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.
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Not sure where to start? Click on the big blue “Get Debt Help” button at the top of the page.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I have a credit card debt of $19,000 (unsecured). I recently had a catastrophic event (hurricane damage to my home) and I used my savings to repair and make habitable. I also was recently diagnosed with Rheumotoid Arthritis and under doctor care. My spouse and I are retired and receive only SS. Both now disabled so we can never work again to add to our income. We have a mortgage, a car payment and our SS just covers our food, utilities and necessities. I haven’t paid on my credit card for 4 months and now collection agency wants to negotiate a payoff of $7,500. Should I try to get help from family member and pay it. If I pay it and it’s charged off will I ever have to pay the charged off amount
Who is the original creditor? Who is the collection agency?
No, once settled, you will not have to pay the remainder, but always get settlements in writing before you pay.
Hi,
I have a judgment on my credit from 6 years ago. It was an unpaid electric bill in Wisconsin. We are trying to get a mortgage, and the lender already did a hard pull. So when I talked to the collection agency, they said they can’t come down at all. The original judgment was for $800, now $1,924 with the interest.
Is it worth a try to send the collection agency a certified check for half the amount, stating that accepting payment means that the entire debt is settled?
No, using a limited endorsement, or accord and satisfaction on a judgment debt like this, has proven over and over to be a waste of energy in most scenarios I know of.
My husband received a letter from a debt collection attorney. It included a foreign judgment from California to where we reside in Nevada. He was sued in 2010 by a credit card, but never received the original papers in 2010. Can we call the debt collection attorney ourselves and try to arrange a payment plan? We consulted with an attorney and Ch 7 was “favorable” at the moment. But after further discussion, since this is the only debt that my husband has, is it worth it to file for Ch 7? Or can we arrange a payment plan without hiring an attorney ourselves? I know with a settlement, they would want a lump sum payment, but we cannot afford that since we only have 1 income as I am a SAHM.
What is the balance of the debt owed as of now? Who is the named Plaintiff that sued him originally?
The original documents that were attached to the foreign judgment said $8,000. The plaintiff was American Express.
You can call the attorney for American Express and try to set up a monthly payment that you can afford, but be ready for them to push back on what they will accept. Sometimes it is better to save up to settle in a lump sum, and given the circumstances, you may end up paying 50% or more of today’s balance.
If AMEX pushes the collection issue hard they may try to garnish and levy your bank account. If you meet Nevada exemptions you can prevent that, but I would not want his name on the bank account until this is resolved if it were me.
Michael,
Hello, hope the new year started off well. I wish I could say the same for myself. I recently received a judgement that was filed in Dec,2011 in NC at my old address, delivered by the Sheriff. It came to my new address and is listing the court of my old address. It is a notice of right to have exemptions designated.
What should I do? I had received something 4 or 5 years ago and ignored it. I have since then married in the last 2 years and have one joint account. I have my own business, but since the move I am not making much. I am in the process of retraining for another job, and don’t want my wife to get stuck with this. Should I call the person listed as clerk or court or the law firm listed on the paper work, should I get a lawyer.
Thanks,
Ken
Is the judgment from 2011, or did the whole court thing go down after you moved and without any notice to you until now?
What is the amount of the judgment?
What collection law firm is handling this?
Who is the law firm working for (named plaintiff in the lawsuit)?
Hi, I currently live in Texas but recently discovered I have 2 cc judgements against me in WI. These are from now months shy of 10 yrs ago from when I was young and stupid. I had been considering purchasing a home in the future but I know these will be a problem. What is my best course of action? One is under $2000 and the other under $6000 per the court record.
How prepared are you to pay a settlement you negotiate? What if the balances are double (legal interest can be charged on judgment debts)? Did you already have your credit run for a home loan, and if so, when was that done?
Question ; Can a levy be put on a bank account when I am only a third party to it? Not the the Primary account Holder.
Yes, depending on the situation. It is your name and social that gives the debt collector a match for a bank account levy. If, for example, you are on the account of your under age child, there can be a risk. The same thing can be said for a joint account with your spouse, or an elderly parent.
When in doubt contact an experienced debt collection defense attorney in your state.
Hi I live in SC and I got married 3 years ago . Before I got married I had defaulted on 5 credit cards. My husband does not know about these. Everything we have is in his name and I am a SAHM . We do have a joint checking account. I know this is going to catch up with me.. Can they take my car or house? Belongings?
Were you ever sued for the debts?
You would have to be sued and a judgment entered before your bank account or property would be at risk. With the SOL in South Carolina being 3 years for credit cards, it sounds like you are passed that point.
I would come clean with my spouse about this stuff though. Debt collectors writing to you or calling you would spill the beans anyway. And if there are judgments, you will definitely want to address this.
I just got sued by capital one 7 days ago in california. At this stage can a reduced settlement happen? And if so would they accept payment plan or would it be a lump sum?
Settling an active lawsuit is best with a lump sum of money. Offering payments means signing a consent or stipulation to judgment. Not the end of the world, but avoid it if you can.
Good Morning Michael,
Long story short, I need to go to court tomorrow for my credit card debt (State of Illinois). I can’t afford an attorney and I’ve been working with the debt collector (agent) on a payment plan; but, we are waiting to hear back from the CC company on my appeal for lower payments . The debt collector’s attorney insists that we need to go to court. What do I do in this case?
I would always show up for court no matter what. You may end up working out the details at the appearance. I see that as fairly common.
Hello Michael. I have a judgement against me from Ford Motor in FL (in 2012) for $8700. They were not able to get anything from me because I did not have job and any assets. I moved to SC, and just recently they hired another firm Smith Debnam and suing me for same debt/judgement for $11500. Letter before that, they said they would settle for $6900. I still do not have a job, bank, or assets. I do not have such amount. I would like to know what are my options? what should I do? please I need an URGENT advice.
You can stop all collection and get rid of the debt with a chapter 7 bankruptcy.
You can put your head down, and when things turn around financially, negotiate a settlement for less than the full balance.
Hello. I have a few questions concerning a judgement. I went to court in September for a summons from Finkelstein Kern Steinberg and Cunningham on a debt that was originally for Capital One but was bought by Portfolio Recovery. I made a payment plan with the attorney for what I can afford right now, SAHM and student, for $10/month on an $1100 debt. They wouldn’t take less than this. I have paid every month with the payment starting in October. I received a notice from the law office saying they were filing a property line with the court. First off, I don’t have any property. House, car, all assets are in my husbands name. I have a bank account that only holds enough money to buy groceries every two weeks. So, is this the normal process? Why are they doing this since we have a payment plan? What’s happens since I don’t have property? Is my bank account exempt? I live in TN.
Many Thanks!
The judgment collection exemption in Tennessee that applies to your bank account is a shared one. It is a $10,000 wild card that can apply to household goods, your car, and bank account.
I am not sure why they are going for the property lien if you are not attached to it in any way.
When you are in shape to do so, you are likely going to want to negotiate a lump sum settlement.
Michael,
Great site and I enjoy the comments a lot. My father and mother declared bankcruptcy but prior to discharge one of the creditors sold the debt to Portfolio Recovery Services and filed a lien against the house in just my fathers name. The house was in both my fathers and mothers name and the attorney that handled the bankcruptcy feels he has a good shot at getting the lien removed. That said If he can’t get it removed can I negotiate the lien down a bit for a settlement with Portfolio Recovery Services? In Utah , the judgement liens can be renewed every 8 years.. If my mother is still alive and still owner of the home can they renew the lien against my father and the property?? Do collectors like portfolio recovery renew judgement liens?
All judgment creditor renew the judgment liens in this situation. But if I understand what you shared, the original debt was included in the bankruptcy. This should not be a problem for the attorney. Let me know if it is.
If push came to shove you would be able to settle for less, both now and later.
Hi Michael. The question that I have s I had a judgment filed against me in California and actually today is the 30th day I had to respond. I’m currently unemployed although I do receive income because I rent rooms out of my home. I still have yet to respond just because I’m very nervous and scared and I don’t have the money for an attorney and do you have any suggestions any way that I could handle this I don’t want to default but unfortunately I just realize today was the 30th day to respond. Should I call the attorney representing the credit card company and try and settle some things at this point before the day ends ? Any last minute advice you could give me would be greatly appreciated thank you so much. This anxiety is going to kill me. 🙁
If it were me I would file a general denial. Just the filing fee in California is going to set you back though.
As far as calling to settle, you can do that, but the deck is stacked against a favorable outcome.
Hi Michael,
I am going through The process of building a house, but recently found out that I have a Judgment against me from Capital One (from 2011). This was a card that an ex opened bc she didn’t have any credit to open one herself. I was told monthly that she was up to date on the payments. Which I guess she wasn’t.
This happened in AZ. I am currently in TN.
I have the case number and court where the Judgment is filed, but when I call the court house, they tell me they can’t locate my case number or name.
I need to get this settled, but I have no information to contact the attorney who filed the judgment.
Any thoughts on what to do?
You may want to get help from an experienced debt collection defense attorney in Arizona. I can email you a list of attorneys with the experience you need if you like?
Hi Michael, , I just received a notice of writ of execution for a capital one credit card debt of US$4299 (includes courts costs, court officer fee, etc), it says to contact the court officer to make payment arrangements, right now I have no money to pay them, I would like to know what are my options? what should I do? please I need an URGENT advice.
Run your situation by an experienced debt collection defense attorney in your state. You may have something that you have to comply with the court on, and you do not want to ignore that. I know you have no money to pay them, but you still will want to respond to some of these things. What state are you in? I can email you a list of experienced attorneys.
i am in Elizabeth, New Jersey. thank you
Question, I received a letter saying I had a hearing for a debt amount owed. I do owe it. I called the place to make a payment plan. They agreed to the payment plan but said due to where I live they still want to get the judgement but any post judgement interest will be waived.
I did receive a letter from them stating that I owe X amount. And that this is my start date for the payment plan and this is my end date on this day of every month. And they even said in the letter we agreed to these terms.
But they still want to go get the judgement. Is that because they already paid the court cost? And want the judgement in place in case I do not pay. “Which I will Pay.” And I agreed to the full amount not a smaller pay off.
Can they take this back ? And try to attach to my bank account? I can truly afford to now pay the monthly payment plan but if they went in and just empty my bank account that could make me late on other payments for CAR, RENT ETC. which then we all know is a bankruptcy issue.
They did say no action on the judgement will happen as the payment plan is the course of action.
I will say they have been nice to deal with on the phone and it is a debt collecting company.
What they want you to sign off on is a consent to judgment, or stipulation. It is normal when you need a monthly payment plan in your situation. They want it so they can secure their clients interest, which is the job, but also so that if you do miss payments, they can move forward with what you fear, wage garnishment or bank levy.
My experiences is that nothing will happen as long as you are making your payments on time.
Who is the collection law firm and creditor you are dealing with?
I am trying to vacate a judgement that was entered against me. I have a hearing for my motion to vacate the summary judgement on Monday on the grounds that I was paying for a service called Crédit Defense and Wells Fargo failed to uphold the contract.
The debt is mine, I just want to avoid this hitting my credit report…
I have evidence i was aying for credit defense. I also have a contract the debt collector is supposed to sending out for a settlement of this debt of about 60% the full amount.
During my hearing for my motion to vacate the judgement, should I tell the court that I have an agreement with the Plaintiffs attorney in place?
If the plaintiff and I have agreed on a settlement, should I tell the court that this judgement should be vacated because 1) Wells Fargo failed to uphold the full extent of the contract I signed and 2) Wells Fargo has already agreed to a settlement with me so we no longer need to waste the court’s time with this?
Im so confused trying to fight this on my own, but I just donot have the money for an attorney
What state are you in? You may be able to get help from an attorney without having to pay for it, if Wells Fargo violated your rights.
Received notice today Discover is turning over account to attorney for $5100.00. I have not been employed in over a year, no bank accounts or property in my name. What is my next step? There is nothing they can take from me, i have nothing. Should i even waste my time calling I dont have a chunk of money to give to them.
Do you have a chance of raising the money to settle, say for half the balance, in 6 months?
Hi I need help! My husband own on a credit card and there a judgment for a bank levy which was taken out of my account with him on there as a signer. Which they have taken some money out . I have since taken the rest of the money out and going to close that account. I have also open another account with my name only. I just got a notice address to me as a third party. Can they levy my account? I live in California
Call and talk with an experienced debt collection defense attorney in CA. That link is to a video interview with Jeremy, who I have been referring people to for a long time.
Hi Michael,
I would like some advice on settling a judgment against my ex-husband that has resulted in a lien against the home I was awarded in the divorce. Should I do this in a letter to the attorney of record (in writing) or a phone call. My ex will never pay, but I want this gone so I can move on with my life.
You will typically want to negotiate with the law firm on the phone, then get everything in writing before you pay.
Who is the plaintiff that sued your ex? Who is the collection law firm involved?
The plaintiff is a credit union. The law firm is Pressler and Pressler
I’m nervous to call…I don’t want to say the wrong thing.
Thanks for the reaponse
If you want help, set up a consult with me. You can fill in the talk to Michael form in the right column. When I see that I will email you to set up a time to talk.
I enjoyed your video of information. I am 77.5 years old, lost my supplemental income and survive on Social Security and once in a while if I can sell a little something on the internet. Discover Card, thru Winn Law Group, recently obtained a money judgment against me. I had two checking accounts with my credit union that requires me to have $5 in savings on each to have the account. Winn emptied the second account, including the $5 savings and obtained close to $300. The other account is SS so they only obtained the $5 since it is protected, and also obtained a lien on my property. Read below someone didn’t have a homestead but mine is (so can they put one on a homestead house?).
With the writ fee and interest to date of $1.53/day, I calculate I owe them approx $5597.27. If I could get a personal loan from my credit union, what amount would you recommend I try to get to offer to the collection legal firm to settle this? When I get ready to sell my home in approx a year, it will have to be a Short Sale as value to debt is not yet there where I live. It will be difficult to come up with this money so I definitely don’t have money for an attorney as I’ve read that is recommended to do this.
I am in California btw
I would want to have 50% in hand before I start trying to negotiate with Winn Law Group on the Discover judgment. Check out that link as it is highly relevant to both entities and your goal.
Thank you so much Michael. When you negotiate with them, do you request a breakdown of charges? Do you get some written agreement from them as to the agreed to amount? How do you get them to notify court if it gets satisfied?
When I am negotiating a debt I am typically looking for a steep discount. Unless there is something seriously amiss with charges and payments, I am not looking for an accounting.
You will want to get your settlement agreement in writing. It is normal for them to provide to you, but read that article for what to look for.
Most collection attorneys are going to update the court that yours is a paid or satisfied judgment within 60 to 90 days of payment being processed. It can happen quicker. It is just part of their work flow. But be sure to ask about that when you lock in all the details. I do see some instances of the motion being send to the consumer to file after the settlement is all done, but I do not think that has ever happened with Winn Law Group.
Hi Michael,
I stumbled on this page and thought I’d run my situation by you. I had a default judgment entered against me in Chicago (I live in TN now) just over six years ago for $7300. AmEx is the creditor. My credit score has mostly recovered and likely will even more so when this falls off at the 7 year mark, but I would still like to settle this. About two years ago, they tried to collect and failed because I had no assets or income to garnish. That is still the case today. I’m making about 30k, but the income is freelance and hence not garnishable, and my combined assets including the money in my bank account do not surpass the exempted amount (as far as I can tell, this is $4000 in IL and $10,000 in TN–I’m not sure which applies).
So my question: how do you think I should go about settling? Given that they have tried and failed to collect once two years ago and that they would fail if they tried again (I will respectfully make this point clear), it would seem that I have some leverage. Do you think it would be possible to settle for under 50%? Reading some message boards like the one on myfico.com, many have claimed to accomplish this. With another month of saving, I could do 50%, but naturally I’d like to settle for as little as possible. Should I call AmEx or write them? Or do I need to find out who the lawyer was when the judgment was entered and contact them? Thank you so much in advance for your advice.
You generally have to negotiate with the attorney of record, unless AMEX has sent it to a different law firm, or sometimes to a collection agency.
It is not common at all to settle judgment debt for less than 50%. That goes for American Express and other creditors too. But when it does happen, it is in no asset situations like you may be able to qualify for.
If you are ready to pay half you are ready to negotiate. You will certainly want to start low and hold your ground every inch of the way. If you are not in a hurry you will be even better off.
Post who you learn you are going to have to deal with once you talk to AMEX. I can offer more feedback then.
Hi Micheal,
My husband has a court for a judgment coming in two days.
I am going to try to help him call the company to try to settle it.
But my concern is that can they come after my bank account or my wages if my husband doesn’t have any? and if it is his card
Fill in the talk to Michael form in the right column to set up a phone consult if you see this in time before court today. I will see that and reach out to you.
I recently agreed to a settlement to pay around $300/mo for the next 3 years to settle an old credit card debt that was purchased by a collection agency. I’ve already made a payment and setup automatic drafts from a bank account I setup just for this purpose (I only deposit the amount that’s being drafted each month so extra money cannot be taken by ‘mistake’).
I sent a signed copy of the debt settlement agreement back to the law firm representing the company that owns the debt last week however they have not received it yet.
In the past week and a half, I received a notice for a ‘Civil Case Questionnaire’ that said specifically this on the one page questionnaire:
“This form must be completed and filed by the Plaintiff after conferring with all counsel and pro se parties. The completed questionnaire must be filed with the court within fourteen (14) days of the above date or the case will be DISMISSED FOR WANT OF PROSECUTION. If you do have any questions, contact the Court Administrator/Coordinator of the Court. This form does not constitute a discovery request, response or supplementation, and is not admissible at trial.’
It had about 15+ questions on it asking about various things such as if it will be a jury trial, largest monetary damages, counterclaims, estimated time needed for discovery, total time needed for trial, etc. As far as I understand what the first sentence says, it’s the Plaintiff’s responsibility to fill this form out after conferring with all counsel and pro se parties and I was under the impression I was receiving this so I had a copy for my files so I didn’t fill out the form. I was served a summons almost two months ago and provided a written answer to the judge within the allocated time period. I didn’t know how I should answer it and I cannot afford to hire a lawyer to review/fill it out for me. I called the courthouse asking to confirm my understanding of the questionnaire and they were not helpful at all. I called the lawfirm that filed the suit on behalf of the company that purchased the debt from the original creditor and they could not confirm for me either (although they have been more helpful and courteous than the courthouse has ever been). The lawfirm did indicate that they would honor the agreement regardless but couldn’t say what the court would do. I hand delivered a signed typed letter to the courthouse for the judge explaining all of this and why I did not complete the form as I was under the impression it was just a copy for my records as I’m not the Plaintiff in the case however it was on the last day that it would be accepted. I also included a copy of the signed debt settlement agreement I have with the lawfirm that filed the suit and let him know that it was in the mail but they haven’t received it yet so they could file it with the court and forgo a trial if I ensured to meet the conditions of the agreement which I have every intention of doing.
I would like to know if I’m correct in my understanding that the Plaintiff (the lawfirm that filed the suit) should be the one completing this form and conferring with me as it doesn’t say that the Plaintiff and the pro se parties need to complete the form, they should be ‘conferring’ with me. If my understanding is incorrect, what kind of impact is this going to have on my case.
I really don’t want this to have huge implications and I’m worried now as I couldn’t get a straight answer. The lady that ‘helped’ me at the courthouse was one of the rudest people I’ve ever encountered in my life right off the bat and I was extremely respectful to her, it’s a shame our tax dollars pay her salary for her to act that way. It’s as if she expects every person that walks through the door to be a lawyer…
Any insight would be appreciated!
Is the agreement you signed with the debt collection law firm a stipulation or consent to judgment? If it is, and I were in your situation, I would simply follow through with my payment commitments.
Hi Michael,
Thanks for the reply. The agreement is a consent to judgement outlining what the judgement is (full amount and per monthly payments) and that is absolves me of all responsibility of the debt once I fulfill all payments in the payment plan.
If I was good with what I set up, like you have done, I would simply follow through on the arrangement.
Hi Michael- my husband and I have two judgements with portfolio recovery associates in Texas. Admittedly we have not been the best at paying on these and now they have requested a receivership? What is this and what is my best course of action.
When were the judgments entered into the court record?
What are the balances?
Do you have assets that you are concerned about them being able to take?
Your wages are exempt from garnishment in Texas, and your home is protected in most situations. Your car is often exempt given the high household goods exemption in Texas. You have to be careful with money in your bank account in Texas.
My Discover & Capital One debt were discharged through a Chapter 13 bankruptcy that was converted to a Chapter 7 for the purpose of having them permanently discharged. Problem is that at the time I had no homestead exemption in place, so they were able to attach a lien to my home, which I now cannot sell because of these liens. What would you suggest? For lack of a better idea, I have a local bankruptcy attorney on retainer and attempting to negotiate a settlement for less.
If the debts were discharged in the bankruptcy, why did any judgment not go with them? The judgment is why a lien can exist. Was the judgment not discharged?
I live in South Carolina and I have received an Execution of Judgement letter for consumer debt. What happens next? Can they garnish my wages. Can a lien be place on our property?
How do I contact the party that sued me to negotiate a settlement?
What is the name of the plaintiff in the lawsuit?
Who is the collection law firm handling the case?
Wages are protected in South Carolina, but a property lien is a given.
What is your goal for resolving the debt?
Thank you for your help and for your quick response.
I haven’t yet found out who the law firm is but the credit card company is Discover.
How can I find out who the law firm is?
In a property lien, can the plaintiff force a sale?
We owe around $6500, so I would like to save up to half and negotiate. Is that a probable solution?
The law firm is likely the same one that is listed in the court documents. That can change over time, so call Discover and they will tell you who the account is with.
I do not see forced sales on the property liens.
Settling judgment debts for half is optimistic, but still realistic. You may need to be prepared with a little more cash than that in the end, but I would start negotiating at the point I have 50% of the amount owed. Remember that interest is likely accumulating on the judgment.
Thank you Michael.
Today i got served papers saying i have been sued by bank of America for $22.111.57. I don’t have the money to pay it back at all. I was told that I have 20 days to go and write a answer to the court. What should i do? I am on ssi, and I live in Texas. I don’t have a house, but do have a car. Can they take my car? I don’t know what to do please help!
Check out this post about debt collection and exemptions. Your SSI is protected, and your car likely would be too.
Do you expect to be working and making better money again in the future?
hello yes i want to go back to work. i fell bad about my debt. i did talk to a bankruptcy lawyer,and i want to file for bankruptcy. i just fell bad about doing it. i want to pay back the debt, i just cant do it at this time. and at this time i dont have the money for the lawyer.
If you file bankruptcy now, and get a legal solution to the debt so that you do not have to stress, or worry about bank account levies or wage garnishments, you can always circle back and donate money to a BofA charity, or one of your choosing, when you are better off.
Is there a court judgment against you already? Did you defend the lawsuit with your signature and sovereign arguments?
I got a phone call today and was told that I had a judgement against me for about $5500. This was for a default on a credit card in the mid 1990’s. I was never served a summons or notified about this by mail. I was not there to point out the statute of limitations. I’m assuming that 20 years would qualify. I have lived in Oregon since 2002. This all took place when I was living in Colorado and Nevada in the early 1990s. I acquired the cards while living in California if that matters. What to do?
What is the date of the judgment entry in the court record? What court was the lawsuit filed in? Who is the named plaintiff? Who is the collection law firm that handled the case. What is the name of the collection company contacting you now?
Hi
My husband and I got sued for a $1900.00 by Machol and Johannes and Barclays bank. They got a judgment against us and now we have to go to a supplemental hearing. My husband is a retired disabled veteran and the debt occurred when he had retired. The judgement was made only a week ago when we could not go to the hearing due to illness. My question is can we settle for a lower amount with these people and will they let us do a payment plan? Only one of us currently works and we cannot borrow the full amount. I am afraid of wage garnishment as we live paycheck to paycheck. Do you have any experience with them settling wise. We are prepared to pay 60% of the debt on a payment plan? Help! We live in WA state.
My experience with Machol and Johannes is not good. I mean really bad. So bad, that yours will probably be better.
They cannot get back with people. Do not give a rip about injured vets on disability raising children on state assistance.
Generally speaking, and this is not just with Machol and Johannes, but most collection attorneys, the more months you need to pay, the less likely you are settling for a savings.
It turns out the previous hearing had been cancelled by M&J as they also failed to turn up. We went to the hearing and put ourselves at the mercy of the judge without whining etc, and the judge basically told the lawyer to have a discussion with us before while he took care of a few other cases before he ruled. After verbally discussing the possibility of a payment plan the lawyer asked for the hearing to be stricken. Will they have to file another lawsui if we refuse their payment plan?. We have not recieved a settlement plan from them yet?
I am not sure I understand what you mean about the hearing being stricken. Can you elaborate?
Hello. My husband is being sued by an attorney for portfolio recovery for an old credit debt sold to them. We have been showing up to the court dates and they kept asking for extensions to get the paperwork. We just got paperwork In the mail from them validating the debt of 3000$ so we are trying to settle. They are trying to get a summary judgement based on the evidence. We negotiated a settlement for 2000$ and I’m working on getting a loan from family to pay it so it doesn’t get put into a judgment. If the court date is the 9th but they gave a due date to pay by the 18th should I strive hard to pay it by the 9th or what will happen in court if we have agreed on a settlement? I have it in writing from them also. Can they still issue a judgement after a settlement has been agreed upon? We are in Hawaii.
Yes, that can happen. And you cannot trust PRA. I would show up for any court date if I could not gather the money to pay prior to that day.
I’m not sure what is the best coarse of action to take. I am being sued for 3500 from midland funding over a old credit card. I have a court date for garnishment this week so should I try to negotiate a deal prior or go to the court date? I haven’t been able to get much info from midland on the credit card. They said I owed around 1700 in 2011 when it went delinquent
Are you saying you have a court date as a result of them trying to garnish your wages, but you are contesting that because you qualify for exemptions? Are you being called in for an asset discovery hearing?
Yeah it’s a court date for the wage garnishment. I assume it’s for asset discovery. I doubt I qualify for any exemptions but I can’t afford the 25% with all my other bills. Including house, utilities, daycare and a lot of medical bills. So I’m wondering if I’m better off just trying to negotiate a deal with them or going and explaining it to the court?Could I possibly negotiate it down to 50%. I’m not even sure this is my actual debt. I have asked for paperwork on this but haven’t received much except for a balance I supposedly owed of 1700 as of 2011. Thanks
The time to request proof of the claim was prior to the judgment. You are typically not entitled to much of that at this point.
I would show up to the hearing and answer all of their questions truthfully. If I can qualify for exemptions I would use that as leverage to get them to settle for half-ish of the balance owed on the judgment today.
My daughter is not sure how to go about resolving this debt with American Express. My daughter, had an agreement with them, but when she lost her job, she was not able to continue payments. They now have their lawyer coming after her for the full amount of $5000.00. She would like to go back to the original agreement of just over $2000.00. Which is the best way to handle this situation.
Thank you.
Sincerely,
Sylvia
Can you provide more details about the status of the debt? Was she sued and a judgment entered? Did she catch it before being sued? Who did she do the settlement agreement with? If not American Express, what is the name of the collection agency?
I have a judgement against me for a credit card $1800.00. It’s a request and writ for a garnishment from a old account I had with a Credit Union. The Credit Union sent this to me in the mai. The Judgement creditor did not get any funds because I no longer have a account with Credit Union. I do have an account with a bank for direct deposit but the Judgement Creditor did not garnish that account yet. What should I do before they find this bank account? Can I make payment arrangements some how? They are trying to garnish my wages but have not garnished from my current bank yet.
Check out my video about avoiding bank levy and wage garnishment.
I received a court summons for a credit card debt. Can I negotiate with the company before the court date and don’t have to appear in court?
You can negotiate at any time. How you go about it can impact the amount you save. Who is the named plaintiff and the law firm handling it? How much are you being sued for?
I have a judgement against me and a lien for a credit card that was used fraudulently. It’s only about 1,600. But right now I don’t have it. As I have a small business barely hanging on. When I was served, the summons wasn’t for me, it was literally someone else’s summons. I finally figured that out but the 20 day response time had expired. Now what?
How long ago did the response time expire? What is the name of the plaintiff suing you? What law firm did they hire to sue?
It was about six months ago. In the mean time I have been notified of a lien filed four days ago.
Calvary.
Winn Law Group based in L.A.
I can email you attorney contact info in California for a free consult about what to do from here if you like? You may be able to unwind the lawsuit due to the errors. And that could give you a better negotiating position, or the ability to defend the suit.
I have a judgment against me for around 4,000.00 from a credit card. I just received a letter my wages will be garnished. I think I can fight that because I receive food benefits for my son and I. My question is – can I still call the original creditor and negotiate? Or once it has gone to court it’s too late? I would love to get it off my credit report. Is the creditor the only one who can remove the judgment and either way is it still possible for it to be removed?
I also have another card that has gone to collections – I received a letter to settle for 800 or so. Should I contact the 3rd party to make payment arrangements? Or can I still talk to the original credit card company? Sorry if these are dumb questions. I just want to deal with these issues and move on. Done trying to ignore them.
You typically have to work out the settlement with the attorney that sued, or that is pushing the collection now.
The creditor cannot just remove the judgment from the court record. But once you settle the court record should reflect a paid or satisfied judgment. You can improve your credit situation from there.
Who is the collector and creditor on the other account? When did you last hear from the debt collector? Was there an expiration on the settlement offer letter?
The other account is Capital One. The collector is Client Services – and yes there is a due date of 11-06-2016. They want to settle for 740 and I owe 2400. I cannot pay the settlement amount in full at this time. But I have done some more reading and it sounds like I can’t contact the credit card company so I will have to deal with the collection agency.
That is a great settlement on a Capital One account. I would try to take advantage of it if at all possible. If not, keep saving up and settle it as soon as possible.
You may be able to talk Client Services into agreeing the that amount spread out over a couple of payments. If they go for it, be sure to get the deal re-lettered.
Hi,
My name is B.R., I live in Casper, Wy. Yesterday I had a phone call at work, from a debt collector for a loan that I had with US Bank. I called him back when I got home from work introduced myself he immediately became abrupt with me and told me that they needed to have the debt cleared at 100% I explained to him that there was no way I could pay the entire $2336 debt in one lump sum I told him I could do 100 per month. I explained I had a lot of medical bills and I’m a single mother. He basically told me that’s not his problem (recorded the convo). I asked for him to speak to my mother as she is better at negotiating things like this! He informed me that he would not allow that.
He said he could divide the debt up to three payments of over $700. I again explained to him, that there was no way I could afford that much money because of my medical bills . I asked if I could speak to his manager and his manager came on the phone and again was a little rude to me but not as condescending as the previous gentleman. We agreed to $100 a month for three months after three months I would pay $500 a month. I called him back today to set up a payment schedule and they would not except it because I wanted to wait for two weeks when I get paid again!
They told me that they were marking this file as a refusal to pay and that I was going to get sued! I am very stressed out I did not refuse to pay I just cannot pay as much as they want at this time. As my medical bills decrease, I can pay a little bit more per month!
Should I let this go to court? I have A recording of our conversation and he was very rude and very very insistent that I pay the entire balance like that was my basically only choice !!!
Help!!
Thank you!
Be sure to check out my video about debt collectors tricking people with refusal to pay.
I can help you with better feedback if I know the name of the collection agency collecting on your US Bank credit card. Also tell me how long ago you last paid, and if you have any other collections.
How much are your medical debts?
Good morning!
MS Services is the collection agency! I believe that last payment was a year ago… I went to a recovery treatment center.. (clean and sober) for 13 months! I have paid 2 other medical collection accounts off that were over $9000.00.. I have approximately 3000.00 left on medical bills. I had another judgement that I’ve negotiated 6 payments of 325.00 to satisfy that debt! That will be paid off in February 2017!!
I’m a single mother and I’m not trying to dodge this account but I have had some struggles the last 3 years! I am getting back to normal and want to get everything taken care of! I work in a high profile dental office and would be extremely embarrassed if I were to have my wages garnished!
Before my personal set back 3 years ago, my credit score was 810! I’m ashamed and embarrassed and want to get this rectified!!m
Thank you, so much!
MS Service is a contingency debt collector and not going to sue. US bank does sell debt to debt buyers that would sue.
If you can raise 30-ish percent of the US bank balance you have a shot at settling for that. If you cannot settle this with MS Services you can resolve it with the next agency that gets it.
Your doing great bouncing back and taking care of all the debts. Keep it up. Don’t let this debt collector slow you down. All bark and no bite.
Thank you!, so much for the information! It had been a tough 3 years but I’m better everyday!
MS Services, refused my payment on 10-16-09! Because I wanted the payment posted on the 9th of November, with 3, 100 dollar payments to follow. I then agreed to 500.00 for 3 months!
They told me that was not acceptable and marked it as refused!
I don’t think I can call to attempt anything else at this point.
Should I just wait for it to be referred to either an attorney or another collection agency!
Again, thank you for such amazing help! I’m feeling a little relieved!
I would let that account land somewhere else, or call back and negotiate the better outcome next month with them.
Hi , I receive a notice of defendant of rights of garnishment for a dept of 2010.
Can i negotiate with them over phone to work out a payment plan rathern go to court or am i to late?
If your wages are about to be garnished, I would wither file with the court to contest the garnishment as causing a hardship (but only if it does). And if I qualify for full or partial exemption from the wage garnishment, I would then look to negotiate a lower settlement.
Debt collectors with a judgment, who are successfully garnishing wages, are not all that flexible when offering a lower lump sum settlement.
Hi Michael,
My fiance recently had to go to court for a debt settlement with Capital One Bank. During the hearing, the attorney for the bank offered him a settlement of 70% of the debt to be paid off in 36 months. We would like to be able to respond with a letter to offer 50% of the debt to be paid off in 24 months. Do you think this is feasible? How should we word such a letter? Is it even worth making a counter offer?
I have read through everyone else’s questions and there isn’t quite the same scenario. Any help is extremely appreciated!
Thank you.
Also, for addressing the letter do we address it to the court or the suing party address??
Thank you again!
It is totally worth it to make a counter offer. I would do that on the phone though, and not in writing. Once you agree to a settlement get them to draft the written agreement and send it to you before you pay.
OK! He will have to try that. Thank you so much for your help.
I have 3 judgments from 2009. I got a letter in the mail of the total which is 13000 but there willing to settle for 5200. My questions are these:
1. If I pay the 5200 will it come off my credit?
2. Will it show up as a charge off or something else, if so am I still able to buy a house if it says charge off?
3. When I call the creditors to settle this, what should I say to make sure it comes off my credit the correct way so I can buy a house?
My credit it about 700 and I’ve been current on all my bill for the last 3 years. Please help thank you
Judgments from 2009 have a 7 year shelf life on your credit reports. They may already be off.
You are still able to buy a home with charge off on your credit. But those would not be on your credit any longer, only the judgments might be. But it does not matter if the judgments fell off your credit already. Unpaid judgments prevent you from buying a home. Lenders see them because they are part of the public record, and not just because one appears on your credit report.
I would not say anything about your credit reports. They are only going to do what is legally required of them, and that is what you want anyway. Talking about credit reporting serves next to no purpose.
My husband has two judgments from 2009.
One judgement was for about 10.5K originally. It is from BB&T bank for a car loan. I’m not sure if they or someone else owns the debt. I also have no idea how much the current amount is. And we haven’t heard from them since the judgement took place.
The second judgement is from a Capital One credit card, originally for $1,400 and now owe $2,500. We received a letter from an attorney about 6 months ago and a sheriff deputy came to our house to see if we had any assets that could settle this debt. We didn’t have anything they could take. And we live in NC where wage garnishment is illegal. Portfolio Recovery Associates owns this debt now.
So we have about 9K we can use to try and satisfy these judgements before we pursue buying a home. Do you think we will be able to settle both for 9K or less? What’s the best way to do this?
It is possible. The key is going to be getting the best deal on the old BB&T account. Call me for a consult so I can dig into the details and offer better feedback. You can reach me at 800-939-8357, ext 2, or fill in the talk to Michael consult request in the right column of this page.
Hello! I’m in CT and I’m wondering if there is any chance of settling with a Judgement Attourney that has, as of yesterday, began Wage garnishment on a debt I owed to a Capitol One credit card. I received a letter and paperwork from my job less than a month ago that this process would begin, and I thought there was nothing I could do and let the process begin. Upon further researching, I’m wondering if there is still an option for one-lump sum payment and if its worth me reaching out to this attorney’s office on my own and how I could go about achieving a settlement, Does that in itself require an attourney? Any help is GREATLY appreciated! Thanks for your time.
Watch this video about dealing with judgments and garnishment. You are not in great shape to negotiate much of a reduction.
How much is the judgment for? How much are they getting out of this check?
Thank you for your response. I’m at 25 % of my check every 2 weeks until I reach about $4300. I understand that I can file with the court for a better dollar amount, but I’m in a position where I can get this cleared up in less than a year at this rate. I was never notified of this happening until my job sent the letter announcing the garnishment to start 20 days later. Has been a real shock actually, this debt is very very old. Attorney worthy? I have no idea.
When in doubt, run your situation by an experienced debt collection defense attorney. I sent you an email with contact details to some I know have experience in Connecticut.
Thank you so very much for your attention to me and other people in a jam who don’t know where to begin. Your input is appreciated.
I live in Texas and have a judgement from Lvnv from an old sears bill. It was filed around 8-9 years ago but now they are going to renew it. I just received a letter from lvnv telling me I have 30 days to validate the debt. It came off my credit after the 7 year window. Do you think they would take a 50 percent settlement. The first judgement was by default. The judgement is around 5k with interest and fees.
It was originally sears. Then currently lvnv but the letter is from first national collection bureau. And it’s 30 days to dispute the validity of debt.
You have a shot at 50% settlement.
Don’t be fooled by the reference to disputing or requesting validation. They already have a judgment and would just send you a copy of it. If your goal is to negotiate and settle, focus on that.
I have received a notice of judgment filed from Midland Funding, LLC. The amount was for $2219. I do not know what the original amount was. I do not know when the last payment was made on this account but it was charged off Dec.2012. I contacted the attorney office that filed this suit and they are saying I owe 2421.27 plus $75 court fees. I did not make an agreement to pay and told them I would like to appeal this judgment. Do I have a leg to stand on? I cannot pay 50% of what is owed.
What state are you in? Were you aware of the lawsuit? Did you defend it? When did judgment get entered in the court record?
Please contact me Michael. I could use your assistance!
Thank you!
You can fill in the talk to Michael form in the right column of this page, or call me at 800-939-8357, ext 2.
What happen after settlement and payment plans are paid off?
The judgment will updated to show as paid/satisfied in the court record. And you can move on with other financial goals.
I receive a Writ of Summons last night and it is new to me. I know I owned the money to this specific creditor, but it was out my radar as I haven’t received any mail or telephone calls asking for payment. I lost my job early 2013, besides being out of job for almost a year and half I found jobs that was temporary or with a low salary compared with the salary I used to have before 3/2013. I just found a full time job and I know I can settle this with a payment plan. I called the attorney office (the one that is handle this case, and referrer as a plaintiff) left couple messages already, but have heard from them as yet. Please any suggestion in how should I handle it, I will appreciate.
You may want to consider filing an answer to the complaint, or general denial, so you do not end up with a default judgment, and give yourself more time to deal with the attorney to settle this.
Hello,
My judgment was just removed from my credit report on September 21st, and my question is can it be renewed after it has fallen off of my credit report? Also, if I call and try to pay this debt since of course I still owe it, will it show on my credit report again. They were never able to garnish my wages because I haven’t been working and been in school and don’t have a bank account on my name. If i try to get a bank account now since the judgment is gone can they still take money from my bank account? If I get a job soon, can they still garnish my wages. Please advice me on how to settle and pay off this debt now that it is off my credit without it showing on my credit again. Basically, what happens now that the judgment has fallen after the 7 years?Thank you for your time.
An unpaid judgment can be renewed after it is too old to stay on your credit reports. Judgment renewal depends on state law.
When you pay or settle a judgment it does not get to reappear on your credit when it already was removed from age.
The judgment is not gone because it does not appear on your credit. It is still enforceable through garnishment and bank levy.
You should still look to resolve the debt. How much is owed now? What is the name of the plaintiff?
I need your advise desperately. I had a credit card a while ago with Chase (Original balance was around $3500 or so. I can’t recall exactly) and stopped making payments on it because of my husband’s job loss after the recession. Years later (about 2 years ago) I got served to go to court for this debt that Midland Funding had purchased. They had an attorney named Mark Johnson and they said that they money owed now was like $5500. I thought that the statute of limitations had already passed so I got a lawyer so he could fight that for me, however, he somehow screwed up and couldn’t prove the statute of limitations had passed and I ended up being responsible for the debt. I agreed to pay $100/month and made like 8 or 9 payments. Then I got miscarriage, had to have surgery, my husband got appendicitis and had surgery, and I was also paying tuition for my school. Basically, we had all these bills and I could not afford the payments so I stopped making payments since I didn’t really have any assets (house or cars or much money in my bank account) that they could take away. About 1 year ago my husband got into a really bad financial situation and we were left with a debt of about $27,000 so now it is even more impossible for us to pay this judgement because we are trying to pay off this bigger debt that we have. Trying to pay off a family member that loaned us some money to pay this.
Now (just yesterday) about 2 years after I stopped making those payments, all of a sudden I find out that my joint bank account was wiped clean. They took $1500 which is all the money I have to make payments for rent, food, and bills, and other debts that I have. I really want to find a solution for this. Want to settle but I don’t know how to work a deal with them since they already have a judgement against me and I can’t really pay a big lump sum. They already have the $1500 they took from the bank account and around $900 that I paid to them during previous months. Is there a way to settle with them if I pay just a little bit more in cash or with a credit card?
I am working as a contractor so I don’t have wages, however, I am scared that they will take this away too since it is the only income we have. I am also scared that they will take away my tax refund since we are barely surviving financially and every little bit helps.
Please, I need your help!
Call in for a consult Loida. Mondays are tough to reach me without an appointment, so leave a message if you have to. I can be reached at 800-939-8357, ext 2.
I have two judgement 8 years ago. I lost my job due to disability. I no longer work. The judgments were on my credit report but now they fall out. I did try to settle with them but they took to court to get judgement on me. After that they never contacted me for collection, not by phone nor by mail. They were Chase and Discover. They know that I am disabled. I have no assets. Were they forgiven since they bailed out by government, or they are still looking for my income? I don’t work, and I live with my family.
The judgments are likely still valid. They do not go away, though depending on when your Chase judgment is from, they will not pursue it or renew it.
When did Chase get the judgment?
What are your goals for resolving them? Have you looked into chapter 7 bankruptcy?
These from 2008 and 2009. I did try to settle with them before court but they would not one their attorney suggested file bankruptcy . Which I am not in favor. Because of health situation there lot of run around and I have trouble walking . The attornies had seen me on wheelchair.
If the judgment is in Chase bank’s name, I am not sure they will renew it. They abandoned collection on a ton of judgments, but you have to wait for them to fail to renew.
If you are judgment proof and on disability, I am not sure there is any reason to fret over this. But if you wanted for some reason to resolve the Discover judgment, you are likely looking at having to come up with half or more of the balance owed.
Thank you, I appreciated your help. Thanks again
Judgement is from Illinois court.
Hello Micheal,
I have a judgment against me in Washington state from an old BOA credit card it was filed in king county superior court on 08/15 2011 and is scheduled to come of 07/2018. my credit report says it is for 7,372.00 the plaintiff is FIA card services NA. I am wondering if it is possible to settle for a lesser amount before they renew the judgement against me and add an additional 10 years of a negative mark on my credit report. If so what would be the best way to go about this? Thanks for reading
You will likely have to negotiate with the collection law office FIA sent the account to. Can you pull together half of today’s balance? It may take more than that.
The judgment renewal does not mean it can stay on your credit reports longer than the 2018 date. But you can still be garnished, bank levied, or have a property lien without it on your credit. And you will typically not be able to get or refinance a home loan with an unresolved judgment, even after it drops off your credit.
Hello Micheal,
Thanks for the reply. How would I find out who the law firm is that FIA used for the judgment? Would I need to call them or should I write a letter? Will contacting reset the clock on SOL. This is the last ding on my credit report that I am trying to fix and I am not even sure how to go about starting to try to to settle it. Thanks for reading.
The SOL for a judgment does not work like the SOL if you were never sued. There is no reset of the clock to sue because they already did.
You can call FIA and they will tell you if they still have your account with the attorney they hired to sue you. If they don’t, they will tell you who they have your account with, or you may be able to deal with them directly.
If you want help call in for a quick consult at 800-939-8357, ext 2 rings to me.
Hi. Am hoping you could help us out with a question. Today my husband attempted to pay for gas with his debit card. To his surprised the payment didn’t go through. After a phone call to his bank he found out his bank account has a negative $100 and over $2,000 taken out. The bank explained to him that his wages are being garnished. Many years ago he had a credit card with Compass Bank, they have serve him a judgment. So we are out of money with checks being bounced and $0 in our pockets. Please advice. The judgment was served in Phoenix Az but we have reside in Pensylvania for a year now. He never closed his bank account in Az since is the account we use to pay bills etc. he gets his paycheck deposited electronically every 2 weeks. We don’t know what to do. It looks like the debt is for over $20,000. We don’t have the money to pay at the moment. Please advice
Check out this video about dealing with the risks from judgment collection. Set up another account like I point out in the video until you can put together a plan to resolve the judgment.
You could also file chapter 7 and wipe out the judgment.
I have a judgement from my business-against me personally. i entered a payment plan 5 years after they filed the judgement. the original judgement has interest and fees, i entered a settlement agreement for just the principle, and have been making payments for the past 3 years-no late payments in that time
should they redo the judgment reflecting the agreed to settlement amount? .
i just recently applied for a loan and they found the judgement. the bank wants it satisfied before they go ahead with the loan. i am prepared to settle for 50 cents on the dollar–what i am going to say is it will take me 12 years to pay this off at the current payment plan– or you can settle with me now. do you think this will work.? original debt $36658.00 down to $28600.00 50C on the dollar would be $14.300.00
do you think i can get them to settle for $10.000? that would be 35C on the dollar
also could they remove the lien because i have a payment plan and have not been late for 3 years?
How soon are you trying to close on the loan?
What is the name of the plaintiff?
at the current payment plan it will take me 12 yr to pay this off. so i was going to make an offer at 1st of $8000.00 then see what they come back with. i am hoping that i can settle for no more then $10.000 if you include the $7200.00 i will have paid in payments the amount paid on debt would be $17.200.00
I would have a better sense of things if I knew what the original debt was about, and the name of the plaintiff. In other words, the back story.
How soon you are trying to reach your goal matters too. If you are trying to get something closed in a hurry, it can be more difficult to hit your percentage of savings goals.
I have an old unpaid judgement from 2003 that i ignored (young and dumb). It no longer show on any credit reports. Recently the collectors revived the judgement and now have me up to $10, 357 being owed with interest and attorney fees. They mailed me a letter stating their intent to start ganishment unless i pay in 15 days. I have $5200 i can pay right now on this. The told me I can only settle for $7800. Is that not negotiable? Is there a correct way to go about doing this?? Would they entertain settling for what I have right now to avoid me paying for the next 2 years using the garnishment calculation? thanks in advance for your input. I’m so stressed over this and want to figure out how to prevent garnishment.
Has your employer already received the notice of garnishment?
Unless you have a shot at full or partial exemptions applying to you, this late stage of collection puts them in the drivers seat. They know they will get paid the full amount (often with interest) as long as you have the job.
It may be possible to settle for lower than that 7800, but in my experience, it likely won’t be by much if your employer has already been notified, and you cannot contest the garnishment and meet some of the exemption guidelines.
I live in PA, was hoping to buy a house in the next six months. I checked my credit report and see there’s a judgement from 2011 for 5400 from an old credit card back in 2006. I was never served because they had an old address, I have no idea what to do. I started doing some research and it seems i could try to negotiate a settlement or payment plan, but should i have an attorney represent me? Could you direct me to a company or program that could help me with this so that i don’t have to give up my dream of owning a home?
Who is the judgment creditor (name of plaintiff)?
Can you raise about half the amount of money owed on the judgment? If so, how long will that take?
i have an expired debt (there is nothing bad on my credit report infact i have a 725 credit score) so this expired debt all of the sudden showed up as a garnishment at my employer. i’m so embarrassed and i would like to try and settle it. do you think that that is possible? the debt is for $1170. with all of the taxes and interest included. how much do you think they will settle for and will they even do it, with the garnishment filed. like 30% or something? – they have yet to take any out of my paycheck, as i just got the letter today from my boss. please help, i don’t even have parents around to ask for advise. i called 2 hotlines on my break but was left on hold and never even spoke to a real person. 🙁
It sounds like you have a judgment. Judgments may fall off your credit reports, but they can still be collected. You can contest the garnishment through the court. If you are determined to be fully, or partially exempt, you can prevent some or all of your wages being taken.
Did you not know about the judgment at all until now, or was it something you thought had expired off your credit reports and was over with?
i got a loan for a vehicle last month and the receptionist at my work said that someone had called to verify my employment. i thought that it was my credit union, verifying i was indeed employed but when i looked up the number on the internet and saw that it was a collections firm. i haven’t gotten anything in the mail in years.
also, if they agree to a settlement price can i have them email me the agreement. i don’t want to have to wait for the actual mail to come to get this paid off.
Some debt collectors will email the settlement agreement, but not all do. Faxing is standard, so do that and you will not have the mail lag time.
New credit inquiries and loans showing on your credit reports will often alert debt collectors. They set alerts to be notified of those types of changes.
Hello micheal, I have recently been served for a debt to discover for 1,700+. This is from a debt lawyer in raliegh They’ve offered to settle for 1,450 but there’s no way for me to come up with that much money. I’ve been in and out of work and falling farther behind in bills so can’t put up much money at all. They’ve also presented me with a consent to judgment, but I don’t want all of the negative affect from that. And don’t have much money for a lawyer. Any suggestions?
You can look to negotiate a better outcome, but how much can you pull together?
You can defend the lawsuit in order to get yourself some additional time to pull money together. Probably a few months as busy as the Raleigh courts can be.
Anything I’m able to pull together would impede catching up with bills. In a few weeks I should be in a comfortable place to pay a retainer fee but I can’t be sure of a date.
You have to file an answer by a certain time or they move to default judgment. Ask the court clerk if they have a basic over the counter form you can use as a “general denial”. You are being sued, and it is best to speak with an experienced debt collection defense attorney (even if you cannot hire one) in order to get your bearings.
Hi Michael. I went to court a year ago on collections with Capital One and agreed to pay $50.00 per month to pay it off. The Balance at the time was about $6,400. After paying $500 over the year they tell me the balance is 6,700. Of course I was shocked that after paying all of that money that my balance is now higher. The collector said it’s a 12% interest for the client. I told them I was not informed of such tactics and felt I was being mistreated. I also told them there is nothing on the judgement paper stating anything about interest. What can I do? I live in Massachusetts. Thank you.
They should not be able to charge interest if the court did not set it. Look over all of the filings and make certain the court did not include what they are allowing for interest. Call a court clerk and ask for help locating the judges reference to interest. Let me know if no interest was referenced and lets go from there.
I have the agreement for judgment that is signed by me and the other party and it definitely does not say anything about adding interest. There is one line that has a a box unchecked saying postjudgment interest is waived by the plaintiff. I can still call the clerk on this matter though. Where to go from here?Thank you.
Double check this with the clerk. After that, if they are trying to force payment for more than they should, I would talk to an experienced debt collection defense/FDCPA attorney. I cam email you contact in yours state if you like? Where do you live?
It is also important to file complaints with the CFPB about this kind of thing. They are currently engaged in rule making that will greatly impact all areas of debt collection and would like to hear from you.
Thank you. I will call the clerk’s office. I live in Peabody, Massachusetts. I appreciate the help.
Hello Michael. I am being sued for unpaid credit card debt of $3,066 in the state of Texas. I do not live in Texas, but my mailing address was in Texas 6 months ago at my parent’s residents as I was traveling for work. My parents received information on their door and in the mail saying I was being sued. They unfortunately did not tell me about the papers until after the 14 day window to reply with an answer. I was served on July 19. A lawyer friend told me to just wait for the next letter but I am concerned it will go into a default judgement against me. I do not have any assets.. no car, no house, under $500 in my account and currently unemployed. I am an independent contractor in the entertainment business. Currently my boyfriend is supporting me. I can borrow about $1000 to negotiate. Should I call the law firm and attempt to settle this debt before they officially take me to court even though I have not responded to the papers?
It will be hard to negotiate a 3k court case down to 1k.
I would look at filing an answer late and getting the court to say that is okay, and your defense would be they sued you in the wrong jurisdiction. I am going to email you a list of Texas attorneys you can call and talk to about this. The city they are located in is to the right in the email. Match that up and click their name which will launch a page with the email and phone number for each.
I think you can get this tossed… at least for now.
Thank you!!!
I was served papers last night from a Kohn Law Firm in WI regarding a Discover debt. I was stupid, maxed out my card at $6500 (over time) and now they are seeking $7952 and change. I am wondering if I can negotiate a lower payoff and pay it before my Aug 22 court date. I could come up with the $6500 but $8000 is more difficult. I have student loan debt and according to what they served me with, my FICO is 540. I am married and want to spare my husband as much as possible from my own stupid, frivolous actions. Any advice you can provide is appreciated.
Call in for a consult Kris. You may be able to get your settlement done prior to the 22nd, but it could be more beneficial to use a delay strategy in order to get a better deal, or save up to pay.
You can reach me at 800-939-8357, option 2, or fill in the talk to Michael form in the right rail of this page. I will be out of the office Sunday and Monday.
Hi Michael,
As a follow-up: On the advice of a local consumer counseling type place, I offered Discover an amount of money to settle. I was told that the law firm would most likely counter based on the 70% rule. I did offer less than that 70% on their advice because they suggested that they would counter. Well, they did not outwardly counter, rather the law firm is now requesting my financial information for what I assume is to establish my “worth” for a payment plan and or garnishment. I am not interested in either and would just like to agree to a settlement and move on! What are your thoughts now? Please help!
That complicates things a bit. Fill in the talk to Michael form in the right column of this page. I will email you to set up a time to talk on the phone about some strategy from here.
I have a 5,900.00 judgement from Capital One that was granted in 2009. With interest, I’m sure it has grown. What would be a reasonable amount to offer them as a cash settlement?
It can vary from one persons situation to the next. If you look highly collectable you will have a difficult time getting this negotiated to 50% of today’s balance.
If you do not appear to be a great collection target, and can negotiate well enough, 50% is an optimistic, but still realistic target. Check out this video about how debt collectors see you.
Hi Michael,
We recently pulled my wife’s credit and saw that there was a judgement from 2012 in the amount of $3500 +/-. The company was Asset Acceptance and was in the state of Texas. My wife states that she was never informed or received notice of any lawsuit and I contacted the court clerk to get more information as was told there was a “process of service” within the file (or something like that). My question is what options should we pursue in order to get this taken care of? Is it possible to have this vacated and if so is it worth the cost of doing so vs trying to settle with Asset Acceptance? We have never received anything from Asset Acceptance in the last 3-5 yrs regarding payment or settlement of this judgement. Thank you in advance for any guidance with this matter.
It is difficult to undo a judgment that is several years old in most states. You can talk to an experienced debt collection defense attorney about your options and what their fees would be, then compare that to settling for roughly half of today’s balance.
The cost comparison is one thing, but if it is a close call I would go with settling (assuming the debt is yours) as the settlement is a know outcome, where trying to vacate a judgment has a cost with no known outcome.
i have a judgement against me from old cc debt. judgement was filed in 2014 and i was just served with wage garnishment papers. I’m self employed and don’t pay myself a salary, i just pay my bills as needed and there is never much left over. the debt is 11k and I was just served with continuing writ of garnishment last week. i don’t have $ for an attorney and feel like this law firm will not try and work things out. i had initiated a call before it went into a judgement but they did not seem to care one way or the other….
Who is the collection law firm handling this, and who do they work for (name of plaintiff that sued you)?
Do you have other unsecured debts that you are paying or in collection with? If so, how much does all that add up to?
Over what amount of time can you pull together roughly half of what you owe on the judgment?
I have a collection attorney unwilling to settle a debt with Barclay. The attorney entered a judgment and I’m not sure what to do. I tried to settle but they will only take payments on the entire amount. Should I go ahead and take my chances in court for them to be willing to settle?
How old is the judgment?
Who is the collection law firm you are negotiating with?
What is the balance owed as of today, and what are you offering as a pay off?
Also there is no money but the house as a minor child had lost a signifigant amount of financial support are thier any protections for widowed single moms is CA from having to be responsible for his personal credit card debt
You will want to connect with an attorney in California that has experience dealing with probate and wills. Look for someone with a decade or more experience.
Hi Michael
My husband died intestate. My attorneys have filed a valid creditors claim for the monies my husband owed to me prior to and during our marriage. There is a minor involved he is 6 the claim is valid backed by documents but the executor does not want to pay. The house already has to be sold. I want to place a lien on my husbands house as it was only in his name. To insure I receive the funds I am entitled to for me and my child. How do I place a lien on the house of my late husband estate with no judgement
Hi, I have a judgement against me from capital one filed in the state of Texas. It was filed in 2012 and I desperately want to rectify this before they re file the judgment. My question is after I settle with them or pay in full, can I request this judgement be removed from my credit report in its entirety or will it only showed paid. The legal item was filed for 4,806.00
I have one other item on my credit report from Midland funding(original creditor was HSBC) for 1,056.00. I have no idea how to find out when this item will be at its 7 year mark or how to go about finding out. It was opened according to my credit report(I am assuming this date is from the collection agency) in Dec. 2011, but I do not think this was the actual date of last payment made to original creditor. What is your advice in handling this item.
Thanks for your advice
You will likely only be able to get the credit report to reflect what the court will show, which is a paid or satisfied judgment. That will allow your credit to heal, so not a huge problem.
Do you have access to the same bank account you used to pay that HSBA account with?
Any old credit reports that show HSBC on them?
Is HSBC on there now?
I am attempting to settle a credit card judgment of $2300 with Citibank. The judgment was granted in Dec. 2009. The county court clerk gave me the law firm contact information that is listed on the judgment. When I called to seek a settlement, the law firm informed me that Citibank recalled the debt so they no longer had the case. I have called Citibank 4 times and every time I have been routed to their Recovery Dept but they cannot find any records of the debt, using my social security number and my old account number. I read in one of the postings that Citibank no longer owns your debt after 5 years because they charge it off. With this information, is there a way that this judgment can be cancelled?
No, the judgment cannot be cancelled with the information you gave. And wherever you read about Citi not owning your debt because 5 years went by is not a credible place to get information.
I would consider filing a debt collection complaint with the CFPB at this point. My reasoning is that you have made every effort to get in touch with Citibank to resolve the judgment, and they are not putting in the time to help you. They took the time to sue and cause that issue, and did that in order to secure their interest and get paid, now that you are trying to help that process along they are unable to finish what they started.
Filing a complaint through the CFPB will put your issue in front of better trained and resourceful people at Citibank. It will take a couple of weeks to hear back. This would be the way I would proceed if it were me.
I just received a letter in the mail yesterday that came to my parents home that said a judgement had been made against me for Midland Funding. It was a credit card that was for 3622.34 & with court fees is now 3622.34. The dispostion date is 6/27/11 & now it has been renewed I guess on 6/2/16 & is now up w/ interest to 4162.29. I do not have this kind of money. I only work part time my husband is on disability. What advice would you give me on this. My credit rating is not the greatest. I have one payment & I do pay it on time as it is my vehicle.
Do you think they will come after me for this? I have read where sometimes it means nothing more than putting it on your credit. I don’t know. What advice would you give to me…
It is typically never “nothing” when there is a judgment in the court record. You are at risk of extra collection effort until you resolve the judgment. Can you raise half the amount owed to offer a lump sum one time pay off?
I can try but it would be tight. Will some of them work with monthly payments? What about going to like a debt recovery company?
Monthly payments will often mean no lower balance settlement to save money, or not as good a deal as can often be had when offering a single one time settlement pay off.
We are a debt company. If you would like a consult click the request at the top of the page and submit that form. We can talk with you about your options and how to proceed. If you want help, we do that too.
I live in Pa,am married and I alone have been sued by Discover for over $8,000. They have a judgment now against me. We have suffered major financial hardship over 4 years time. We nearly lost our home 3 times and thank god were able to modify all 3 times. It has been very hard to get back on to of things. Our bank account(joint) was levied and emptied…. I recieved a writ of execution that was processed on the 16th, we didn’t get it till after the 24th. I am paralyzed… I am living in fear that the sheriff will come through my home and take everything to sell…. I make no real income, I am in direct sales. Average around $500/ month check but it comes out to less than $300 becuase of the product autoship and website payment. My husband is really the sole provider for our family of 8!! We have no investments, nothing of real value, No retirement or 401K….. Due to the Modification we owe more on our home than what it is worth. What can I do at this poiunt to keep them from coming through my home and taking things that my husband’s income has provided our family!?
Is the judgment only against you? You can take your name off the bank account for now until you get this resolved.
You will want to resolve this. The judgment is going to grow with interest and will continue to allow them to try to collect from you.
I do not see too many instances of a sheriff showing up to inventory your stuff, so do not let that fear slow you down.
Try to come up with roughly half the Discover judgment balance and when you are there, use all of the details in this post to help you negotiate a settlement.
You could also consider wiping out this judgement, and any other unsecured debts, through a chapter 7 bankruptcy. Have you consulted an attorney about this?
Yes this judgment is only against me. Discover has a judgment against my husband as well for $4,500, it is not as far along as mine however. Pretty sure we can handle settling his before mine. We have 3 years of tax returns coming, if we negotiate a settlement, will they wait for the $ to get here? It will take a few months. I really just want to be able to come to some agreement. We just got a notice from the bank with the cost super inflated! over $13,000 now! There is nooooo way we will be able to pull together $6,500, and $2225 that fast! It will take some time….I do not understand how they can in a weeks time have the price jump from $8.000 to over $13,000. We just want to move past this. No lawyer as of yet, really do not have extra $ at all. They just yanked over $1,000 out of our budget & we are barely making it this month. Bankruptcy is what we really want to avoid at all costs. I was hoping to be able to settle mine for $4,500… is that out now that they have this new super inflated number?
I would focus on his settlement first too. You typically cannot negotiate an agreement to settle for less today, with a payment set more than a month out. I would wait to have the money in hand before negotiating his Discover balance.
When you said his account is not that far along, is it even a judgment yet?
Is it Zwicker and Associates suing? If not, who is the law firm collecting for Discover?
I have a problem with 8k going to 13k too! When did you stop paying your Discover account? What was the amount listed in the original lawsuit paperwork? When was the judgment entered in the court?
I understand wanting to avoid bankruptcy, but sometimes it just makes a ton of sense. Are there more debts than these Discover balances? If so, what does it all add up to?
Yes the judgment just was finalized in June on his account.
No not Zwicker firm it is Weltman Weinberg & Reis.
I am concerned they are trying to lump both cases together. The $8,000 added to the $4,500 comes out to be around $13,000 with court fees….. I didn’t think that was even possible, or legal to do!! They were 2 different accounts and suits.I honestly don’t remeber when I stopped paying. We have been in and out of foreclosure as I said & that was the last thing I was going to pay vs saving our home or feeding our kids….I will try to find when the last payment was made,
I have a citibank that I believe is past the statute of limitations for $4,500
and a Lawyer bill for $4,500 but that is it.
As I said the tax refund should be fairly big & I would think it will take care of the twi cards & make headway into paying the lawyer off..
The last payment I made was in 2014 I believe…we were in VERY dire financial distress with our home.
I just got a letter from Calvalry today that bought my citibank charge off of $4370.42.. 98% sure this is at the 4 year mark. This is asking for verification of debt in the next 30 days.
Make certain that the debt has not been paid on for 4 years. With it passed the SOL in Pennsylvania to use the courts to collect, you will be in a better position to negotiate this debt on your terms.
I would look to settle your husbands now so that you have at least one person on a bank account. Call me to go over some options on the phone. You can reach me at 800-939-8357 ext 2, or fill out the “Talk to Michael” form in the right rail.
Hello, I incorrectly filed an answer to a complaint from Midland Funding on an old paypal credit account which led to a default judgment against Pressler and Pressler who is representing Midland Funding. They put a levy on my account this past week which I had lifted because the funds were exempted because I have under $1000 in all personal property. I am currently a full time student and only temporarily working over summer and cannot afford to pay the judgement in full but I cannot afford to go through another levy. I’ve been unemployed the past eight months which why I was unable to make payment arrangements and after I contacted the lawyer I received no response and later found out the default judgement was placed and the levy was ordered. The debt including judgment court fees is $1800which I am able to settle for half by sending in two payments or one if I’m able to. What would be the best way to settle as I have no stable income at this time besides this summer job. Should I send in any school information or bank statements to help my situation because any incoming money I receive is used for rent and all other basic nescessities to live. Thank You
Give me a call to go over some options for settling with Midland Funding. You can reach me at 800-939-8357, ext 2. You can also fill out the “Talk to Michael” form in the right rail of this page and submit that. Those all come directly to me.
My son has a judgement against him for over $5000. The original amount was a credit card bill for approx. $2000. I would like to help him settle this so that he can move forward with a clean slate. Unfortunately, $5000. is a bit steep for me. Can you tell me what I should offer and what you think I should expect to pay? Hopefully they will be willing to work with me to accept an offer.
How old is the judgment?
Who is the judgment creditor (name of plaintiff)?
Who is the collection law firm handling it?
Does your son have other unpaid debts or is this the only one? It can matter what a debt collector sees on his credit report, as to whether they will negotiating a better outcome. The more positive the credit, typically the harder hill to climb when seeking the best savings.
The judgement is probably 2 years old. The debt is about 6 years old. The creditor is Best Buy and the attorney is Singletary & Thrash – Jackson P.A.
He has been working very hard to improve his credit. He was working with Lexington Law to help him remove other negative reports. This one however is still there. He has been paying everything else on time so I guess that will hurt him. Any suggestions?
I would target 50% as an optimistic, but still realistic settlement amount. Given all of the obvious signs of someone motivated to improve their credit, this may not settle all that favorably.
I went back and looked at the original papers and it looks like Midland Funding LLC is the plaintiff. The original balance was listed as 2886.65 but they have added attorney fees of 962.22 plus 8% interest per annum. The date of this is April of 2013. I know the original Best Buy bill was not that much and from what I have been reading, the buyer of the loan does not pay the full amount. I am just not really sure what I should expect to pay. You said 50% is optimistic. Does that mean I start with 50% of the original balance or 50% of all of the fees that they have added to the original balance. I am sorry to ask so many questions but I do really appreciate your advice. Thank you!
It would be 50% of today’s balance after those legal costs and fees and the interest the court set.
It does not matter what Midland Funding paid for the debt. Try not to get hung up on any of that.
If it were me I would start lower than 50% and see them come down a ways. They will likely not come down much at first, but that is okay. You should not try to get this all done in one phone call. It is normal for it to take several.
Capital One also hired lawyers to garnish my wages at my job. I know I need to pay them back but I’ve been trying to get back on track since I got this new job and paying off debts here and there. I did not get to this one yet, but I didn’t even know that they could do something like this without any notice. The total amount due is $1830 plus all the fees. Can they really do this?
Yes, they can garnish your paycheck. They are not going to be all that flexible in working something out with you (payment plan or settling for less) while they have the garnishment. You may qualify for full or partial exemption from the garnishment. You will want to formally contest the garnishment with the court. If you are exempt you will get them to work with you better than if you are not.
Hi Michael–stumbled on your site—my situation–credit card debt from 1999+./- rec’d a judgment against me 2007 for 4100$..They froze my bank account and took $1000+/- (of which was never reflected to my knowledge in the amount due) I called them to try to settle–I was told no settlement-need to pay in full–I wrote (certified letter) told them I was sales person with no w-2 but i was willing to pay $50 a week towards the balance- I never heard from them. I was going through a contentious separation/divorce and it fell thru the cracks as I never heard anything from them again. Last week mail arrived at my ex-wifes apartment (I have never lived there ever) indicated they got another judgment against me including wage garnishment, -this time the amount was for 8,000 with interest. I have 20 days to respond —I have a bankruptcy attorney friend who said I should file—I would prefer not to—another attorney friend told me I would be paying them “forever” as they likely won’t settle now its been so long—he adivised me to go to the county clerk and get a copy of my file—if there are anomalies we may be able to open the judgement again but it is a longshot…….should I file 7? thx
I would look for a way to avoid the chapter 7 over an 8k debt if I could avoid it. Who is the judgment in favor of, and who is the collection law firm handling it?
If they would settle, can you raise half the amount of the judgment quickly?
Thanks Michael- Attorneys Kirschenbaum % Phillips PC, Farmingdale NY Judgment in favor of Velocity Investments LLC, Wall NJ apparently they are a well known “machine” in buying non performing debt for pennies…… Yes, I would find a way tp raise the 4,000$
thanks again
Hope that information makes sense—I can presume you are overwhelmingly busy–that said—should I keep checking back ? thanks Michael
Not sure what you mean about checking back.
You have a decent shot at settling for half-ish. It can depend on how much of a collection target you look to be. Check out my video with a former debt collector about what is often used to determine how collectable you are.
If you want help call in for a consult at 800-939-8357, option 2 rings to me.
Thanks Michael—-What I meant is I wasnt sure how the reply response turnaround went here–if the threads stayed together–no worries— would obviously like to get it behind me and if you can help that may the way to go.
Give me a call tomorrow to go over things. You can reach me through the hotline at extension 2, or reply to the email notifications you get from the site and I will reply to the email in order to coordinate a time to connect on the phone.
Thanks Michael– I am going to the courthouse this morning (est time)…just to locate any information on how I was served—As I did not get personally served either time.
Ken
don’t believe I received any emails from your site–thx
went to the courthouse and discovered that all the addresses they used were not mine—they “affixed” a letter to the door of my ex in-laws – never lived there—they did the same at my ex wifes apartment—I never rec’d any of the letters until this last one June 8 when my daughter -who lives with her mother gave it to me— I realized it was a Discover CC – there may be some question as to how much time passed between my last payment and when they decided to collect (2007) I believ the cc was from 1999
I would take this whole scenario to an experienced debt collection defense attorney and look to get the judgment vacated. I will send you an email with a list of New York attorneys with the experience you need. They are listed by location. Calling for a consult is free with most of them. Let me know how those discussions pan out for you.
Thanks! never rec’d the list–
I am upstate–Troy NY
I resent the email just now. Be sure to check your junk folder in case it landed there.
sorry–forgot to mention—i did watch your video—very informative thx—-
-funny going from unemployed 4 years ago to getting a job with a not for profit company and trying to clean up my credit—i would now fall into the “targeted collection” as you mention…..irony i guess….thx
Hi Michael!
A few months ago, I had a judgement filed against me by Couch, Conville, & Blitt LLC on behalf of Portfolio Recovery Associates for an old store credit card. Upon receiving my copy of the judgement I attempted to contact their office via phone to discuss a possible settlement. I never got an answer or received a call back and due to my job I can’t sit around trying to call them all day. So I took another route. I sent a certified letter to offer a debt settlement and to also inquire about my payment options. This was 2 months ago and I never received a response until today, I receive a “Post Judgement Questionnaire” requesting information such as my current employer, bank account information, and monthly expenses. Filling out and signing this questionnaire gives the Couch, Conville, & Blitt the authorization to retrieve any of my personal information from my employer as well as my financial institution. I really do not want them calling my job and I definitely want to prevent wage garnishment, I am willing to settle for a lesser amount that can be paid within a month, Do you have any suggestions as to what I should do with this questionnaire? I have never gone through anything like this before and am honestly afraid of what will happen if not taken care of immediately, Thanks in advance for any advice you may offer. My current balance is $1,5668.00.
The post judgment questionnaire is not in response to the settlement offer that you mailed them. It is just part of the collection process now that Portfolio Recovery has a judgment.
Mailing in to negotiate is not effective in most situations. You should call to negotiate; get what you agreed to verbally in writing, and then pay.
It will be harder to negotiate a decent savings if that questionnaire goes unanswered. It would tend to cause them to think there is something to hide, or they may already have assigned a high collection score to you as it is.
Hoe much money can you pull together in a week or two?
Sorry for such a late response, but maybe about $700.00.
And is the balance you provided above $1568? The amount you have, $700, is not quite half. I am not all that optimistic that you will get that deal put together.
What do you look like on paper to a debt collector? Are there other collections and unpaid debts showing on your credit reports? How about positive accounts that are being kept current (mortgage, car, student loan, other credit cards), how many of those do you have on your credit?
HI Michael,
I really need your help and advise on what I/we can do, I am have just remarried last year and had a baby the previous year. We are purchasing a home together did everything we needed to do got prequalified and approved, now we are in the midst of closing and upon signing title we find out my husband has a judgment against him in California it’s a discover debt that was from 2008. we put all the money we have into the purchase and are financing via fha and down payment assistance as we are starting over.. we have 5 children between us and cannot live in a 2 bedroom apartment. the original amount he owed was 8200.00 now after all these years its ballooned into 18000.00. we found out as a demand was sent via Title company.. what can we do? we don’t have this kind of money .. please help
Hi Maria – I saw where you posted that the exact balance and that you are in California. I deleted that post on the other page so we can focus the discussion here.
You are likely going to have a very difficult time resolving this for a significant savings. You will want to review this video about the problem with negotiating after you applied for a home loan.
Let’s assume you can negotiate still. How much money can you pull together to fund the settlement?
My wife owns on a credit card and the collection company but a lean on my home.
I live in PA. Now the title on the home is in both mine and wife’s name but the mortgage is in my name what can i do to remove the lean
You will more than likely want to negotiate a settlement and get the court and county updated so the lien can be removed.
How much is the lien, and who is the money owed to?
Hi Michael,
Please help me! Recently, I found out that there are two old judgements against my husband. #1 in the amount of ~$2.5K and #2 in the amount of ~$1k.
Getting a hold of $3.5K total will already hard enough, but when we approached the collector for the first judgement, they told me that the judgement now is over $14K!!! ($10K is in interest) This was an old judgement from 2007/2008. We have not contacted the collector #2, but can only imagine how inflated that amount will be. (We live in Oregon)
I don’t understand how a judgement can be entered, let alone 2 judgements, without our knowledge. They said they “tried” to contact us several times and have “proof” that we were served the notice. This is not true. What is our recourse at this stage? I’ve read several articles that says to settle before the judgement was entered. Obviously, for this situation, it is too late. We don’t want to file for bankruptcy, and most likely will not pass the means test for chapter 7 anyway; chapter 13 does not appeal to us. We really want to settle the judgement but cannot afford $14K, we can’t even afford half of that amount.
Do you have any other suggestions or guidance?
My husband was unemployed for over a year, and just last week started working again. We are just getting back on our feet.
Who are the judgment plaintiffs?
What kinds of debts were these, and who were the original creditors?
You are going to want copies of the court records. You want to see where it is they say they served you. Look at the address, the description of the person served, does all of the coincide with you? If not, there are some angles to use.
It looks like there is a cap at 9% simple interest on judgments in Oregon, but there appears to be a contractual provision too. That would potentially allow the debt to grow much more dramatically. That said, I have also seen balances balloon way out of line too.
I am trying to apply for a mortgage and have a judgement on my equifax report for $1425 (from 2010!) That has now turned into $2400 due to interest. When I called the creditor (Citibank South Dakota / Sears) they gave me a number for the attorney who is handling the case. I called the attorney and explained that we did not know what the debt was for and never remembered getting documentation or being served for this and wanted to know how to remedy it. They said that the initial judgement was done through an attorney who transfered the case to their office. They said that when they got the case they sent us a letter but it was returned to them. She said that since I was calling in they had to read me the “rights” to dispute the charge since we never got their letter. I disputed it and she made note. She said that they’d send me a letter basically showing that the court has a judgement against me and that would be the “proof”. I told her that we don’t know what it is for and we need to get it taken care of so she transfered me to the attorney. It went to voicemail and I’m supposed to get a call back.
When I called the courthouse to verify they told me that my husband was served papers in 2010 but he doesn’t remember ever getting them. The claim he signed. Honestly, it was such a difficult time for us then that it could be.
My question is, how do I get this taken care of so that we can get a home? I have a little money that I could settle, but I’m afraid of doing or saying the wrong thing and am not sure how to go about this all so that we can get it cleared up.
As a side note, this judgement was in NC and we now live in WY.
Thanks in advance for your help!
Get a copy of what they say he signed for service. Is it his signature? What is the address they list as where they served him? Did you live there at the time?
You have to look at these things because, unfortunately, many debt collection law firms and the support services they use, are some of the worst actors in the debt collection industry. And while the system has been cleaned up some in the last few years, we are talking about 6 years ago. Let me know what you find. If there are inconsistencies I can help you look at ways to remedy this.
If all you want to do is settle there is a ton of feedback to this article. Read through it all and also watch the video interview I did with a former debt collector a couple weeks ago about settling old debt when looking to buy a home.
Hi Michael,
I am hoping you can help me. In 2010 I had two judgements filed against me for medical bills I owed.
Debt 1 –
Judgement filed Nov 2010 for $6,201. With Outsource Receivables. This was filed jointly (also against my husband).
Debt 2 –
Judgement filed May 2010 for $782. With Express Recovery Services. This was filed only on me.
We are trying to purchase a home and need to settle this quickly. These judgements were incurred in Utah and we now live in Texas.
Is it possible to settle these debts for a lower cost? What do you think I should be willing to offer each one?
Have you already had your credit run for the home loan? If so, watch this video I put up last week: https://www.youtube.com/watch?v=QpdDks73QUw
If you have not tipped the debt collector off that you are trying to reach a financial goal than 50% settlements on judgments are optimistic, yet still realistic. How prepared are you to fund a settlement of 50% or higher?
hi michael
i have been sued relative to two old credit card debts from 2011 bought by collection agencies. My lawyer did not file the appearances. I have no notice yet of judgment. ( both appearance dates were within the last 3 weeks) Each amount is approximately 8k. I was out of work in 2011 when i got into this trouble and had to start completely over when i found a good job in 2012. I now make a good income, have improved my credit rating/score from below 500 to 653 and have recently bought my home. I would rather use my small existing savings and pending bonus to settle these debts, avoid litigation and avoid bankruptcy. Lawyers seem only interested in persuading me to file bankruptcy. i live in chicago illinois cook county. .
My questions:should i call the two law firms and try to settle? it will be about 3 weeks before i have the funds.
thank you in advance for some objective, sound advice.!
holly
Ideally you want to negotiate the settlements prior to judgment being entered. You can still settle, but the dynamics of the process have shifted.
Who are the two different judgment creditors and who is the collection law firm that handles the cases?
hi michael,
I’ve gone ahead and opened a consultation request. Hoping i can get to next steps more quickly via phone.
thanks
holly
Hi Holly – I do not see a consult request submission with the name Holly. If you used that name when you submitted it you may want to try again, or call 800-939-8357, option 2 rings to me. I am on the phone a ton so be sure to leave a message if you get my voice mail.
Hi Michael, not sure what i did incorrectly with the request for consultation submission but I’ve just left you a message with my call back number. In the meantime:
One of the creditors is Midland Funding and the Law firm is Blitt and Gaines. Appearance date was 4/26.
The other one is CACH, LLC and the Law Firm is Mandarich Law Group. Appearance date was 5/5.
I haven’t received anything relative to a judgement being entered as yet. Look forward to hearing from you.
holly
I am attempting to settle an old judgment with remit corp. When I offered less than the full amount owed since I am currently unemoyed, they asked me to provide proof of unemployment, tax documents, and a bank statement. I feel that I shouldn’t be providing any of this personal information, any advice?
Hi, I have lived in NY for 6 years. I had a credit card debt before I’ve left the country and I made transfers to my bf then to make the monthly payments , however he’s never paid them. So the total debt came up to 6000 USD I guess and I found out 2 years ago but didn’t really do anything about it. Last year on one of my trips to the US, I’ve opened a checking account and deposited 2000 USD. Now that I’m back home and when I’ve checked my online bank statement, there was a COAL item on it which I had no clue about. I read the blogs and saw that it was a court order. Is it the case? Can I settle my debt and pay 50% of it? Can I do it myself? I have no papers or what so ever and don’t know who to reach. Who do I need to call to settle it? I have no info about the system. Thank you for your help
It sounds like you were sued, but knew nothing about it until now. Call your bank and get the information about the underlying judgment they were served notice of in the effort to levy your bank account. When you have those details you can often go to that courts website and access public records. If that court does not have free online access you may need to work with someone local to get the information you need.
Post an update with who sued, when they say they served you the summons and complaint (and at what address), the name of the law firm handling the case, and in what court. I can offer you the feedback you need after I know those details.
Yes, you can negotiate judgment debt yourself. It can also be beneficial to allow someone else to do that. And you may share something that suggest you take a totally different path to resolve this.
Velocity Investments won a judgement for just over $1000 in 2013. Frankly I do not remember this, nor do I know what it’s for. How to I find out what it was for(what debts) and then is their any negotiating that can be done to lower the amount owed or not?
Get a copy of the original lawsuit filed in the court. while you are at it, find out the address and description of the person served (if any). Also get a copy of the final judgment.
Once you have that information post more about the original lender, when you last paid on the account, and what state you are in.
HI Michael, I read through most of the comments. Thanks, I learned a lot. Here is my deal:
I have a judgement from Pressler and Pressler representing Midland funding, for a Providian Credit card from 2000 (what I recall), though they claim its from 2008. The amount is up to $2700 with interest and court fees. I went to court looking for proof submitted when I got served, and found one paper submitted by lawyers that gave the bank name and the account number. No other evidence that the account was still open, or that it was mine in the first place. I had settled on a credit card about 10 years ago, all paperwork proving the settlement is in storage in Canada, I can’t really remember whether that was the Providian debt. Now I live in NJ and at this time I can’t attest that this debt is valid. It seems my window to ask for further proof is gone. Now I have this judgment as well as the threat of levying bank accounts, and even an arrest.
An attorney I was able to consult with for free advised me to take my name off the bank account until a settlement was reached. I have a shared bank account with my husband, I am a stay at home mother of 3, homeschool, and have no income of my own. The attorney thought he could reach a settlement at 50% of total balance. However, with his fee, that would only save me a few of hundred dollars.
I am prepared to settle, I just need to know how to go about it at this juncture of the judgement. Would you also recommend I remove my name from the bank account? We don’t own property. I have a used car in my name. And our son is currently undergoing treatments for a life threatening disease. I am frustrated that I might settle a debt I don’t owe. I have no proof and I can’t remember. REally appreciate your insight.
Call me and I will go over your options to resolve the judgment in more detail. You can reach me at 800-939-8357, option 2 rings to me.
Hi MIchael,
I used some of your strategies since last fall, and am just looking for some advice on two remaining cards:
1. Chase Marriott ($9k) – Settled for $4k and paying over three months (2 months left to pay)
2. Synchrony Bank ($6700) – Settled for $1875 and paying over six months (4 months left to pay)
3. US Bank ($15k) – In a 60 month hardship program for $253/month.
Problems:
4. Chase Sapphire ($27k) – Going unpaid currently. Offered me a hardship program for $460/month. 180th day past due is July 1.
5. Bank of America ($32k) – Offered me 25% settlement ($8k) or 60 month hardship at $560/month. Currently 175 days past due.
I currently am able to get into the Chase hardship program at $480 a month, but that means I cannot pay the BoA at all. By the end of this year I should have about $8k that I can use towards a settlement with BoA. My biggest fear is that between now and then BoA will ultimately sue since I doubt a collection agency will keep my account open for >6 months. What do you think I should do?
If it were me in your shoes I would settle with BofA and let the Chase account go to an agency and settle that one later, after having saved up for the lump sum,and not the long term hardship plan.
I had a judgement filed against me in the amount of $1516.22. I called the debt attorney last year to see about a possible settlement but they would not budge at $1516.22. Called recently to see about a possible settlement but was told the amount is now $1947.10 and they would not take anything less because the garnishment process has begun. What should my next step be?
Who is the judgment creditor? Who is the collection law firm handling the case? What state are you in?
Its a department store card/GE money that went to Portfolio Recoverty. The Law firm is Couch, Conville, & Blitt in Louisiana.
Louisiana allows for up to 25% of wages to be garnished. If you meet full or partial exemptions you can often negotiate a lower settlement. If you do not, they are often not inclined to settle for less because an active garnishment means they will get all their money (unless you leave that job).
Is your check being garnished right now?
Have you looked into any exemptions you may qualify for?
No garnishing…I do not get paid by a traditional w2 and its been a tough year….Not sure what exemptions I qualify for,can you explain
If they have a garnishment order in motion, the collection attorney will often wait to see the outcome of that before engaging in discussions about settling for less. Given the players involved and the size of the judgment being relatively small, if the garnishment is not successful, the settlement may not be optimized for savings (but you should be able to get them down some).
Exemptions to garnishment are state specific, and you contest the garnishment formally through the court once you receive notice. That may not happen at all if you are not a w-2 wage earner. Post an update on how this progresses and let’s go from there.
How long does it normally take for an unsuccessful garnishment process? I would like to make another attempt to settle.
I have seen this kind of thing take a couple of weeks, and also seen it take months.
Well we found out that they tried to garnish back in October last year and they received the letter back in November showing that I no longer had a job. They told me it was in garnishment status, so i decided to call the courts in my area to see how long the process can take and none of the courts had any record of a current garnishment. Called them back to ask them what court they filed the garnishment with and to tell them I called each one and none had any records-then they agree to settle. Apparently they wanted to prevent a settlement agreement and thought they’d scare me into paying the full amount. Long story short…theyve agreed to settle. What advise do you have prior to me paying?
My 75 yr old father was served a warrant in debt (civil claim for money) last week, for $5400. owed to Walmart/Synchrony originally and now sold to Midland Credit Management. My parents are poor money managers and terrible judges of character and age and early dementia has only worsened it. I took over their finances last summer when I discovered they were not able to pay their rent. I/they have paid off over 4 credit cards but some things were already charged off when I took over and frankly they cannot afford the payments. Both my parents are retired from the federal government and my mother draws SSI and my father draws VA disability. I do not believe they are candidates for bankruptcy because I believe they have filed it before. They currently live in Virginia, do you think it would wise to fight it? This company, to my knowledge, did not offer a partial payment one time and your done forever deal, Could you recommend and experienced debt attorney in Yorktown VA? The attorneys for the plaintiff are Reiss F. Wilks, Nancy Loftus, and Peter Heindel out of Richmond VA.
Do your folks have any assets? The situation sounds like one where Midland Funding may stop all collection activity if you are able to communicate a hardship that meets their guidelines. Read Article 2 on that page and tell me what you think.
You can call the attorney for Midland Funding and help your parents consideration for hardship. Do you have a POA for your folks?
If they are not suited for the hardship scenario let me know and we can go from there.
They have home in GA that they are upside down in and a friend (dirt bag) is currently living in and paying the mortgage as far as they know, a van that is handicap accessible (for my mother) that I purchased for them in 2007 and put in my dads name probably worth about $5000. and a truck that is worth about $1200. I do have a POA but I have not added my name to their bank accounts because I fear liability. I absolutely think they qualify for the hardship scenario, I called MIDLAND corporate today and they did not give me the hardship option after I explained the scenario including nothing garnish-able the upside down house but they offered me a one time $3700 payment which I thought was reasonable but not possible for them.. I will call the MIDLAND attorney tomorrow. Any other recommendations?
Not yet. Call the attorney and let me know what happens with that.
Glasser and Glasser is representing a third party company that bought the debt
I sent you an email with a list of attorneys you can call and consult with about whether or not vacating a judgment this old for lack of service is a realistic option.
You could also look at filing debt collection complaints against both Capital One and Glasser and Glasser with the CFPB.
Question?? If I move to NC, can a garnishment issued from Chesapeake General District court still be able to make my company garnish my check? This creditor had an original judgement in Richmond, VA; went to court in Chesapeake City, to get my company based in Falls Church, VA garnish me…
Wages in North Carolina are protected from garnishment.
Can I now get a judgement garnishment issued in Chesapeake, VA vacated since I moved to NC. My company is still in Falls Church, VA but my new residence will be in Raleigh, NC
The garnishment would be impacted by your state of residency, but the judgment would not. There are still methods for creditors to collect on judgments even if they cannot garnish wages.
So, if my new residency is NC, who do I contact to stop the garnishment or give my new home address to show I live in NC?
My employer is who I would contact, but not until I establish residency.
Talked to Glasser and Glasser Attorneys and they received the notice from Consumer Financial Protection Bureau for response. Per Matt Groves, Attorney at Glasser, he said they will move to vacate the judgement and send something to stop the garnishment. He also asked me to send him something with my address from 2008.to speed up stopping the garnishment… Is that normal and should I? I’m sending the motion to set aside the judgement and vacate the judgement in Richmond certified tomorrow because I was never properly served. Should I send him something or wait for the courts???
I would provide Groves and the Glasser law firm what they need to expedite things if it were me. I would not file with the courts if it is not necessary. You will likely get further faster by working with the law firm to unwind this.
Keep me posted.
Well, Glasser and Glasser faxed the request and the Garnishment is stopped 😉 Mr Groves is also going to court in Richmond today to request the judgement be vacated,…Wow… Your information helped has helped me to resolved this very quickly…. I do Thank You
Thanks for the updates Allen. It is good to hear how quickly Glasser and Glasser moved to correct the situation.
I have a judgement from CapitalOne Bank entered 2008 and just received a garnishment letter to my company from Glasser and Glasser in Norfolk saying I owe over $3000 from a hearing 3/2016 . First, the address they show I was served is incorrect and I was never served; and second, this debt is over 7 years old. Do I have a chance of stopping this garnishment?
Challenging a judgment this old can be difficult, but worth trying if you can show you never lived at the address they sent all these notices to. What city and state are you in?
I live in Chesapeake, VA and the Debt Collector is Glasser and Glasser
okee dokee i will thanks
hi michael,
Is the option to call you still available?
Yes, you can reach me at 800-939-8357, option 2, or email me usingthe address you get these comment notifications from. Email works great to schedule a time to talk that works for both of us.
one judgement was for about 9k and the other about 17k…now the attorney for the bigger one has taken over the smaller one too.
Give me a call on Monday to go over some of the strategies that you may be able to use. You can reach me at 800-939-8357, option 2 rings to me.
i successfully negotiated a HELOC with Wells Fargo and ignored the other two credit card debts, a Wells card (about 15k) and a Discover card ( about 6.5k). both of those debts were within 2-3 months of the 6 year SOL when both received judgements. Now one of the Attorneys has taken over both debts. I have enough equity to satisfy both so I’m leery of foreclosure.
Of course both debts now have grown larger because of fees and interest.
the interesting part is that my mortgage is with the USDA rural housoing service, who consider my house as government property until the house is paid off. So i may have some leverage to settle.
Settling judgment debt is mostly about providing an opportunity to get paid that may not otherwise exist. And if someone is viewed as a high collection target (should be able to get paid all of what is owed), looking at the real time value of money (a lump sum can be viewed as a better outcome than being paid over a long period).
How much are each of the judgments?
I have not actually been served yet but I have received numerous mailings from attorneys saying that I am being sued by Calvary SPV I, LLC. Original creditor was Citibank. The amount is over $16,000. I am not employed. I stay at home with my 3 young children. I lost my job over 5 years ago and was no longer able to pay this credit card. My husband is the only one working. In the mailings they have stated that they state that a lawsuit/ or wage garnishment has been filed against me. I am in Georgia. We are barely making ends meet as it is so I don’t think I can afford an attorney and I definitely can not afford to pay the amount due. Any advice?
Do you have other unsecured debts besides the one Cavalry is suing for?
Hi Michael,
I just received a Original Notice and Petition for a Money Judgement. I live in Iowa and this was just delivered by a gentleman to my front door. It asks for me to electronically file an Appearance and Answer within 20 days. My question is, is this the actual judgement or notice that one will be made depending on my answer – choices are: The claim is denied, The claim is admitted, The claim is admitted in part in the amount of $______ – and I have to check only one.. My question is, can I settle this and pay in full the requested amount at this point to the Plaintiff or is past that point and I have to settle within the courts? We have been enrolled with a Debt Settlement Company for 2 years and recently found out last month they were keeping almost 40% of what we were paying them as “fees”. We just enrolled with a DMP with a local company, but I am guessing this particular creditor we received court documents for are too far to be enrolled in the DMP and it is something we would like to take care of without a Judgement filed if possible. Any advice/answers would be greatly appreciated.
You have just been served notice and that is the beginning of the lawsuit for you.
You can typically call the attorney for plaintiff and negotiate a pay off at this early stage. Be sure you are negotiating that the case is dropped so that no judgment is entered in the record.
Who is the debt settlement company you were using?
Who is the DMP provider you just signed up with? Most DMP’s do not take litigation files.
We just signed up with our DMP last week. We didn’t have litigation files at that time. I am sure they will not work with this case as we were unaware it had gone this far. The Debt Settlement Company had us change mailings when we enrolled to an address they gave us. So we were not receiving any information that Synchrony had turned this over to an attorney until we were served papers last night. So our DMP thought they would be working with Synchrony or Portfolio Recovery Associates, LLC, not an their attorney who this account was turned over to. The Debt Settlement company we had enrolled with originally was Superior Debt Services.
Okay, thanks. If you are going to be paying in full it should not be too problematic to get PRA’s collection law firm to drop the case, just be clear that is what is happening, and get it in writing.
Are all of the accounts you are enrolling in the DMP charge off, or part of the debt settlement program with Superior Debt?
We cancelled our Enrollment with Superior Debt. At this point none of them are part of it anymore. So now the accounts enrolled in the Debt Management Plan with CCCS are varied. Some are the original credit card company, some are charge offs that were cancelled by the creditor (but CCCS still enrolled them to be paid) and 3 more accounts that are written as a charge off but purchased by another lender (one is the one mentioned above – Synchrony/Walmart/PRA) (another of which was purchased by PRA was owned by GEMB/Floor Trader). Thanks for all your advice and help, I really appreciate this, we made bad choices and lost a lot of money with our farming business and trying to get back on our feet.
Thanks for the additional detail. I typically look to negotiate a lower lump sum pay off on charged off accounts when ever possible. The benefits to using a DMP for the collection and purchased accounts are slim to none. If you do have an express agreement for the payments, you do keep them from suing (if they have not already), but that is about it.
Is there any way you can raise some more cash to settle more than just the one PRA account in court? If so, how much?
Are any of the accounts you set up in the DMP not yet considered 180 days late?
Which DMP provider are you working with? Is it a small local agency?
I have a judgement for cc debt of $3000 from 2010. I am looking to buy a house in about 6 months, and want to get it taken care of but wanted to entertain the possibility of settling. I sent an offer letter to the attorney on the judgement about 6 weeks ago and have heard nothing back. Should I deal directly with the creditor instead? Would a letter or phone call work better? It is March now and I will have about 60% of the $3000 by mid April, should I wait until I have the money to try and approach?
Thanks.
I am not a fan of letters making offers to settle. I prefer negotiating the settlement on the phone, and then get the agreement in writing before paying.
Be prepared for that 3k amount to be higher with interest the court set.
Who is the judgment creditor? With the account being as old as it is, you may want to start by calling the plaintiff and find out if you can deal with them directly, or who they have the account placed with if not the same attorney that sued you.
The creditor is Best Buy (Houston Funding) in TX. One thing I forgot to mention was this was issued in FL and I have been in VA the last 5 years. Would this have any effect – I’m trying to take care of without them garnishing etc but will not have the full amount for a couple of months.
Thanks for your advice.
I would wait to start communicating until you have 2k to work with (assuming the debt has grown from 3k to 4k).
It would be best to have this settled 2 to 3 months prior to applying for the home loan.
Thanks Michael I will let you know what happens.
Hello Michael, Just an update. I tried to contact the OC but the phone numbers were invalid. Searches on the net also mentioned the place went out of business. If you recall I had sent a letter of settlement to the attorney on the judgement, but had never heard back. I called the attorney’s office and a representative said that the case had been “closed” – not sure if that means internally in their office or what, but also that he would contact someone for me and acknowledged that he did receive my settlement offer letter and that it was in their “system”.
That same day (2nd) call he said he spoke with “someone” – presumably at the OC, and they (OC) would review the settlement offer and said I would hear back from him in “a day or two”. After four days I called and left a VM, inquiring on what had happened, on the fifth day I called and spoke to another person, who couldn’t help be but said they would leave a message for the first rep to call me back.
Day 7 is now here and I called this morning and spoke with the original rep, he couldn’t remember my name, but after looking it up he said he had not heard back from the OC, but would call them again today to see what is going on and call me right back whether he could get a hold of them or not. It’s been 4 hours and I’ve heard nothing. I fear this may be going nowhere.
Any advice for how I could expedite this?
Thanks!
Tim
Who is the collection law firm you are contacting?
Sorry for the delay. Actually I had several calls (negotiating) after my post yesterday. They won this one. You were correct in being prepared for the amount to settle to be more.
The total amount had ballooned from $3034 to $4700 with interest and fees, but I was able to settle for $3300 – lump sum. Just about 70% of the inflated amount. The original amount was $3034, so in reality, they got their original amount, plus the attorney filing costs which were $300. They will be emailing me the document for the settlement hopefully today. I would suggest to your readers to follow your advice – don’t try to settle via letter, I waited over a month to hear back from the attorney’s office (and they HAD received the letter and it was in their system), but it took a call to get everything rolling – and even that took over a week to get everything resolved.
Thanks again for your help!
Hello,
My husband and live in New York City and he has a judgment on him for the past 11 years and they are now trying to garnish his wages. He had received letters from the collection agency thru the years but he did not take them seriously since he never received anything from court and was
never served to go to court. Of course they claim they did serve someone at our address back in 2005. Now 11 years later a legal document stating they are going to garnish his wages.
My husband is planning on retiring by the end of next year due to health issues. We live in an apartment the is provided by the job so when he retires we need to leave. We purchase a fixer upper in MD 3 years ago to fix up and live in when he retires. The house is deeded in its entirety in both ours names. The home as it stands is worth approximately 34000. according to the last tax assessment. What we would like to know is can they go after the house and in what way?
Would they sell his part of the equity or would they put a lien on it and what will it all mean?
Could they force us to sell the house? Sell it themselves?
His has not retired yet because the house is uninhabitable, but the the plan was as soon as it is,
he would retire and we would move there. Please respond as we are truly worried that we will end up penniless and homeless.
Thank you
You have options to consider. First, who is the named plaintiff in the lawsuit? Who is the collection firm that handled the case originally, and who is it that is trying to collect now?
I have a cc judgement against me from 2008. They have not garnished wages at all and I haven’t had a bank account. I just got a letter to settle the debt for 50% $5,800. Is this my best option? I don’t want to push my luck and talk to them. I feel like if I try to negotiate lower than what they are offering the may look into me more and start to garnish my wages. I’m in Florida if that makes any difference. Thank you for your time.
Getting judgments settled for under 50% is not all that common. Calling to try to negotiate a better outcome is likely not going to be productive anyway.
Who is the judgment debt owed to? That could change my feedback. I could be more encouraging if you are on a fixed income and not going to likely work again, no assets, etc.