael,Im a 75 year old retiree living on ssi in Calif.,I was served a judgment from discover card for $6450,the original balance was $4400,I haven’t responded to anything yet,I just received a settlement offer from the LAw Office of Krista L White & Associates,P.S.,Can they levy my SSI,should I try to settle with the Attorneys,really confused and scared,thank you Sal
Sal – You refer to being served a judgment, but I want to be certain about that. Were you sued for collection by the Krista White collection law firm some time back, with the result being the recent judgment you have been notified of? Were you just recently sued, but the case is still ongoing, and there is a settlement offer on the table?
If you were sued some time back did you ever participate in the court process?
You can typically settle debts at any stage of collection, so while your answers to my above questions will affect my feedback a bit, not by much. Your SSI is protected from garnishment. But if your SSI is mingled with certain other types of deposits in your bank account, you could be at risk of a bank account levy if there is already a judgment entered in the court.
Should you settle? That’s up to you. But the first question in this regard I have is – Can you settle? Can you pool together the cash to negotiate a deal and pay it in a single payment?
I am in the process of refinacing my home. During the processing the lender discovered I have a lien judgement against my home from Citibank from 2005 for the amount of $15,000+ with an interest rate of 6%. I would like to get this judgement resolved and would like to try to negotiate the amount can this be possible? I think that I received the summons in the mail but missed the court date and they won the judgement.
John – It is indeed possible to settle something like this. It is best if there has not been a demand request or other type of heads up sent to the judgment creditor. Do you know if the loan officer/broker sent any type of payoff requests? If not, be sure that they do not. Post what you know and lets go from there.
What amount of money can you pool together quickly in order to settle the judgment?
No they did not send a payoff request he had sent me a copy to verify that this was indeed my judgement. I informed him that it was. I told him that a couple of years ago it dropped off my credit report and I just assumed it was gone after the 7 years it was there not know it was attached to my home. As far as a settlement amount of course I want to pay the lowest amount that they will accept but I really need to get this off my home because I plan on putting it on the market this year. With you knowledge what would you think the dollar amount would be accepted (40%-50%?)and should I use and attorney to broker the settlement
John – I would recommend settling before you list, refinance, etc. The longer a judgment has not been paid, the more likely you can negotiate a decent settlement. 40 to 50 percent is doable, but with a lien already on the property, you may have to be ready to offer a little more to get this done.
You really do not need anyone to do this for you. But I understand the desire to work with someone who does this everyday. I would encourage you to call in and talk to one of the specialists at 800-939-8357 about getting some help.
Hello,
I have read numerous comments and not quite found one to be similar to mine. I’m married, live in Indiana, and have a Capitol One credit card in my name only, and was my debt before we got married, which fell delinquent for somewhere around $8,000. They ended up getting a default judgement because I didn’t respond. It’s been about two years and I recently received a wage garnishment summons to appear in court. My question is can they garnish me if I am an independent contractor and only make about an average of $350 per week before paying estimated taxes? I also have payment arrangements already made with the IRS and State which leaves me with very little to survive on before this garnishment. Since it’s my debt and my credit card, will they take my wife’s income into consideration, or just my income? Do you think the judge may refuse to garnish since I don’t make much and need to pay the IRS and State of Indiana?
Chris – There is a really good chance the court would prevent the garnishment. But they are not going to know about all of the stuff in your comment (and your other bills), to measure how you stack up against set limits to garnishment in Indiana unless you get a hearing to contest the garnishment. You are entitled to contest this. Have you requested a hearing, or otherwise followed local court rules in order to get in front of the judge?
Hi Michael,
I’m in an unique situation and need your advice.
For one collection company called “PEROUTKA & PEROUTKA”, I have three active cases/accounts that I have judgements against me.
1. $1000 – CapitalOne : Lien Judgement
2. $2000 – CapitalOne : Lien Judgement
3. $16,000 – USBank : Consent Judgement.
I do not have money to settle with full amounts, but hoping to settle all three cases with $10,000. That’s all the money I can afford by borrowing from family. Can you please advise on negotiating settlements for multiple accounts at once?
Thank you!
For a side note, I thought about bankrupcy too, but I have some properties that I cannot lose, so Chapter 7 is not an option for me. For Chapter 13, I’m afraid of that my employer finds about my bankruptcy. I cannot take that chance with this employer.
Peter – What are the payments you agreed to in the USbank consent to judgment? For how long have you been making them? How long have the Capital One judgments been in place?
Are there other unpaid bills out there, and if so, what are the balances, who is collecting on them now?
For USBank account, I’ve been making $50 for almost one year now. I remember at the court, we came up with this amount because I was jobless at that time. Then, we agreed to pay $50 per month for 6 month and re-discuss about the new payment plan after that, but I never got a call from them.
The CapitalOne judgements have been in place for almost 1.5 years. Since then, I’ve been paying them $10 for the first case and $20 for the second case.
I have more credit card debts that I’ve been making monthly payments to collection company called “SCHLEE & STILLMAN, LLC”. I do not have judgement on these debts due to the payment agreement.
1. $9,000 – FIA Card Services – $50 per month for one year
2. $5,0000 – Citi Bank – $20 per month for one year
Thank you, Michael!
Peter – I have some tips and feedback to offer. I am going to base them off of some additional questions I can ask you on the phone. If you are up to it, give me a call at the number in the signature line of my email I sent with the attorney info.If you get voice mail leave a message with your number and I will call back. Let me know how late I can call – I am on pacific time in Idaho.
Hi Michael,
Thank you very much for your time over the phone. I’m doing what you suggested and will post the result here.
As I went over my documents, I realized something new for those two accounts with the collection law firm called Schlee.
1.
– $8,000 (This is the balance after paying $50 per month for one year. Never missed a payment)
– FIA Card Services
– Before the court date, I made a settlement with them for $50 per month. The case was dismissed after one year. No judgement.
2.
– $4,200
– Midland Funding LLC as successor in interest to CitiBank
– I met their attorney at the court and turned in a stipluation with agreeing $20 per month because of hardship (no job). Since then, I never made a payment and never heard back from them. Now it’s been almost one year. I know the court will send a letter them to dismiss the case because it’s been one year. Then, they will probably find out about no payment. Then, I think they will enter judgement against me due to the stipultion agreement.
I don’t have much money to settle these cases. I will have to see if I can borrow some money from friends and family. Maybe I can borrow $4,000. Is $4,000 reasonable settlment amount for both cases? Do you think I should try to settle two cases at the same time or second case only since it’s in a danger of judgement. Any suggestion will be great.
Thank you!
Peter – I am glad I was able to talk with you about some of the variables involved with you reaching your goals.
Couple things:
The stipulation you signed off on with Midland Funding LLC would normally have been filed with the court after this long without payment. You can call Midland Funding and negotiate a settlement on this, and be clear when asking about what will be done with the prior stip since it sounds like it was never filed with the court.
I do not think 4k is enough to settle both. Given the info I have on those 2 accounts, and what I know about your situation, I would target settling with Midland at around 2k, give or take a couple hundred.
FIA settlement targets vary. If there is no judgment, consent, or stipulation (which is a bit odd), I would still be targeting 40% as a best case scenario. I have seen lower settlements, but they are very situational. It can also matter who FIA has the account out with for collections. Also, negotiating a debt when you are making payments already is often going to complicate things. You may not have to contend with that given that your monthly payments of 50 dollars are so low, compared to the total balance.
Because of the history on both the FIA and Midland Funding accounts, I would suggest paying the settlement amounts you negotiate in a single lump sum payment.
Thanks again for your quick response.
One more questions for you. Would it be better if I talk to creditor like Midland Funding LLC or FIA Card services directly? or with their collection law firm, Schlee?
Peter – If it were me, I would first communicate with FIA and Midland Funding, and try to negotiate the debt directly. They may refer you to the attorney, or another designee for collection, but you are prepared for that.
Michael,
I first called Midland Funding LLC. They said I had to talk to the collection law firm regarding my account, so I called there. I was able to settle at $2,000. Thank you very much.
Now they wanted me to fax them my letter with “Written authorization to remove cease and desist” for my account. I’m not quite sure what this is about, but they said they need it so that they can email me the settlement agreement form. Tomorrow I will get a casher’s check or money order and send it to them after I get the agreement.
A question for you is that what should I do before I send the check to them. I know I need to get the settlement agreement, but how do I get their signature on the form, and etc.
Thanks!
Peter – Follow with the fax to them. Your file is flagged a certain way and following through on that request they made is just something Midland and other collection companies do in order to open up clear communications.
You do not generally need a signed settlement agreement in these scenarios. A copy of the agreement to settle on their letter head, and proof that the payment was made pursuant to the agreement, is generally all that you need to protect your interests later on if you need to. If you do run into a stitch on any of that later on, post an update here and I can help you if need be.
Hi Michael,
After settling the Midland debt with $2,000, I called another collection law firm that has my other three accounts:
1. $1000 – CapitalOne : Lien Judgement
2. $2000 – CapitalOne : Lien Judgement
3. $16,000 – USBank : Consent Judgement
As you suggested over the phone, after explaining my situation, I offer them $8,000 to settle all three accounts. Then, they came back with $11,000, which is not bad. However, now all the money I have is $8,000. I told them all I have is $8,000 and can’t afford $11,000. They suggested to put $8,000 and pay monthly payment for the remaining. Of course, I do not like this option because it will not remove all of my judgements right away. Today I will try to see if I can borrow $1,000 more from family. When I call them back tomorrow, what should tell them? Today I really felt that they would not go below than $11,000. It’s possible that they will be stubborn and keep telling me to go with the monthly payment plan. Please advise!
Thank you,
Peter
Peter – You may hit a place where negotiations stall. Sometimes that is because you have unrealistic expectations for what the other side will accept; sometimes the other side is not reasonable given the facts and situation; and sometimes time is your friend.
While you risk them fully skip tracing and profiling a better collectible number to your files, you could call back if the family loan is a success and up your offer, while indicating in the most sincere manner that you have exhausted all resources. If the offer is turned down, revisit this with them in the last week of the month and offer the same amount.
No matter what happens, in the end analysis, the monthly payments for the difference still allows you to accomplish your goals. I prefer lump sum, and so do you, but middle ground is not a bad place to be, especially with judgment debts.
Hi Michael,
As you suggested, I tried to settle all three accounts (total $19,000) with explaining my job situation and this only opportunity with my family loan, and we ended up settling it at $10,000. It took two calls. Considering I had judgments, liens, and bank levies on all accounts, this was an amazing deal.
For $4,200 Midland debt, I settled it at $2,000. For the $8,000 FIA card debt, I decided it not to touch it since the monthly payment is small.
This wasn’t possible without your help. Thank you very very much, Michael!
Congrats working through all of that Peter!
Michael,
Could you please send me some contacts for experienced debt defense attorneys in Maryland?
Thank you!
Peter – What area of Maryland?
I’m in College Park, Maryland. We are in Prince George’s county.
Thank you, Michael.
Peter – I sent an email with contact details to several attorneys. The last 2 are licensed in DC and Maryland so may actually be closest to you. But I would not get hung up too much on distance, as it is often not much of a factor. If it is, the attorney would likely mention that, and if they do, ask for a referral to someone they know nearer you. This type of consumer lawyer is a relatively close knit bunch.
Hi Michael,
I’m live in Ohio. I am being sued for 1,519.88. It’s a credit card debt that I owe and was sold to Cavalry. On Dec. 15, 2013 I received a letter in the mail from the County Municipal Court stating that a complaint has been filed against me with the court on behalf of the following named Plaintiff: Cavalry SPV I LLC, ℅ Levy & Associates LLC and a copy of the complaint attached. I was given 28 days to respond in writing to the attorney for the Plaintiff, who is Yale R. Levy or a Default Judgement would be rendered. Within 3 days of my response to the Plaintiffs attorney, I am required to file a copy of my answer, containing a Certification by me of the date and how I served my answer to the Plaintiff, or his attorney, with the Clerk of Courts. The letter is stamped with the following: If you have a defense to the complaint, you must file your answer by Jan. 8, 2014. As of today I have not responded, mostly out of fear of speaking to the Plaintiffs attorney and it being used against me, but also because I don’t fully understand how to legally proceed. I can pay the debt in full right now, but would that stop any further action. I can’t afford an attorney, but I don’t qualify for legal aid. Any advice would be appreciated. Thank you.
Jacqueline – If you recognize the debt as your own, and are in a position to pay the amount you are being sued for right now, your calling to offer full payment will not result in much being used against you. It should result in you resolving this out of court and avoiding the judgment. You do want something documented from them that they are dismissing the case if you pay.
If you make the call to resolve this, post a follow up comment and update with what took place and lets go from there.
Michael,
I have called the attorney’s office that is suing and spoke to a women who stated she was not an attorney, but that she was able to speak to me regarding my case. I offered $1000.00 today if they would accept that as payment in full and drop the suit. She stated she was only able to authorize a $1300.00 settlement, but she would speak to her manager and have her manager get back with me today. If we do come to an agreement, I will ask for them to send me a letter/email stating that the account is paid in full and they will drop the case. Will that protect me from them trying to obtain any more money from me. Also, I don’t want to give them my bank information, so am I correct in thinking that I need to wire the money to them? Jacqueline
That’s great Jacqueline. Be ready for some form of counter offer, or for them to stick to the 1300.00.
If you get the deal outlined in a written agreement prior to remitting payment, there really is not too much to be concerned with about them trying to get more from you, or using that account to pull more moneys later on. That type of thing was more of a concern years back, but not so much these days when dealing with a legitimate debt collector or collection law firm/attorney office. I do recommend you set up a different account to pay your settlements from in this report. If you have more than this account with Cavalry SPV to contend with, I would encourage you to use a set aside account.
I have a judgement, Capital One credit card, from back in 2007, they attempted to collect in 2009 (Sheriff at the door) and we really had nothing they could take… so they didn’t. Last we’ve heard.
Now I’m at a point with a few extra dollars saved up that I’d like to get that cleared off and no longer have that black mark on the credit report. I have that and a lot of medical bills here or there from the past years… can’t do them all, and we actually rebuilt enough credit to get out of a land contract and refinance, but the lender wants to see this cleared up.
Is there a good strategy for contacting the law firm? I’m wondering if they will be interested in settling this for something less – oddly the original shows at 1600 and that’s what comes up on the credit report and some of the other court documents and paperwork from the judgement/collections show 1800 or 2000.. so they tacked fees on as it progressed.
Thoughts on what I should do? Mention the 1600 and say I’ve got a little extra and was hoping to settle? Go in strong and ask to settle for 800? I don’t want to put them off but I don’t want to destroy what little I’ve accumulated either!!
Bill – In many judgment scenarios you are going to be looking at an inflated balance beyond what might show on the credit report, or prior court filings, due to judgment interest being applied. What judgment interest is referenced in the court record (if any)?
Until you know the balance you are negotiating from, it will be difficult to nail down a realistic target. In most judgement files I have worked on 50% of current balance is an optimistic settlement target to negotiate to, while 80% is not an uncommon worst case depending on the situation.
Calling and making a realistic offer right out of the gate is often the best approach. You can start lower, but realize the more you up your offer by starting too low, and grudgingly going up on your offer several times, can give the other side pause.
If you want some helpful tips and guidance while you are going through the process of doing this on your own, consult with one of the CRN specialists at 800-939-8357.
Well, the judgement cost was 1665.31 … then with interest and other things they’ve managed to tack it up to 2073.47. About 146.59 in interest, but have tucked in “costs” and “Feels’ on the original judgement as well as notice/demand for payment from 09. Since this was 4-5 years ago and they tried a collection at that time and there was nothing to collect and we’ve heard nothing since then do you feel they’ll be more interested in settling? I have a feeling it was written off in their minds.
What I’m wondering now is should I contact Capital One , do they have any relationship to the debt/settlement and would I have better luck with them or should I go directly for the attorney listed on the documents?
My end goal would be to get it to show up as satisfied on the credit report. I’m sure my best course of action is to get whoever I deal with to give me something in writing (i.e. pay X$ and we will consider this satisfied), right?
By the way.. I really think what you are doing here is quite helpful. Very cool to see that you are actively assisting people. May not seem like much to you, but this kind of stuff can feel overwhelming at times.
On a complete side note to make this a longer and more rambling message. I can’t fathom how I even got a credit card at the time they said I did.. I just didn’t apply for them and did not have good credit. I have no # and nothing to reference. Makes me wonder if I was an identity theft victim or my wife somehow did this behind my back… or it was something left over from even longer ago, it just seems odd as I’ve never had one if their cards in my wallet, but our finances were in such shambles at the time it seemed plausible we had something out there. Can the CC companies provide you documentation about what you had charged on an old card like that?
Bill – In general, yes, the longer a judgment goes without any type of collection or payment, the more likely you are to settle favorably. Unfortunately that just is not always the case with Capital One.
You can call Capital One if you like, but unless there is something odd about your account, like the attorney they used to sue you is no longer part of their network and they have not assigned it anywhere, you should expect them to refer you to an attorney in order to settle.
Getting the judgment to show satisfied is going to require the court record being updated. You should place that responsibility on them to update the courts record that the judgment has been resolved and satisfied. The data farmers that scan the court records and send the info to the credit reporting agencies will then pick that up and the CRA’s will get updated. You can also get the record updated with your own motion, and your credit reports updated through your own efforts after that, if you are in a pinch for time to close on a home or something like that.
Thanks much for appreciating the site and the efforts we put in to it in your comment. That feedback means folks are finding all of this useful, which is why we do it.
As far as how to go back and recreate this account, its history and use, this long after a judgment entry, start with any older copies of your credit reports, cross reference information contained in the original lawsuit in the court record. I do think it is possible that the credit card company would have the account information, but in this scenario I cannot see a reason they would have for digging it up unless forced to in litigation or in response to a regulators request.
I had a lawsuit against me back in 2011. I believe the original debt was around $8000, and I’ve been making $50 monthly for the last two years. Because of several missing payments, I got a judgement of $11,000 debt against me. They just blocked my bank account. I’m trying to borrow some money from my friends. I can’t get that much money, but probably close to $7000. I called the collection company, and they said the lowest they can offer is $9000. Can I try to settle below than that? or can it never go down? If I can, what would be the best way to deal with them? Thank you!
Peter – With a judgment in place, debt collectors have a lot less motivation to settle for the best savings. Can you get lower than the 9k they said they would accept? Probably, but maybe not right now. If they just came away with some money from a bank levy, your motivations to resolve the judgment are high, and they know that. If they get nothing for the next 3 to 6 months (or longer), they may be open to negotiating a lower pay off.
Who has the judgment? What type of debt was this originally?
Thank you, Michael,
To answer your questions, this was a Discover credit card debt. Now the collection company called “SCHLEE & STILLMAN, LLC” is handling my case.
They just took about $1,500 from my bank. Now I’m afraid that they are going after my wage.
Michael,
One more question for you! Is it risky to tell them, “If you cannot accept the lump sum payment of $7000, the only option I have to using that money to hire a lawyer to file a bankruptcy.”. Is this a good strategy? I’m just afraid that if I tell them this, they might hurry up and garnish my wages, that’s something I don’t want to see happening.
Thanks,
Peter
Well, if you are at risk of a wage garnishment, and have the resources, it may be better to call them and say something like “I have no shot at paying this off.I barely get by with my bills as it is. I had to borrow money to keep the lights on due to that bank levy. I talked to some family, all of them want to help, but they are limited with what they can do to. You said you would take 9k, and I spent the last several days trying to raise it, but the best I can do is 7k (or some other number if you have it, and think upping it to say 7500 is in line with the situation). If you give me a letter saying this is done for that amount, and file a document with the court after you get payment, I can get the money and have it to you by such and such a date”.
Chapter 7 bankruptcy cost is about 1800.00 (national average), so bringing that into the discussion as relates to them not accepting 7k to settle this is just not all that meaningful. But you certainly can consider that to protect your wages and your bank account if they will not agree to a deal you can afford, and they continue with the aggressive collection path they are on.
Hi Michael,
For the $1,500 that they took through the bank levy, I filed a motion on jointly account with my wife. Now the trial is set in a month.
yesterday I called the collection law firm, and we agreed to settle all Discover debt ($11,000) at $5,000 lump sum payment plus the $1,500 from the bank levy. They only gave to 7 days to send the payment to them. I did receive the settlement agreement letter through email, and it looks pretty general. It says that the settlement agreement is reached, and it will resolve my account with $5,000 money order payment. It does not say anything about the $1,500 bank levy. I called them, and they told that it will be enough and no need to change the agreement letter.
Do you have any concern regarding this agreement? Will the trial for my motion cancel after the creditor report that the case is settled? or should I still attend? Also how should I re-establish my bank account after it’s settled?
Thank you for your help!
I would need to look at the agreement to offer the feedback you need Peter. You can email that to me and we can correspond via email or phone. You should have not problem with your bank once you resolve this and you have proof it is paid.
Hi Michael
I’m in Minnesota. I had a judgment placed against me from midland funding successor to interest to Orchard bank. The judgment is for over 2000 which I only had a credit card with a limit of $500.00. I have been in communication with them but I was exempt due to being on state resources. Now I have received a post judgment deposition requesting an account of my assets for the last three years. I have been unemployed for 2 1/2 years but I just landed a job three months ago. However, I am still receiving state services for food. I am not sure what to do as I do not make but 12.01 an hour and I am single parent of three. I believe since I just got financed for a used car they figured I have adequate resources to pay but I needed transportation to get to and from work and to transport my kids to school. Please advise me on this!
donna – You are probably right about the car financing raising a red flag and making you appear more collectable. Though you are back to work, with your income supporting a family of 4, you would probably still qualify for exemption from garnishment. You still want to participate in the court process and should respond to any depos and court filings.
You may still have to be concerned with a bank account levy. If you do find yourself in a position to settle the judgment with Midland Funding in the future, they are pretty reasonable to deal with when your personal finances are what you described.
Hi Michael. I have a situation that I would appreciate some advice on. I received a default judgement that was entered on 6-22-05 from Discover card who was represented by attorney Burt Harriman. I was properly served but didn’t show up for court. The judgement amount was for $6500. The court documents show that I am to pay attorney fees of near $1000. I don’t know if those are included in the$6500 or not. The original amount I defaulted on was about $4000. I’m sure the total today is much higher with interest, but I have no idea what that amount is today. Also I live in Missouri and the judgement was filed in Missouri. I have never had wages garnished because I’ve always been self employed and still am. Several bank account garnishments happened after the judgement. The last one happened in 2008. In all of the bank account attempts, I think they got $40 or so. There has been no collection activity for over 5 years now. I’m wondering if I should make any attempt to settle this debt or if there is a good chance it will not be renewed. In about a year and a half, the original ten year term will have ended. I hate to call the attorney and re-open a can of worms when everything has been quiet for so long. My questions are:
1) Should I make contact with the attorney for Discover or would it be smarter to bide my time and see if this judgement is not renewed. I don’t know if this makes any difference, but the website for attorney Burt Harriman says he is a personal injury and criminal defense lawyer. I’m wondering if he may have used to do more debt collections but has gone a different direction now and may not pursue me anymore.
2) I have 2 cars that are paid off but are pretty old, one is 17 yrs and one 15 years. They both still hold some value though, $3000 and $8000 respectively. Is it possible that they could go after my vehicles?
3) I bought a non livable fixer upper house for $6000 cash about 2 years ago. It does not show up on my credit report and it is not my current address. When I bought it, the title company didn’t even ask me for ID or my social security number so I don’t think my social security number can be attached to it. Is there a chance that Discover or their attorney could find this piece of property and put a lien on it? If so, how likely is that since it doesn’t show up on my credit report and I don’t live there?
4) I have gotten lax and have a bank account that I sometimes have a little money in. I’m sure that’s probably not a good idea but they have sort of lulled me into a sense of security after not trying to collect for so long. I live in Missouri, but on the border of Kansas. Would it be smart for me to open an account with a bank that only has Kansas locations and none in Missouri? My thinking is that they may have to go through a court process in Kansas to take an account from a Kansas based bank, where my account in Missouri can be taken at any time with no warning. Is this a smart thing to do and I viable strategy to protect my money and account?
5) Can a judgement like this be sold to another debt collector at any time?
6)How will I know if Discover tries to renew the judgement?
7) The judgement no longer shows up on my credit report. If they renew, will it show up for another 7 years, or is it gone for good now?
Thanks so much for any and all help and advice that you can provide.
1. I would check with an experienced debt defense attorney in Missouri, who has been practicing consumer law for at least as long as your judgment has been in place, for some history on Burt Harriman, and whether the firm is still active in debt collection lawsuits. That said, contacting the attorney about settling the judgment could mean being referred to another collector or debt owner, as judgments for debt can be sold similar to how other collection accounts are. And while Discover is not all that active in selling unpaid credit card debts today, they were back when your debt went delinquent.
2. Missouri protects your automobile from a judgment creditor up to 3k in value, with some wild card amounts beyond that. But it would appear that is only for the one car in your name. For a better detailed answer to this you should bring this up with a consumer law attorney in Missouri.
3. Debt collectors use different levels of skip tracing tools to discover assets. If the property can be found in your name in public records, a debt collector could locate that. But not all collectors take their efforts that far.
4. Perhaps, but I am not certain how much of an additional layer of protection you would get by using a branch bank in Kansas. This is another item to discuss with a debt defense attorney in Missouri.
5. Yes. See number 1 above.
6. They will follow local court rules for judgment revival. You can contact the court clerk for details.
7. If the judgment is revived, or if you settle it, generally would not result in it reappearing on your credit reports.
Hi Michael,
I’m in Indiana and just received a summons letter about an old hospital bill. The summons say i have 20 days to respond today is the 18th & it was left on my front door and mail box 4 days ago but the sheriff received it on the 2nd. The hospital bill is from 11-09 & they’re looking to get $15,500 + fees. I’m currently working, have a mortgage and just purchased a new car. I can NOT afford to be wager signed. I have no problem paying my bills somehow this one was forgotten. I would like some help getting this amount reduced so i can pay this off without the judgement. I’m trying to clean my credit up and don’t need this hit. Any referrals will be appreciated. thanks
Send an email reply to the this comment notification you get. Those all come to me. Include the name of a nearby larger city. I will respond with contact info for consumer law attorneys nearest you who have a practice that focuses on debt collection defense.
Also, if the name of the plaintiff is different than the hospital, post a response and provide the name of who issuing you.
I’m desperate for information, please help! I live in California and I have a default judgement against me for $20,000 by an attorney. I was in a horrible situation in 2003. I was an injured worker and unable to work for 2 years, then retrained for a new career and reentered the workforce in 2005. After 5 months on the job, the company I worked for went out of business and once again, I was unemployed. I was in major debt by this time and I refinanced my home to help pay off some of my credit cards. To make a long story shorter, I was too overwhelmed at the time to deal with creditors and unfortunately set myself up for this judgement which was made in 2008. Now, it has grown to over $20,000 and the attorney suddenly levied a bank account jointly owned with my 92 year old sister in law and wiped out $3000. How can they do that when she is not party to the debt? In fact, the money in that account was actually only 1/3 mine.
I also own a rental property as tenants in common with this sister in law and my ex husband. Can the attorney put a lien on that property that I am only 25% owner of, with 2 others on title with me? Should I quit deed my share of the property to SIL or Ex to protect it? I myself have nothing. In 2006 I had to let my ex have our family home because I couldn’t pay for it alone and I live with a friend/partner who supports me now. I have no job, no other bank accounts, debt, or anything else they can take except an 8 year old car that is paid for. I guess that’s next. I’m just hopeful that they won’t be able to attach a lien to the property jointly owned. Can I file bankruptcy while owning 25% of a rental property? Please advise!!!!!
DB – You should contact a consumer law attorney that specializes in debt defense in California as soon as possible to get the bulk of your questions answered. If you would like me to send you an email with contact info to the type of attorney you want, you can reply to the comment notification emails you get from this site, and I will reply with that.
Yes, you can file for bankruptcy while owning property. That may mean filing a chapter 13 instead of chapter 7 though. But here again you should be running your scenario by an experienced attorney, or bankruptcy specialist. You can reach one at 877-278-8117.
Bank accounts with your name and social security number tied to them are all at risk. There are options worth pursuing to get your former sister in laws funds returned to her.
Quit claim of property to avoid judgment creditors is not generally a good idea. That transaction can actually be unwound by the courts.
What was the judgment related to? Who is the judgment creditor?
Hi Michael,
Was hoping you could help me out before I make a phone call to speak to a specialist…
I have an unpaid debt with Asset Acceptance for $6,500 that I regretfully ignored. Although the court judgment has not shown up on my credit report I did receive an earnings withholding/wage garnishment order from a levying officer (L.A. County Sheriff’s Department) early in 2013 (signed by the levying officer in December ’12). The employer listed on the court order however is a company that I never worked for so wages were never garnished. I’ve been working with a company for the past three years and I find it strange they never got in touch with my actual employer. A few weeks ago I received another court order from the LA Sheriff’s Department for a notice of levy (signed by levying officer in August ’13) to Bank of America as the “garnishee.” Once again, I find it strange that the bank I’ve had for the past three years (not Bank of America) was NOT included as the garnishee. I additionally opened another account early in 2013 (leaving me with 2 banks I use that are not B of A). I did have a checking account with Bank of America account over 4 years ago which has been closed– I believe the savings account is still open but with a zero balance.
I called Asset Acceptance to get details on making payments now that I have recently graduated from college and have a competitive salary (35k/year). They directed me to Fulton Friedman & Gullace as they are acting on behalf of Asset Acceptance. Fulton Friendman & Gullace have been on all court documents as the attorney for Asset Acceptance. I contacted FF&G earlier this week to discuss payment options and the gentleman over the phone informed me they cannot enter in a formal agreement now that the wage garnishments have been ordered. All I can do is pay the amount in full (which I cannot). I would like to pay a large sum and work out payment plans per month as to have this cleared out by the end of 2014. The man over the phone said I could make payments to FF&G’s main office in Rochester NY and put my account number as reference so it can be deducted for the balance.
I also noticed on the court order that it said to make checks payable to LA County Sheriffs Dept with the “levying officer file number” included.
I am confused who I need to pay (Asset, LA County Sheriff, or FF&G) and what corresponding verification I will have that it’s actually being deducted. Although it looks like they are not levying banks where I am having my money deposited in, I would like to somehow know that these accounts will be safe once I have start to pay off a large amount of the debt.
I’d like to add that I have never resided in the County of L.A. and I will be starting a new salaried job in mid January at 55k/year. I really want to work on getting this paid off so I can move from the past and continue on with a mature adult decision making future!
Best regards,
Brad
Brad – You mentioned being able to come up with a large down payment. How much would that be? It may be possible to settle this upfront and move forward.
If you do agree to some form of payment arrangement, you would want to get that documented beforehand. The written agreement, as long as payments are made on time, would alleviate much of the concerns regarding levy and garnishment.
Hello, I have a question.
My elderly uncle got a judgment for credit card. He is getting only Social Security payments and small IRA monthly Distributions. The entire amount is less them $1000. If his bank account will get a levy, can any of those money be taken? And for how long the levy is working? Can he continue use his bank account?
Thanks a lot.
Katya – Social security payments are exempt from garnishment resulting from a credit card judgment. And if his bank account only has social security deposits, those would be exempt from a bank levy too. I am not certain about the IRA disbursements, as those can vary. But there are state specific exemptions from bank levy that may apply too.
What state is he in?
Hello,
I Just recently received notice from a advertisement letter from a local attorney discussing bankruptcy and my upcoming lawsuit. As I looked up the case # on Missouri casenet I see that I am being sued by Pech, Hughes, and Mcdonald, PC. The amount owed is $5797.23 and its from Capital One. I do owe the debt and I do have some funds available to possibly do a settlement with them. What is the best way of going about this with the law firm? Should I email them or call and talk personally? What kind of % should I look for in a settlement offer with this firm. Just seeing what kind of tips you could give me in this case. Thanks
Justin – I typically target settlements with Capital One at roughly 50%, but that is without having been sued. Negotiating a settlement with Cap Ones attorney can range between 50% and 100%. The lower range is a more realistic target when you have hardship scenarios like medical concerns, long term unemployment, fixed income etc. The high end of that range is often the result of the debt collectors data and information about you showing you are more collectable (credit report shows you are paying other unsecured debts on time, car payments, mortgage), and have a steady income.
In many instances you can negotiate a more affordable settlement, once sued, by filing an answer with the court and defending the lawsuit in the early stages. I encourage consulting with an experienced debt defense attorney – at a minimum – at this point. Most attorneys of this type offer an initial consult at no cost.
What created your inability to pay and do those conditions persist?
What other debts have gone unpaid?
Are there debts showing current on your credit report?
Do you own a home with equity?
Do you have a steady income?
What amount of money can you pool together in order to offer a lump sum settlement either now, or in the next couple months?
I lost my Job as a manager at a retail store and have since just now started to get back on my feet. I have 70-80k worth of credit card debt, all those debts are showing on my credit report. I do own a home with about 10-20k in equity, I also own another loft that is currently rented out. The loft has negative equity so I make no $ on it, just had a bit of bad luck. I own a couple different businesses that I have a 50% partner in. I do have some cash on hand so bankruptcy is not an option, I have been saving up to try and settle some of these one by one. Its a daunting task I am facing but I’m hoping to settle each of them for a lesser amount I’m hoping. I can have the money quickly. Just fyi I haven’t been served yet. What are my chances of a successful settlement or what would you suggest with knowing this information. Thanks!
Justin – I would suggest you call in and talk to a specialist before deciding your next move. You have a lot going on. Call is free, and you may later decide you want help navigating all of this – 800-939-8357.
Settling with Capital One is going to be the first priority. You can do that now, prior to them affecting service, or afterward. I would realistically target 60% as the low end, but be prepared for a higher settlement.
What you need to know is that this account, once settled, may create a situation where other debt collectors take notice of the fact that Capital One updated any credit reporting to show a zero balance now owed to them. This can make you appear more collectable. That is not a bad thing, but it is something to plan for/around in order to optimize your available dollars to settle other accounts that are the next higher risk of suing you.
How long has it been since these debts were last paid?
All of this debt is approx. 1 year old past due, about a year ago I was forced to pay only the essential bills. I will be calling in to talk about my situation as well. I did go ahead and contact the lawyer, I offered $2200 on a $5700 debt. They are asking for a personal financial statement in order to send this to capital one to see if they would approve. Is this normal or should I go see a lawyer before I give them this info? Also, is there anything else I should request with the settlement offer?( like to take it off my credit report, I want to build my credit back and want to know what would be the best thing for them to do to my credit report) I’m also going to see a local free no obligation attorney to see what he suggests as well. Any insights you have would be greatly appreciated. Thanks!
Justin – A collector asking for documentation in order to support the settlement offer you are making, when lower than what they can act on without their clients approval, can often lead to the request. I do not think you have a shot at the reduction with this creditor and the fact that a suit is filed, but not served yet. But there are some interesting things happening with creditors and debt collectors being subject to higher regulatory scrutiny, and pending rule changes. If your offer were to get approved, it would surprise me, but I did recently see an uncharacteristically low Capital One settlement (not with an attorney collector).
You will not be able to bargain to get this removed from your credit report.
1. The attorney does no credit reporting and cannot impact how Capital One reports in any way.
2. Capital One is flat out not going to remove it. But you will need to keep an eye on them for accurate reporting that your account show zero due after it is settled. See this article for more on why: https://consumerrecoverynetwork.com/why-does-capital-one-hate-america/
Best thing for your credit report is to get all of these collection accounts resolved and update to show no balance is owed, take smart and simple steps to rebuild, and let a good 12 to 14 months of time elapse after settlements are completed.
I have sent in the personal financial statement they have requested. If and when I can get these accounts settled what would you recommend in doing to rebuild my credit? What is the quickest most positive ways to rebuild my credit back to where it was. I really want to get this financial burden off my back and get back to the road to recovery, hopefully I hear something positive back from them soon. Thanks again for all your help!
Justin – Until you get the bulk of the collection accounts resolved, there is not a great deal to be done to start rebuilding your credit. Just be sure any accounts that you are current on (home, car, etc), are paid on time while you negotiate and settle others. With an eye on a more rapid credit report and credit score recovery, you will want to avoid any court judgment entries if possible.
Negotiating your settlements can be done rapidly on accounts that have not been paid in a year. It is the money needed to pay the deals you get that is often what takes the bulk of time. The quicker you can settle with original creditors though, the more you can avoid duplicate key derogatory collection accounts from freshly appearing on your reports that result from your creditors selling off unpaid debts.
Just an update, We came to agree the $5700 cc debt for $3,000 with payment due at end of the year. What documents should I request from them before paying so that I make sure I am covered and wont be sued again for the same debt? I think I’m going to pay with a money order or cashiers check that way they don’t have any of my personal bank info. What do you think?
Justin – Thanks for posting the update. Read through this outline about settlement documentation.
The risks of being sued again for a debt resolved in the past, and even the extra caution and need for using a cashier check to pay, have diminished over the years. More so when resolving accounts with legitimate collectors working with original creditors. I still do encourage any ACH or check by phone payments be processed through a separate bank account you set up for the express purpose of paying settlements you negotiate. More on that here.
There is far too much scrutiny of the collection industry at every level these days, especially now that you have the ability to resolve complaints and disputes through the CFPB consumer portal. I completely understand and appreciate your wanting to proceed with extra caution. Just know that, these days anyway, I see more potential hiccups using cashier checks and money orders, than electronic payments (as long as you have a written agreement).
I have a capitol one card that I am in default of around 1800$. I have received a letter and write up of a court filing and that I would be receiving a summons and compliant from the court in the near future. In the letter they are asking for $2589.70 plus fees.
This morning a woman knocked on my door and upon answering, I saw the papers in her hand. I refused to answer her questions and asked her for ID. The only ID she could produce to me was a business card saying process server. I declined any more responses and closed the door, all being polite.
I then called the law office of Weltman, Weinberg & Reis Co., L.P.A. of Troy Michigan, the ones who sent the letter, and told them I am in dispute with the charges of Capitol One.
I am unemployed, and when my UI ran out I called Capitol One to start my protection Services that I had on the card and been paying for, for the last ten years I may add. Capitol One then said that it no longer applied to me and no such service was available for me, yet right there on the monthly bill is the charge they were charging me for this service. I was no longer able to make monthly payments after that (Jan 2013) though I did notice on the monthly bill that they were still charging me this fee for protective service, which covers loss of income and makes your monthly payments for up to a year.
The law office then gave me the phone number for capitol one to call them. So I did and the lady said she would get all the monthly statements for at least the last two years to me and that the dispute department would be calling me back. She also said it would take two weeks to get the statements to me. So far no call back from Capitol One.
So I called back the law firm and updated them as to what took place during the call with Capitol One.
So, now what. I’m financially strapped. Not sure what to expect. Should I accept papers if brought again? How should I negotiate? Can I argue about the services they did not provide? Should I take it before a judge? Can’t afford a layer right now. Should I agree to $1000., $50 a month, at 0% interest and wait to see it in writing?
DS – If it were me in your shoes, I would wait to hear back from the Capital One dispute department. If they do not get back to you in the allotted time, call back to them. Post an update here with what you learn.
In the mean time, I would encourage you to put together a comprehensive chronology of what happened and when (refusal to honor payment protection, still charging for it and for how long, lawsuit, speaking with the Weltman firm, who you spoke to/time of day/number called – at Capital One). All of this would be in preparation for the next steps I would take depending on what Capital One does next.
First off, thank you for your help.
I recieved a letter today from capital one saying they look at the dispute and “found that your capital one balance is correct”. So I called them, after being shuffled around from call to call I got to talk straight to the dispute department. I never got an answer as to what that balance is. She did say that my protection service was denied because I did not write a letter to them stating I was unemployed within a twelve month period from being unemployed. Now during this time I was up to date with my payments. She also said that this protection was canceled in Dec 12 after I called to get it activated, yet in my statement from Jan 13 they are still charing me for it. I also found out during this call that the protection service is not provided service by capital one but from an outside company. Now I was asked to get this protection when I got the card back in 03, I paid capital one for this service for 10 years. Then when I really needed it they said sorry. In my eyes this is fraud. Should I let a judge look at this or am I just screwed. Again I am still not working, but I am in the army reserve. I get about 500 per month when we drill and there is no Gov shut down.
DS – Actually no, I would not wait to talk to a judge about it. I would encourage you to file a complaint about your entire experience with the credit protection including all relevant dates, conversations, collections efforts etc., with the CFPB. You can file that here: https://www.consumerfinance.gov/complaint/.
The CFPB has taken some banks to task for related products. Please post an update as you make progress.
I filed with the CGPB the next day just as you suggested. They submitted this complaint to Capitol One for thier response, they had 15 days to make one. This morning CFPB issued me this note via e-mail; The company has provided a partial response to your complaint number xxxxxx-000xxx describing the steps taken so far to address your issue. They stated they are still working on your issue, and you should hear from them again within 60 days.
Is this now just a waiting game or is there any more I should prepare for?
You should also be preparing to respond to the lawsuit. Look up the court record (if available on line), and see what is showing as having been/not been served.
Thank You Micheal!!!
I just got back the info from GCPB with the response from Capitol One. They are refunding all monies paid for the credit protection services for the last ten years. They are removing all bad credit reports for this account. They have stop all actions to sue me. For me this is great news, and I would have never been able to get this far on my own with out your help and support!!!
They also said that my balance will show up on my next quarterly billing statement. This should be around $1500. Should I wait for this statement or call them and make payment arraingments?
Again, a great BIG THANK YOU!!!
DS – I am very happy to hear how this worked out for you!
If it were me, I would get a head start by calling Capital One, and not wait for anything from them in the mail.
i forgot to mention the hsbc discover was from 2009 that is what it said on the papers and like i said i never had a hsbc discover card at all only capital one witch i payed off last year
I payed off my capital one a year ago and a police came to my door saying a i was being sued by hsbc discover witch i never had and i have to reply within 30 days and i called on a Saturday the kramer linkie & taylor llc witch was suing me cause of my unpaid dept and when i called on Saturday the lawyer answered and said that i had to pay 1796.16 by Wednesday by 2pm and i told him i didn’t have that kind of money and he said i had to go to my family members or to my bank to get it and if i didn’t have the money by then i will have to go to court and i said sir i don’t have that kind of money and on the papers i was given did not even have a court date and it says i have 30 days to reply and it was filed on Oct 30th 2013 and i just received it Dec 7th 2013 i thought that was subspecies and when i called the number it says capital one and i payed off capital one last year and when i called to talk to the supervisor there i told them i payed off capital one last year he looked up the account number told me he had the account in front of him and i said how much does it say the man got quit and said that he could not see the account in front of him after he just told me he had it in front of him and just to let you know i have been getting scam calls on my phone so i had to put a block on my phone to keep the scam people from calling me i just want your advice on what to do and how to handle this i have went to a police officer who is now a detective and he said the papers i was given looked really fishy so i need your help on what i should do if you could email me asap that would be grand i am from ga
PH – You should take this to a consumer law attorney with FDCPA experience and discuss your options. If you send me an email (same address you get this comment notice from), with the name of a nearby larger city, I can email you contact details to an attorney closest to you.
I have had a lady calling my house and my uncle-in-law (who is my neighbor) for about four days now. She said I need to contact the firm for a case filed against me that is moving forward. She said they need to take my statement. She also said disregard this message if I have received the paperwork. Which I haven’t. I am assuming this is a debt from Texas back in 2006 or 2007. I am currently unemployed. What do I do? I definitely do not want a judgment filed against me.
Rebecca – Try to get as much information from them as possible on the next call and post a comment update with what you learn. Texas SOL to sue for collection would have expired in 2010 or 2011. Are you still in Texas?
Also, legitimate debt collectors do not talk the way you described, but scam collectors do.
Hi Michael,
First of all, thank you so much for your quick response. Secondly, They finely called me back today and it was a different person, and ‘Private caller’ showed up on my caller I.D. She said “I am with Paralegal Documented Services @ 626-656-3360 and due to your negligence and failure to respond to written and verbal inquires left on your voice mailbox from my colleagues the firm has decided to move forward, and you now have a pending request to appear against you. You need to contact the firm in order to avoid further constitutional consequences against you. The gravity of the case has increased so your case number is different…” I called back and talked to another guy. I asked the name of the company, he said it was TCA or TC Associates. He confirmed my street address and birthdate and said that if I didn’t settle the debt then a lawsuit would be filed against me and a summons would be served to my address. He said I have to Thursday, Dec. 19 to let him know if I would like to settle for 50% with no interest. He said I could also qualify for a hardship plan if I worked less than 30 hours a week or was unemployed.
I was correct about the debt, it is a loan from CitiFinancial opened in 2005. It went into collection in Dec. 2007 in Texas. Currently, I live in South Carolina.
Also, I googled the number they called from and it said that most numbers with a 626 area code are scams?!?!
Thanks again in advance,
Rebecca
These are the type of comments I found online when I googled the phone number…
“Received a call from Michael Bronson of Legal Support Services asking that I call Michael Stafford the case manager at TCA due to lack of appearance and or legal proceedings would be initiated. However in order to be charged with lack of appearance a person has to be served first and legal proceedings started. Very pushy, and no information of relevance was shared, the way The so called Michael Bronson of legal support services conducted himself i knew something was not right.”
“Had the same guy call me looking for my sister and said he was Michael Evan and left numbers for my sister to call Michael Stafford. He said he was a private investigator and insinuated that my sisters wages were going to be garnished. It is Trans Continental Affiliates (TCA), a California debt-collection agency who currently has charges against them by the Federal Trade Commission for using deceptive practices when attempting to collect debts which is in violation of the Fair Debt Collection Practices Act.”
Caller: TCA
Call Type: Debt Collector
“they called my work telling the person that answered that i had 24 hours to respond or i would be served. and when i called them back, they would not give me any information and wanted my birthdate and social security number and when i refused, they hung up on me. they only threatened court action but would give me no more information unless i gave them information. i asked the name of the company and they said it was t c and associates. they said they were a litigation company.”
“got basically the same message left, caller id says PRIVATE . Have no idea of who or what they want. Haven’t been or received anything in writing to support this.”
and so on…
Rebecca – Thanks for all of the follow up details you posted. You are being harassed by what appears to be an illegal debt collection scam. I would encourage you to gather up every detail you have and file a complaint with both your attorney general and the CFPB. You can file the CFPB debt collection complaint here.
Michael,
I need to find a consult with Consumer Attorney, Can you please send me some contacts via email?
Thanks
Forgot to include, I am in Dallas, TX
Thanks
Shawn – I sent you an email with contact information for several experienced consumer law attorneys in the Dallas area.
I had a credit card go into default about 6 1/2 years ago. From my understanding this goes off my record after 7 to 7 1/2 years but the crazy thing is that the same credit card company issued me a new card about 4 years after the other one had went into default. I’ve kept it in good standing and still have it. My question is, does this affect the 7 1/2 years that it takes for the defaulted card to come off of my record? Surely there time to legally collect on the defaulted card doesn’t start over once I get another card from them does it?
David – The new credit card you have from that same bank will not have an impact on how, or how long, the older charged off credit card appears on your credit report.
As far as how long a charged off credit card debt can be collected through the courts, it depends on state law. What state are you in?
I’m in Missouri, and thank you for your helpful information.
David – If your last payment on the charged off credit card was more than 5 years ago, and no legal action was filed in that time, any legal collection action filed from this point forward could be defended as being time barred.
Be sure that no collection agency is reporting that charged off debt as a separate entry using a different delinquency date. That can and does happen, and it results in a negative item staying on your credit report longer than it should. Negative entries related to this account (other than a court judgment) should fall off at the same time as the original creditors negative reporting.
I am also curious if the judgement was settled, if they would send me a 1099-c. I can easily proof insolvency, but it would be preferable to not involve a 1099-c, since I am on SSI and while they supposedly don’t count it as income, for their purposes of calculation, I’d rather not rock the boat.
JJ – It would be unusual to settle a judgment debt for that low, but not unheard of. Because your income is not at risk of levy or garnishment, you may want to save up closer to 20% of the balance before starting down the negotiation path. And I would consider not referencing the fact that you have money saved. You could reference that “you can possibly manage to pool together xxxx dollars if this would resolve the debt, but that is about all there is”. It is often a good idea to lay your cards on the table about fixed income, the source cannot be touched, and you are not returning to work, etc.
There is nothing you can do about whether Barclay reports the amount they forgave as income, and should expect that they will. The form 982 submitted with your tax forms is fairly simple given your circumstances.
Michael, thank you for the advice.
So a minimum of 20% would be smart. Would 30% increase the chances of success greatly?
I’m wanting to make a solid offer the lowest amount that has a good chance of success. Not low enough that they don’t reply to negotiate. And not higher than what I’m able to gather. The higher the %, the harder to gather the funds, and the longer it would take.
I’m assuming it’s best to start with a strong offer, rather than start at the minimum and be followed by slowly increasing offers?
JJ – It is far better in my experience to be prepared with an offer that has higher odds of being approved. That experience suggests judgments settle for between 50 and 100 percent of the balance. But hardship situations, such as fixed income from social security and disability, and where other collection means like garnishment and property liens, are off the table – have led to better than average settlements.
I want to also suggest you speak with the collection firm, rather than write to them. They already have a judgment, and they have already tried bank account levies. So while judgment creditors feel they have all the leverage when collecting, in this case they do not.
Offering 30% to settle the judgment in this situation is realistic. But play your hand with patience. They may turn down the offer, and may counter with something far higher, but that should be expected. You can re-approach them next month, or later than that. If you can be patient with resolving this, at least with the info you have provided, you will increase your ability to settle for less than what I mentioned is normal.
I am on SSI disability, and Barclays won a default judgement on me for $5100 in 2012.
I have no income or assets other than my garnish-proof SSI payments. No property or vehicle of any type.
They have already paid 300 to garnish 2 bank accounts which were already closed – their later interrogatories on the account will reveal that I had only a few hundred dollars in them when they were open.
I am thinking of writing to try to settle the judgement, and am wondering what to say and how little an offer they might accept (12%?) because that is all I have. I can be up front about being on SSI, having no income or funds other than SSI, and having no property. And that my offer is for all the money that I have saved. That way they aren’t left wondering if they might be better off hoping to find some hidden assets rather than settling.
Hello,
I have a judgement from LVNV Funding, who is represented by Rosen and Loeb Attorneys At Law (Rosen and Loeb), that was entered into again me in 2008, by default. In the first year after the default judegement, I was not working full-time, had jsut graduated from college and was not in a good place financially, so I was only able to pay up to $100 a month on a $4000+ judgement. Rosen and Loeb refused that payment and said that it was not enough money. They were terribly rude to me, each time I tried talking with them, so eventually, I stopped. Moving forward to 2012, I was in a much better place financially, had done some research on how to resolve the judgement and requested Rosen and Loeb to send me my account information, i.e proof that they’re able to collect debt on behalf of the original creditor, that they’re able to collect in CA, account history, balance, etc. Their reply to my request was just a copy of the judgement. In 2013, I called to ask for this same information, and expressed wanting to resolve judegement (now $8000+), but they refuse to give me any of the requested information, but now has sent me an offer letter to settlet debt. I need help with:
1. understanding my rights
2. what actions would be best to take
3. how i can be sure that this firm is legally collecting on the behalf of the original creditor
4. if i settle, how can i be sure the creditor will not try to collect again, will update the judgement as paid and will report to the credit reporting agencies.
Thank you in advance for any advice you might be able to offer.
Jennifer – Once sued, and a judgment entered, asking for debt validation is not going to serve much purpose.
LVNV Funding is not the original creditor, they are a debt buyer. They would have bought the legal right to your debt from your original creditor. Who was the original creditor?
Your next action depends on your goals. If you want to take them up on the offer to settle the judgment debt with them, that is a good option. It stands to reason that Rosen and Loeb are who you would need to resolve the debt with, as they are who sued you on behalf of LVNV. But you can always call LVNV to verify that Rosen and Loeb are still involved with your file.
If you do settle, that offer letter and your proof of payment will usually be enough to clear up any later issue if any further collection efforts mistakenly occur. Post an update if that happens and I can offer more feedback about how to resolve something like that quickly. Rosen and Loeb should update the court record to show the judgment they got has now been satisfied. That process can take several weeks. Is the satisfaction of judgment, or any wording to the effect of them updating the court, referenced in the offer letter? If not, call them and talk to them about that aspect.
I tried to buy a house and the people doing my loan told me i have a judgement lien against me from capital one in 2009. I filed bankruptcy in 2009 after i was dumb in credit cards and i had to start clean. My loan people told me i need to get this taken care of before i can close on my new house. I called the people who bought out the capital one loan and they said they gave it back to capital one. I called capital one and they told me the only way to get a “judgment satisfied” letter is to pay off the balance which apparently is now double what it was back in 2009. Is this the truth or what can i get to get this taken care of quickly i cant afford 4000.00.
David – Can you confirm whether the Capital One debt was included in your bankruptcy? I have some actionable feedback to offer, but the direction of the my response will vary based on your answer.
Yes it was very much apart of it
Thanks. Couple things:
Continuing to collect on a debt included in your bankruptcy is likely a violation of consumer protection laws. Talk to your original bankruptcy attorney about this, or better yet, send me an email with the name of a large city near you, and I will email back contact info for an attorney whose practice focuses on this area of consumer law (not many lawyers, and few bankruptcy lawyers, focus in this area).
File a debt collection complaint with the CFPB naming Capital One and the collection attorney who sued you here. Capital One has someone assigned to the CFPB complaint portal. They may decide to take this more seriously at this point. Do not know about the collection attorney, but I doubt it.
You may want to speak with an experienced debt defense attorney first, before filing the complaint, but I would definitely do both.
Hi, I have a judgement from capital one from 2009. The credit limit was 300. They are now asking $1040.19. I received a garnishment letter from a NY marshal. I have never received a summons to go to court. What should I do?
Tanisha – Are you within NY city?
I am looking for any info how should I proceed.
About a month ago I lost my job. And week later served with possible judgment.
I replied to courts with within time. (Plead guilty and asked for summary.)
During this time I’ve tried to settle with debt collector. ( They purchased another 4k loan that was out on me.)
I’m scared to contact them again for I might hurt my case if it goes to court.
Who was the original credit card debt owed to?
15k principle & 15k interest – Bank of America
When did you last make a payment on the account?
5 years ago
Who is it that is suing (the name of the plaintiff)?
Cavalry SPV, LLC (Gurstel Chargo P.A.)
What is the name of the collection attorney or firm suing you?
Gurstel Chargo PA
What state do you live in?
AZ
Currently waiting for court date.
Tony – Given all that you have going on, have you looked into your options with bankruptcy? If a chapter 7 BK is a good fit, it would be the least costly solution to wipe most, if not all the debt away. Are there reasons you are looking to keep from filing?
If you have not talked with someone about the bankruptcy option, the number to the right of the screen, 877-278-8117 will connect you with someone live to talk about your options.
If you are bent on avoiding bankruptcy, what financial resources do you have now, or can you obtain, in order to either settle with Cavalry, or make payment arrangements?
I was hoping to avoid bankruptcy. I can obtain 4/5k to settle with Cavalry.
Tony – I do not like your chances for negotiating a settlement for that amount. But let me be sure I understood your initial comment correctly.
You are being sued Gurstel Chargo who represents Cavalry SPV for roughly 30 grand. You filed your response with the court in time to avoid default judgment. In your response you admitted to and/or agreed that you owe this debt. Have I got this correct?
If I am on point, here are some issues:
You admitted to the court you owe the debt.
Gurstel may understand you have a limited ability to pay right now due to being unemployed, but they reasonably can assume you will not remain so, and may like their chances they will get you to pay more once a judgment is entered with the court.
Negotiating a settlement when sued, or even after a judgment is granted, is fairly common, but typically not this low.
Assume you could pull together 10k in order to settle. Where does that money come from? Would you have to pay it back? Now compare the national average cost of bankruptcy at 1800 to the 10k in this example… Bankruptcy is more affordable.
Thoughts?
What does it mean to let a court case ‘run it’s course?’
Synopsis: Roommate got a credit card and let it default because of unemployment due to health issues. She works ‘under the table, but it’s not much.
She got a summons today, and when she called the attorneys’ office, she told them she could pay $20 a month. The guy was sympathetic, and said while she could send the $20 she can afford, it couldn’t be considered an ‘actual payment agreement.’ He then said he couldn’t give ACTUAL legal advice, but he suggested letting the case ‘run it’s course.’
What exactly does this mean? What situation is she actually looking at here?
Thanks for any advice.
Becky – I can only guess at what the rep at the collection firm was referring to. Once sued for a debt, the situation yields to a formal process. If your roommate does nothing (does not set up an agreement to pay that is agreed to and documented, does not file an answer to the lawsuit with denials/defenses), the attorney will end up with a default judgment. That is what I assume was meant by running it’s course. It is unfortunately the outcome on roughly 90% of credit card lawsuits filed.
What is the total balance owed?
Who is the original creditor? Is that who is named as the plaintiff? If not, who is the named plaintiff?
Who is the collection law firm?
When was the last payment made on this account?
What state are you in?
I can offer some additional feedback if you post answers to those questions in a comment reply.
Hi
I just received a judgment at my home today. It’s for a credit card I didn’t pay in Texas. The judgment is for 6800. I called the collections office and they will negoiate 2300 but I can’t really get that much. I could really get 2000. Do you think they will take that. The collect has already sent over a contract for the 2300.
Do you really think they will throw away the 2k?
Bret – It’s possible to renegotiate a deal to get your payoff down another 300. You will have to call and get them to agree, and send another settlement agreement to you.
I have seen settlement deals get unwound when there is already an agreement in writing, but not yet paid, where there is a need to negotiate for a lower pay off. But without knowing a good deal more of the particulars in your situation, I cannot say how likely that would be.
Michael
In 2004 while my estranged husband was awaiting trial for 2.5 million bank fraud he took my Citibank card, changed the address to a PO box and rang up 8,440 dollars. When he went to jail in May of 2005 and I found out about the PO box I contacted Citibank about what I thought was fraud. I answered all their forms. Debt was sold to Midland Corp. In April 2011 their lawyers Messerli and Kramer sued and I responded on time with my defenses. They replied and I took it to a bankruptcy lawyer and we sent back our responses. 3 weeks ago my Lawyer called and said the gig was up. I told him I would try and settle. I offered 3,000 and they said no and would only settle for 75% of original 12,145.00. I now have a court date for Dec 11, 2013. When my lawyer sent their response to me it was dated Feb 13, 2013 but he didn’t call me until Sept 2013. I feel he dropped the ball and I don’t know where I stand. I have a job and 12,000 in my savings account. Should I show up in court and agree to pay the 75% or will I have to pay total….can i call and pay the 75% and stop the court….help I feel abandoned by my lawyer . I’m willing to pay the 75% to make this all go away.
Mary – You have a very interesting situation here (at least to someone like me viewing this from the outside and not having to live through it). I have a sense of next steps you could take, but I want to be sure I understand the situation, and need you to fill in some gaps.
When you noticed Citibank about the fraudulent charges, and filled out forms etc., did you also file a police report, or send your fraud notice in the form of an affidavit or notorized correspondence? If so, what if any response did you receive from Citibank? Was there any balance on the card other than the 8440.00? Was there continued use of the card after the fraudulent charges were brought to the banks attention?
When was the last payment made on this account?
What state do you live in?
The original creditor is BB&T and the attorney is working for them. It was a line of credit if that is different somehow. The law firm is Jones, Morrison, & Womack in GA.
THank you SO much!!
Darcy – Given the debt is still owned by BB&T, and that you have not been sued yet, I would encourage you to look at your household budget and what payments can be afforded each month. You would then contact the attorney collecting for BB&T about whether payments can be agreed to. You would want to get an agreement that the amount would be accepted. Otherwise, you could make payments and still be sued if the amount is not sufficient to stop that from occurring.
The line of credit is not necessarily different, but can be. Was the line of credit associated with his business, or was it personal debt?
We (my fiance and I) live in GA. He got a letter today from a collection attorney for a debt owed for $25k. Will they set up payment arrangements. I know we should have dealt with this before it got so out of hand, but you get so overwhelmed and he was out of work for almost 5 months. The letter just say pay in full in a month or risk lawsuit. We aren’t denying the debt, but can’t pay that in a month. And he is self employed so what happens if there is a judgement?
There are some creative ways to approach your situation. Payments are possible. I can offer more thorough feedback if I knew who the original creditor is on the account, and who the attorney is working for (that same creditor, or a debt purchaser). Also, what is the name of the law firm collecting on this debt?
I am being sued by Midland Funding for a Target credit card. The attorney is from the Stillman law office in Farmington Hills. Is the consent judgment an actual judgment or does it only become an actual judgment if I default on payment terms? I ask because I want to buy a house and know that a new judgment will cause my credit score to take a huge hit. If the consent judgment is an actual judgment that will appear on my credit report, is there a way to have it removed once it has been satisfied besides waiting seven years for it to fall off?
Cam – You will want to run the consent documents by an experienced collection defense attorney in your state in order to get a solid answer. I see this type of situation go both ways.
As far as getting the judgment off of your credit report after the fact – No, not really. You can get the judgment updated to show it has been satisfied, but ifit is in the court record, which is public, it will nearly always remain for the full 7 years. You are still in some control of the situation. Ideally, you would want to settle this without the monthly payments to avoid the risk to your credit report.
Are there any creative ways you can raise the funds to make an offer to settle?
I have a default judgement in illinois small Claims court against em, for “1995.00 plus costs” what does plus costs mean? on my credit report for midland llc it says 3229.00 for the amount(before court case was filed), the $1995 is the original amount (credit card account a couple years ago) I’m fine with paying, I did owe it even if they are a JDB I just am not sure how mauch they can ask for
Mike – Look over the judgment docs from the court. Costs are typically those associated with filing fees and legal representation. See if those costs are clearly outlined in the final judgment, or referenced in the original lawsuit. There is often judgment interest that is added. Most states cap that at around 10%.
thanks so much, the court costs are listed, like 100$ or so all together, I just wasn’t sure if they could say costs(it says “plus costs” not “plus court costs”) meant like all the fees added on over the years, but the way it looked to me was the $1995 awarded by the judge and the COURT costs, thanks so much, I figure they’ll try to talk me into paying all sorts of “costs”
I have some questions and concerns about a medical debt that I likely owe some part of and the debt collector, whom I do not trust at all, based on some phone conversations with 3 of their representatives. The debt is $800 for a Christian counselor I saw during a time when the company I worked for began to discriminate against me after I revealed I had MS when I needed an accommodation for my work. My health insurance had been covering it but then I had to switch insurance companies when I started a new job and covered much less. By the time I found out they weren’t paying at all, the bill was up to $800 which means that I hadn’t been billed in over 2 months. I immediately stopped going. A few weeks later I was laid off from my new job. I attempted to discuss the bill with the billing person (who only worked a couple days a week) and all she wanted was a payment plan which I could not do without an income and I wasn’t sure how much the ins should have paid. Eventually it went to collection and I was having an MS relapse and could not continue to deal with the ins company ( which remains unresolved today) The collection company is the Jennings Law firm. I have told them that if there is a part of the bill that I really owe I would be able to pay upon reemployment ( which has not happened in over a year now). Then one of their reps called and lied to me that he saw that there was a filing in my county ( he named it) for a judgment against me and they could garnish my wages and/or place a lien against my home. No such filing ever existed. He was argumentative and rude, then hung up. I called back to see what was going on and complained about how rude the person was, he told me that the person said things he shouldn’t have and they were counseling him. He said he was a senior person and then he offered a settlement of $500 and I said I would consider it if I could get it in writing that the debt would be paid. I never received anything in writing. A couple of days later another representative name James called and I referenced the settlement, he knew nothing of it and could not find any notes on it. He also said in this conversation that they had already been paid by the counseling organization and referenced they owned the debt. A couple of months later, one of the persons I talked to before calls me and wants the entire amount. I reference the settlement offer, he tells me that he has to ask the counseling organization if they will agree. He calls back the next week saying the counseling company wants closer to $750 and won’t agree to $500. I thought that James told me they “owned” debt. What’s really going on here. I feel that if I had paid them $500, I would still owe money. The counseling company is a Christian Organization and do not believe they would respond that way. I don’t believe the Law firm at this point as their information is conflicting. I have no unemployment any longer and no longer have access to even $500 I initially agreed to consider as settlement. The Law firm is now saying their client wants to move forward with legal proceedings. I don’t believe them. I think the law firm does not their client( who I was told already paid them for the debt). What can I do at this point. I believe they have lied and misrepresented the status of this account. I have dates, times, and names of my contact with them.
Chris – Have you called the Counseling Agency to inquire about the status of the bill originally owed to them? If not, I would start there. If so, what were you told?
Thank you for responding so quickly. I have contacted the counseling office today and am awaiting their response. The response from the Jennings law firm was in a letter on Friday stating “their client wants to move forward” with legal proceedings and said they would wait 5-7 days to hear from me. I may not hear from the counseling office for a few days, should I respond to the law office and if so what should I say?
Chris – Can you type in another comment with the exact verbiage used in that letter from the law firm. Not the whole letter – just the text leading to and after the quoted section. Collection attorneys do not typically imply they will be proceeding with litigation in order to collect unless that is indeed what they intent to do.
Because you are not clear about the nature of the debt, who they work for (the owner of the debt), and there has been conflicting information, it would be a good idea to send a letter requesting validation of debt using certified mail return receipt.
Is this the first letter you received from the collection attorney?
I received a Warrant in Debt today via the mail. I’m sure it was a courtesy copy, and that I’ll be served by the sheriff or a private process server at some point in the very near future. I’m pretty mortified about this. The truth is I do owe the debt. It is for a medical bill and I was not able to keep up with the payment plan I arranged several months ago. They did not waste any time getting it to a law firm. I want to pay off the debt in full without having a judgment entered against me. Is this possible? Or do I need to go to court and plead guilty and have this judgment on my record forever? I know this is public record and the last thing I want is for people to be able to search my name and have this come up. I’m very humiliated and horribly upset. I want to take care of this as soon as possible without shooting myself in the foot. I’ve already sent the attorney who signed the warrant an email asking him if it was possible to make arrangements to pay the debt. What next? I would really like to avoid (1) having to go to court, and (2) having a judgment entered against me. However, I will not trust the collection attorney without getting something in writing, and I don’t want to sign some consent to judgment. I just want to pay and be done with it. Is that possible? Thank you for any information. My state is Virginia.
Christine – The best way to avoid all of what you are concerned about is to pay it off. You could also look to negotiate a smaller payoff amount and still avoid court/judgment. But attorneys feel they have the upper hand when they sue, and they are often right.
How much is the bill?
How much can you come up with to resolve this and put it behind you?
Michael, thank you so much for the quick response. This particular bill is somewhat smallish, but we are riddled with many medical bills due to unexpected surgeries/illness and my son’s ongoing medical care (he has cerebral palsy). The bill in question is $346.xx, but they are asking for 18% interest from 9/4/13, plus court costs of $53.00 and attorneys’ fees of $97.00. I’m estimating it will be somewhere around the $550-600 mark. Generally speaking, not really a huge amount of money. It’s not ideal, but we can come up with the cash. We are feeling very overwhelmed with all of the medical bills, and have not been very good about making payments. This has inspired me to really take the bull by the horns and get on payment plans and take care of all of this. I feel we will probably be paying medical bills for the rest of our lives, but that is better than getting sued. Nonetheless, I really want to avoid having to sign off on a consent to judgment. I’m going to offer to pay cash up to $600. Will the attorney be able to withdraw the Warrant in Debt and get it removed from the court’s docket? I really don’t want to have to make a court appearance and have a judgment entered against me with a guilty plea. This is making me very anxious. Any information you can provide is very much appreciated.
Christine – Court costs and attorneys fees are common, and the amounts you listed are reasonable. I would question the interest rate, but you seem to want to get this over with and put it behind you. You can pay this in full and get them to dismiss the court action. Just be very clear about that when you speak with them, and make certain you ask questions and completely understand how they are going to handle that on their end. If you run into a hitch post a comment update and lets go from there.
Dear Michael:
I hope you can help me, My boyfriend is in the process of selling our home and my name was taken off the deed in May 2008 because he did a reverse mortgage..I just found out yesterday that back in 2004 I had a judgement issued against me, then one in 2006 and one in 2008 that was brought against me by junk debt buyers not the origional credit card companies, back in 2002 I lost my income, lost my home , my car and was homeless, I couldn’t pay for anything I had no money so that is the reason I couldn’t pay the credit cards, I am not sure what they really are, the debt buyers put a lien on our property but it never come up when the reverse mortgage company ran the title on the property just now when he is selling it.. I was never contacted about a court date or any of these judgements never and they had a court date in Louisville, Ky not in the county I live in which is Mc Lean County Calhoun, Ky. we had not been selling our home I would have never know about this at all, I have been to the court house and got copies of the liens and they are prepared by the same people but by different names on the court judgement….Could you please tell me where to turn and get help and get these off of the property and any other property I might ever live at or own..These judgements are not showing up on my credit report at all and never have just at our court house..I just run my credit report yesterday on all 3 bureaus..They are wanting over $19,000 off the sale of the house and we barely making anything off of it.. I am also on disabilty and have been for many years and was the time all this take place….I have never had any contact with this debt buyers and never knew they exited until yesterday..Thanks for any help , need help as soon as possible
Sharon – Couple of ideas to follow up on:
Title company insured the transaction. Check out that angle.
Check with an experienced debt collection defense attorney about your options after discovering you were sued and judgments entered that long ago, but in the wrong county and having had no knowledge. It is not common to undo court judgments this old, but someone who specializes in this area of consumer law should be your go to resource. I can email you contact info for attorneys with this experience nearest you if you post the name of a large city close by.
You could also at whether you would be able to discharge the judgments, and the liens associated with them, through chapter 7 bankruptcy. But that can take 90 days or more, so you would need to be working with a buyer who is patient and willing to wait.
The judgments may have never appeared on your credit report, but that is not common. If they were on there, they are not now because they likely aged off at the required time (typically 7 years from court entry).
Who are the judgments in favor of? Who were the attorneys that handled the lawsuits?
Did the title company already send out demand requests? Ask them and let me know.
Dear Michael:
Just came from the court house in my county n they were filled in my county by mail no one was there to represent them just by mail and since I wasn’t served I didn’t know to respond… One is a junk debt buyer and they said I owes Wells Fargo but I have had any dealing with that bank ever..The other 2 was Lowes’ card and a JC Penny’s and they were both written off many years ago, but these people that bought the debt is the ones that have the judgements against me..I guess I have no other resource but to settle with them so he can sell the property..What is the process to do this need to do it real fast, I don’t make much off of Disabilty and don’t have the money to pay the whole amount, what do you think is a fair settlement I need for them to take the lease amount possible..It really has put us in a bid…The largest town close to me is Owensboro, Ky hope you have someone there that can help me with these settlements….Thank you for all your help…The lawyers are Greene & Cooper and Maporter & Maporter in Louisville, Ky….Sharon
I sent you contact details in an email to 3 different attorneys with the experience needed to best advise you. They are in Louisville, so a bit further than we would like, but they are a phone call away from consulting, and distance does not have to be an issue in some cases like this.
I am very concerned about the circumstances. You were never aware you were sued, and one of the judgments is for an account you may never have had. All of this is very unfortunate, but made worse by the timing of your other needs and goals.
I asked about whether the title company had already sent out demand requests because that becomes important when negotiating settlements. When your hand is tipped that there is a real estate transaction involved, and when it is obvious there will be money in your pocket after the mortgages are paid off, collectors know to hold out for full payment. If you had a head start on some of this, or the title company has not sent off demand requests to the judgment/lien holders, you can do some quick work.
I cannot offer much by way of an estimate of what amount to target when settling until I know the names of the current lien holders and whether title has already alerted them with payoff demand requests.
I owed some medical bills that I was unable to pay. An attorney sent me a letter regarding 5 of the accounts. I knew that I had to pay them but am struggling financially. I quickly borrowed 1/2 of the total amount owed from a relative and sent in the payments that I could to the original creditors. Three of the accounts were settled/paid in full and the remaining 2 accounts are 1/2 paid. The checks were cashed 5 full days prior to a court date I had gotten notice of. I did not attend the hearing and the attorney went ahead and got a judgement for the whole amount despite the fact that 3 of the accounts were paid in full. Now they want to garnish my wages for the full amount plus piling on interest and court cost’s. What can I do? I live in Illinois
Kris – The notice of garnishment you received to collect on the judgment from the medical bills you were sued for, should have had instructions for how to contest the judgment with the court. You typically need to request a hearing where you can explain and document the payments etc. You can also show where some or all of your wages are exempt from garnishment if your income and living expenses meet certain thresholds. If you did not receive the instructions as part of the garnishment notice you will want to call the court on Monday and get that set in motion.
Thank you so very much Michael. I will request a hearing to dispute the wage deduction. I support a 3 person household (me, my disabled husband and a son in school) on just one persons income (mine). I am not certain what the thresholds are in my area but, I’m not a deadbeat who doesn’t ever pay their bills. I was out of work for several months in late 2011 due to a serious back surgery and have been laid-off (with no income) for a full 8 weeks since dec. of 2012. Food shelter and clothing come 1st and then whatever is left goes to “other bills”. I wear thrift shop clothes and drive an old ’99 Cavalier which I was lucky enough to buy for $400.00. I have no savings to fall back on and even had to take out a loan against my small 401k account to keep the lights on during my lay-off. Thus my check is already reduced beacuse the loan payments come directly out of it. As far as I’m concerned, this attorney perjured himself in court and lied to the judge when he requested the full amount (which was no longer owed/correct) in judgement against me. With this in mind, I doubt that he will be willing to an out-of-court settlement based on his prior unethical actions. I just hope that the filing fee and court cost’s dont match or exceed what I already owe!
Thanks again for your kindness and advice. Regards, Kris
Hi Michael,
I just came across your site and reading how knowledgeable you are in the area of debt. If you would be ever so kind to guide me in the right direction. In I have a judgement against me for $29,000. Its not for a credit card or loan. Its something that happen in 2006 that I’d rather not talk about, and i been paying it on time as requested, on the terms the fed and I agreed on since 2006. Now I have a family of 3 and need to get a mortgage but, no banks will loan me money with my judgement. Is there any possible way to get this amount settled in a reasonable amount that I can pay in full, without paying in full? FYI: This is not tax related either
Dewayne – In order to offer anything more than general feedback I would need to know more details. You mentioned agreeing to payment terms on the judgment with the fed. Was this a loan through or underwritten by the federal government (sued for student loan, SBA loan)?
Judgment debt can be settled. But it is situational. It is not common to negotiate a lower amount to pay off when you are making current monthly payments.
First of all thank you for your response to my previous judgements. My current problem is that I settled both accounts with Solomon and Solomon (attonerys for capital one) and just found out that they had 3 judgements against me. Of the 3, 2 are actually for the same (1) credit card but it has 2 different file number as well as docket numbers. I was onky aware of this because I recieve a free credit score thru my bank (not sure if thats a good idea) and kept wodering why my credit score kept dropping. I then figured… why not call the court house where the previous judgements were held and settled to see if there were any new judgments against me. The woman I spoke to was kind enough to tell me that there was 3 judgments with 2 being satisfied and 1 still opened. She then told me she will resend the paperwork belonging to all the cases to me instead of having me go there and get charged per sheet.
As I looked at it I realized while comparing all the paperwork from the previous judgements that there of the 3 there were 2 docket numbers that were for one credit card debt. I called the clerks office at the court house and was told I needed to speak to the attonerys who filed it against me bcos they needed proof directly from them stating that the accounts were settled and cannot accept it from me.
My question now is, does that open judgment hurt my credit even though it belonges to one card that was already settled. Second question, what can be done aside from calling Solomon and Solomon to tell them that they messed up and put an unsettled judgement against me that was settled.
I scanned all the documents so I can email it to them because on their records I only have 2 accounts when I last spoken to them.
Ive tried calling them several times to ask what is going on with the unsettled account but havent heard back but as usual am told that they are not available and to leave a voicemail.
I appreciate any feedback I am given and appreciate your time for reading this and being as helpful as in the past and with others similiar in my situation, thank you.
Siri – How long have they not returned your calls?
Its been about a week.
Siri – I would continue to call them, but simultaneously prepare a written outline of your issues and send that to them certified mail return receipt. Save a copy of anything you send them. Keep track of any and all phone calls you make (date, time, who you spoke with, what was said). If you do not get this resolved after your written request it will be time to file with the state bar, your AG, and probably the CFPB as well. You could even politely reference these complaints as your next course of action should prompt attention to the matter not be taken.
Update: I received a call from the attorney Julie Solomon of Capital One stating that she was unaware of a third judgment and how it was entered without their knowledge. I gave her the docket numbers because it was obviously the same file number as well as credit card number. I asked why there were two docket numbers because wouldn’t all events taken be recorded in the same account/docket number that was already on file. She said that one was entered as a judgment while the other was for a trustee wage garnishment action. But that she will have a letter of satisfaction sent to the courthouse to satisfy that one as well. She said that because a trustee for wage garnishment was filed its separate and that’s why a new docket number was created but didn’t understand why it wasn’t closed when the other docket number was with the satisfaction letter or why it was put in as a judgment.
Afterwards, I had called the clerk’s office (again) to confirm what was filed against me and was told the same as previously. That there were three judgments and of the three two were settled. I asked if one was put in for a trustee wage garnishment and she said yes but that it is under a judgment and would not need another docket number. Clerk’s office also mentioned that the attorneys that come in to file what they file and if it is not mentioned that a docket number exists that a new one is created. I asked if there was anything I can do on my end and was told to just call the attorney.
So now my questions are:
Will the third open and unsatisfied judgment affect me and my credit even if a letter of satisfaction sent to satisfy it?
Does it make sense for Salomon & Salomon to send a letter of satisfaction for the unnecessary judgment they entered or can something else be put in such as vacating the judgment so that there wouldn’t be three judgments against me?
Siri – If it were me, I would follow up with Salomon and Salomon and demand that the judgment entry at issue be vacated as it creates an unfair representation of the debt at issue. The judgments on your credit report are damaging enough. You do not need a third one showing up. Perhaps there is a way for those to be consolidated in the court record, but that is something to be answered by an attorney with this type of experience in your state.
I would file a formal complaint with the CFPB, AG, and state bar, if your follow up discussion does not lead to the correct resolution. I would indicate same to Julie by posing a question like: “How is filing an unwarranted third court action that results in an additional judgment and harm against me not considered an unfair and abusive collection tactic”?
Update for update: Hopefully this clarifies things a little better after going back and forth with the court and the attorney. Solomon & Solomon had filed a trustee to attach wage against the original judgment they had already filed against which had turned into a judgment by default. I spoke to the court and was told that when that is filed it could have been filed on/with the original judgment but per their request of how they filed it; a new docket number was created. Therefore, there are two judgments for the same credit card #, attorney file # and with different docket #’s (123 / 456).
So, I called the attorney again but was not satisfied with the answer I received. They are willing to vacate the trustee wage attach judgment/docket 456 that we had attended court for where a settlement of agreement was made, paid for rather than the original judgment/docket 123.Not satisfied, I asked for the original docket # to be vacated, the letter of satisfaction be corrected and to send one out to the court and myself. That they can have that original judgment reflect to the new one (trustee to attach wages) in which they refused saying that it’s been satisfied but can vacate the unsatisfied judgment.
But what they are saying does not make sense to me. Both parties attended court for that one docket #. The check sent/received of payment was noted for that docket #. So how can the original docket 123 receive a satisfaction when they themselves told me that the new docket 456 had to be created (trustee wage attach) because they were suing against the original judgment? Their response to this is, that is how it works here in Massachusetts and since the original docket 123/judgment was satisfied that the second docket456/judgment (trustee to attach wage) should’ve been dismissed and will send in a letter of satisfaction. But if I want them to put in a motion to vacate, it may not even be heard, it will take quite some time because of paperwork and the need to schedule a court date.
I’ve called the courthouse several times for advice and the best advice given was to contact the attorney. I called the attorney and get the run around or what it seems to be. Would you know if I can put in a motion to vacate since the attorney is only willing to vacate the same judgment/docket456 that we’ve already settled and is paid off? The motion would be to vacate the original judgment/docket123 that I did not attend court for yet it was satisfied from judgment/docket 456 (trustee to attach wage). Reason being, satisfaction was made to the wrong docket #. The original judgment/docket123 was satisfied from 2nd trustee to attach wage judgment/docket456 where an agreement of settlement was made and paid. Adding to the motion, I want the attorney to correct their letter of satisfaction to have the correct docket # (456) and for it to reflect to the original judgment/docket123.
Or can I not vacate an already satisfied judgment/docket# that should not have been satisfied and instead vacated by the plaintiff because of the settlement?
Can you please send to me the direct link to this as well because I cannot locate it to update and thank you.
Hi Siri. Thanks for posting this update. You will want to speak with an experienced consumer advocate attorney in Massachusetts in order to get the most informed advice on how the courts operate there. But it would be inconceivable to me that Mass would allow for multiple entries of judgment related to the same civil collection action that would create double jeopardy entries in the courts, and on Mass residents credit reports. Are you in the Boston area? There are some great resources I can encourage you to connect with regarding this.
I am not sure what you are asking for by way of a direct link? Are you referring to your very first comment on this site?
Got a subpoena for deposition duces tecum in aid of execution to got to the attorney’s office for a credit card debt that that a collector (the same attorney’s company) is willing to collect. Checked credit report and there is a judgement for such. Never got any paper for that judgement filed in 2007. Date for presentation to deposition is 10/25/13. Thinking on file a motion to extend time and settle debt with collector.
If there is a judgement, I guess there is no statute of limitation, right? Also, will it make sense if request proof of debt thru court being that there is a judgement in place? Or just go and settle the debt with collector? Please help
Abraham – There are statutes of limitations for judgment debt. They are state specific, and can often be renewed. What state are you in?
The normal process for requesting proof of a debt does not apply in this situation. But you should be looking at the court record for when you were supposed to have been served the lawsuit and at what address. You are looking for anomalies for the service address not being one you ever lived at, or had not lived at on the date the court record says you were served. There are examples of abuse of service around the country. Your case may fall within one of these areas, like in New York. Where do you live?
You certainly can negotiate a settlement for judgment debt. The savings from settling is often not going to be nearly as good as settling debts when there is no judgment. How much are they trying to collect? What is the name of the collection law firm?
Michael,
Thank you for your reply. The state is FL. Judgement was filed 11/09/07 and updated 01/08/08. They are trying to collect $6,750.73. Original amount was $3,722. Should file motion for enlargement of time due upcoming deposition 10/25/13 and then negotiate a settlement?
If anomalies in court records are found, what is next? Should do this before negotiating and after filing motion for enlargement of time?
Thank you,
Michael, question is if need to file an extension, then look for anomalies on court records, hold on to negotiating debt, if anomalies found, then what? If not, negotiate?
Thank you.
Abraham – If you find discrepancies with how, who, or where the lawsuit was supposed to have been served I would recommend you connect with a consumer lawyer that specializes in debt defense to seek vacating the judgment. It can be difficult to do after so many years, but it would be something the attorney could advise you on. It would cost money to retain the attorney, but probably less than it would cost to settle. If that approach is a no go, you would be looking at negotiating a settlement, and before the asset hearing if you have concerns with that.
Thank you Michael for you advise and service to the community.
Question- I had an account with Discover who sent my file to an attorney. The Attorney filed a suit and served me with a summons… at the time I was moving so I lost track of the paperwork. I recently called the attorney and as to make payment arrangements, which they sent me a packet, to be notarized with very detailed questions about me, and my assets (of which I have none) and since I am self employed what my clients owe me etc. The paperwork has me very nervous, and I don’t want to do anything that might come back to bite me. Help?
Evangeline – How much is the debt being collected? What is the payment amount being agreed to? I have direct feedback to offer, but will be able to be more helpful if you can answer those questions.
Hi,
I am a full-time student, unemployed, with 3 kids. I have a judgement against me for an old credit card, and just received notice of execution from the Sheriff’s office. I did file a claim for exemptions and I believe all of my personal property should be safe. My concern however, is my bank account. The only source of money coming into that account is from child support (which is supposed to be exempt), and every 6 months I receive federal financial aid (student loans). Can they levy this? What should I do?
Thanks!
AJ – I have helped people with enough collection problems over the years that I suggest you keep as little cash in your bank account as possible until the judgment debt is resolved. Even funds that are exempt, while protected, are a PITA to get back if they are inappropriately taken through a levy. There are improvements to banks recognizing accounts that only have funds deposited from exempt sources, like social security, but you are not dealing with that.
Bank levies tend to occur at the beginning, middle, and end of the month. Have you considered some creative options like loading the funds on a low cost prepaid card?
A debt collector won a default judgement against me for an old credit card. They offered me monthly payments, I countered with a one lump sum payment if they took 1k off the price. I have never heard back from them. I made a second attempt at reaching out to them, and have still never received a response. It has now been one year of me not hearing from them. I’m worried that the amount is growing from interest during this time. Not sure what my next steps should be.
Jodi – Who is the debt collector attorney that sued? Who is it that sued (name of plaintiff)? What is the amount of the judgment?
Judgment debt can grow from the interest. Most states cap interest, but some allow contract interest. In either case it is best to resolve the issue as quickly as can be managed. I can offer more feedback and suggest some next steps once you post a comment reply with answers to my questions.
I sold my house in Ohio on a short sale in 2011 – the deficiency was $100,000. (I was single) a few months ago I was served with papers being sued by Asset Acceptance. (I now live in Michigan and I’m married). AA filed a motion to dismiss w/o prejudice – twice – so my attorney – filed a motion to dismiss the case with prejudice due to the fact they had dismissed it twice before. The attorney filed it before the court date …….. but failed to request a court date (which you have to do in Michigan) so AA moved for a default judgement against me. My attorney counter-filed – and now I have a court date coming up – stating why I didn’t show up for court – since I had already filed a motion before the court date – and asking for the case to be dismissed with prejudice since it had been dismissed twice before w/o prejudice ………………………… have you ever heard of anything like this before? IF none of this works ……….. do you think AA wou ld settle for a lump sum of around $20,000 on a $100,000 debt? I could probably borrow that from someone and I just want this to go away.
Annie – I am sure there is more to your attorneys strategy for getting this dismissed than just because it had been before. But if those arguments are not successful, yes, you can indeed get this settled. Whether or not you can get it done for 20k, I cannot say. It can depend on how collectable you look to them on paper (paying other creditors on time, other assets, etc).
Post an update with how this all shakes out and lets go from there.
Thank you soo much for your response
The thing is – my attorney is an estate planning attorney that we use here at our business – he is not a consumer debt attorney. So – I’m not banking on this getting dismissed. I have paid off any other debt I had – and the only debt I have is a credit card for hearing aides – that I’m paying on time – and since I got married – my husband and I bought a car together for me – that I am making the payments on. We do not have any joint accounts and my name is not on his house or anything like that. So aside from my checking account and the fact that I paid off my other debt and I have a new car – which – if I sold – I would actually owe money on. Is there any possibility they could go after my husband?
Annie – A judgment would be required before they can go after anything. You can certainly head that off a couple of ways. It would be a good idea to connect off line so I can get some additional details in order to offer the best feedback and additional things to consider.
I sent you an email with my direct number in the signature line.
Hi Michael,
Not sure if this question is up your alley, but figured there’s no harm in asking. I have a handful of judgments (creditors and other civil items) as well as federal tax liens against me. As a result of a medical misdiagnosis that severely impacted my life, I am about to receive a moderate settlement from the physicians insurance company.
Is it possible to protect the proceeds of the settlement from being taken or frozen while I work out some kind of appeal, compromise or reduction with my judgment creditors and lienholders ? Should I set up a trust, have the payment made to my wife or other family member, etc ?
Thank you in advance for your advice. Very happy that I found your blog / website.
FM
Frank – It would help to know what the judgments are the result of (credit cards, other civil actions), how long ago they were recorded, the nature of the liens (some money judgments automatically get recorded as a lien if you own property in the county), and other details. Perhaps it would better to negotiated the settlements on the judgments, and have all of those ducks in a row, prior to receiving the insurance settlement.
Then there is the IRS. I would not recommend getting too creative here. You should talk with a tax pro about your options, but the insurance pay out is going to complicate things.
Is the settlement you are set to receive enough to pay off tax liens? If so, is there enough left over to settle the other judgments for say 50%?
Are there reasons that you would not file bankruptcy (own property with equity and other non exempt assets)?
I have a judgment that needs to be settled and I wonder if you can help me negotiate with the bill collector. I may be able to pay it soon. xxx-xxx-xxxx.
Hi David – I edited out your phone number for your privacy. You can call 800-939-8357 and choose option 2 in order to connect with me.
I had a judgment against me for a Capital One CC in 2008 in Illinois. (I had hired an attorney to represent me in court so that this would not happen but he did not show up so the judgment was rendered.) I haven’t heard anything about it since 2008, then this week I received a letter from Blatt, Hasenmiller, Liebsker and Moore stating that they were going to court on 10/28/13 to get an order to garnish my wages. I am with a new employer and I want to avoid that. The original judgment was ~$2400 in 2008 and has ballooned to ~$3900. I called BHLM and offered to pay the original judgment amount in full, right now, but they told me no, I had to pay the $3900. They also said they already contacted my employer to find out if my wages can be garnished. I was not notified of this. Is this legal? They told me they would accept 2 payments for the $3900 but I don’t even know if that is the correct amount. Is there a way to find that out? Thank you.
Brian – Get a copy of the judgment that was entered and look for what the judgment interest was set at. Calculate the interest rate against the balance and the length of time the judgment has been growing. My guess is that it will be pretty close to what they are trying to collect on right now.
Most states cap judgment interest somewhere around 10%, but some allow contract interest to be applied (which is terrible). What state are you in?
Thank you for your response. I’m in Illinois.
Can they contact my employer without my knowledge to find out if they can garnish my wages? They said they did but my employer has not notified me.
Okay. Illinois judgment interest is capped at 9%.
Yes, they can. Often the first notice people get on something like this is the forms from your employer.