How to Settle Credit Card Debt with a Judgment
One of my credit cards I fell behind with sued me and has a judgment.
Can you settle credit card judgements like other debts
—Stressed
The short answer to your question is – YES! CRN does assist in settling debts like credit cards where there was a lawsuit and then a judgment entered against you. Settlements can be negotiated at all stages of the collection cycle.
There are challenges to settling credit card debts that have reached the lawsuit and judgment stage. Before I address the challenges, I want to point out that the best time to settle credit card debts is before a lawsuit is filed, and even before the account is placed with a debt collection attorney.
Watch my brief video about some of the differences between settling credit card debts with your bank and debt collectors compared to negotiating with collection attorneys whether they have a judgment or not.
While this may not be instructive to your judgment debt, you may have additional credit card debts that have gone unpaid and I want you to be aware of the following:
- Settling a debt with your original creditor (the bank you had the credit card with) after having missed a few payments is not only possible, but in your best interest. In fact, reaching settlement early will often achieve the best savings result when negotiating is done correctly.
- You may end up with credit cards that are charged off and placed with outside collection companies. This is the next best (sometimes the best) opportunity to settle a credit card account you could no longer afford to keep payments current.
- If your overdue credit card account lands in a collection attorney’s office, you can still settle the debt before any court action is filed, or at a minimum, negotiate favorable payment terms.
There is a science to navigating the collection stages I briefly outlined above. Timing, balances, who your credit card debts are owed to, and your ability to come up with the money needed to settle the debts – all will affect the strategic design of which account to settle with first, second, third etc…. It is important to have a plan to follow if you want to systematically and successfully settle debts and save the most money in the process. CRN is excellent in assisting people in this regard.
If you want to learn about how to settle your debts no matter what stage of collection you are in, we have a ton of resource pages to help you. I recommend starting at the beginning of my debt settlement section.
If you are floating out there with several unpaid credit card accounts with no real financial resources to handle the situation, or a plan for doing so, you owe it to yourself to learn if you would be better off filing for chapter 7 or chapter 13 bankruptcy before a lawsuit is filed, or now that a judgment exists. You can consult with a bankruptcy attorney for free. I recommend talking with more than one.
Collecting on credit card judgments can be challenging too.
The primary ingredient found in any debt settlement recipe, whether there is a judgment or not is… money. If you have enough of this ingredient you need to be aware of a few things.
A judgment is just a piece of paper. It’s the court sponsored enforcement of that piece of paper that is the problem. You could end up with liens placed against your real property, your bank account levied and wages garnished directly from your employer. There are even instances where a sheriff can show up to take a look around at your “stuff” and inventory personal items that can be taken to satisfy a judgment (this happens, but relatively rarely).
Judgment debt, whether past due credit card bills, personal loans, medical bills and other debts, are easier to negotiate and settle while maximizing your percentage of savings results if:
- A bank account to levy cannot be found because one in your name does not exist, or does exist but is maintained with little money in it;
- If a W-2 wage source cannot be located to garnish and;
- Where there is no real property lien, or where the lien is filed, but has been in place for some time and remains unpaid.
The one thing you can control is whether you have a bank account with your name attached. If you do keep a bank account open, realize most bank levies are attempted at the beginning, middle and end of the month – when you are most likely to have deposited a pay check, or other money to cover bills.
If you have sources of funds electronically deposited, you may want to elect to have paper checks issued to you until the credit card judgment debt is resolved.
The lien on property will generally not involve forcing the sale of the property in order to satisfy the judgment. You should look to resolve the judgment prior to selling the home (negotiate a settlement before listing if possible), or refinancing (settling before a lender does a hard credit pull is often best).
Wage garnishment is a major concern. Once your wages are attached the creditor has little reason to work with you at resolving the debt for less because they will continue to get paid unless:
- You prove you meet garnishment exemptions in your state
- You leave that job
- You satisfy the judgment
Warning: Your credit card judgment debt grows from interest and can often be renewed!
Interest is accumulated at the rate set by the court, or the maximum allowed by law in your state for judgment debt. While you may be able to be creative in how you avoid paying the judgment you must realize that the balance of the judgment is likely increasing.
If you are struggling with overdue bills and other expenses and are unable to come up with a plan to get rid of the judgment or lawsuit through a negotiated settlement or payment terms you can afford, the fact that the debt is increasing should concern you. Stop and consider what your options to resolve the credit card judgment will look like next year. The year after that.
Judgments do have a “best collected by” date, but can be renewed. Judgments have a shelf life with a time frame specific to your state. Most states allow for a judgment to be renewed prior to expiration. For many, this is a ten year time line and renewal allows for an additional 10 years. That’s a 20 year shelf life!
Identify all resources you can tap to fund a settlement offer or payment plan successfully. If you cannot reasonably come up with the money to settle the debt, or make payments after reaching agreeable terms, look to bankruptcy to stop a bank levy, wage garnishment or lien on property.
Those are the unfortunate realities.
I highly recommend anyone with a judgment, that needs to be resolved in order to buy or refinance your home, to watch this video interview I had with a former debt collector: https://youtube/QpdDks73QUw
It is always best to put a plan together to address delinquent debts before a judgment becomes the concern and you are forced into crisis mode. If you have other debts, you can still put a plan together that includes resolving the judgment too, but it is important to not waste any time in doing so.
Need some personalized help?
If you would like confidential help you can use any of the boxes below to connect with me. You can also post in the comments below for feedback. I answer those regularly.
Not sure where to start? Click on the big blue “Get Debt Help” button at the top of the page.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
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.
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.
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).
I am really trying to avoid Chapter 7 Bankruptcy, which I qualify for according the Bankruptcy attorney I consulted with. All the other creditors are playing ball except for…. PNC Bank, N.A. and Citibank (Best Buy Mastercard) I owe $1,063 on a PNC Bank Line of Credit and 3,639.76 for a closed out PNC Bank, N.A. Visa. With the line of credit, I offered 60% settlement. Theycame back with 80%. I have gone back and forth with them on this and they are standing firm. I even offered to meet them in the middle at 70%. No luck. I made the similar offer with the PNC Bank Visa and it was out-right rejected.
The rest of the creditors have agreed to work with me and offered settlements at about 40%. I am not worried about the tax consequences because I have enough debt and reduced income that I will be minimally taxed.
How late with payments are you to PNC?
How long ago did you open the accounts?
I received a judgment for an unpaid debt, that I willing admit is my debt, but it was from helping out a family member who needed help. So I refused to pay the debt of $5000.00, the debt was eventually charged off and sold to a debt collector, Now the debt is $7000.00 +. After the judgment my joint Bank account was levied ,so now I do everything on a cash basis, I would like to pay the debt seeing how it is affecting my overall credit along with levy’s & other garnishment that may happen in the future, but paying the judgment in Full or for a lower settled amount will do nothing to my credit, in fact it will make it worse, and if I try to offer any type of payoff or payment plans now the creditor will feel that I am despite and I will be opening up another can of worms. What would you suggest that I do?
I am not sure what additional can can be opened at this point. You are living on a cash basis. You can stay living that way and they get nothing.
Who is it that bought the debt and got the judgment?
Diamond Bank.
I would be taking my business to someone other than Diamond Bank.
So here is the latest. I finally found out that the Bank incorrectly stated that a lien had been placed on the house and it is actually a judgement that was filed only against my mother. On top of that the judgement was dismissed in 2008. On the case information it says “NOTICE TO DEF RETURNED BY MAIL, INCORRECT ADDRESS, NOT DELIVERABLE AS ADDRESSED” and then farther down says “CM/JT OF 9-23-08 CASE COMES ON FOR DISPOSITION DOCKET. NO APPEARANCES, CASE DISMISSED.” The bank is trying to say that the credit card company could try to come after her again and put a lien against her house ans so they do not want to give her an equity loan against her house. Other than that one credit card, her credit is in excellent condition for over 10 years. So can the credit card company still come back and sue her or is the statuettes of Limitations up? It is 5 years for Oklahoma and also 5 years for Arkansas from what I looked up.
No, and the collections are too old to appear on her credit reports.
What is the name of the bank you are dealing with?
Yes we have looked and there is not a judgement on her credit report. I even called the county court house and they said they do not show a judgement lien filed on the house. So very confusing that the bank is saying that their is one and by Discover. I have managed to jog her memory some and we were able to kind of piece together a rough outline of the history of her Credit Card. She apparently went into default before she moved to Arkansas and that was in 2001, but Discover supposedly put the lien against the home in 2007 according to the bank. That is past the 5 year limitations for suing and getting a judgment I would think. They would have had to done it by 2005 at the very latest, but then how come it didn’t get placed on the home until 2007. Just doesn’t feel on the up and up. Very confused with where to go from here.
Get copies of anything you can from the loan officer that relates to why she was refused credit. You need to get a copy of the lawsuit that went to judgment, which is what supports the lien on the home. You will then be able to begin to unravel what happened and when.
Post the details and I can offer some feedback about options to look into from there.
I am trying to help my mother who is not well and is on Oxygen. Due to her oxygen deprivation she can not remember some of the things that have happened to her over the years. So here is what is happening. We are trying to get her a home equity loan on a home that she still owns but is renting so that she can use that money to purchase a small modest home in order to get out of her ailing mother and fathers basement. The bank was working on getting her a loan and we had thought it was going to go through and so did the bank , but then the bank calls us and tells us they found a lien on her house for 15,000 from Discover card that was placed on it back in 2007. When I called the court house in the county that her house is in they do not find any liens on her house. The home is in Arkansas and she is living in Oklahoma now with her parents for the last year. She does not remember any thing ever being sent to her by discover for the judgment and she can’t remember anything about the discover card either. I know she had one at one time because I remember her using a discover card. But that was along time ago. So I am pretty sure its hers. But how do we go about finding out about it and how to get it taken off when her mind is not working well enough to even remember it and she does not have any of her paper work about it. I just don’t know where to start. We could call discover, but we have no information on her old card. But should we call discover?
You can call Discover to begin to try to gather the details of what happened. Your mother can give verbal authorization for you to speak on her behalf. And use her social security number in lieu of the account number you do not have.
I would leave off any details about how you will ultimately resolve this if the judgment is legit. Just that you are trying to get to the bottom of a lien that was found on the property.
Have you looked at her credit report? Is there a judgment listed?
I have a judgment for an unpaid credit card of approximately $7000. This is in California. This card was my husbands and mine before our divorce and he was supposed to include it on his bankruptcy years ago but he didnt. Long story short the credit card company obtained a judgment which is accruing interest of 10% annually. I want to pay it off but I do not want to pay the whole amount (as I cannot). What amount do you think is reasonable for me to offer to pay on a lump sum? I have $2000 and I want to be rid of this judgment so interest does not continue to accrue. Do you think they will settle for $2000 lump sum? Thank you in advance for any guidance you can give me.
I have seen a smattering of 30 percent settlements on judgment debts over the years, but it is not common. Low end targets of 50% are more realistic.
Do you have a continuing financial hardship? If so, what are the brief details of that?
Do you have assets like a home, car, or something else you own outright, or are making timely payments on?
Do you work full time?
Yikes! I just sent you a request for advice on a garnishment, and pulled my credit report. I
didn’t know there was another $960 from Capital One in addition to the $2000 judgment/garnishment already filed, plus $970 for an ambulance bill, plus $550 on
some other bad debt. I really don’t make much money…part time now until my ‘big’
$9.50/hour summer job starts….I’m thinking maybe I should file Ch. 7 bankruptcy
for all….is it too late, with the garnishment (which was just for a part time winter job)
How much does it cost to file?
I think the national average cost for chapter 7 (hiring an attorney for help) is still around 1700 dollars. That is including all costs and fees. There are areas of the country where you can find an attorney with lower fees, and especially given a simpler file, such as yours may be. Perhaps you can get through everything for under 1500 dollars.
I would try to avoid bankruptcy if you can for now based on that cost, unless you file bankruptcy without an attorney, or qualify for low income legal aid.
You may be able to petition the court to show you are exempt from garnishment with how little you make. What state are you in?
I’ve had a garnishment issued from a part time job. It only states the whole $2000 that
the old credit card company is still trying to get. It was, I think, dating back from before
2005….isn’t there a 7 year limit on filing a judgment? I can’t find those old credit card receipts …Can I get the collection company to provide credit card statements with dates?
Also, I was never served in person or signed any notice from court on a judgment, but it says it was filed in 2011..I thought you had to be served in person to get a $ judgment? I’ve never seen or heard about this until a couple of weeks ago, through a collection attorney letter.
You do need to be served properly, and that issue may be where I start with any of this, but depending on where you live. What state are you in? Who is it that sued (name of plaintiff)?
Hello,
I am extremely stressed out about a debt I have. In September 2014 , i was served papers for a private loan i had defaulted for around $14,200. I was living in NYC at the time, so I went to the initial court date and offered to plan a payment plan. I was assigned to a Michael Leinoff from Forster & Garbus in upstate NY. on that day, he “couldn’t get in touch” with National Collegiate Trust, but said it was 90% chance that we would be able to come to that agreement. I suppose I am a bit naive and was relieved to get that done but the lawyer never got back in touch with me until I received a notice that there was a judgment placed on me because I was apparently appointed a court date on December 15 (but I was in FL for the holidays.)
I contacted forster & garbus and it turns out that whoever was in charge of my case was let go like 2 weeks after we spoke so my file was apparently laying around with no attention, which led to me not being notified of another court date and now a judgement. I moved back to FL in January and I have been trying to get in touch with them to work out some sort of payment plan because the idea of judgement is scaring me to death. Every time I call, I am transferred to another person, and never any pick up. If a person picks up they claim that my account “is in another department” when I am transferred and never contacted back or answered. It has been about 3 weeks.
I just want to know what my next course of action should be. I want to take care of this as soon as possible and offer a monthly payment plan to avoid any further issues but I cannot get in contact with them. How do you know if this is a legit company and how did my loan get to them? Thank you for your patience and help.
Forster and Garbus is an established debt collection law firm. National Collegiate Trust appears to have been the plaintiff that hired them to sue you. You best opportunity to challenge the ownership and validity of the loan was before being sued, or once sued, prior to the judgment being entered.
Look up the name of the plaintiff that sued. Is it different than National Collegiate?
Look up what amount of judgment interest is allowed per the courts final judgment order. What is that amount?
What amount of money can you afford to consistently pay on a monthly basis?
just looked at the summons and the plaintiff is indeed National Collegiate Trust.
How can I look up the judgement interest? I can’t seem to get in touch with anyone at Garbus but I will keep trying later today. They told me they would be able to rectify this. Is there a chance that my offering the monthly payments will be able to stop this from moving forward?
I told them I can do $75-$100 right now and will definitely pay more as I work more.
You can typically find the judgment interest rate in the final order from the court. It is often the last, or close to last document filed in the case.
Offering payments can prevent further collections like a bank account levy or wage garnishment, but get that agreement from them in writing.
New York caps judgment interest at 9 percent.
Confused? come up with half of the 1800? so $900? or half of the $5000?
If the judgment balance is close to 5300 dollars, and they are about to get 1800 dollars from the bank levy, there is about 3500 dollars remaining owed on the judgement in order to resolve it. It may be possible to negotiate a reduced pay off. Half would be about 1700 dollars.
Im confused so after this levy of 1800 im still going to owe them money? how is that even possible there is no way i had more then a $1000 limit… mightve even been much much lower then that
Most of that balance is likely made up of default interest rates, legal costs and fees, followed by years of legal interest that is at least capped by state law.
It would be a good idea to talk over your specifics with an experienced consumer law attorney. I can send you some contact details to a few if you like?
I would greatly appreciate that.. any work for free? lol… or low cost?
I sent you an email with contact details. Most consumer law attorneys have reasonable fees. You should be able to have the initial consult at no cost, which can help you get your bearings on what to do next.
Question what to do once a judgement is placed on bank account
Hey I opened an American express card in 2005. I defaulted in 2006. In 2010 I was taken to court. it was a long time ago so I don’t remember what happened in court. a few days ago I noticed that they placed a levy on my bank account. The debt is for 1800. They have not taken funds out yet. Just put a hold on the 1800. The money is in my current balance but not in my available balance and they informed me it was from a levy placed on my account. I was wondering what my options are? What can I do? Any assistance would be greatly appreciated
State law would be the first thing to look at and see what amount, if any, is protected from judgment creditors. What state are you in?
Sorry about that… Im in Brooklyn, NY.
New York protects up to 1740 dollars in your bank account from judgment creditors.
It is not clear from what you shared, but I read your first comment to mean you did not have enough to cover pending charges, and the bank account levy. Is that correct?
I had 3300 in the account… my available balance is now 1500… but my entire balance is 3300…
It appears they took a bit much. Call your bank and ask what they can do about that.
Are you confident about the balance they are trying to collect? You may not even want to mess with it and just let this take care of the judgment.
Hey my current balance is 3300 available is 1500. bank said all I could do was ask the lawyers. What do you mean let this take care of the judgement
I understood from your first comment that the total amount owed on the debt is 1800. That is what they appear to have levied from your bank account. If that is the total amount owed, and that is what they got, it would resolve the debt.
Are you confident the total amount owed on the debt is 1800?
sorry for the confusion… im pretty confused here myself…
I received 2 letters from my bank today.
1 letter states as follows
“We have received an information Subpoena with Restraint for $5,354.45 from asset acceptance llc. this mean we’re legally required to hold money in your account(s) because asset acceptance llc has court approval to remove that money from your account(s). So on 2/4/15, we’ll be putting a hold on the following amount(s), and you wont have access to this money: Account Ending in: **** Amount held: $1,825.38. Bank fee – $1o0. number of days money is frozen: 365.
2 letter states
Cap on has recently received a legal process that may affect any or all of the following types of accounts you may have: checking, savings, certificate of deposit, safe deposit box, loan.
Restraining notice with Information Subpoena:
a hold has been placed on your account(s) as indicated by the following attorney:
Expires 2/4/16 Hold $1,825.38 Then company name lawyers Entered 2/5/15 and my name
Everything in the article above applies to you. You will want to operate from as much of a cash basis as possible until your resolve the debt.
With roughly 3500 dollar remaining on the judgment balance, and assuming you could settle that for, say half, how long would it take to come up with the money to settle?
Hello,
I am being sued for a credit card debt default judgment which I answered to in 2012 The court denied the motion for default judgement at that time. Now 1/05/2015 a motion for Summary Judgement Designation of materials has been filed. The original debt in 2010 was Barclay Bank Delaware. Then Northstar Location Services had it to collect from me in 2011. Next Berman & Rabin P.A. had it to collect in 02/2012. Next Blatt, Hasenmiller, Leibsker and Moore LLC have it now and are handling the suit for Berman & Rabin. Yet the Plaintiff is Barclay Bank Delaware. Rather confusing to me whether all this involvement by different firms along the way is legal?
I have been in contact by phone with Blatt, Hasenmiller, Leibsker & Moore to settle this debt without a judgment from court. For the full debt owed since they would not negotiate for any less. It has been 2 weeks since they claimed to have mailed out the settlement agreement. I have not received any agreement as of this time. I have phoned and related that to them.
So my questions are. Does this all sound legal and what can I do to settle this without a court judgement? I am in Indiana and only have a few days left of the 33 days to respond to the court.
Thank you, I would appreciate any help or advice in this matter.
You have not said anything about the different firms handling this that makes me think they did anything illegal. Dealing with several debt collectors before ultimately being sued for collection is fairly common. I would run this concern by an experienced debt defense attorney in your state.
I am being speculative, but the collection attorney not sending you the settlement/payment agreement, like they said they would, could be a mistake, indifference, or perhaps a trick that gets you to let your guard down while time elapses and they get the judgment. I doubt it is illegal. But here again, you should run this, and your whole scenario by an experienced attorney of your own.
I can send you contact details for any attorneys I know of with the experience you need, just post the name of a nearby larger city.
Thank you Michael. I am 30 miles from merrillville, Indiana 46410
It has been almost 4 yrs since I had a Summary Judgement against me here in GA.. The attorney who had sued me was Hanover and Assc.. They know I am on Disablity and they have yet put a lien on my property. They have put a FIFA on credit report.. How likely are they to still go after me IF they have done anything after 4 yrs and after the 7yrs on credit and here in GA the judgement goes in limbo after 7 yrs where they can stilll renew til 10 yrs of date of judgment…
Renewing a judgment is too simple and inexpensive a process to not do it. I would say if they fail to, it would only be by mistake.
Hello,
It’s been more than 1 month since I sent my offer for ~30% of $20K judgement (filled in 2011) in exchange for a letter of satisfaction – not a beep from them. I sent it to a law firm that represent FIA CARD SERVICES by certified mail, and I know that they received it. I asked them to contact my mail and provided them with my mailing address in my letter.
I was very polite and apologetic about the whole situation and told them that 30% is all I can come up with. Are they playing games or are they just slow? Any similar experiences? How long would you wait before contacting them again?
Thanks for the help!
Negotiations using the mail can move at a glacial pace, especially when it is an existing judgment you are trying to settle.
Why did you decide to write in instead of call?
Are you prepared to call the law firm rather than write?
How collectable do you look on paper? In other words, are there many unpaid collections on your credit reports, or few to none?
Thanks for the quick reply!
#1. To have a written record of all negotiations
#2. Yes, I can do that, but I have no experience with law firms and negotiations
#3. My credit report is horrible, but will improve dramatically by the middle of this year – all failures happened in 2008
I see the best results from verbally negotiating a deal over the phone, then getting all of what was agreed to documented before any payment follow through.
You do not have to get the deal done in one call, it could take a couple.
It helps that your credit is in poorer shape. Is this the only debt that is a judgment? When you say improvements to your credit will occur this year, is that because some negative stuff on there is set to fall off?
Do you want a pro to handle the negotiations? Sometimes it is better that way.
Yes, this is the only judgement that I have. But I also have 2 collections and several other “baddies” – all happened in 2008 and all are scheduled to fall from my report this summer – all outside of SOL (I’m in CA)
Sure, can you recommend somebody, preferably in San Francisco/Bay Area?
Thanks!
I have a judgement on my credit report from Target National Bank, from 2010. Can this type of debt be negotiated for much less? It was for $4953.85, plus 6 percent per year. If so, do I sent the settlement request to Target National Bank, or the attorney listed on the judgement? By mail or by phone call? They have not tried to proceed further as in garnishing my wages etc.
You typically will need to negotiate the settlement with the attorney Target placed the account with, unless someone took that over.
What is the collection law firm name?
I tend to target judgment settlements at between 50 and 100 percent. It can often depend on how collectable you look to them at the time you are negotiating. If your credit report has many unpaid collections on it, that favors any hardship issues you may raise. If you have many accounts showing up as paid on time, it can be harder to target the lowest possible settlement.
I have many unpaid collection accounts on my credit report. But most of them are scheduled to drop off June / July this year because they hit the 7 year mark. At that point I wont look so bad. I recently started to reestablish credit and have a credit card that I have paid on time, and a car payment. Both under 6 months old.
The law firm is Kelly Karstaedt out of Jacksonville.
Hello, I live in the state of Wisconsin, I recently got a letter from a law firm ( Rausch, Sturm, Israel, enerson & hornik) with judgment stating I owe them $10623.09 this judgment is from 2006 for $4923.59 Which at the time I was unemployed. That judgment was satisfied in late 2006. It is stated on trans union and Experian saying civil claim paid and public record is paid, satisfied. the docket numbers even match. I cannot find my receipts from back then to show I paid it. What can I do?
Write back to them with all of the court information and file number. Tell them to look it up and see that they are trying to collect on a paid judgment. The court record is official enough. You may as well throw in a closing sentence of “In the event my notifying you that this debt has been paid, and the reference to the court record verifying same is not clue enough, please consider this as my disputing this debt, and my formal request for debt validation”. That is something I would include if it were me. Be sure to send your letter certified mail return receipt via USPS, and keep a copy of everything for your records.
If they continue any collection effort after that, post an update.
I did call the court house and they said the file is still open, She also stated that they may have not filed the satisfaction of judgment. But its strange that the 3 credit reports show that it is closed and satisfied. Thanks again.
Anything I can do here to correct ??
I would start by calling a NACA attorney in your state to see if there is a collections violation occurring. Most offer a no cost initial consult. I can help you locate one with the experience you need if you post the name of a larger nearby city.
I would also consider filing a debt collection complaint with the CFPB against the collector you settled with prior, and against the attorneys trying to collect on a paid debt now.
It is odd that the credit reports are showing satisfied.
Hello, my name is Joshua and I was served last year around this time with a court date scheduled for 2-23-15. The amount was around $6,600 and I foolishly did not respond to the court within 30 days of being served. I did, however make an attempted settlement within those 30 days over the phone with the folks from Hunt and Henriques, but they did not want to budge.
I need to find out if they went forward with the hearing before the actual court date, since I did not respond within those 30 days I read that they can get a default hearing quickly and easily. I assume I should call the court (probably not a good idea to call Hunt and Henriques) to find out.
I think that I am somewhat judgment proof, with no job, bank account, car, living with mom, (just returning from Egypt after a 4 year furlough). Should I make an attempt to reach out to them for a settlement so near to the court date? (hopefully the court date was not moved forwarded)
Appreciate all your help,
Joshua
Are you in California? What amount of money are you prepared to settle for? Who is the plaintiff Hunt and Henriques is working for?
Post your answers to those questions and I can better reply with the feedback you need.
Yes I live in Santa Rosa Ca, and I am willing to settle for 40% to 60%. Hunt and Henriques are working for Porfolio Recovery Associates.
Best regards,
Joshua
Call Jeremy, the California debt collection defense attorney I am going to email you contact info for. He offers a no cost consult that will help you get a grip on what you can do from here.
Post an update with how you progress after that.
Hi there, my name is Tyler. I have recieved a court summons that was filed on december 31st. i recieved it in person at my front door on january 18th. I called to set-up payment plan and they are refusing my base amount i want to pay. can they refuse my payment. I want to do monthly but they said I would have to put down 400 by the end of the month which is not possible for me at the time. It seems unfair they wont take what i have to offer which was 300. everything currently in my account. its this just unfiar or illegal? any advise is appreciated
They do not have to accept your payment offer.
Who is it that is suing you (name of plaintiff) and how much are they saying you owe?
Hi Michael,
Happy New year, I hope to settle a judgment from Capital One on my credit (from 6 years ago). I was offer a 50% settlement by next week. My question is this, what should I ask in terms of confirmation from Howard Lee Schiff, P.C. the law firm offering me this to help show to the credit report agencies and the court where this was filed once this debt is settle?
This is my first time going through this and want to make sure this is resolve in a way to help improve my credit once it is done. Thank you in advance for your help.
Sincerely,
Jay
Medford, MA
You want the Howard Lee Schiff office to inform you they will be providing notification to the court that the judgment has been satisfied. How they word the whole thing in writing can be compared to what I outline in this article about debt settlement letters and agreements.
Hi,
Back in 2006, I cosigned a semester’s tuition for a friend’s younger sister who was an international student for $20,000. To cut the story short, she paid the interest for about a couple of year but did not pay down the principal. the worst part now is that she has returned back to her country without even finishing her education. I live in MD, but the school was the St Louis University in MO. The school has charged the debt off and I have received many notices from different collection companies that I ignored as there is no means for me to pay it back. a couple was even offering 40% discount on the loan. It was also reported to the credit bureaus in 2010 and reduced my credit score by 60 points. Please note that I constantly call my friend to get him to repay the loan, but his response is always that he is working on it. Fortunately, I still have good credit and was just going to wait for the 7 years SOL. However, I received a notice yesterday from a law office in Baltimore that I need to contact them within 30 days to discuss the loan or they will start a legal debt collection process. I just bought a house (with a slightly, but still affordable interest rate) that I will be closing on in a couple of weeks and I know I can’t afford either a wage garnishment or judgement on my bank account. I am a married father and can not afford to pay more that $100 a month until my friend pays this loan back. The total loan now is $22,500.
I will gladly appreciate any advice on this issue.
Thanks for your assistance
Lexy
If I were in your shoes I would be most worried about anything new upsetting the apple cart with your home loan going through (the fact the student loan is in collection and showing on your reports now could still hold you up longer).
I would first talk over your scenario with an experienced debt defense attorney in Maryland. While discussing the issue, bring out the pending home loan, and if they can help with a legitimate strategy to delay any collection progression until you know how that shakes out.
I can help you locate an attorney with the experience you need, and who may already know the attorney collecting, as a result of other case work. What is the name of a large city near you?
Thanks Mike for your quick response.
Please note that I have not been sued yet. What I received was a notice from the lawyers to contact their office in order to ‘mediate this matter and discuss alternativs that are reasonable to both parties. I just need an advise on what to tell them during the negotiation and mediation talk.
My loan (consigned with my wife) will close next week. I just hoped that nothing will show up on my credit before then.
The closest cities around me are Washington DC, Hyattsville MD, Greenbelt MD, and Largo MD.
Thanks Again for your assistance.
Lexy
Got it.
I sent you some attorney contact info. You can likely consult initially at no cost.
Best of luck in the new place!
Thanks,
I will give them a call soon.
Regards
Lexy
My employer just received a writ of garnishment from an attorney. It says I had a judgment against me in Feb. 2003 from Discover card. The original amount was a little over $5000. With a 19.8% interest rate, I now owe over $14, 000. I do not remember this judgment, so I called the county clerk’s office and they verified the judgment and that it was served to my now ex-husband. So I understand it was served properly according to NM law, even if I never personally received it. I have been diligently monitoring and working on my credit since my divorce in 2007 and I don’t remember ever seeing the collection or the judgment on my credit reports. After 7 years of working on my credit to buy a house, the last thing I want is a wage garnishment showing up on my credit file. There is no way I can come up with a lump sum, and I don’t see why they would accept a small monthly payment that I can afford when they have the writ to garnish 25% of my wages. I barely live paycheck to paycheck as it is, taking that much money out of my checks would kill me. I don’t know what to do. Is it unreasonable to try to negotiate a settlement for the original amount owed less the ridiculous interest charges? And will this show up on my credit? Can they take money from my bank account without notifying me first?
The wage garnishment would be unlikely to show up. But an unpaid judgment will likely prevent you from financing a home.
You are correct that small and manageable monthly payments on a debt like this are not common. And that direction also does not help you reach your goal of purchasing a home either. You want the court record to reflect a satisfied judgment. You get to that point by negotiating a pay off.
Lets assume for a moment they will settle for 7k. How long will it take you to put that amount of money together?
Yes, your bank account is likely at risk. What state are you in?
I am in New Mexico. 7k is not even remotely possible in the near future. Put it this way, I live paycheck to paycheck with almost nothing left over. I have $500 in my savings account. And I only have that because of a year end bonus. I am up to my eyeballs in debt, but proudly paying everything on time for the past 7 years only to have this come up and bite me. So can they just take the money from my bank account, without any notice?
As long as you are not claiming other judgment collection exemptions (car value, homestead), New Mexico could protect several thousand dollars in your bank account.
Have you looked into chapter 7 bankruptcy?
I know you are proud of managing things up to now, but gutting it out from here may not make sense. Not if they can make the garnishment stick.
Chapter 7 bankruptcy could eliminate this judgment, and many other debts you may have. You will only be putting your home ownership goals on hold for roughly 2 years (fha financing is possible with a good debt to income ratio in as little as 2 years after filing chapter 7). You may not qualify for a mortgage now, even without the judgment, if you are living so tightly from one paycheck to the next.
I don’t think chapter 7 is for me based on income first and I don’t think I can bring myself to ruin my credit that way. If I was going to do that I should’ve done it 7 years ago. Without the judgment I should qualify for a mortgage because the main reason I’m living so tightly right now is because my rent is ridiculously high. Anyway, thank you for your help.
I called the attorney and they agreed to $7000, which I was able to borrow. The thing is, they won’t give me a letter until the funds are received. I have read time and time again not to pay until it is in writing but they say this is how they do it. They put it in their system for a due date a few days away, when the funds are received, they send a release of garnishment and a settlement letter to me and my employer and a satisfaction of judgment to the courts. I tried insisting on a letter, but no go. What is your advice here? Is there any protection if I do pay and they go back on the verbal agreement?
Yes, there are some protections, with New Mexico regulators and also the CFPB. But I would encourage you to call them and go over the details they are agreeing to with payment etc., all over again. Only this time, record the call. Let them know you are recording and why. It should not be a problem.
Keep that recording safe until all of this is handled, and then keep it still.
Nice work!
Thank you so much for all the help you provide to everyone!
I am being sued by Citibank for 8500.00. I don’t remember ever dealing with them but I got a divorce in 2005 and that is when they said I owe them. They sold the loan in 2008 to a collection agency. I received a summons to court for Feb 9th 2015. I live in Tennessee, can I ask them for proof of debit and use time barred as a defense?
The dates you gave are not clear, but it appears you would have a time barred/SOL defense based on what you shared.
I would encourage you to call an experienced debt defense attorney in TN. If you like, I can send you a referral or three who all offer no cost initial consults.
Yes please do. thank you
Hi Michael!
I’m in CA, in Nov. 2014 I saw on my credit report that I have a judgement from a collection agency entered 03/2013 .
It must be from an old Citi credit card, I called Citi and they said it was sold to Asset Acceptance on 12/2010 and gave me a number to call, when I called I was told it’s now with with Midland.
I was never served and credit card debt was last paid around 2008-09. How can I have a judgement without my knowledge? Can I be sued if it’s pass the SOL?
I’ve contacted 2 attorneys here in Southern CA, 1 wasn’t taking new clients due to his overwhelming schedule, but he did refer me to another attorney…I’ve emailed her and left messages, but haven’t heard back.
I’ve contacted Midland to settle, judgement says $3305…I offered to settle with $1700 and they won’t accept it.
I looked at my credit report print out today and noticed that the Citi accounts showing in my report shows settled and the other in good standings.
It’s been so long, that I don’t know if this is even accurate. I did notice an address and employment in my credit report that is not familiar at all.
Help! I really don’t know what else I can do about this?
Thanks in advance.
M.
Contact the attorney I am going to email you information for. He has a good deal of experience getting judgments vacated when you were not served etc. Let me know how it goes.
Hi Michael – Thank you so much for your very informative videos. I am in NJ and being sued for $6,400 by a law firm representing Discover Card. My understanding is that at this point in the process, 15%-35% is the range that a creditor will accept to settle the case. I have offered them $1,000 (16%) and they came back with an offer of $5,200 (81%). I am simultaneously negotiating settlements with other credit cards for much larger amounts and have found some making an initial offer of 35%. Besides another Discover Card account for which I’m also being sued, I have found the other creditors more willing to negotiate, for smaller percentages, and no lawsuits yet. I’m guessing that Discover Card has chosen to be more aggressive in its collection attempts.
1) I did not expect Discover to accept my initial offer, but expect quite a bit of back and forth. I’d like to keep a settlement to 20%. How realistic is that?
Obviously, Discover’s lawyers are using the threat of a court case as leverage to get me to pay. I have explained that I have no money and no job, but I have been offered a loan of $1,000 which I can use for a settlement, contingent upon settling this case in full. Surely they know that even if they win the case (which seems extremely likely to me), it will be difficult to collect anything from me. I see this as a game of “chicken” where they expect me to pay as the court date becomes closer.
A week or so after my settlement phone call with them, they sent me a “discovery” questionnaire, followed by a letter informing me that a judgement for the full $6,400 plus court costs had been entered in the court on December 9, 2014, plus a copy of a request for adjournment of the case for another 2 months because they need more time for discovery. I have since confirmed with the court that they have been granted that adjournment until March.
2) I had returned my answer to the complaint by December 8 (the deadline) and have documentation proving it. I have checked with the court and as I assumed, no judgement has been entered against me. Is this bogus letter claiming a judgement something for which I can sue under the Fair Debt Collection Practices Act?
3) The discovery questionnaire (Interrogatories and Request for Admissions) contains many questions which, if answered, will force me to lose a court case. What is my legal obligation in answering these questions and confirming their charges? It would seem filling out these forms would make a court case unnecessary.
Thank you so much for your help.
1. Getting Discover to settle for 20 percent of the balance owed is not realistic. You would have to double that to get closer to where I see Discover collections in the courts get settled at the lowest end. If you appear more collectible to the attorney, negotiating for more than 50% is common.
2. Get some feedback about pursuing any FDCPA claim (using state or federal laws), from an experienced debt defense attorney that practices in your courts. I can help you locate one that will usually offer a no cost initial consult. Post the name of a nearby larger city and I will email you contact details.
3. Filling out interrogatories, and participating in discovery for the most part, can be an art form. Admitting in part, or denying certain admissions that seem obvious, is helpful. This is also something to run by an attorney.
If your goal is settling, and you need time to pull together more resources, you can sometimes use the court process to draw things out (a year is not unheard of).
Michael, thanks so much for the extremely helpful info. I would appreciate your recommendation of a debt defense attorney in NJ… nearby cities are Plainfield, and Somerville. I’m in central NJ.
You mentioned the realistic settlement percentage for Discover (at least 40%). I’m also dealing with Bank of America, Chase, and Citibank. Do you have settlement estimates for any of them?
Check out this post for more about realistic percentage settlement targets for all of the larger bank issuing credit cards that you have. Those numbers are still fairly consistent today. I do see some limited exceptions still, with BofA and Chase settling for under 30 percent. Chase more when they have the account placed with an outside agency.
I sent you an email with contact details for the nearest experienced debt defense attorney I know of. I can offer several more east of you if you need it.
Hi Michael:
Thanks for the lawyer referral. I have called that law firm and left a voicemail. Hopefully, they’ll call back (I’ve previously called 2 law firms (not referred by you) and failed to get a response. With the firm you referred, I let them know you referred me (I don’t know if that helps you) and will mention it again if/when I speak to a live person there.
1) Just in case, could you send me the other central NJ lawyer referrals you mentioned?
2) 30 days from the date of the interrogatories I received is this Saturday (Jan. 10), though I may have a few days more because of holidays. What happens if I don’t return the forms on time? I received them by regular mail, so I don’t see how there is proof of the date. (In contrast, I received interrogatories from a firm representing my 2nd Discover account by regular mail a week or two ago, and today, by certified mail.)
3) I read the page you recommended: https://consumerrecoverynetwork.com/review-top-7-credit-card-lenders-best-offering-debt-relief/
and it concurs with my experience so far with Discover, B of A, Citibank and Chase. But your info was for pre-charge-off settlements. Mine are all post-charge-off. How does that change things?
Thanks so much for your help.
You can mention, or not mention you were referred by visiting and participating here. There is nothing in it for me.
I sent you an email with a larger resource you can use for legal help.
You should get your court timeline questions answered by someone in your state.
Your post charge off goals are going to be roughly the same. As you point out, because post charge off credit card debts are most commonly settled with third parties, if I knew the name of a debt collector, or debt buyer – trying to collect on a specific account – I could then adjust my targets accordingly..
Michael,
I have a outstanding debt with Discover card. Originally they filed judgement and won. I have been making payments through the local Sheriff’s office according to an agreed payment plan after the judgement was awarded. However, in July ’14 I lost my job and I haven’t made a payment since. Current total of the debt is $6,054. Now the law office that originally sued has contacted me about settlement. I’m still unemployed and have nothing to bargain with for settlement, but will attempt to make new payment arrangements. Any suggestions? If I just don’t pay, what possible repercussions might I face in South Carolina?
Thanks,
Jonathan
How much can you afford to pay toward the judgment monthly, and with total confidence?
What is the interest rate attached to the judgment (if any)?
If you cannot settle or make payments on the judgment, there are extra ordinary collection efforts available to judgment creditors, but that are determined by state law.
Wages (when you get back to work) are exempt from garnishment in South Carolina.
If you own your car, the value up to 5,625 dollars is protected, and there is a wild card that could double how much of your car is protected if you do not need to claim other exemptions.
Roughly 56k of equity in your home is protected from creditors in SC.
Your household goods are protected up to 4500 dollars in value,and there is a wild car here that could double the exemptions, but only when other exemptions are not used.
Cash in your bank account is protected up to 5625 dollars if you do not claim a homestead exemption, and there may be other considerations to how a court would figure out how creditors should be prevented from placing a levy on your bank account.
If I had a judgment against me and have been making scheduled payments to the Court Officer for the past two years, can I receive a letter from another law firm for the remaining amount of debt still owed? I have completed on time payments to a Court Officer for the past two years to pay off a debt owed to a creditor. I have now received a letter from another law office for the amount left to be paid off. Can this happen? Do I need to contact the Court Office and see if this is legal?
Judgment debts do get sold, and judgment creditors will also terminate and start new attorney relationships from time to time. Both are possibilities for what happened here. Yes, I would definitely call the court office. I would also call the attorney trying to collect in order to get to the bottom of what is happening.
Post an update with what you learn.
Hello,
Michael
I have this judgment from capital one for $2,225.00; the judgment was from 10/6/2009. Question in Ohio a judgment can be renewed every 5 years. If I responded to the court or ask to vacate it does renewal need to be made by the plaintiff or do they need to file for renewal? The only motion made was by me to vacate but was not renewed so does this happen automatically? The plaintiffs have not collected one red cent, which of course may open the door for some kind of settlement since as of date I am “judgment prof ” with no assets to collect or garnish. Thank you once again for your comment!
I would encourage you to speak with an experienced debt defense attorney in Ohio. I can email you contact info to some if you like. Post the name of a nearby larger city.
My understanding is that the judgment creditor must move the court for the renewal. Your efforts to void or vacate the judgment would not affect that.
Many judgment creditors, in my experience, do accept lower settlement offers the longer the judgment has gone without payment. Capital One rarely settles for less than 50%, at least, right now.
Hi Michael,
Thank you for all of the time you spend on this. It really is a great reference. My situation is similar to Keith’s. I have a default judgement in Toledo, Oh, in July 2014, Unifund attorney David Bader. The original debt was acquired from Citibank, appox $7500. I moved and thus was not aware of the proceedings. I’m unemployed and have no assets (2003 car). They have proceeded with bank garnishment–very little funds. Do I try to vacate the judgement or settle? Do you have any contacts in Toledo? Have you had any experience with the law firm of David Bader? I’m just not sure how to proceed.
I do not recall any files that involved Bader as attorney for the collector, but I have plenty of experience with Unifund files. You will have to really work to accomplish any of your goals with Unifund. It could cost far less to work with an attorney to vacate the judgment than to settle. But call one or both of the attorneys in the email I sent you. Share the details of your situation and see if vacating the judgment has a reasonable chance of success, and what the costs will be. Post an update with how you progress, or if you learn something that suggests settling is a better path to take.
Hey Michael-
I was recently hit with wage garnishments from a previous judgment that totals 4,706.88. My employer was notified and was preparing to garnish my wages….well at the same time my contract with my previous employer ended and I left that company. Does the debt collector(J&H LLC) need to file again to enforce wage garnishments from my new employer? I also contacted the debt collector and he did not seem like he was willing to negotiate a lump sum payment? Is this something that I should continue to pursue? I can offer close to 2,000.
They will have to track you down and attempt garnishment all over again with your new employer.
Not all judgment debts will settle, or for the same amount of savings.
Tell me more about the specifics, like the type of debt; name of plaintiff that sued; when you last paid on the debt; the date the judgment was entered.
Do your credit reports show you are paying other creditors on time? Are there other collections showing on your credit?
It is a credit card debt; J & H LLC is the plaintiff; last payment was June 10, 2010; the judgement date is August 20, 2014.
The other issue is that because I pay a child support that is larger then the allowed state minimum for garnishment…on the non exempt earnings statement reads that they can garnish from the amount of $0…does this mean that they won’t be able to garnish because i do not make more then the exempt minimum?
I owe a total of $295 for a medical bill but that will be paid by the end of January 2015.
It does sound like they would get nothing from trying to garnish. They have other ways to try to collect. What state do you live in?
The judgment being only a few months old is one of the likelier reasons why they will not accept all that much of a deal through settlement. Once they learn they cannot garnish (if that is indeed the case), and other methods of collecting turn up little to nothing, they may become more reasonable about settling.
arizona
Arizona protects your vehicle value up to 6k.
Home equity up to 150k is protected from your judgment creditor in AZ.
Up to 4k of your household stuff is protected from the collectors trying to get you to pay a judgment in your state.
Your bank account in Arizona is only protected up to 300 dollars. This is likely where most folks with unpaid judgment debts in Arizona have to be concerned.
You will need to navigate the fact that your bank account is at risk until you work all of this out. That may mean cashing paychecks rather than depositing them. Paying bills with money orders. Doing much of your banking through a family members account that you are not on (wife, mother, brother, etc).
This Judgment was filed July 25th 2007. I would I know if they renewed it or not? I still see it on my court records.
Thanks for taking the time to answer my questions.
You can look up the most recent filings in the court records. You can also call the court clerk and ask if the judgment has been renewed and when.
Hi Michael , I just got served a civil summons from Guglielmo & Associates in Tuscon AZ . They are looking to get a judgement against me from Discover . I have been given 20 days to respond .The amount they say owed is $8,000 . The next day I get a letter to call them for a possible settlement . I do, And the best they offer me is $5,800 in 5 payments . When I asked about it being wiped from my credit , they said that would be up to Discover . Michael , I personally don’t feel like this is a fair NEGOTIATION . I can pay up to $4k in full but they want $5,800 . I’m disabled , and own my car , other than that , nothing but my personal property .I just feel like throwing up my hands and letting them have the judgement . I know they can’t touch my disability , but I am concerned about my vehicle , and them coming to my boyfriends house and taking my personal property . Any advice Michael ?? Can they take my vehicle after a judgement ? And if so should I transfer it to my boyfriend before the judgement ? And CAN they get a warrant to enter and remove items from my boyfriends house on the judgements behalf?? I’d like to settle in cash right now,,,,,,but they want more than I can give , and will STILL proceed with the judgement,,,,,,,,,,,,,what’s the point in paying then ?? I just feel like giving up.
Arizona protects up to 6 thousand dollars of vehicle value form judgment creditors. How much is your car worth?
You can protect up to 4 thousand dollars value of your household goods. And the usual stuff, like a fridge, washer and dryer, etc., sound like they are your boy friends. I do not see much risk to your stuff.
Are you permanently disabled?
Have you considered answering the complaint and defending the case to see if that helps Guglielmo become more reasonable?
The Law Firm is Bray and Lunsford PA.
I closed last week on my Refinance since my house since It is homestead. But I inherited a house from my Grandfather and I will not be able to sell this house in the future if I don’t get this matter cleared up. The only way I found out about this is from the Title company . The court papers where sent to old address. This matter is No longer on my Credit report since its been more than 7 years. Is the best way to handle this Sending a letter to the Law firm ? and if so how do I offer a settlement of $5000.00 ? If I Send an offer and they Deny it can they come back after me and my bank acct for the whole amount with interst? thanks again for your help.
You contacting them on the phone, or in writing, in order to settle, is not going to afford them any extra collection rights or amounts. Because they already have a judgment, they can come at you with any extra ordinary collection efforts allowed for in your state. Here are some of your exemptions in Florida.
You are on the hook for the judgment amount plus interest as it is.
I like your chances of settling for a significant savings because:
All these years have gone by and they have not collected.
Your refi went through, so your credit report is not a leverage point.
I would not tell them about anything other than the fact that you had forgotten about it until it was brought up in your recent refinance. You would liek to handle the debt, but only if able to settle, and for the amount you can pull together from friendly resources.
You do not have to get the deal done in one phone call or letter. And be sure you get the agreement to settle in writing before making any payment.
Judgments are renewable at 7 years in Florida. Did you look at the court record recently to be sure that they renewed it? Check for that before you do anything.
I have a Secure Judgment against me from 2004 from a Capital One Credit Card. I live in Florida. I was unable to work after having my two children and was unable to pay on my Credit Card the credit limit was only $1,000.00 . I went to court over this case Not know then that in 2007 they where granted a secure judgment against me. Since then I have built up my credit and working full time. My question is can I request to Re Settle this Judgment ?? The amount was $3798.00 plus taxes and fees totaling $5,000.00 but since I did not know about this til I refinance my house this year I now Owe over $13,000.00 my interest is 11% per year on the $5000. I don’t have that kind of money but I want to get this Judgment off my Court Records is there any why to request a new settlement with them to pay and remove this from my Court Records? I’m willing to pay off the $5,000. Can they come after me for this money again if I send them a Settlement letter since its been since 2007. I’m the only one working at this time and cant afford for them to take any of my money.
You can settle the judgment debt, and maybe for the 5k on hand. But you will not be able to pay to have anything from the court removed from your credit report. You can get the court record updated to show the judgment is settled/satisfied. And that by itself can clear you for the home refinance.
Who is the collection law firm handling this for Capital One?
Michael
First I want to thank you for the great work you do. I have some questions I need your extensive experience to help me resolve.
a) American General sued and obtained judgement on a debt(now $13,500 with interest originally $6,300) back in 2011. Ended up moving to Texas.
b) They sold the debt to LVNV and up till now I have not attempted to resolve the debt with them.
c) Recently got an offer to settle the debt with a CA (Delta Outsourcing group). They offered $5,700 but i’m a little concerned whether they will update my credit report since LVNV and not them are on my report. Also is it ok to accept an emailed settlement offer or stick to my request for a written one. Can I settle with anyone other than LVNV or is it ok to settle with this CA that just agreed to this settlement? Thanks
LVNV regularly uses outside collection agencies like Delta Outsourcing Group to collect on accounts. If you want to be certain of the right collector to pay, I would call LVNV and verify they placed the debt with Delta Outsourcing, and then proceed.
Is the settlement offer letter you received from Delta in the email sent as an attachment, or a message in the body of the email?
I have called resurgent(LVNV) and they indicate they placed it with InvestiNet. I dont know why Delta Outsourcing is offering me a settlement but won’t send me any paperwork from InvestiNet. Also the settlement is within the body of the email but has the letterhead too. Seems like they scanned the letter into the body of the email. Should I also ask for them to specifically delete form Credit report?
You can ask, but it is not likely going to be deleted. And any judgment showing on your credit is the result of the public record, which only be changed through the court.
The goal would be to have the information reflect accurately after the settlement. Resurgent Capital and LVNV regularly update credit reports to show an account has been resolved and zero balance now owed. Wait at least 30 days after you pay a settlement to be sure your credit reports are updated.
You want the court updated, and I personally prefer to have the debt owner file the satisfaction of judgment with the court. But you can motion the court with the satisfaction too. I recommend working with an attorney of your own for that (if need be).
Hello, Michael
I contacted the firm you recommended had meeting and will let you know if and when there is an outcome.
I feel the attorney has good understanding of the matter and fee structure.
Thanks again!
Hello, Michael
I found
Contact Staton, Fisher & Conboy L.L.P. in Huber Heights Ohio.
Do you know them and would you recommend this firm or from your list? Do you know of another better suited?
Thank you for checking.
I do not know them from Adam. And I mean no harm when I say I would not hire an attorney with the last name Conboy.
Hello,Michael
I came across your site after exhausting all my resources that I can possibly do without the assistance of a lawyer and without all the costs. I will try to keep this short but will need to explain the situation.
For years going back to 2004 I was displaced and forced to move from my place of residence against my will in a type of eminent domain case(can explain later)
This caused numerous problems financially and emotionally to numerous to mention. Later I finally found permanent residency.
During this time of these extenuating circumstances Capital one credit card filed for judgment on October 6, 2009 for $2,255.73 for a credit card that had only a $1000.00 dollar limit! At the time I believed it was paid but not sure with all the turmoil from the displacement. I was not aware of the summons and never received it and found out later doing a public records request back in April of this year which is nearly 5 years later finding this out that there was a judgment against me. If i remember correctly I had a balance of a little over $700.00 dollars and have tried to fight the judgment. they have invaded my privacy by going into bank accounts that had no monies, nothing to garnish, I have no assets or anything I own and scant odd jobs to feed myself. Also to compound matters my spouse is on unpaid leave compounding the matter since I am fighting the judgment. I made a motion to vacate judgment, however, I never received any of the paper work to defend against the judgment and made 2 motion one to vacate and one for amended motion on my own. I went to court and they refused to give me copies of the paper work. I was denied from putting a full defense against the judgment and was given the magistrate and not the judge on the case. I was denied my motion as would be expected. I then wrote letters to Capital one from the public records and the attorney Javitch, Block, and Rathbone out of Cleveland, Ohio specifically Brian C. Block the actual attorney in charge of the case. Naturally I have been ignored by them. I did request validation and asked for all statements, and for my signed signature binding me to the contract which the only paper I received was the judgment plus the fees, interest of 28% and the court cost ballooning into over $6,026.49 dollars by a piece of paper sent to me by them with their file number and words at the bottom “This is a communication from a debt collector”. I am assuming they represent Capital One or they sold it to them( cant be sure at this time). I did try to file another motion to vacate on grounds of misconduct by the court because I was denied my due process in the first place and not having the paper work from the court. It has been since August 2 of this year and there remains an open motion of over 90 days and they refuse to answer my motion. I would of tried to settle something but am not going to be subjected like this with these greedy corporations and attorneys.
I have some options one of course would be bankruptcy but would rather avoid the headaches of another court and vacate the judgment with a reasonable settlement but they have not provided my signed signature. I understand the account was opened in September of 2000 but I still do not have all the paper work from this, and this is old and needs to end. From reading from the your blog Capital one is known to do these things to people with no consideration of circumstance and I am not going to even start with any payments; I have no retirement, left in limbo with no way out except that I am tired and wiped out in many ways. I could also just not do anything but this has gone so far and would hope you can help or if you cannot find someone that can assist in this kind of matter. With a balance of just a little over $700.00 dollars at the time it certainly will be obvious that there is not going to be any settlement over $1000.00. Bankruptcy will cost even more.
I have been harmed for years and need to be free of this. I do have all the paperwork finally by requesting the court according to Ohio revised code 143.43 to force the court to provide it. I would like to do it the same to the attorney keeping the records of the account and the case but feel it would be best to hire someone as I did send a notice of presentment under notary seal to have them cease and desist their actions against me.
Thank you for reading and your assistance in helping steer this in the direction that is needed and can give the details to the paperwork regarding this matter to follow up further.
Based on what you shared, and depending on what your ultimate goal is:
You can settle this with the Javitch, Block, and Rathbone, but probably not for the 1k you suggested would be an option for you.
You can discharge this debt in chapter 7 bankruptcy and tell them all to pound sand. But if it is the only debt you have, or that concerns you the most (due to the options they now have to collect on a judgment), It is almost not worth that.
You can continue the legal fight, and there are issues from what you shared. But you need an attorney. Did you ever connect with low income legal aid in your area? It sounds like you would qualify for low/no cost assistance.
Thank you Michael for the response to the matter. I contacted legal aid very unhelpful and doubt I would use them for anything after the gentrification that took place here in Ohio locally; officials here are very corrupt and everyone wants to get something from the disadvantaged;the courts favor in biased against individuals. bottom line is it will be an up hill battle, but would like to fight it out in court as this debt is now the priority. The other problem as reading your blog is even if I could settle with them they could send a 1099-c for the difference and I will still have a problem with shifting it to the IRS;how would that work? Can you still wipe that out in bankruptcy? Would it just create another problem indirectly from the debt? I am assuming it is and can answer my own question. The IRS could come back on me for debt becoming income and not reporting taxes to pay but if a person does not have funds it would be insane anyway.
I should also should mention that I did get a debt collector from another account that was decades old and they tried to harass me for years and finally they dismissed it after I sent the notice of claim of the presentment under notary seal, however it might be possible they to might send a 1099-c so yes I would like to consult with an attorney that could assist in my situation before this gets any worse. Do you have any suggestions of a good consumer protection advocate attorney that would be suited in m my area and my situation and do this at no or low cost? Is this possible? I should not be punished for 8 or 10 years with a bankruptcy on my record; I would like to at least try to stop them in their tracks.
I may wait till tax time to make sure their are no 1099-c sent to me which would present a huge problem. Also if I would receive a 1099 from work done with odd jobs they would go after that but not sure how that would work since I am way below any standard poverty line anyway? Bottom line is bad misfortunes happen to good people.
Thank you once again for your help as my life remains on hold until this matter is resolved.
Forgiven debt that is the result of legal discharge from bankruptcy is not taxed.
Not all people settling debt, or with forgiven debt, end up paying taxes (or the full amount). If you owe more than you own, you can avoid the tax. More detail on that can be found here.
I can help you locate experienced consumer law attorneys to speak with. All of whom likely offer a no cost initial consult. Are you in the Cleveland area, or just post the name of a nearby larger city.
I am in the Dayton Ohio. I ran across an attorney just yesterday in Huber heights but cannot find it again today.
I still want to fight them but will an attorney do this for no or low fee given my situation with javitch, block and rathbone with the Capital One Credit card.
I sent you an email to two experienced debt defense attorneys in Dayton. They both offer no cost consults in most instances like yours. But neither is likely to work pro bono. There fees would have to work for you, or it wont make sense to retain them.
Hello, I am in need for some advice immediately.
I received a letter yesterday from Midland LLC stating that my wages will be garnished. I immediately wen to the court house to see what was going on considering this is the first letter that I have received concerning this situation. I decided to do some research and found that this credit card debt is 14 years old. My account closed on October 31,2005. After speaking with the court associates they stated that the lawyer renewed the garnishment. What should I do now? I am a single parent that works a part-time job and attends college. I can not afford to pay garnishments. Please Help!
What state are you in?
I would recommend you consult with an experienced consumer attorney about your options, starting with trying to locate a low income legal aid office in or near your city.
If this judgment is really old, but was renewed (as can often occur), the debt is not going anywhere. You will have to put together a plan to tackle this. But you may be able to do that more on your terms,at least right now, as it sounds like you may be partially ro fully exempt from garnishment.
Hi Michael,
I have two credit card debts dating back to 2009 which was before I was laid off from my job. Long story short I was taken to court by a junk debt buyer/law firm (Blatt, Hassenmiller, Liebsker & Moore) in 2010 and I got both cases dismissed without prejudice. I knew they could come back and bite me but I always figured I’d be served by a Sheriff like the first time so I’d have some warning.
I was wrong. I had never heard of sewer service before. Come to find out that I was “served” last November, there was a trial and I got a default judgement against me for about $2500. This is from a different law firm/junk debt buyer, Let’s just Call them Debt Buyer B. I only discovered this now because a local bankruptcy attorney sent me something in the mail offering to represent me in my new lawsuit. Apparently Debt Buyer B bought the other credit card debt I had, which is about $1300, pretended to serve me yet again and I have a court date in less than a month. I’m unemployed, I live with my mother, I’m on public assistance, I don’t have a car or property or anything except $50.00 in my bank account . I realize I’m judgement proof but I’d really, really like this gone. It’s been hanging over my head in one way or another for 5 years. I was pro se and got my first dismissal basically by just showing up to court every time and saying “Prove it.” “Prove you own it and then we’ll talk.” They never could and eventually got tired. It was nice to “win” but I don’t want to expend that kind of energy and more importantly money this time around even though I know Debt Buyer B can’t prove it either.
I can’t afford payments because I have no money coming in. But what I do have is $500.00 that my grandmother gave me as Christmas money. I know you can’t speak for these people but is it possible they might settle both debts for that amount of money? I mean, they’ve had a judgement against me for a year now that I didn’t know about and they’ve done nothing. Doesn’t that make it seem as though they don’t really expect to get this paid? Should I call and try and settle? The amount I owe seems insurmountable to me but I know logically it’s probably too small of an amount to want to file bankruptcy over.
Also, on the off chance that I did get a job, (I’ve been interviewing a lot and I’ve got my fingers crossed!) , at what point does a debt collector know you’re employed? Provided you don’t apply for any credit or do anything else where you have to put down your employer or get your paychecks direct deposited, how would they ever know? I’m just worried about garnishment should my job-related luck change.
Ok, thanks in advance for your help!
I do not think it all that realistic to settle a judgment and a current lawsuit that total 3800 dollars for 500 dollars. I would need to know the name of the debt buyer to offer anything specific.
They may never locate your employer, but judgment creditors have sometimes decades to collect, and can pull you in with asset discovery requests, and the like. So leaving these things unresolved is not a great solution if your situation changes for the better.
Thanks so much for writing back to me. I figured that $500.00 wouldn’t be enough but I was hoping. The people suing me are CAVALRY SPV I, LLC the ones who sued me last year are CAVALRY SPV presumably the same people.
I suppose I don’t really I have much of an option to do anything but leave it unresolved at this point. I know I could file my appearance as indigent but I don’t have the car to make it to the court dates or the money for gas to put in the fictional car. I’m sorry, I know you hear sad sack stories every day but I honestly feel like there’s nothing to do but let another judgement happen. If you don’t think I should call them and try and settle for 500.00 then I won’t bother. If I did call should it be to Cavalry or the local lawyer representing them?
But, can you feasibly negotiate a settlement after a judgement? I know if they started wage garnishment the chances go down to zero but what about before that?
Am I right in assuming if I did get a job and I 1) applied for a credit card or 2) applied for an apartment or 3) got an income tax refund (do they have access to that?) or basically anything where I’d have to verify I was employed they’d be on me like white on rice?
Sorry, I know, so many question! You have no idea how much I appreciate this. Thank you so, so much.
You can always try to settle for the 500 you have. You would have to be really convincing about your hardships (not that they are not convincing…), and may need to be prepared to show documentation. But 500 is just unlikely. They would just as soon get the judgment and wait and see about collecting from you later when you have a job.
Debt collectors cannot take your tax refund, nor will they know you got one, or for how much. Not for this type of debt. But keep little to no money on deposit in a bank account.
Debt collectors do monitor credit report activity, so credit pulls where you apply, put in a rental application, employment credit check,etc., they could well be able to see. But all of that information does not always lead to collection.
Debt collectors settle for less at all stages of collection, even after a judgment. You can tackle this as things improve.
Look for any low income legal aid offices in the area and see if you qualify for assistance. You may not have to just roll over.
I live on my small retirement social security income in Florida. In 2009 Capital one through a Jacksonville Law firm obtained 2 judgments on credit cards that were I was unable to pay on. I am told I can not get a bank loan with these judgments on my credit. Is this the case? If so how can I remove these judgments. They were obtained in small claims court. I barely get by now and can not afford another payment. I am trying to reduce my housing expense by buying a house and that requires a mortgage.
You will generally find you have to pay or settle the judgment debt, and get that fact updated with the court, before you can get your home loan pushed through. Removing the judgments from your credit is not necessary, but resolving them is.
Can you come up with roughly half the amount of the judgments in order to settle?
Thank you for the quick reply. I have been doing more research and hope to make a decision soon. Yes I can come up with about half (this is a new development )of what is currently due on the 2 judgments. I would offer to make a one time pay off payment. Now the question is… is it possible that I could get that 50% reduction my self? OR Can I expect to do better with a lawyer? If so how do I make the selection of a good value lawyer? I spoke with one firm that wants $1250 fee to do the 2 negotiations. But in there contract they are not giving me any assurances except that they will try to negotiate on my behalf. Is that a reasonable fee for what they are offering to do?
I understand that I do need to get a satisfaction of judgments from the holder of the judgments in order for the mortgage people to proceed.
If you can show you are a hardship situation, and are convincing, you can negotiate with the collection attorney’s office yourself and get the same results a pro would. But if you feel you are not up to it for any reason, or skeptical of your ability to negotiate the best settlement, I would encourage you not to try from the outset.
What are your current credit scores?
Do you have other collections on your credit reports?
I ask so that I can get an initial impression of how collectable you may be viewed by debt collectors.
Scores
684..Experian
671…Equifax
no score from Transunion
Key Factors are:
– serious delinquency derogatory public record or collection filed
– number of accounts with delinquency
– length of time accounts have been established
– time since derogatory public record or collection is too short
– length of time accounts have been established
There is one other account in collection for less than $500 from 11/10
Our hardship is we live on a very small social security retirement income. My income alone does not currently cover the rent. My wifes’ social security just covers food and the bills. She pays minimums on her credit cards. We can not manage another expense. She is at the max credit on 3 cards. My wife had cancer about the same time as we lost our homes to short sales..before we were married. She has those medical bills and current medical expenses we have to deal with. The judgments are in my name and they are what I am trying to deal with right now.
I think you stand as good a shot as I, or any other professional would, at getting a good deal negotiated. You are otherwise uncollectable, and that is not expected to change. I would focus on the fixed income, no assets, but are trying to do the right thing, and with the help of others, came up with a little bit of money to try to settle.
Do not mention any credit or financing goals at all.
You do not have to try to get a settlement deal put together on the first call. It is okay to end any negotiation and re-approach it days, weeks, and in some cases months later.
I appreciate your confidence in me. I will give it a go…slow and steady.
Thank you.