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
Short answer
Yes, a judgment can still be settled. Settlements can be negotiated at every stage of the collection cycle, but settling before a lawsuit is filed is easier and usually saves more.
Key points on this page
- Settlement is possible at any stage, including after a judgment has been entered.
- The largest savings usually come from settling with the original bank after a few missed payments.
- A judgment is enforced through bank levies, wage garnishment and liens on real property.
- Judgment balances keep growing at the interest rate set by the court, and most states allow a judgment to be renewed, often ten years plus another ten.
- Wage garnishment removes most of a creditor’s reason to negotiate, so act before it starts.
- If you cannot fund a settlement, bankruptcy can stop a levy, a garnishment or a lien.
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.
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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.
Michael-
Awesome website you have;
I currently live in the State of Oregon and have so since 1999. I lost my job in January 2009, and unsuccessfully attempted to pay my debts through December of 2009.
Capital One obtained a Judgment of $17,743 in November of 2011 which I could not pay due to having no substantial income being in Nursing School to retool. I graduated in December of 2012 and have been working since Feb 18, 2013.
I stopped paying my Mortgage After May 2009, and ALL of my credit cards after December 2009, and have not resumed paying anything on those past bills.
The First Mortgage was modified January 2013 and I have been making regular payments.
I have not resumed paying on the 2nd which has now ballooned from $54,000 @ 10.75% to $93,000 with interest, penalties etc and has been sold to TriPeak Assets. I have not paid anything on this debt since May 2009.
I have two primary questions:
1) What should I do regarding the Lien Judgment from Capital One? I called a Title Company today and confirmed a Lien is place upon my home. I looked up Oregon Law and see that the judgment will last 10 years with a 10 year renewal. Is there anyway to vacate the Lien Judgment such as the Oregon Homestead Exemption without selling or filing Bankruptcy? I understand this debt is likely now in excess of $25,000 not including penalties and fees.
2) My 2nd Mortgage has been sold repeatedly, and I have not paid anything on it since May 5th of 2009. Since it is now effectively six (6) years old since the last payment, can I effectively say “I have an absolute defense since the statute of limitations has expired?”
1. Not that I am aware of. But I would recommend talking to an experience debt defense attorney in Oregon and discuss all realistic options you have at this point. I can send you contact info to a couple of really good ones I know if you like?
2. I would discuss the absolute defense regarding the second mortgage with the attorney too. Even if that applies, I suspect there may still be the lien issue from the 2nd to contend with when you later look to clear title.
I received a summons in mail today regarding a complaint to collect a debt for a credit card, the collection agency and the law firm had never made an attempt to contact me, in fact I had not thought about this since 2008, in the complaint it said I made a payment on 108 on May 2008, which I did not – so I don’t know what all this is about or what to do about it, I cannot afford an attorney and Ionly have a bank account that I get Child support money in (its not through court though) so I am worried they will garnish this and I will have no money for my kids – what do you suggest I do?
I would suggest you defend the suit if the debt is time barred. What state are you in, and when do you know that you last made a payment on the credit card?
Hi Michael,
Thanks For Replying To Me Again.
I have actually looked at some legal aid options, but my local area is not one for many options in that way, as I am located in the small town portions of my state. I didn’t come up with much of anything there. I can always have at least one free consultation with a full price lawyer if this doesn’t turn out the way I plan for it to turn out for me…..But Thanks So Much For Your Suggestion.
I Appreciate Your Personal Advice For Me Too. I am still trying to agree on the small monthly ( $30 ) payments, however. I sent my official Financial Statement to their offices on Monday. I also Emailed both attorneys listed as lawyers to contact to begin discussing negotiations as well, one of them on Monday and one of them on Wednesday.
I just sent them all my uncollectable information where they asked me to place it on my Statement to them, and I made notes in the ‘Any Other Facts That Could Affect Your Ability To Pay’ section that stated how my mother, whom I reside with, is willing to assist me with a $30 monthly payment until my own finances are worked out…..I stated how this is not that different from when an uncollectable person applies their spouse’s income to pay a judgment until they have their own income. Hopefully, they will move fast and finalize it now.
In your own experience, do you Please have any statement about how long lawyers can take to respond to offers like these at all? Will they reply to my Emails, or should I telephone them and hope to catch them live on the phone immediately? I assume they may prefer live telephone communication versus email contact if possible. My answering service is being replaced right now, so I told them to email me their responses back….But, my service will be fixed early next week anyways….
Thanks So Much For Your Advice! You are really helping me out so far……
Hi Michael,
Thanks So Much Again For Replying To Me.
I understand about the credit fraud not being as crucial during a Payment Hearing for this judgment for me. I was actually looking forward to any possible Bankruptcy Hearing, where I believe it can get more intense with those kinds of areas, where they want to know you didn’t commit fraud when you received your cards or created your debts on them, Etc…..I am still avoiding bankruptcy for now…..So, I guess that they don’t go into areas at this Payment Hearing like, “When you created this debt, what income did you have to pay it all on your own without family assistance?” “Did you believe you were creating a debt that you might have challenges paying if you lost certain family income?” Etc….. At this Payment Hearing, I didn’t know if they would want to know what employers I had before, to know whether I had any personal income in addition to my family’s assistance while I created this debt……Would this Payment Hearing want to know what details I placed onto my credit applications, not only just their own application, but additional applications, Etc…..BUT, I believe I AM really getting into various BANKRUPTCY HEARING areas here…..From what you are saying so far, this Payment Hearing is pretty simple, just focused towards RIGHT NOW concerning present time ability to pay this single judgment debt…..
1 ) Do you believe that since my family is the one committing to this payment immediately, until I get my own income again, they will be more insistent about a lump sum settlement, even a reduced one, as they might believe my family isn’t as concerned about making these immediate monthly payments on my behalf in the same way I would be concerned about such a monthly payment? Like, they might believe, “Well, her family could just lose interest in helping her at any time….. OR her family’s own personal finances could get worse where they would just stop paying this for her as they had to assist themselves instead….” I wonder if they are more keen on making monthly payment deals when it is the actual person committing to paying it monthly….I can see their concern there….. Versus their ease with a one time lump sum deal with family money because they just get their money all at once and it’s done…….I am still starting out with my $30 monthly offer, as that is best for everyone right now…….I really just want to get my own independent finances going, and not look to anyone else for help anymore, and be fully out on my own, a future which I am planning to begin building in May and June…..We can handle them not reducing the debt from $1,200 or so and paying $30 monthly for right now until I get a new way of income on my own to pay it……For us, even a reduced lump sum from that $1,200 is trickier at this moment……
2 ) If it is settled out of court before May 21st, I assume there are official papers that I sign and such…..But yet, even though this is a payment deal on a judgment, I still can’t be arrested on a civil warrant ( not criminal warrant ), for some contempt of court charge for missing payments on it if the worse ever happens for some reason?
Concerning this May 21st Payment Hearing…….Will they still want to get me into court to have the judge sign some court order for our monthly deal, being that I assume if the judge signs it, that means it IS an official court order to make these monthly payments, and then, I CAN be arrested on a civil warrant for some contempt of court charge for not making payments, I guess?
I assume that if the worse happens and I start to miss payments on any court order from the judge, I could get some civil warrant after me but once I appear in court and show that I can’t make the payments anymore, I am judgment proof until I get my finances back together again?
I Am Sorry for asking so many questions, but my family is one that wants to know all the possibilities before they fully commit to things……I admit they can be more negative, so they want to know the “worse case scenarios” before they commit…….I am not like them at all that way, but they ask these questions……
I am planning to contact the law firm on Monday……This Post should be the last of my questions…….
THANKS So VERY Much For Your Great Help!
You really should get your questions answered by an attorney, and preferably one with debt collection defense experience. The detailed answers you want can really only be arrived at that way.
I am not an attorney, and I am across the country. You may qualify for low income legal aid, so you may start by looking for the closest legal aid office you can find.
That said, you are just way too far into the weeds on this. An asset discovery hearing for a judgment on a credit card bill is just a fancy way of saying – you need to come look someone in the eye and tell them why you cannot pay any money toward the judgment.
This has nothing to do with your family. If they are brought into the discussion at all, it would be by you.
If it were me, and I am viewed as uncollectable by the court, I would not make those small monthly payments that really do not make a dent in the debt due to judgment interest. I would save up and settle for the most savings I could negotiate later.
This is not a complicated issue. Just a debt collector taking someone into a payment hearing – who is uncollectable – in order to waste everyone’s time.
I had a Simplicity Citi card, however, I received an online notification that my “main bank” in Kileen, which my bank is inside Walmart, was going to issue me a credit card. However, I thought it was strange, since I had horrible credit.
However, I filled out my employment information, but not once did the application ever ask for my social security number, nor was there a blank to fill that in, it just asked me about my work employment and how much and when I got paid.
Also, one important thing, I NEVER ever had to sign an application. When I filled out the employment information, along with my salary requirements ( I guess since I had an account at their “bank” they had all my other information) I was granted a credit card.
My name was the only name on the card, my husband and I don’t have any money comingled, none, we have no loans together, no home loan together, no banking together, nothing, we have our own money and accounts, we have nothing jointly together, not even our cars, etc. So it shows me as the “responsible” party on the bill, only my name.
However, two years into making the payments every month I got really behind, due to medical reasons, as my husband got cancer and I was having to take over making all the bills, and I am a teacher in Texas and I just couldn’t continue making payments on the account.
It was charged off by Citi and went to a “collection agency.” However, before it did that I called Citi and made an agreement to settle. I originally had a 10,800. balance, but they agreed to let me pay 2000.00 up front, which I did, so it should have brought down my balance and that was paid with a check, so I have proof of that payment I made with them. Then I was to pay for 12 months about 93.44 a month. However, after I paid the 2000. which just about broke me (I agreed to it, b/c they seemed to threaten me with going to jail or court), but I made 2 payments, last one made in July 2013. At that time, I called and spoke to someone in the credit recovery department with Citi’s and asked if they could just deduct it from my checking account each month, we agreed to do that, but they never took the debit out of my account, so I thought they weren’t going to pursue it, so nothing ever happened again.
But before this happened, back in April 2013, the above happened at the end of April, but in April my husband was going to purchase a home, he has had a great credit score in the upper 875-950 credit range. However, when he went to apply for a loan, they said he had an outstanding bad debit with Citi’s, he said, I have never had a credit card with Citi’s. Here is what we found out, they used his social security number on my application. I didn’t even know his social, b/c I never have any dealings with him, we both have separate everything. Also, he never signed an application, as I never signed an application, it was all done online, I also never ever gave his social security number on the application.
Now, the Citi’s bad debit is on his credit, but the card was never in his name and he never used the card, had anything to do with it. I never signed for the card, and never put his social on it, and now it is on my credit report as well.
Citi’s open the account through First Convenience Bank – Kileen, but they never verified or checked the application, if they would have don’t you think they would have discovered the social they put on my application was my husband’s an not mine, my name was on the credit application, I never put him down on anything.
Doesn’t Citi’s and First convenience bank take some responsibility here? Shouldn’t it have been verified better before they issued the card?
curious….I want to settle, but don’t have that much to deal with, as I am still on one check.
Thanks,
Cliffonia
Has he ever sent a dispute about the account not being his to the credit bureaus? If so, when and what was the response? How about a written dispute to the bank?
Had my trial yesterday. My pro bono lawyer did not show up. I settled with original creditor (Bank of America) and now I am very unhappy with the number. I think my lawyer would have done better job of negotiating. Judge signed the settlement. Original debt 12K plus 8K interests. was never served. Settled for 9K. Is there anything I can do now? Thank you!
You have options to appeal, but it sounds like there may have been no foundation laid for that.
What is it you mean by having never been served?
When is the 9k payment set to be made?
Hi Michael,
WOW! This blog IS SO AWESOME. I am discovering SO MUCH just from reading it for a day or so here! THANKS SO MUCH For Creating It For Us.
I have a default judgment against me from a Capital One Credit Card. This judgment is for $1300. The law firm is Solomon & Solomon in Albany, NY. I reside in Massachusetts. I am due in court for a Payment Hearing on May 21st.
I am currently unemployed, with no wages to garnish at all. I live with my family, and they own the house, not me….. I have no personal Assets for them to place any Liens on either. I also have $5.00 in my Savings Account, and another $5.00 in my Checking Account that has $40 added to it and then subtracted out of it when I pay another credit bill with my family’s assistance at this time. There is NEVER any pile of money just sitting in ANY Bank Account with my name on it right now is what I am saying here.
My employment history consists of one taxable job from several years ago…… Any others have been child care jobs in the houses of other people or in my own house where I did not receive enough money from them to have to pay any taxes on them before……I have only been able to have credit cards with the assistance of my family’s whole household income so far……Actually, their personal checking accounts were paying my monthly credit payments for me until our household situation changed dramatically in late 2013, which is when I stopped paying all of my credit cards but one of them…..Even then, I have to be given the monthly $40 from them to be placed into my own checking account anyways…..
I really want to create a new career path for myself, and move out of my family’s house as soon as I can now……I want to avoid bankruptcy as well. This is the ONLY suit / judgment against me at all so far……
The thing is that I actually have certain panic attack concerns about appearing in court in May….I am seeking counseling / medication to stem them, and I may even apply for a Continuance or something to postpone the May date……In addition, to avoid court in May……I wonder if it is worth it to contact this firm to arrange ANY small monthly payment schedule with them, like only around $20 – $30, as $30 per month was the usual monthly payment that I paid before stopping payment as well……I really prefer to settle with them on a monthly payment plan with my family’s help ( they have offered to assist me with this judgment ) until I find a new job etc…..I realize the firm prefers a lump sum, but they can’t get anything else from me as I am judgment proof and that amount is basically what I paid them before anyways……
My other questions are….Please…..
1 ) Considering if I call them this week, which I want to do by the end of this week, do they accept payment plans with people that are officially unemployed like me this week, and where my family would be agreeing to assist with this low monthly payment until I got my own employment again?
2 ) What is the Payment Hearing like? Does the judge go over your whole Employment History? Do I need to bring every employer I have ever had with their Contact Information into court that day, as these positions were non taxable income for me? Or would the judge just want to know my very last employer in this regard instead? Would they not care about my past employers? Honestly, since some of these positions happened in my house, I am not sure exactly where people lived when they brought their children to my house, and they moved on which ended my positions with them and now I have no idea exactly where any of them are now……Still, I wouldn’t necessarily want everything about my finances to get back to them through this process, in case I require any of them to be some kind of references for me again…..
3 ) At the Payment Hearing, can the judge demand that I cease paying that monthly $40 payment to that other card and start sending it to Capital One instead? It is the only business I do out of my checking account these days, but the funds for it come from my family, not from me….They just wanted me to have one credit card in good standing should I eventually have to bankrupt, which I still seek to avoid…..With panic attack concerns at times, you can imagine how nervous I might be about Bankruptcy Court…..
THANKS SO VERY MUCH FOR YOUR REPLY…..
It would be ideal to negotiate a reduced pay off. If your folks are willing to help, can you come up with half of what is owed?
Yes, many judgment collections can be paid on monthly. They are debt collectors, and will take what they can get in most instances. Calling to set up some small monthly amount is a possibility, but it may not deter them from wanting to get you in court so that you have to say how broke you are on the record.
The asset discovery or payment hearing is really relaxed. You may not even see a judge. You will essentially answer a bunch of questions. You will find most of them you can handle by memory. You do not have to be concerned about those past employers hearing from the collectors. They are really only interested in if you are working now, for who, making how much.
I have never seen a situation like your in where a judge told you to stop paying the one bill, and give it to a judgment creditor. Bankruptcy trustees do that all the time, but that is where they split up your money and give creditors an equal share, not special treatment. And besides, it is not your money, it is your folks paying it.
I would not recommend bankruptcy over this small a judgment. Are there other debts than this one out there that remain unpaid? If so, add them all up, and what is the total?
Hi Michael,
THANKS SO VERY MUCH For Your Fast Reply.
I don’t know if they want me in court for sure, as they claim that they wish to settle things BEFORE our next scheduled date on May 21st. I know these people can lie, but hopefully, they are truthful about their wishes here…..
1 ) So, you believe that I have a chance to speak to them and negotiate down to a half reduced pay off, where the final total I give to them is actually just around $600 – $700 instead of the full $1200 – $1300 or so they want right now? THAT would be great for me……Do you feel they would even accept that reduced pay off paid in small monthly amounts, like between only 10, 20, or 30 dollars monthly right now? Or would they only agree to that smaller incremental of a pay off if I agree to pay the full $1200 to $1300 total they have this judgment for? In other words, pay $600 or so immediately and everything is cleared for us, OR pay $10, 20, 30 monthly until the full $1200 is paid off……I know that with those smaller amounts you don’t always do much but pay on interest, BUT I intend to only have this arrangement for so long, until I get my finances together and I can pay higher amounts or even better, just pay it totally off as fast as possible….. The reduced pay off of $600 – $700 along with those smaller amounts are obviously the very best outcome for me at this point…..
Now, if I happen to miss this settlement payment for a final total that is possibly cut in half for $600 after all, I miss it just one month, can I be arrested on a capias warrant, even if we don’t make it to court on May 21st? Does the fact that the new settlement was created with a different final amount of debt out of court this way change my possibility of being arrested if I miss my monthly $30 payment if that monthly amount is what we agree to here?
I admit I was likely jumping ahead to a possible Bankruptcy Hearing, where I believe the investigation into the person’s life history is more focused with employment and such because the court may want to verify that you haven’t somehow committed any credit fraud with your purchases if you received your cards and created debts on them when you had assistance from others to do so…..I admit I am confused about credit fraud in general…..I have heard of people that identify themselves as Students for their occupation on card applications say that they receive cards and pay for them through their whole household family income amounts that they place on these same applications….. I have seen people state that they list being a Homemaker as their occupation with their whole household income on credit applications too…..I have heard of people that list their spouse’s occupation as their occupation with whole household income so that they receive and pay for cards that way……I have just always had other people’s backing to receive and pay for cards until recently, as I read that “so long as the applicant has a reasonable expectation that the money will be there to pay for their cards” it is not fraud as it can be occupational income of your own, alimony income, whole household income, maintenance income from sources……Just never know what attorneys might toss at you if you have serious changes where you need to change payment arrangements for awhile if your original assistance changes for too long…..I certainly never intended to commit fraud……I definitely want to start being fully financially independent now, as I see how tricky matters can become when others are too involved in your payment arrangements early on this way……What constitutes credit fraud is what confuses me about Bankruptcy…..I just want to avoid that option until I get my finances together and then just settle with creditors instead…..
Thanks So Much Again For Your Valuable Advice!
I do not think you have a shot at the lower monthly payments along with any amount off of the fill balance being sought.
You do not get arrested for missing payments on a debt like this. You can get arrested for not complying with a court order, in this case, your being ordered to show up and talk about your not having any money that they can take from you. You are uncollectable. You would likely be found by the court as unable to pay even the 10 dollars a month.
ALWAYS show up to court.
I am not sure where you were going with the whole credit fraud comment. When you go to the hearing there really should not be any discussion along those lines. It is really just about what money and assets you have as of that moment that could go to pay the judgment. That will be the entire focus, and nothing of looking backward.
I have a judgement against me from a credit card company for $2800. Today I contacted their attorney and offered a $1000 lump sum settlement. They e-mailed me a form called a citibank settlement information worksheet. The attorney called it a financial worksheet. They said I had to fill it out before citibank would consider my offer. Does this sound fishy to anyone? By the way I live in North Carolina.
There are sometimes requests for financials in order to get an exception to settle your account for less than what the creditor would normally accept. There are also instances where a law firm is just protecting their clients interests by digging into your finances only to expect full payment based on what you share, and how they see it.
I generally suspect the latter unless you are on a fixed or low income situation with little to no assets.
I was afraid of that because the credit card company had sent me a offer to settle for $1700 just 4 months earlier with no mention of a form to fill out. The thing is, I inherited a $100,000 house after the judgement but its still in my deceased parents name. The house is paid for. Do you think they could take my house or make me sell it over a $2800 judgment?
I just do not see forced sales on this stuff. What would be more likely is a lien on a home in your name that they can find. They would get paid at some point, and with interest, when the house sold, got financed, changed hands and needed to clear title.
You could work around this with a bit of strategy, and adding to the offer. Can you come up with more than the 1k?
Perhaps with some time. I’m thinking that maybe I should just keep my mouth shut and wait to see if they send me another offer to settle. I told them I was waiting for my federal refund to come when I made the offer so maybe its a possibility. I also have to say thank you for the prompt replies. Your great, sites great, thanks again.
Hello I’m Donnell
I’m 29
Here’s my situation.
I was formerly profoundly irresponsible and careless with money.
I have 2 debt judgements against me $2800 and $500.
One from Kay jeweler and one from capital one.
I lost both cases in 09 (had no idea until 2013, I didn’t care).
Now that I’m crawling out of debt (believe it or not but for some reason this journey is fun and interesting).
The same lawyer is handling both of my judgement debts.
My wages are already being garnished for child support (by choice).
I make under $1200 a month (after garnishment/taxes/insurance).
So I believe I pass the means test to threaten them with bankruptcy.
I don’t own anything for the to lien and I didn’t have employment at the time of the case so my wages and bank account has (luckily) remained untouched by these judgements.
I want to negotiate to get rid of these judgments because they are Killing my credit score.
I’ve been doing research and I am finding a lot of info on how to negotiate BEFORE the judgments but not much after.
Also I have a dream. That I could possibly negotiate a situation with capital one to give them a lump sum and maintain a credit line with them stemming from 2006 (when I opened the account) putting me back in good standing with them and improving my credit time average. I’m aware it is a long shot but would like to know if it’s possible.
Please help.
Recap: I need tips on negotiations AFTER a judgement.
Help negotiating a return to good standings after the judgment. (Sounds genius to me lol)
Debt collectors do not generally take threats to file bankruptcy all that seriously. Not that people do not go ahead and file, and they miss out on a deal they could have had. That happens, but debt collectors are working a numbers game. Some of their files are always filing bankruptcy.
Also consider the fact that they know is not worth filing over the 3300 debt total you have. You would be better off settling with them and using the first in line garnishment that you have (the child support) which will mean they are not going to be getting paid as long as that is in place, unless they can lien property or levy your bank account.
Your dream will stay a dream unfortunately. Capital One is not going to reopen that closed credit line. Not if you had no judgment for the debt, and likely not even if you were trying to pay them in full the week after they closed it for nonpayment.
Capital One will often open up new credit card accounts with you though.
How much can you come up with to pay and settle these?
I can come up with $1500 at the drop of a hat
records show that they’ve tried to search to levy my accounts twice now, unsuccessfully ( I don’t believe I had a bank account back in 09) but the civil court says they can charge me for the attempts.
I didn’t live at my mailing address in 09 (I was on a 2 month furlough in Atlanta at the time) I never received any court notices so I never responded (not that I would have because I was completely ignorant to how this all works back then)
I’m trying to research possible ways to vacate the judgments all together
I’ve been working on my credit for almost a year (all i have left negative are these 2 judgements and one more account in collections for $860)
I’m also $21K in college debt but it is no longer delinquent
Chapter 7 wouldn’t be a far cry I just wouldn’t actually do it but I figure if I hint toward it in a letter they may be a bit more lenient with the settlement.
in my research i’m finding that 20% is a good place to start then go up from there, of course this is mostly in negotiations before a judgement has been found.
thoughts?
*Update*
Ironically I just received a call from a CA claiming to represent Capital one in an attempt to collect the debt (which was originally $1500 and is now $2800 per the judgement)
Does this mean the law office from the civil suit no longer has this debt and I can no longer negotiate with them?
And do I have to handle these two matters separately ?
Call the law office and verify that CapOne yanked the account, or call CapOne and verify they placed the account with the new debt collector. There is far too much fake debt collector stuff happening in the U.S. right now to not take the extra step of verifying who is who.
I will eat some of my note pad paper if you are able to settle with Capital One at 20 percent. Realistic targets in your situation with CapOne generally start at 50 percent.
LOL the art of negotiation! start 75% lower than what you can afford.
but lets say I find out who has my debt and i come to an agreed upon settlement amount. how do I go about vacating the judgments! can I possibly work that into the negotiation?
these 2 judgements are killing my score. After I deal with them and the small account in collections I can build from there.
ALSO, midland (the collections account I have for $860 sent me an offer for $360, should I take it or try to negotiate lower?
I do not see an outcome where a judgment from 2009 is vacated. Only that the court record is updated to show the judgment is satisfied. You can still build credit with a paid judgment.
How long ago was it that you last paid on the debt Midland Funding bought, and what state are you in?
The offer from Midland is a good one, but answer those two questions for more feedback.
It’s an old cell phone bill that my friends bailed on in (feb 2011 was the last payment) and the state is connecticut
*Update*
I called the attorney’s office who is controlling my debt (the 2 judgements) and they still have it and are willing to bring the $3,487.58(total) down to $1885. That was with no type of negotiation (over the phone) I feel like I can possibly get them to go lower if a write a letter.
My main concern are the 2 judgements. My question is after I pay the agreed amount. Can I reopen the case with the court and vacate them from public record? Could I add that to the agreement? I need them gone!
Not in my experience, no, you will not be able to get them to agree to vacate the judgments. Why do you need the judgments gone like yesterday? It could potentially help me to know what your end goal is for wanting that outcome.
I need the judgements gone because they are derogatory and are severely hurting my credit score.
I would like to purchase a home in the near future or get loan for a business.
I would like at least a 750 score when its all said and done.
currently:
623
609
595
I would also like to add that the accounts that these judgements derived from are so old that they have fallen off of my credit report.
with them gone and if I can manage the $860 account with midland I would be golden, and could build from there
Judgments no longer on your credit report, but that are still valid, will often still hold you up from getting a home loan approved.
How many positive open accounts do you have on your credit?
I’m aware that the judgement can’t still home me back. But I plan on reopening the case in court and asking them to withdraw them (as part of me agreeing to pay them)
So I’ll pay the reopen fee if they agree and they just sign the withdrawal papers. Hopefully that will get rid of the judgement. I figure they won’t mind doing after they’ve gotten their money.
They still have the option of going after my bank account still but I don’t keep much money in it so it would be futile.
I’m just trying to strategize
Current have 4 open positive accounts but it will be 3 soon because my car is one payment away from being paid off
I was recently notified of a judgment against me with the original date of March 8, 2007. The original amount of the debt was $4265.54 with 8.25% interest per year now it is $8432.97. I called the lawyer to try and settle the debt in payments but could not reach an agreement. They are adamant about me either paying the amount they want monthly or pay off the entire amount whole. They would not negotiate a smaller lump sum. My hands are tied, I want to pay the debt but unable to reach a common ground. I don’t remember even being served to attend court. I asked them if they sent a certified letter and all they replied with was the abstract of judgment from the court. Should I take another route maybe ask to vacate the judgment or contact the court house? Any advice would help.
It could have something to do with how collectable you look. If you are paying all of your other bills on time, which debt collectors can see with real time access to your credit reports, they are less likely to offer better savings in a settlement, or perhaps none at all. Would you say you look like a good collection target? Are there other unpaid collection accounts on your credit reports?
Who was the creditor or debt buyer that sued you?
The collector is LVNV funding LLC. My credit report does not reflect this judgement. There are no other negative items on my credit report and yes I pay all bills on time. So to answer your question I guess I am a good collection target. But because I pay all these payments on time there is no room for this additional payment, well at least not at the payment amount they want. And I definitely cannot pay the entire amount at one time right now. I have to respond to the new abstract of judgment now and don’t know what to do. I don’t have a home under my name and my paycheck is deposited into my mothers account. I don’t own any land. I do have a vehicle that I am paying on. What steps should I take?
If it were me I would save up to settle in a lump sum single payment. What if they would take half of the judgment balance? How long would it take you to pull that together?
It sounds like they will continue to have difficulty collecting. I would be concerned about wage garnishment though. What state do you live in?
I live in Texas. I’m thinking of getting a loan to pay it off. But I still don’t feel I should pay the entire amount.
I offered to pay half the amount they were just not in agreement.
You might fair better with using a professional with reasonable fees. As in, getting this settled for less than you could on your own, including all fees.
If you want to look into that, fill out the consult request form.
Do they garnish wages in Texas for (credit card ) judgments?
Wages are exempt from garnishment in Texas.
I have a number of credit card accounts past due I let a x girlfriend use and without knowledge were all ran to the max. My concern now is my only income is SSI and SS which is direct deposit into a checking account.This is my only source of income and I live in NY, can they seize my account? I have not got to the judgement stage yet but sure it is only a matter of time. And I paid the bills online so they of course have my checking information.Thank you for any advice you may give.
Generally speaking, SSI and disability would be exempt from judgment creditors. If you have any other money in your bank account that is from a different source, or have many months of SSI (or other exempts sources) build up in your account, you could have something to be concerned about.
Some other exemptions from judgment creditors in New York:
90 percent of wages are protect in NY.
Your car value up to four thousand dollars.
Between 75 and 150 thousand dollars of home value (varies by county).
All household goods.
Up to 1,740 dollars in your bank account is protected.
Michael,
Hi, I’m from Michigan. Where do I start… When I was 25 years old (I’m 42 now), I had a great job, no kids, & lived at home with my parents. I had car loan that I faithfully paid on time every month, car insurance, probably 15 credit cards (3 different gas cards, a few department store cards including Sears & Hudsons, Discover, Mastercard, Visa & an account with Whirlpool. I ALWAYS made sure I made my payments on time. I was young and naive and really didn’t understand what credit was or how it worked. I probably had phenomenal credit and had no idea. Then I met the father of my two daughters and everything changed. Within months he helped me maxx all my cards out, promising to help me pay them off, & then the company I worked for went out of business and I lost my job. By the time I got another job (making half of what I was making at my previous job), I was already so far behind in all my payments that I just couldn’t get caught up! It just spiraled from there. I paid off the small credit cards that I could, my car was repossessed after having already paid $10,000 on a $12,000 loan, and the rest went into collections, I just wasn’t making enough to pay them. We had our first child in 1999, a year after we met, and our second child two years later. I was with their dad for 8 yrs and that was a very stressful time in my life to say the least. Their dad was a musician with a severe drug problem. I had a lot on my plate dealing with the stress of that, trying to raise two kids, moving around constantly because we couldn’t keep a place to live due to his drug habit & me being unable to work because I had to be home with the kids. It was a mess! My point is, the last thing I was concerned about was my credit, I was just praying to have enough food for my kids and hoping to keep the heat on in the house. And while all that was going on, the collection agencies were wreaking havoc on my credit. I would get collection letters and just file them away, I knew I couldn’t pay them. When I’d receive court papers I did the same. When they called I just didn’t answer. I didn’t go to court because why? I knew I owed the money, and I also knew I didn’t have the money so why bother? I didn’t understand what a judgement was. Plus I had way too much going on in my life already & was extremely depressed. I wish now that I’d done something, but I don’t know what I could’ve done with no money… That was all years ago & everything has since come off of my credit report so my credit score is ok now, however, a certain collection agency obtained 2 judgements against me for the 3 accounts that I had with the highest limits- there is a judgement that was obtained in 2003 (was renewed in 2013 for 10 more years) for a Citibank Visa, and another judgement that appears to have 2 of my accounts rolled into one-if that’s possible- the collection letters I get for both my Discover Card & Whirlpool accounts have the same court case number & the same judgement date on them- June 2000 (was renewed in 2010 for 10 more years). There was also a third judgement against me for a $750 utility bill that my ex put in my name after we split up. My state income taxes were garnished for 3 years in a row, 2008-2010. My 2008 return ($590) was applied to the Citibank judgement; my 2009 return satisfied the utility bill judgement ($750) & the remaining $300 was applied to the Citibank judgement; and my 2010 return-almost $1200- was applied to the Citibank judgement. That was fine, I was glad they were getting paid off. I don’t like owing money and as a single, low-income mother of two its really hard to come up with a lump some of money like that, so I was kind of glad & relieved that one of the judgements were completely paid off and I thought I must have most of the Citibank judgement paid off since I only owed $3370 to begin with and I’ve already paid $2100 towards it. I thought one more year and I’ll have 2 of them paid off & I can start working towards the last one & be done with this!! …. WRONG. I decided to get all my paperwork together & really take a good look at it all, and I realized that even after I’d paid $1200 from my 2010 tax garnishment I still owed more than I did the previous year because of all the interest that was added on throughout the one year($2200 total paid over 3 years of garnishments), As of September 2011 I still owed $4584.44 because of interest added on when I originally owed $3300 and had already paid $2200 in garnishment payments!! I cant imagine what it’s up to by now!!! That was when I stopped filing my state income taxes. I have not filed for the years 2011,2012,2013 or 2014. I’m fine with paying if it’s eventually going to get paid, but if they’re just going to take all my money every year to pay off interest??? Nope. My initial thought was that I would wait until I received my federal income tax return the following year so I would have the money to hire a bankruptcy attorney and just claim bankruptcy, but the time came and went and I needed the money to get caught up on other bills that I was really behind on so I thought, I’ll wait until next year & do bankruptcy. But the same thing would happen every year. Every year I’d need the money for more important bills. For 4 years. I FINALLY have a better job and don’t need my federal income tax return to survive off of this year so I REALLY want to take care of this. The problem now is that my credit is finally good again after YEARS of having bad credit and I don’t want to ruin it by claiming bankruptcy now, but I know I don’t have enough money to pay off the judgements, or even one of the judgements, in full. I’m doing a little better financially. I can keep up with my monthly bills ok & I have a couple thousand from my federal income tax return that would normally go towards getting utilities caught up and other necessities. Since I’m caught up on bills this year for the first time in years, I see this as my opportunity to try to do something about these judgements. But I’m not sure if it’s enough to do anything with or what I should even try to do! Is it possible to request the interest to be taken off of the judgement so that I just owe the original amount minus payments already made? Can you settle with a collection agency if there’s already a judgement against you? If so, do I contact the court or the collection agency? Am I thinking way off track here? I just feel like if I continue to file every year & they continue to garnish them and each year I end up owing more than the previous year, I’ll be paying the rest of my life unless I can pay it off all at once, which I’ll never be able to do. What would you suggest. I want to be able to file my taxes and not have them take all my money if it isn’t going to pay anything off anyway!!! I’d appreciate any advice you have. Thank you and I apologize for this being a mile long! One more thing, I have received no collection letters, court papers, phone calls, or garnishment letters since 2011/2012, but when I contacted the court they told me the judgements are still on record until 2020 & 2023. I asked if they’ve filed to garnish my taxes and they told me they haven’t filed since 2010, which was the last year I filed my taxes, but they still have the right to. Is that coincidence or do they get notified AFTER I file, & then they put the garnishment through? Also, I’ve heard that the collection agency is going bankrupt, what happens to my judgement if that were the case…?
You can often negotiate judgment debts for a lower lump sum pay off. You can look at it like taking away some of the interest.
You would contact the attorney for the collection company that owns the debt, or the debt owner themselves. What are the names of the judgment creditors?
If the debt owner goes bankrupt, your judgment still exists, and so does the debt. Some other company will buy up the assets of the bankrupt company.
Call and be a little coy. Tell them you are still broke, but confided in family and they are willing to help you get back on your feet. You need to know what the balances on the judgments are. Post what you learn and lets go from there.
I was Sued in another state(RI), i missed the court date so the judgment was againest me. I since moved to FL. I assume that i need to take care of that at some point. Whould that show on my credit, and then allow me to take care of it?
Hi,
i am being sued fore a Credit card bill. roughly 2k.. SHould i contact the Attorney and try to settle it before the findings hearing?
If you know the debt is yours, and your goal is to resolve this through a lump sum settlement out of court, calling the attorney to come to some agreement that they will then put in writing before you pay anything, is often the first step.
If there is more to this than that, as is often the case, post more details for more targeted feedback.
the Debt is mine, from a credit card. anything i should know before i call them later today?
If you are going to try an negotiate a settlement on the judgment, there are a ton of tips and suggestions throughout this page of the site. For specifics, answer the following:
Who got the judgment? How long ago? How much is owed on it now? Do you have specific credit or finance goals in mind for why you are trying to settle this now? How much can you come up with to offer as a settlement? Do you have other collections on your credit reports, and if so, how many? How about positive credit reports… how many are on your credit reports that you are paying on time, and what types of accounts are they (mortgage, car loan, credit card)?
Hi, I was trying to purchase a house but i need to clean up some past credit issue to bring my score up. as for this issue.. it is a $2,300 Capital One bill. I called them and told them i would pay $300 then $50 per month (for a total of $2,500) and they would just let the court know.
I do have other collections on my credit. Most from 1 1/2 – 2 years ago. I dont have a morgtage anymore ( i rent)
Postitves on the credit report would be rent, car payment for the last 11 months all paid on time.
ALSO: I was reasearching online how to defend this in court.. What are your thoughts on this? Should i work somehting out with them or try to find an inconsistcy in court with paper work?
What time frame do you have as a goal to purchase a home?
asap but more than likely 12 months. I’m getting ready to sign another lease. This will give me time to clean up stuff.
You will likely find that court action with Capital One will need to be showing as completely resolved on your credit reports before you can get a home loan approved. Any collections should be settled before you apply.
This would mean allocating more than the 50 dollars a month toward that one debt if your goal is 12 months.
It is often not worth the cost on smaller debts, that you know are yours, to try to pick apart something to undo a judgment. That is because your success with that approach is better reached working with your own attorney. That cost and risk can sometimes be about as much as it would take to settle a smaller balance.
Michael,
I just wanted to say thank you for the good info. I did call them and came up with a settlement which is a few hundred less than the original (2k vs the 2300 or 2500) which should allow me to pay off in the next 6 months.
(although the lawyers receptionist just emailed my personal info to some yahoo address. even tho it is secure it still bothers me she sent it to the wrong email).
Ty
Hi, I can’t decide whether it would be more beneficial for me to go to court or not. I got served in February for a debt that was closed in 2010, last payment was feb 2010 and that was trying to “settle” with the credit card company (Citibank) as prior to that since 2007-2009 very few if any payments were made. I got the credit card in college,
What can I say, I was young and dumb. Past few years I’ve tried cleaning up all my mistakes from when I was in my early 20’s. I had thought the debt was time barred (6 years is statute of limitations in New York) so I answered the summons from the debt collect (unifund llc- lawyers mullooly, Jeffrey, Rooney and Flynn llc out of Long Island) to provide information showing what amount was owed and last payment received as i heard that often times paper trail is lost of the years, well lucky me they had all the record that showed last payment was feb 2010 which I naturally don’t remember since it was 5 years ago but I’m sure I did. So now a court date has been set up. Balance of debt is $2,769.89 I do have the money to try to pay this in a lump sum if they can reduce it to less than $2,000. I just want this done with and do not want to make small payments for years and years and plus my income is good. My mother thinks i shouldn’t call to negotiate due to often shady harassment tactics they will probably try to use and she thinks I should just go to the court date as she’s thinking they won’t even show up (I live at least 6-8 hours away from where lawyers are located) however I am nervous that I may end up worse off going to court. My court date is next week so I need to figure this out. Do you think it would be more beneficial to try to settle out of court or in court? And of course even if I settle out of court I will get it all in writing before making any payments and as I do NOT want them to get any banking info from me is a money order the best way to pay? Thank you for any help, I don’t know what to do.
Why not try both? You could try to negotiate the pay off amount you can afford before the appearance in court, and if you cannot reach an agreement, try in front of the judge.
Money orders issued by your bank, and from your own bank account are fine. That leaves you with an easily accessible paper trail of your payment amount, date of, and date cleared. Any other type of money order can create headaches if you ever need to show proof of payment if something comes up later on.
They may send a local attorney, as 6 to 8 hours is a bit far to travel for one account. This can work for and against you in the court room.
Citibank has historically kept some of the best records and made those available to debt buyers like Unifund Partners that I can recall (since I started paying attention in the late 90’s).
Have you ever run your situation by an experienced debt collection defense attorney?
I owed a debt and the creditor obtained a judgment against me in 5/2005. The 10 years is coming due. If they don’t revive the judgment, how can I get the court to stop the garnishment?
You could call the court at that time and ask, but I doubt they will forget to renew. It is a basic function, and is not often a mistake that is made when there is no money coming in for the judgment, let alone when the debt is being paid.
I have a question in a judgement. I am in Texas. Went to court in 2008 on a credit card debt. Due to injury in a car wreck & multiple other medical issues I became 100% disabled in 2005. The judge agreed to let me pay this debt back by monthly payments to the company. It was for a Cap One card but attorney for debt collection came to court. I have never missed one payment to them since that filing – May 2008. My Mom passed a year later suddenly & I inherited a house she owned. Can this company get a lien on that property even though I am paying this judgement back faithfully? I have researches public records (shows that judgement) & the local CAD website (shows my Mom’s will probate in regards to that house). I have been unable to find any lien on this property. But an attorney told me this would have to be dealt with at closing if the property is sold. He stated that he sees the probate info but nowhere did he find me as the owner of that property. The house is in bad condition & will only sell for about 1/2 the appraised value. I am so broke & the sale of that house would help me with medical bills & living expenses. Bottom line I am just need to know if since I am making payments on that judgement can that company attach a lien to the inherited property anyway?
Thanks
Kim
It could turn up, but with your payments being as consistent as they are, and nothing having turned up to tip the collector off to a lien-able asset, I do not see it happening.
It is a good idea to cover all of this with an attorney. Make sure your questions assume there is no lien against the property. If there were a lien, you bet they are going to want the full amount still owed on the judgment.
A relative is being sued by a material supplier for about $10,000 for materials he bought for a carpentry project that he was not paid in full for. He negotiated the cost down to $8000 but don’t think he made any payments so now it’s up to $11,000 including attorney fees and now he has a court date and a threat to seize business and personal possessions. Should he contact the attorney about a payment plan before the court date? Can he avoid the lawsuit at this point? Is there any hope of getting the amount reduced again with a debt repayment plan?
The court date means he is already sued, and that cannot be avoided. There are still options to settle for less in a lump sum, or set up payments. Settling for a lump sum can often stop the case in court. Payment plans often mean the attorney will press on in court to get the judgment. This is often by consent or stipulation of the debtor, or your relative being sued.
I encourage avoiding payment plans whenever possible, but understand that it cannot be avoided in many cases.
I have no idea what to do..Apparently, in 2008, a default judgement was issued against me for a debt (credit card) from CACH (bank of america), which was being handled by Mary Jane Elliott (a lawyer). in 2010 and 2011, they seized a portion my income tax refund. I have not heard anything up to this point when I received a wage garnishment paper from my employer a week ago, which came from my local courthouse. I called Mary Jane Elliots office, and they told me they no longer have my case?! That it went to square 2 financial. My wages have not been garnished. How do I proceed from here? I never recieved a letter stating a wage garnishment was in place, and I never had the debt verified.
I live in michigan, if that helps..
Once you are sued, and a judgment entered in the court, debt verification/validation is not what it is made out to be by some.
Were you aware you were sued back in 2008?
You have options to fight the garnishment if it creates a hardship. Those options can often be found on the garnishment notice itself (your employer copy you got), or you can contact the court that the garnishment went through for more details.
How much is the judgment for?
According to the “Request and Writ for Garnishment” paper I received from my employer (which is from my local courthouse):
“Plaintiff received judgment against defendant for $2,370.87 on March 18, 2008. The total amount of judgment interest accrued to date is $1650.18. The total amount of post-judgment payments made and credits to date is $1351.00. The amount of of the unsatisfied judgment now due (including interest and costs) is $2713.05.
They signed it February 5th. It was filed with the court February 13. I received it from my work March 1st. Which is past the 14 day period to file objections…I call the lawyers name on the writ and they tell me that square 2 financial is now handling it. No garnishment has happened. I don’t remember receiving anything back in 2008, but this was 7 years ago…and they collected from my tax returns in 2010 and 2011…never heard anything since, and there was no attempt from anybody to even collect from me by phone, mail, anything.
I would call the court clerk and see what you can do now to file an objection. Ask the court to be sure, but your 14 days to request a hearing and object should not have started until notice was served.
Michael,
I have a judgment that was filed against me in NJ in 10/2008 from a hsbc best buy card that was last paid on 6/3/2006 and charged off on 12/31/06. The debt before last payment was appx. 1600$ asset acceptance llc has purchased the debt and I had received a letter regarding a wage execution for wage garnishment. The current judgment is 4748$. I sent a certified letter stating I was disputing the collection amount and requested that no garnishment take place. I received a letter the evening before court that asset acceptance in response to my communication disputing the account have opened an investigation concerning the dispute and were ceasing all collection efforts until the conclusion of the investigation. I did go to court without representation the following day and asset acceptance did not appear. Unfortunately I did not have any documentation regarding the original debt and the judge did not seem to care about that any way. He stated the amount of the initial judgment and the fees associated with asset acceptance attorney fees, interest, ect.. and that there is nothing that he could do to help me. The court clerk however did not have any more documentation for the garnishment though. Could this could be due to the letter that I sent them regarding the dispute? The judge suggested that I give asset acceptance a call and try to work something out. Do you have any advice or a time frame for when they will actually garnish my wages. 10% garnishment could be the straw that broke the camels back..
The judges hands would be tied in most scenarios if you were appearing about a prior court judgment.
Did you even know about being sued originally back in 2008?
Have you talked with anyone on the Asset Acceptance side of this, and if so, when was that?
When was the date of your dispute letter to Asset that you sent?
I did know about the lawsuit in 2008, however at the time I was unemployed and not able to keep up with any payments at all. I was unaware of the ramifications of the judgment at the time as well, or else I would have tried to do something then and at the very least show up to court (hindsight 20/20) I have not spoken with anyone at asset acceptance yet. I was under the impression that if they did not show up for the motion hearing, that there was a chance that it would get thrown out. I sent the dispute letter on 1/21/15, and it was within the time frame set forth by asset acceptance for any dispute. I still received a court date in the mail anyway. I received on 2/2/15 a letter about the dispute from asset acceptance dated 2/24/15 and it said in the interim they are ceasing all collection efforts until the conclusion of the investigation. The next day I went to court, and the clerk didn’t have anything about the garnishment, but again the judge made it clear that he was siding with the plaintiff and that it would be a good idea that I contact them and try and work something out. I feel like I am in legal limbo, at least for the short term. I am just looking for a little advice before I contact asset acceptance and see what if anything we can work out.
The judgment was in place long before these recent events, and the judge you just appeared in front of does not seem to see any limbo. From what you shared, it sounds to me like Asset Acceptance put a pause on any extra ordinary collection options they have while they look into your dispute. They may be doing all of this in the abundance of caution.
You really should come up with a plan to resolve the debt.
How much money can you pull together as an offer to settle this for less than what is owed today?
I may be able to come up with 25% at most. Even that would be a stretch at this point
You will be hard pressed to settle a judgement with anyone for 25 percent. I have done some that low before, but the situations were set up well (fixed income, no assets, no way returning to work again).