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.
I have a judgment against for land in Florida. I did not show up for court and never respond to the letters. what can I do?
How old is the judgment, and what is the amount owed? Who was the named plaintiff that sued you?
In 2004 my life blew up and as much as I wanted to stay current on credit card debt, it was literally impossible. Aside from family challenges with my son’s health issues, my own health crashed and so did my business. I was self employed at the time. I literally went underground for many years dealing with life issues. Slowly but surely, I have dug out of the cesspool and am re-building my life/credit almost 13 years later. I checked on Credit Karma and was shocked that my score was 771., no collections or other derogatory comments posted. Especially given that I’ve paid cash for everything for over 15 years I was amazed at the 771 score.
As a result of being approved for a few credit cards, I guess I am now on the radar of old credit card debt. I’ve received two letters and one debt has refiled a lien this year. The original was filed in CA in 2005 (which is 10 years or so).. The majority of the debt is now interest. The original debt was obscenely less. What do you recommend I do at this point? I don’t want to damage the progress I’ve made. At this point, if I contacted them, I fear that it will open up a Pandora’s box of problems. At almost 62 years old and living month to month with no savings, I can’t afford to make a bad decision. Your guidance and help would be greatly appreciated
I do have a close friend that is a very good attorney. I’m sure if I asked, he would draft a cease and desist letter. Would you recommend this? If not, what SHOULD I do?
Thank you……
I would not recommend sending a cease and desist letter to someone collecting on a judgment. What is the balance owed? Who was the plaintiff in the collection suit originally? Who is the debt collector contacting you now?
I typically would want to put a strategy together to settle a judgment debt this old when possible.
I have a question, discover card is pending a judgement against me for 1,998.87… I had stopped paying in April cause i couldn’t afford to pay them now their seeking judgement against me unless i make payment arrangements by nov 30, I’ve tried calling to make payment arrangements for 10 or 15 dollars a month they refused saying they can’t go no lower than 29 dollars but i have no income at all pending ssi claim and they won’t work with me with any payment arrangements i was told to call back by Nov 30 with a bank account number for them to get they’re 29 dollars every month, if i can’t then they’re seeking legal action against me what can i do???? I have no income at all i stay with my brother… please can someone give me any advice?
Sometimes there is nothing to do until your situation improves to the point you can offer a monthly payment the creditor will take, or offer a settlement for a lump sum when you have the money.
It sounds like your options could improve in the near future. If you can pull roughly 50% of the balance owed together, I would target that as a settlement, and regardless of whether you are in court or not at that time.
how long does it take before a judgment creditor will find out if I get an inheritance
The may never depending on how you handle it, or whether they ever go through the process of a debtor examination where you can be hauled into court to talk about your assets and income under oath.
I deleted your last name for your comment. You can call me to cover your concern in more detail if you like at 800-939-8357, option 2 will ring to me.
Went through a divorce, stopped making payments on Discover card a few years back. It was until I saw on my credit report that there was a judgment on me. I found the case and they had my old addresses so I never received any notice. Judgment was signed and closed and I owe them 15,000 plus. I would like to have a settlement. I consulted a lawyer and they will charge 2000 to settle my case to about 50%. Can I just call the law firm myself and ask for a settlement and save me 2,000? Can I ask them to remove from credit report? Thank you
You will not be able to get Discover or the collection attorney working with them to remove the judgment or the original charge off from your credit reports. You will be able to get them to update both of these entries as paid and satisfied.
You will typically find that you must negotiate the settlement with the attorney for Discover. The only exception is if the account was recalled and Discover hasn’t placed the judgment with a new firm for collection.
You can call the attorney and negotiate yourself. 50% is a realistic target in many of these cases. Who is the law firm handling this for Discover? Are you able to raise the money needed to pay your settlement?
thank you in advance for your help
I live in Texas, I had court a week ago for a credit card lawsuit, this is a card where I owe, 4,700 , I took my divorce decree where it states that my exwife is responsible for that card, but the judge said it doesn’t help me, so I lost, and they obtained a judgement against me , the lawyer was Melvin Thathiah, what can I do? I only have a part time job making 1,000 a month, I have my house that Im paying to the bank where I owe 75,000 and its worth 90 k , and I have two older cars 2005 and 2002 , can they take my cars ? can they put a lien on my house? what should I do? thank you very much
Wages are exempt from garnishment in Texas.
Texas protects the value of one family car in excess of what your old vehicles are probably worth.
Your home is protected from judgment creditors no matter the value in Texas, but there are some restrictions that can come into play if you have over certain acreage.
Your exposure to a debt collector with a judgment in Texas will often come down to cash on deposit in your bank account.
On August 14, 2015 I found out, while applying for a mortgage, that a judgement had been issued against me and I had a lien filed as a result. This was from over 10 years ago but I called and settled and paid them in full at that time. The check cleared my account on August 17, 2015 and I was suppose to close on my home yesterday and because of this lien not being released by closing is delayed until it is cleared. I have called multiple times and nothing is being done. How long does this attorney’s office have to release this lien before they are violating laws? It has been over 30 days and they have admitted they have not sent the paper work to release the lien as of yet. I have a letter from their company stating that I have paid and my case will be closed but nothing has been done. What are my rights? This judgement was filed in WV but I currently reside in Texas. Please help
What is the name of the debt collection law firm? Knowing who the firm is would help me recognize if you are dealing with a collector that is know for delays.
There is usually a standard for updating the courts on any new developments for an existing case. You could file complaints with the state bar, but I am not sure 30 days would register as anything actionable.
Michael,
Thank you so much for this service! I have just received a “Very pleasent” letter from MCM informing me that my “account has a new home.” and the my “experience with MCM will be different…” Ohh, boy.
$22,500 in Credit card debt with FIA Card services as the original Creditor.
Last Payment Date as 7-12-2011
Washington State.
I’m self-employed, and really have no way to pay this debt off anytime soon. Even small monthly payments would be an excessive burden.
What is the SOL in Washington? I have read some reports that it is 3 years, others say 6.
At this point I’m mostly concerned with being sued and having bank accounts levied.
Advice or thoughts? .
You have a 6 year SOL on credit card debts in Washington.
With your main concern being the prevention of being sued I would look into negotiating a settlement or filing chapter 7 bankruptcy.
Are there other unpaid debts out there, and if so, how much more?
Give me a call to discuss your options with negotiating or filing chapter 7 bankruptcy JP. You can reach me at 800-939-8357, choose option 2.
I Seriously doubt their record of “the last payment.” I think it was a few years early. Can I/should I ask them to prove that date?
What does the original creditor show as the date you last paid on your credit reports?
Michael, about three-four years ago, I had a judgement against me for $17,500 from a credit union for credit card debt. Only $12,000 of that is principal and the rest is fees, which is outrageous. They got a judgement against me, I was unaware I was being sued and never received any notification of a court date or anything. regardless, I owed the money although the fees are crazy.
I am in a much, much better position now and want to settle the debt. I called the credit union and they pushed me off to an attorney and the CU would not even speak to me about it even though I’m wanting to pay. I’ve made offers to the attorney (7500) and they will not respond to me, return phone calls, or anything. I’m willing to do more if needed but can’t do $17k. Do I have any rights? Can they just ignore me or any advice you might have?
What state are you in?
Alabama
I am going to send you an email with contact details to an experienced debt collection defense attorney in Alabama that offers a no cost initial consult.
I would recommend you first talk about whether your courts will entertain setting aside or vacating a judgment this many years after the fact. If that strategy has a history of success in Alabama courts it is what I would likely start with. Ask the attorney for a referral if he does not handle that type of case, or is too far away from you.
If that is not an advisable course of action, you may want to enlist his help with contacting the other attorney and negotiating the settlement on the judgment.
I received a judgment almost 2 years ago from a collection agency/ law firm. They actually served a family member of mine with the judgment after she verified that she in fact was not who the asked for. I never received a summons or a complaint or anything just letter stating that they were trying to settle the debt and then bam my credit dropped 200 points and I have a legal item on my credit. I cannot purchase a car or home because of this, I watched your video about not emailing with the collection company but I have emailed them and we have reached a settlement but my fear is that I will pay and nothing will happen to positively affect my credit, Should I settle? Should I fight it since they served a family member who was not listed on the account?
Serving someone over the age of 16 is often not going to be a problem. There are perhaps other concerns with how this went down, but challenging the legitimacy of an existing judgment is an uphill path with no guarantee of the outcome. Settling will put things to rest.
Whether or not settling a judgment debt will have an immediate impact on your credit score is not what I would focus on. An unpaid judgment can result in wage garnishment, a frozen or levied bank account, and property liens. You could be turned down for a home loan, and other credit, long after the judgment falls off your credit reports from age.
What is the name of the collection firm handling your settlement?
I contacted the lawyers that filed the complaint and they told me that even if we settle, if I am making payments they will continue to pursue the judgment lien.
I am considering defending myself in court to try to get a dismissal since I am unemployed, had cancer and two surgeries last year. I am also mentally ill and take meds for that.
What are my chances?
I live in Ohio.
The debt is owed to a Teacher’s Credit Union.
Your odds of winning a dismissal are not great. On the flip side, the odds of creditors collecting on judgments they get are not great.
Hello,
A judgment was entered against me in 2005-2006 because I could not attend the hearing. The company is National Check Bureau. Over 10 years I have paid them over $13,000 dollars in payments. I now only owe post judgment cost. Post Judgment cost is still a lot. I went to court and the judge told the company they need to try to work out a settlement offer with me. They renewed the debt for another 10 years. How should I go about trying to get them to settle? Bankruptcy is not an option. I have no accounts in collections at all. I just don’t want to pay them for another 10 years.
Are they garnishing you in anyway? If not, call me and lets discuss some ways you can get them to settle. You can reach me at 800-939-8357, choose option 2.
I’m in the process in negotiation with a law firm that working with a big commercial bank that I use to have a credit card debt. They were suing me but have now started to negotiated with me and my lawyer. How does the negotiation process works? If you turn down the first offer and counter offer do they recounter again and do this back and forward until we agree or a lot of times when you counter with a lower offer they stop all together and continue the lawsuit on the debt. The law firm does this a lot with big commercial banks a lot with debts.
I need more to go on Chris. Who is the bank suing? What collection law firm are they using? What is the balance owed? Have you filed an answer to the lawsuit already?
The bank is Bank of America and the firm is FJ Hanna. The debt is about $5000 and did deny the I owe the money. They email my lawyer for almost the amount I owe. I counter with a lot lower amount about 30% of the debt. I’m waiting on an answer if they will take the offer.
The process for negotiating when sued is helped when you file an answer denying claims and otherwise put on a defense. The process with your attorney negotiating is not much different than if you or I were. It is often going to be an offer/counter offer scenario, and sometimes a “go dark” period while the court case progresses.
30% is not a gimme when trying to settle with Hanna and Associates. Keep me posted with how this progresses for you.
My lawyer reach out again today and waiting on a reply back if they accept or decline the offer. He told me that this firm frequently takes there time to give answer.
Would there be any reason why Hanna would decide to stop any negotiation and take me to court when they already gave me a bad offer?
They are already in court with you, and these situations can progress to pretrial hearings and even a full blown trial. I would not anticipate that with your situation.
Hello, I live in NJ and I was sent a letter from a lawyer representing Midland Funding that a judgement had been entered against me. The cover letter states ‘Civil Action Information Subpoena”. Which I have filled out because I had 14 days to do so or they will hold me in contempt.
My debt is from 9 years ago, but because I had made a payment on it in 2012 it passed the SOL. The balanced owed is $2,000. I don’t work, I don’t own anything, and I don’t have any source of income, my bank account was a joint one with my son and I completely closed it. I co-signed in 2006 a car for my son and it is paid in full since 2012. I have recently turned over the title to my son and removed my name from the title.
I have no idea how I am going to pay a debt when I have nothing. A family member offered to help by giving me $600 and when I suggested this to the lawyers they said NO, they wanted $1500 of the $2000 I owe. O well, I really have no idea what to do from here. I am broke and have nothing.
Can anything else happen to me?
It does sound like you are uncollectable. Do you have any expectation that your situation will turn around? Midland is one of few debt collectors that will walk away from legitimate collections if your hardship suggests you will never be able to pay.
Hi Michael,
I’m being sued by BoA (Frederick J Hanna) almost 2 months ago for a credit card debt that I stop paying over 2 years ago. I’m living Atlanta, GA. The debt is for $4.4k. I got an attorney to try to negotiation a settlement. Well, they send a letter to Frederick J Hanna and no response and yesterday they are going to send a letter again. I answer the summon and deny the lawsuit. I got a court date in 3 weeks and want to know what I should do next.
I feel like Frederick J Hanna will not answer the letter and will most likely go to court which I don’t want to. The letter that my lawyer send put in $950 for settle which by reading and watching seem like its really low. I also have other debts and student loans but which is about $14k (medical bills).
What should I be doing now that I have only 3 weeks before my court date? I call my lawyer and they his paralegal send an email telling me about the second letter was set out.
Thanks!
I like using the phone to negotiate these things, and once the deal is agreed to, then getting everything in writing.
The $950.00 offer is a bit low for the situation from my experiences.
Is your attorney preparing for the hearing? Is he/she an experienced debt collection defense attorney?
No, he is only negotiating a settlement and the paper work if it goes that far. If it comes to the 27th of this month then I would have to go to court to do it myself. It’s something I’m worry about because if it comes down to it. I would rather pay it in full without going to court because I know I will lose and don’t want to pay interest and lawyer fees.
I already paid $400 for my lawyer to negotiated but it seem like he is only going to see a few letters to Hanna to settle it.
I would like to know what I should do now? I try to called BoA to see if I could settle it with them but I could never get to the right place over the phone to find out. I don’t even know if they sell the deal to F Hanna.
I try to call my lawyer but now I’m getting an email from the paralegal saying they send a second letter. It’s find but I also would like to know what I should do between today and the court date if they don’t respond to the letter to settle.
If BofA is the named plaintiff in your lawsuit, and still show a balance due to them on your credit reports, they are likely still the owner of your debt. Calling them will just lead to being referred back to Frederick Hanna and Associates. The same thing would occur if BofA sold the debt. The collection law firm is driving the bus.
I do not have much faith in the letter writing process at this stage of collection, and that goes for when attorneys are involved too. If it were me I would first be sure I can afford a 50%-ish settlement and then tell my attorney to get the deal set up, and not just with a letter, but a phone call to the debt collectors. Hanna and Associates negotiates settlement on the phone every day. It is both a common and simple process. If your attorney can’t or won’t pursue getting this settled with more than sending a couple of letter, I would suggest you hired the wrong one.
I can refer you to attorneys in Georgia who regularly deal with Hanna and Associates if you like?
Yes, if you can referred me to a different attorney that deal with Hanna an d Associates then it would be more helpful.
I sent you an email with a few attorneys listed in no particular order. All will have experience dealing with Hanna and Associates, and will likely offer a no cost initial consult.
Thank you for give the list of lawyer that have deal with Hanna before in my area. The lawyer I pick has deals with Hanna thousands of times and always has a good result
I told whats going on with to the new lawyer. He told me that almost all the his cases never goes to trial. Last month all 30 cases got a settlement or dismiss. He did see my paper work yet because I’m going to drop off my documents and contract to the lawyer on my lunch break. But he told me that the best would happen is that my case will be dismiss or the worst case is that I would have to settle at 50% without having any judgement on my credit report.
When I told my old lawyer that I was letting him go that, I could always go to court and try to settle it there and show the lawyer letter that is trying to settle it. The judge would settle it there or try to work it out of court with my old lawyer. My question is would try to settle it there or with my lawyer if I go to court or they will try to get a judgement there and move on?
I cannot know what your first lawyer would accomplish in court with you, but it sounds like not much if he has not prepared discovery and other defense strategies. I like the direction you are taking with the new, and experienced debt defense attorney.
Please let me know haw this all progresses and what the outcome is.
Feel stupid now because my old attorney just send me an email saying that they want to settle the debt and offer 80 cent on the dollar. Should I take it or should I ask for less? I ask that question to my old lawyer and I’m waiting for a response.
I don’t know how long this negotiation takes when they start.
I’m just glad I didn’t yield at the lawyer on the phone or anything. I just wanted to get some answer and didn’t get a call back over 3 days and 6 days from email.
I would be shooting for lower than that if it were me.
I send the offer to Hanna for a lower amount to settle the offer yesterday. In general. how long until they accept or declined the offer? I would think it would go really fast as in the same day or in a few hours. Just because they have a lot of debt with other people.
Thx
I can go back and forth with Hanna and Associates several times in a day. It can also take several days to get a decision. It really can be a mixed bag.
If I am working a file and know I am close to what should get approved I will often not wait to hear from them if it has already been a day or three. I will often be proactive and check back,but always by phone.
They counter off for 64 cent on the dollar of the debt. I would pay half of it in 30 days and pay the rest in 10 months of $150/per month. I would like to know if this is my best offer or I should try to get it down lower?
I don’t like the fact that I would have to deal with Hanna each month and would rather pay it off in full and move on with my life.
Thank you for your information. I will call him and leave a message and see if he will do that. I’m a shy person and don’t like to push anyone to do something but if this will keep me out of court and pay less then I will need to suck it up and do it.
Thx
Hi Michael, great website.
My wife has a Capital One CC that was sold to a collection agency after we tried to negotiate a settlement amount in 2011. We did not hear from a collections agency for almost 4 years until just recently (Cavalry Portfolio Services). Since I am active duty military, we sent a request to invoke our rights under the Service Members Civil Relief Act. Almost immediately after, she was served a notice to appear at pretrial mediation.I would like to settle the debt and get it off our shoulders.
My question is this: is it too late to request a settlement amount, or does she have to attend the mediation? Also, under the SCRA the interest rate on the card should have been capped at 6%, should I factor this into the settlement offer? The original debt was $3200, last payment was in March 2011, and we are in FL.
What part of Florida? I would encourage you to talk about your situation with the right attorney and determine if there are any violations of the SCRA before you do anything. I can email you contact details to experienced debt defense attorneys if I know the name of a larger city near you, or you can locate one with the experience you need here.
Settling with Cavalry at this stage of collection is doable. I would not focus on the fees and charges being accurate if your only goal is settlement. That is just semantics when your goal is to settle for a set amount of money that you can afford, and that they will accept. Needling away at the balance, and how it was determined, is worthwhile when you are defending the suit to dismissal or a bang out settlement. But talk over any of that in a free consult with the attorney(s) I send you.
I have about $18,000 in judgements against my home. I am in college and get student refunds on student loans. I am thinking that after I finish college I will have a substantial bill to pay back; so does it make sense to use my student loan refunds to pay off the judgements so that I can refinance my home before having to pay back my student loan?
Also, my husband passed last Feb. He had bought a new car only in his name on the debt and title. If I don’t pay off his car loan can I have a judgement placed against my house in Virginia?
Call me for a phone consult at 800-939-8357 and choose option 2. I have more questions than answers and can economize my feedback after I get a clearer picture of your finances and goals.
In 7/2006 Capital One got a default judgement in the amount of $750. I filed Chp 13 in 8/2006 but that was dismissed in 8/2009. The Default judgement as of 7/2015 comes to $2,300. The law firm of Brumbaugh & Quandahl have never attempted to collect on this judgement, no lien on my home property, my bank account has never been levied, and no garnishments have been started. I live in Nebraska, and I know the judgement went dormant after 5 years with their option to renew it. There has been no contact to settle the judgement.. I have not received anything that says the judgement was renewed. This is not on my credit reports any more.
How should I go about settling this – contact Brumbaugh and Quandahl, Capital One, or go through my own attorney? I don’t know how collectible I look currently. I have $157K in student loan debt, $10K in current credit card bills, and $6K on a car loan. I do not want to get back on their radar any sooner than I have too.
thanks for your thoughts!
First pull up the court record and see if they bothered to renew the judgment. You have options to consider if they did not renew.
Post what you learn and lets go from there.
If calling and negotiating a settlement makes sense, can you pull together half of the $2,300.00 owed?
Hey Michael. I have been self employed since 2003. Starting in 2005 I had several slow years. I couldn’t make payments on my credit cards and had 3 default judgements against me. In Feb 2007 I went to court for a discover card I was behind on. I talked with the lawyer for the credit card company and thought we had monthly payments set up of just over $200 a month. I assumed they were going to send me the paper work in the mail to get it started. Evidently I was supposed to go back to court in 30 days and I didn’t so I got the default judgement against me. Their lawyers were Nathan & Nathan from Birmingham Al. and the default judgement plus court cost was $5180. In Sept 2008 they garnished a savings account I had of $2000. That left a balance of $3492 not counting any interest. The last papers I got from them was for garnishment in 3-1-13. After taking off the $2000 credit they said my balance including other cost was $6987. I checked my credit report in June 2015 and this discover default judgement is no longer listed on my credit report. What does that mean? In 3-4-2009 I had a default judgement against me from a citibank card of $6058 not including court cost. Their lawyers are Zarazur & Schwartz from Birmingham Al. I have gotten no other papers from them that I can find. In April 2009 I had a default judgement against me from Capital One bank for $1263 including court cost. Their layers are Hollaway & Moxley of Montgomery Al. On 4-29-10 they garnished $170 from my checking account. In Sept. 2011 I set up monthly of $58. I made those for 10 months ($585 total) before I got behind & couldn’t make any more. I got garnishment papers on 5-12-15 that shows I have a balance of $998. I have a mortgage payment of $344/month that I am keeping up to date. I am still self employed and my business dose not make a lot of profit but I have enough saved up to pay the least balance on the capital one card and maybe one other depending on what percentage they will settle for. I have also been paying monthly($155) on a couple of delinquent sales tax & personal income tax that I had gotten behind on. I got one paid off and still owe $900 on the other but I could possibly pay it off now. I hope I have made this understandable without being too long. I look forward to hearing form you. Thanks
My main question is what % of the total balance should I try to aim for in my negotiations on each of the cards.
Judgements are like other derogatory information that will drop from credit reports after enough time passes. In this case the judgment fell off your credit after 7 years. But the debt did not go anywhere or lose any of its legal enforcement. It is still collectable.
Done correctly, I think you can get all of them settled for roughly half of the balance owed today (not including the state and federal tax debts).
If you need help let me know.
I was served a Civil Warrant from Midland Funding on 5/27/15. This is regarding a Chase Bank credit card with an amount owed of $2,251.85. I was told by the server to contact the # on the warrant which is for Fenton & McGarvey Law Firm in KY if I wanted to discuss & avoid going to court. I am a resident of TN. I contacted the attorney’s office & explained I don’t remember having a Chase Card. She told me the card was opened in 2008 & written off 2010. Long story short, I have spoken with them 3 times. Asked them to send documentation from the account which I thought was being mailed. When I called back yesterday, I was told I won’t receive those documents for 30-60 days. The court date is 6/18/15. I decided to set up monthly payments because I do not want to go to court. I have panic/anxiety issues & I can’t physically or mentally deal with going to court. I gave my checking acct info for the 1st payment & am to call back to pay each mth. Once I did that, I asked if this eliminated the need for court & her response was “I am not an attorney, I’m a representative only. I can’t tell you not to go to court. I can tell you that your obligation to us has been satisfied with this payment arrangement”. I’m now wondering if I’ve made a huge mistake & if I’ve truly saved myself from court? Your help is appreciated!
Are you being sued in Tennessee (just want to confirm as your comment could be read to say you are being sued in Kentucky)?
If you are being sued in the correct court, and you offered up a monthly payment in the hopes that doing so ended the court action, it usually won’t. If you do nothing formal with the court (usually file an answer to the complaint as a start), you will usually end up with a judgment against you, and that generally ends up on your credit reports later.