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.
Need some personalized help?
If you would like confidential help you can use any of the boxes below to connect with me. You can also post in the comments below for feedback. I answer those regularly.
Not sure where to start? Click on the big blue “Get Debt Help” button at the top of the page.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Hi Michael,
I appreciate any help you can provide to me. I was served for credit card debt. I reached out to the attorney’s office that is handling the case and attempted to set up a payment plan. I stressed to the representative that I am wanting to pay for my obligation but wanted to be sure there would be NO judgement against me in any form. The phone rep advised I could pay the debt in full in 5months time and no judgement would be placed. I outlined the dates and payments and asked for our agreement to be in writing. That call was on 2/17/16 and I haven’t received anything via mail or email. I made a payment on their website since then.
I have received new information from a 3rd party debt negotiator/ collector. I think this person pulls the docket and mails postcards to the people being sued in attempt to gain their business. She advises that I should not have to pay 100% of debt and that more than likely although I informed the phone rep that I don’t want a judgement and want to pay that the attorney’s office will indeed be filing some type of judgement with the courts to prevent the lawsuit from going through while I make payments.
I am past the date to file an answer. At this point I’d like to call and make offer for PIF. Amount owed is $2650. I’d like to offer them a $1300 payment with no judgment. How do I make this happen?
Thanks again,
Jessica
Who is the collection law firm involved? Who are they suing on behalf of (who is the named plaintiff)?
I can offer better feedback if I know that information.
About 20 years ago, I did have a credit card and it was a mess. It was a bait and switch, then a holding of the checks so that I would be charged a late fee, and an over the limit fee. And then the interest was changed to an enormous amount, and I was told the company changed and I could do nothing, just deal with it. I did quit paying. Fast forward, my joint bank account was levied, but since I no longer work and have been ill for years it is only my husband who has direct deposit, and he is not the debtor, so the levy had to be lifted. The judge told my husband during a hearing that a judgement against me was served in 2006. I went back to see where I was in 2006 that particular month, because I don’t recall ever receiving such, and I have always maintained that this debt has expired, or reached the SOL, but I never knew a judgement was entered. So, long story short, I found out that the judgement was done on a day, and month, that I was not in the country, and during a time I was not in the state, weeks after that. I live in NJ. I keep reading that the judgement does not have to be served, but I think it is wrong if it is not properly served, particularly if I was not present. I want to now file a motion to vacate the defaulted judgement, based on what I just found out, ten years later. Do I have a case here, as the debt is 20 years old.
It is extremely difficult to vacate a judgment that old. I would look for advice from an experienced debt defense attorney in New Jersey. Find out if there is any history of a case like yours getting vacated in your state. I can send you a list of attorneys with the experience you need if you like?
Hi Michael,
I wanted to start off by saying thank you for providing an open forum allowing those dealing with debt to seek honest feedback in resolving their issues through shared experiences.
I currently have 2 past judgments (that I know of) against me which was a past result of being a young adult, having poor judgment and financial difficulties. The snowball effect of late and over-limit charges combined with high interest rates that left me unable to make payments and default.
Recently, I have been working on building my credit back-up and was making progress by acquiring several credit cards in good standing. I retrieved a copy of my credit report and it currently does not show any judgments or derogatory remarks, but will still need some time to rebuild.
Unfortunately my bank account was recently levied which has caused a lot of stress and concern about my current situation. I know Judgment Creditors can submit a writ of execution any time and continue to levy my bank account until the balances are paid off.
I am not gainfully employed and am paid as a private contractor which negates their ability to garnish my wages.
With that said, I wanted to know how to address the questions I have below:
1.) Who would be best to contact to discuss a possible settlement, the Judgment Creditors or their lawyers?
2.) Would it be better to start negotiations by phone or only contact through written correspondence (email or hard mail)?
3.) Would initiating contact with the Judgment Creditors reinstate the records to show up on my credit report?
4.) My only asset is a car I own outright worth 10k-12k. I know Judgment Creditors have the ability to obtain a writ of execution to levy my car and have it sold. This is extremely concerning since I live in California and having a car is essential for progress. If I didn’t have this asset in my name, would it help with negotiations? What is the likelihood of my car being levied given the Judgment Creditors information I have detailed below?
Judgment Creditor: Cach, LLC
Original Creditor: Bank of America
Lawyers: Mandarich Law Group, LLP
Judgment Amount 5/25/10: $5983
Balance as of 12/10/15: $9177.72
Levy 1/27/16: $604.62
Daily Interest: $1.63
Current Balance 2/26/16: ~$8.7k
_________________________________________________
Judgment Creditor: Asset Acceptance, LLC
Original Creditor: CitiBank
Judgment Amount 2/27/12: $2,759.17
Daily Interest: $0.76
Current Balance: ~3.8k
I look forward to hearing from you with any advice or help that can be provided through this forum.
Thank you.
You typically need to contact the attorney for the creditor/plaintiff in order to negotiate a settlement. Really old judgments with now collection activity on them can be an exception, but in your case, there is an attorney actively collecting, so that is where you start.
I prefer negotiations over the phone until an agreement is reached. Then you get stuff in writing.
I would focus on building up cash flow to settle both judgments. They aren’t going anywhere, and they are likely growing with judgment interest (capped at 10% in California). You may want to set up an entity and get an EIN number and do your consulting/contacting through it until you resolve the judgments.
Yours is a situation where I might target 50% settlements.
Nothing can legitimately cause an aged off item on your credit reports to reappear. That applies to 7 plus year old judgments too.
I do not think your car is at risk from Asset Acceptance or Cach LLC.
Thanks again, Provided i do have the documentation, do you think i still need to appear in court?
I would if it were me, but most people would not want to or need to at that point.
Good Morning Michael,
I have filing against me for a credit card debt, my case is scheduled for March 14th however i have already entered into a payment plan with the company and made a payment in February. Do i still need to appear in court? The company wont provide me an answer?
Thanks
Do you have the payment agreement in writing? How long does the agreement go for? Who is it that you are dealing with?
Thanks for the quick response, Midland Funding LLC, claims the mailed out a copy of the agreement on March 1st, its 4 payments over the next 4 months with February being the first payment. I also didnt return my notice to defend to the court because i had entered into the payment agreement prior to being served
Midland is pretty good at providing documentation. Some of the contract attorneys for Midland could improve in this area. You should have the documentation well before the hearing date though.
Post an update if you don’t by the 10th.
I had a levy placed on my joint account with my husband from the attorneys of American General Finance. The debt was from September 2007, but I was never served or summoned. I’m waiting to confirm through civil records if they had the correct address on file to consider vacating the judgement. I heard it was too old for that. Also, doesn’t statute of limitations apply? Nevertheless, do I still have a chance to settle this judgement considering there’s already a levy on our account? This is also a debt previous to my marriage, so is my husband responsible for this debt too? I filed a claim of exemption stating those funds are for life necessities and that it consisted of our wages. The attorney replied with the same writ and addressed it to my husband as the 3rd party. Can I file a motion to make payments or even to settle for less than the total judgement which is about $8000. We just had some major expenses these last few months, including a medical surgery and a new mortgage that is taking up our reserves. Would that be considered a hardship? I have about 9 days to reply before the sheriff releases the funds to the creditor.
Do I have a better chance of settling for less or offering a lump sum which would be less than the total judgement? Is the option of vacating the judgement possible under bad service or statue of limitations considering how old this judgement is (Sept 2007)?
Let me know what you learn about the address for where service supposedly took place and who the law firm and attorney was that sued.
It is difficult, and sometimes impossible, to vacate a judgment this old. What state are you in?
There is a separate SOL for court judgments, and they can often be renewed.
You can work out payments after the smoke clears from the bank levy. You can remove your name from the joint bank account too. I would look to come up with a lump sum to offer as a settlement if it were me (and if I could gather the money). This would mean getting this behind me quickly and for whatever savings off the balance I could negotiate. If you qualify for some or all of that money that was levied to be returned to you, your ability to negotiate a better settlement, or payments, will often improve.
They sent me the first service & 30 day summons of the judgement to an old address July 2007. I know this for a fact because I was already at my current address at that time, living with my husband. Then they sent another notice in September 2015 to where I currently live, which we never saw. I verified with records that it was just sent normal mail so it may have got lost in the junk mail. Don’t we have to sign for these things? If I was aware of this at the time, I would have addressed it then.
The judgement was entered on Sept 2007. I thought there was a SOL for the original debt prior to it getting to judgement status?
I’m in California and LVNV Funding is the assignee and the Robert Colclough is the attorney that had filed this judgement. They also opposed the claim of exemption I submitted and set a court date March 29, stating my exemptions are not applicable. I stated that per the specific civil code, that the levy consisted our wages and affirmed that in the declaration that our reserves have been tapped into after this levy, along with our medical expenses of a c-section and a new mortgage we acquired this Feb 2016. I did provide a financial worksheet disclosing my income and my husband’s. He’s the bread winner. Is that not sufficient for a claim of exemption based on the the codes covering wages and earnings.
Also, it stated that the creditor would not need to appear at the hearing and submits the issue on the papers filed with the court. So how would I settle the amount, provided that we get back some of the money levied after the hearing?
We would much rather offer a lump sum, being the original balance was $4787 but with fees and interest the judgement is for $8700. What have you seen as a good target # to settle at?
Also, with the 3rd party addressed to my husband, does he need to also file a claim of exemption as well stating that was his $? The sheriff stated it was just to inform him because he was on the account.
If you are up to it, I want to send you contact details to an attorney in California that has had success vacating older judgments. Let me know and I will email you that. I would want you to start with exploring that, and then work backward to settling if need be.
I would be absolutely open to that. I appreciate you helping people out such as myself. We need more individuals such as yourself out in this world. 🙂
Meanwhile, should my husband still file a 3rd party claim of exemption considering it was mailed out to us on February 24th? However, I stopped by the self help legal services people at the courthouse and they weren’t certain themselves of why the 3rd party notice was sent out and gave me a 3rd party claim of exemption if we wanted to file one just in case.
Thank you so much again for your help!
P.S. You have my email since I submitted it below this comment correct?
Yes, I used that email address just now. Let me know how it goes.
If your husband is not the debtor, and you can prove the direct deposits all belong to him, this is on a bank levy, then they have to release the levy. But you have to prove that he is a non-debtor, and that all the money in the bank account belongs to him. He would have to file a motion to vacate the levy, as an injured party to a debt that is not in his name Each state varies, but you should do your research on the internet to see what rights your spouse has as a non-debtor, keeping in mind that you are, usually, given only 10 days to file the motion to vacate the levy.
I have a judgement against me that has been renewed. I live in CA and the already renewed judgement will reach the 10 year mark in 3 years. The debt is from a credit card that I used during a medical emergency. I was on SSDI for 14 years and am now off of it for 1 1/2 years. Since then I have a job with earnings just above minimum wage, $11.40 hr. and use Medi-Cal (Medicaid) as my health care provider and am 56 yrs old. In this last year I have received several credit card offers and am using them again and do not own a home.
Since this judgement has already been renewed once and I am able to live somewhat comfortably with little debt, I also owe SSDI an overpayment amount of $30,000, however they have not been pursuing payment for about a year. My credit score is in the mid-600s and I will probably be needing a new car in the near future.
I was just contacted by phone from the creditor with the judgement and they are beginning to negotiate for payment. Any advice is very much appreciated.
Who is the judgment debt in favor of, and what is the balance now?
50% is an optimistic and still realistic target for a lump sum settlement when dealing with some judgments. The more of a collection target you are viewed as, the less likely it is to save half.
There are files I have negotiated and/or coached people to settle for less than half. Your recent fixed income situation is one of the better scenarios to be in where judgment creditors have been more flexible.
You are able to come up with half the amount owed today in a lump sum?
Hey there!
If I’m being sued in Georgia (where I lived when I had th credit card) and have a judgement against me and now live in Florida
Should I be going by the rules of Georgia or Florida as far as fighting the judgment and how they can garnish me get liens etc.
You should connect with an experienced debt collection defense attorney in both areas.
Generally speaking, you would fight the legitimacy of the judgment in Georgia and/or Florida if the foreign judgment has been recognized in a Florida court.
Your exemptions from garnishment and liens would typically be drawn from Florida consumer protection laws.
Hasn’t been recognized in the Fl
Courts. Only the Georgia courts.
This debt is from early 2000s.
I work in Florida but the judgement is from a Ga court system.
Okay, thanks. Do you want to resolve the debt? Your prior post mentioned fighting it. What are your goals?
Good afternoon, Michael: I had an old credit card that was never resolved due to an inability to pay after a rough divorce with lack of finances with being a middle school educator and $875 child support payments. Judgement was set against me in Illinois (I live in Florida), but I did submit an “answer” informing I did not receive the court paperwork. What options do I have?
Give me a call to go over this in more detail Mike. I want to understand more about what happened and when. You can reach me at 800-939-8357, option 2 rings to me. I am going to be out of the office tomorrow, but in on Saturday. You can also email me to set up a time to talk. My email address is the same one you get comment notifications from.
Hi Michael,
Thanks for putting this blog together. My situation is I live in Colorado and have 3 judgements on my credit report. One is for HSBC Bank for $958 filed 09/2013, one for Chase Bank for $2,094 filed 11/2010 and the last one for Capital Bank for $1,175 filed 07/2010. These numbers include alot of interest and fees above the original debt. My question is, is my course of best action to call the original credit card companies and try to settle for lump sum payment of maybe 50% of original balance or what the judgement called for? What is my best course of action at this point?
With judgments you are typically negotiating the balance of the judgment plus the interest that the judge set in his/her final order.
With judgments this old I would certainly start by contacting the original creditors. If they have the debts in house they will be able to negotiate a pay off with you. If the account is still with the original collection firm that sued you, the bank will tell you, or let you know where the account is placed now.
Judgment debts do get sold, so you could be dealing with someone other than the original plaintiff.
Hi Michael,
I was served summons papers today for a defaulted credit card debt from 2011. Here are the specifics:
What is the total balance owed?
$8200
Who is the original creditor?
US Bank
Is that who is named as the plaintiff?
No
If not, who is the named plaintiff?
Portfolio Recovery Associates
Who is the collection law firm?
Portfolio Recovery Associates
When was the last payment made on this account?
2011
What state are you in?
NV
I’m recently married and self-employed with no assets.
Just trying to understand my options with little to no taxable income, and make sure my wife’s assets, income, etc. cannot be levied.
Thanks for the reply.
Your options in this situation will often boil down to defending against the debt buyer PRA with an eye on getting it dismissed, or settling for a favorable lump sum amount (half or less is often realistic if done correctly).
You can look to negotiate a lump sum pay off now, but the savings is often better when your initial posture is that you are defending the case.
There are options for payment plans in these situations, but I prefer avoiding that.
What are you inclined to do?
Hi there, I have a judgment that I just found out about, while in the midst of an escrow. It is with LRLO right now. They will not make a settlement with me. On the phone I discussed a settlement after speaking with Cap 1 to find out what this was actually about. it was from 2004. The original amount was for $5000. and then when I checked with the court where the judgment was filed, it was 7,500. when I spoke with a rep at LRLO they then raised the amount to 10,000. and said that the atty will not settle for anything les. I have a couple weeks to get his cleared for my escrow to close. Knowing what you know what do you think my chances are? And knowing what you know how fast can they garnish wages or levy a bank account? If they will make a settlement with me. What should the wording be so that I can assure that this is reported as settled but not settled with an additional amount owing. Does the court have the correct amount? I never had any idea of this, no letters, or request of payments. Cap 1 said that they would put pressure n them to setle but that they could do anything that they want. Thanks!
Your chances of settling a judgment for less with Legal Recovery Law Offices if they know about your need to close on a loan quickly are not good. Even if you did not speak to the loan and urgency yourself, your credit reports show the mortgage loan inquiries.
You can get this all pushed through with full payment. You do want everything documented, whether settling for paying the full judgment amount. You want Legal Recovery Law to file the notice of satisfaction with the court. All of that will take some time on their end, and then some more time for the court clerks to update the public record. You will want to keep your loan officer copied and informed all along the way.
There really isn’t specific wording you are looking for in an agreement letter. You are looking for the court record to show a paid or satisfied judgment. There really is no way to show a “partially satisfied” status on a judgment. It’s either considered paid or not.
The court record should show the judgment balance granted in the final order. That judgment order should also reflect the interest the judge set. California caps judgment interest at 10%, but that is not automatic. The judge could have set this at 5% for example. Pull a copy and see what it says and then do the math. If Legal Recovery Law is asserting a larger amount owed than could be possible file a complaint against them with the CFPB.
The fact that you had no idea about this all this time is troubling. If you were not pressed for time you might want to explore this issue in much greater detail. But with the home loan you want to get approved, you would have to give that up, or be declined, for most people to want to peer down that rabbit hole.
Capital One is not going to put any pressure on Legal Recovery Law Offices to settle with you… at least not in my experience. That is likely just someone who is somewhat sympathetic to your situation saying that.
Can you tell me who the law firm of record was when you were originally sued?
Can you look up in the court record the address a process server filed as having served you at, or if there was alternative service listed?
Did you ever live at the address they say they served?
Should I contact MIDLAND FUNDING LLC and ask them if we can settle outside of court , Will I get in trouble if I do not show up to court for this?
You would typically want to contact the attorney collection firm Midland Funding hired. If you can negotiate a settlement and avoid going to court that is great. If you cannot reach a deal, you may not want to miss court. Small claims is sometimes a better place to negotiate a lump sum pay off in these situations.
Talk to an attorney about what happens if you do not show for court. Usually missing court in these situations results in a default judgment. Negotiating after that is not always as successful as dealing with it now, though that can vary.
hi. I’m from Maryland and someone is trying to serve me for a debt that I owe for $950 do I have to show up at court. can this be settled outside of court. do you think they would settle for $500
It is possible to negotiate a settlement with significant savings even when you have been sued, or a if a judgment is already in the court. Getting them to 50% is not a gimme, and can depend on the circumstances.
I have found it a bit more challenging to get smaller balances like this (under 1500) negotiated with a 50% discount.
In Early 2000’s I dated a guy for 3 years and apparently lost my mind during the process! He ran up several credit cards of mine, then left…and I had to figure out what to do w/ all that debt. I had several credit cards- 2 Bank of America accounts, Chase, AmEx, and Citibank. I consolidated the debt and went thru some agency that advised me to stop paying them and finally they settled for less than what was owed… All but Citibank. I paid off the others years ago, and since have reestablished my credit… Except for the judgement from Citibank.
I got letters from an Attorney in Charlotte, NC and then a judgement was filed on me in May of 2010. the Alexander County court served me papers, and i’m guessing the judgement has gone as far as it can go… i filled out the paper stating i don’t own any land/property/recreational vehicles etc… nothing for them to take as payment. On my credit report the judgement says $9.700 and from the court the total is over $15,000. i haven’t heard anything from the court or attorney since November 2014.
What would be the best way to attempt to settle this now? I’m searching for advice, thanks!
Much of what you have read on this page will apply to your situation. You will want to be ready with a lump sum of money to pay the settlement. How much money are you able to pull together to settle the judgment?
Thank you for answering!
Would i need to call the attorney’s office (which i don’t remember) or Citibank?
Unfortunately, I don’t have a lot of money set aside…. i only have 2,000 and I’m not sure for how little they would settle for. I’ve read that sometimes they settle for 30%?
thank you!
Citibank accounts can be targeted for 30% settlements in some cases. But it is unusual to settle judgment debts for 30% (no unheard of though). The longer a judgment debt has gone without collection, and if you can be viewed as a solid hardship scenario, you have a shot at a better than 50% outcome. That 2k in hand now is not all that likely though.
How long to save up more?
Who do i need to call to negotiate? and am i negotiating the $15,000 amount? It could take me a while to save up to 50% (7500) for the judgement. : (
thank you
Because it has been 2 years since you heard anything from the collection attorney’s office, I would start by contacting Citibank. Citi may end up referring you out to the same, or a different law firm, but if the account is not currently placed, you can work directly with them to resolve the debt.
ok, thank you! i will try and call Citibank soon.
Hi Michael,
I have a judgement from July 2010 from Chase (i like so many others embarrassed and ashamed that i couldn’t make payment as i had always made, basically ignored the summons) . Now that i would like to repair my credit and would even be willing to settle with Chase not sure what would be the right steps. Even though i haven’t heard from any agency, chase, and i have no collections on my report, i would still like to resolve the judgement. I am in Florida and really have no assets besides the cash under my pillow. The amount of my Judgement i $4800.00. I would be more than happy to pay them $2500 if they would make it go away. What would be my best course of action to make that offer without me getting more in the hole.
Thanks,
Nick
Call me for a consult Nick. There are some challenges that come with settling Chase judgment debts (from when yours was filed), that do not exist with other banks and lenders. You can reach me at 800-939-8357, option 2. If I cannot answer be sure to leave a message so I know to return the call.
Thank you so much for you phone call, made a world of difference on how to go about resolving my issue.
Best Regards,
I am being sued by a credit card company for garnishment of wages. The letter says the date of the judgement was in July 2007. I received the process of garnishment today at my current address. It was filed in the county that I used to live in. Last year I received a letter from my job that my check was garnished for this same debt. I barely make any money due to being a full time student and they already take from every check. This garnishment is for the same debt and it says it was filed on January 8 of this year. Is there anything I can do about this? I live in Alabama
Alabama protects 75% of your wages from garnishment. There are scenarios where the court will find you exempt from garnishing. You have to contest the garnishment with the court to get the determination. If you are able to qualify for exemption I find it easier to negotiate a settlement for a lower balance payoff, or more affordable repayment plan.
How much is the total amount owed?
It is worth talking to an experienced debt collection defense attorney about whether you were sued in the wrong county. If that is something worth pursuing it could put an end to all of this.
I have negotiated with the collection agency and have been making payments so why do I still have to go to a hearing???
You may not need to appear depending on the situation. Did you agree to long term payments and sign a consent or stipulation already?
I did agree to long term payments, have not received a consent or stipulation document. Might this be that?
Without something documented about what was agreed to I suggest going to any scheduled hearing. I have seen far too many cases where collection attorneys and law firms say they will accept payments on the phone; you make a payment or two as agreed; there is a hearing and a judgment is entered without you there; they move to garnish wages or freeze money in your bank account, all the while you thought you had a payment agreement.
You just cannot trust collection law firms without documentation. I wish it were different, but it’s not, so people end up having to take a day off work, and lose money they cannot afford to, etc.
I am currently trying to settle my father’s estate. He passed in 2012, and had a judgement against him for a credit card debt. The judgement was for $30k at %15 in 2010 in Vermont. We’ve spent the past three years paying off his other debts and this is the last one remaining. There has been no contact with the creditor, but they do have a lien on his house, which was appraised at $53K. This is the only real property in his estate with his name directly on it, but there are also buildings held in trust that he was beneficiary of. We have about $15K remaining in liquid assets and were hoping to be able to settle the debt and close the estate. Our estate lawers didn’t really think they could help us and even suggested waiting till 2018 to see if they would refile the lien. That idea stresses me out with such a high interest rate. Is it wise for me to now contact the collection agency on my own to negotiate? If so, where should I start, and where should expect them to meet me if I could raise lump sum.
Who is the judgment plaintiff, and also what collection law firm handled this?
My total credit card debt is somewhere around $30-$35k.
Some of the cards I am still paying on or at least have not fully cycled off. I am being sued by one card company for ~$8k. So far we have been through first answers and I am about to file a response to production request and interrogatories (pro se).
At this point I’m really unsure how to proceed. I don’t know if an earnest attempt to settle the debt is the smartest long term approach.
I have very little incoming, so large settlement offers really aren’t realistic. But I am concerned over many of the long term consequences for bankruptcy (for career, loan, credit options).
It was good to talk to you on the phone Will. Let me know how your consult with a bankruptcy attorney goes. It will help later readers to know the decisions you reach about your next steps, and why you made them.