How to Settle Credit Card Debt with a Judgment
One of my credit cards I fell behind with sued me and has a judgment.
Can you settle credit card judgements like other debts
—Stressed
Short answer
Yes, a judgment can still be settled. Settlements can be negotiated at every stage of the collection cycle, but settling before a lawsuit is filed is easier and usually saves more.
Key points on this page
- Settlement is possible at any stage, including after a judgment has been entered.
- The largest savings usually come from settling with the original bank after a few missed payments.
- A judgment is enforced through bank levies, wage garnishment and liens on real property.
- Judgment balances keep growing at the interest rate set by the court, and most states allow a judgment to be renewed, often ten years plus another ten.
- Wage garnishment removes most of a creditor’s reason to negotiate, so act before it starts.
- If you cannot fund a settlement, bankruptcy can stop a levy, a garnishment or a lien.
The short answer to your question is – YES! CRN does assist in settling debts like credit cards where there was a lawsuit and then a judgment entered against you. Settlements can be negotiated at all stages of the collection cycle.
There are challenges to settling credit card debts that have reached the lawsuit and judgment stage. Before I address the challenges, I want to point out that the best time to settle credit card debts is before a lawsuit is filed, and even before the account is placed with a debt collection attorney.
Watch my brief video about some of the differences between settling credit card debts with your bank and debt collectors compared to negotiating with collection attorneys whether they have a judgment or not.
While this may not be instructive to your judgment debt, you may have additional credit card debts that have gone unpaid and I want you to be aware of the following:
- Settling a debt with your original creditor (the bank you had the credit card with) after having missed a few payments is not only possible, but in your best interest. In fact, reaching settlement early will often achieve the best savings result when negotiating is done correctly.
- You may end up with credit cards that are charged off and placed with outside collection companies. This is the next best (sometimes the best) opportunity to settle a credit card account you could no longer afford to keep payments current.
- If your overdue credit card account lands in a collection attorney’s office, you can still settle the debt before any court action is filed, or at a minimum, negotiate favorable payment terms.
There is a science to navigating the collection stages I briefly outlined above. Timing, balances, who your credit card debts are owed to, and your ability to come up with the money needed to settle the debts – all will affect the strategic design of which account to settle with first, second, third etc…. It is important to have a plan to follow if you want to systematically and successfully settle debts and save the most money in the process. CRN is excellent in assisting people in this regard.
If you want to learn about how to settle your debts no matter what stage of collection you are in, we have a ton of resource pages to help you. I recommend starting at the beginning of my debt settlement section.
If you are floating out there with several unpaid credit card accounts with no real financial resources to handle the situation, or a plan for doing so, you owe it to yourself to learn if you would be better off filing for chapter 7 or chapter 13 bankruptcy before a lawsuit is filed, or now that a judgment exists. You can consult with a bankruptcy attorney for free. I recommend talking with more than one.
Collecting on credit card judgments can be challenging too.
The primary ingredient found in any debt settlement recipe, whether there is a judgment or not is… money. If you have enough of this ingredient you need to be aware of a few things.
A judgment is just a piece of paper. It’s the court sponsored enforcement of that piece of paper that is the problem. You could end up with liens placed against your real property, your bank account levied and wages garnished directly from your employer. There are even instances where a sheriff can show up to take a look around at your “stuff” and inventory personal items that can be taken to satisfy a judgment (this happens, but relatively rarely).
Judgment debt, whether past due credit card bills, personal loans, medical bills and other debts, are easier to negotiate and settle while maximizing your percentage of savings results if:
- A bank account to levy cannot be found because one in your name does not exist, or does exist but is maintained with little money in it;
- If a W-2 wage source cannot be located to garnish and;
- Where there is no real property lien, or where the lien is filed, but has been in place for some time and remains unpaid.
The one thing you can control is whether you have a bank account with your name attached. If you do keep a bank account open, realize most bank levies are attempted at the beginning, middle and end of the month – when you are most likely to have deposited a pay check, or other money to cover bills.
If you have sources of funds electronically deposited, you may want to elect to have paper checks issued to you until the credit card judgment debt is resolved.
The lien on property will generally not involve forcing the sale of the property in order to satisfy the judgment. You should look to resolve the judgment prior to selling the home (negotiate a settlement before listing if possible), or refinancing (settling before a lender does a hard credit pull is often best).
Wage garnishment is a major concern. Once your wages are attached the creditor has little reason to work with you at resolving the debt for less because they will continue to get paid unless:
- You prove you meet garnishment exemptions in your state
- You leave that job
- You satisfy the judgment
Warning: Your credit card judgment debt grows from interest and can often be renewed!
Interest is accumulated at the rate set by the court, or the maximum allowed by law in your state for judgment debt. While you may be able to be creative in how you avoid paying the judgment you must realize that the balance of the judgment is likely increasing.
If you are struggling with overdue bills and other expenses and are unable to come up with a plan to get rid of the judgment or lawsuit through a negotiated settlement or payment terms you can afford, the fact that the debt is increasing should concern you. Stop and consider what your options to resolve the credit card judgment will look like next year. The year after that.
Judgments do have a “best collected by” date, but can be renewed. Judgments have a shelf life with a time frame specific to your state. Most states allow for a judgment to be renewed prior to expiration. For many, this is a ten year time line and renewal allows for an additional 10 years. That’s a 20 year shelf life!
Identify all resources you can tap to fund a settlement offer or payment plan successfully. If you cannot reasonably come up with the money to settle the debt, or make payments after reaching agreeable terms, look to bankruptcy to stop a bank levy, wage garnishment or lien on property.
Those are the unfortunate realities.
I highly recommend anyone with a judgment, that needs to be resolved in order to buy or refinance your home, to watch this video interview I had with a former debt collector: https://youtube/QpdDks73QUw
It is always best to put a plan together to address delinquent debts before a judgment becomes the concern and you are forced into crisis mode. If you have other debts, you can still put a plan together that includes resolving the judgment too, but it is important to not waste any time in doing so.
Need some personalized help?
If you would like confidential help you can use any of the boxes below to connect with me. You can also post in the comments below for feedback. I answer those regularly.
Not sure where to start? Click on the big blue “Get Debt Help” button at the top of the page.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I had a judgment filed against me for a credit card debt six years ago. I contacted the attorney handling the judgment in hopes of settling the debt and was told the case was closed and referred to another credit card company that acquired it through a merger. I have contacted the new credit card company, but they have advised that they are not able to negotiate a settlement and any payments I make will be considered voluntary. What does this mean? If I pay will the judgment be satisfied. Should I request terms in writing?
Joyce – Can you offer more details? Who was the account with originally, and is that who sued? What is the name of the judgment creditor? Who is it you were told now has the debt? Did the new debt owner put anything about voluntary payments in writing to you? Do you have any credit goals you are trying to accomplish in the next year? If so, what are those goals?
Here is my situation: I was served a complaint from the Deputy Sherrifs office on March 11, 2014 for debt collection from Discover Bank , the attorneys are Weltman, Weinberg & Reis CO. LPA Discover is suing me for a total unpaid balance of $4,852.38 plus court costs. ( court costs not listed) Prior to this I fell behind on my payment and asked to make payments of $100.00/month which Discover took directly from my checking account this was from March 2012 through Feb. 2013 at that time they stopped taking payment without giving me any reasons or explaination. The card was considered a charge off while I was making those payments. No payments have been made on the balance since the last one they took out Feb. 2013. I cannot afford to make any monthly payments higher than $100/monthly and cannot make a lump sum payment. I contacted the court today and they gave me a name of a consumer attorney that will give me a 1/2 consultation for $25.00 , however, after that they have a set fee which will be discussed with me .. I have an appt. with this attorney on Tuesday 3/18 so that I can talk to them about answering the complaint and go further to know what my rights are and what I can do about making payments on this debt. My main concerns are that my paycheck gets automaticlly deposited from my employer each payday. My daughter receives Social Security which gets deposited into that same account. I also have a joint savings account with my husbands name, and my name is on my daughters savings account. I am very worried that if a judgement is brought against me they will freeze my accounts and there is no way that we can live just on my husbands paycheck. I own an older car and also am listed as an owner on a car that my husband bought. I am very worried that we will lose what little we have due to this lawsuit and am not sure I can even afford the attorneys fees at this point. I have never so much as had a speeding ticket let along brought a lawsuit against me. Can you help me understand what steps are next? I live in PA, and understand that they cannot garnish my wages but am very concerned about not having any income to pay my bills and care for my daughter. We live paycheck to paycheck as it is. Any advice you can give on what I should expect is appreciated. The debt collectors for the attorneys office are still calling me and leaving messages to call them back, I am not sure if this is wise at this point.
Amy – You have the appointment set with the attorney. I would want to go to that before doing anything else.
You can take yourself off of your daughters account. Someone else can go on there if need be (under 18, other). You can come off of any joint accounts with your husband. The cars…I just do not see much auto jacking by judgment creditors.
None of those concerns are a worry without a judgment entered. And you do have an opportunity to reach an agreement with the collection attorney working for Discover. It would have been better to catch this prior to a lawsuit being filed, but debt happens.
Do you have any options to pool together 50 to 60% of the balance owed so you can settle with Discover.
At this time I do can not pay %50- %60 of the total to settle the case. I don’t have the means to pool that together.
Hello,
My wife and I are in the process of buying a home and found out she has two judgments against her from 2008. The one is $3300 and we are prepared to pay in full. The other is a credit card originally for $4400 which has ballooned to $24000. We are trying to negotiate to around $8k which would be the original balance plus 10% compounded interest. The lawyer said he would get back to us but it has been a week and no response. We have called and left messages and no call back. Do we have any other options?
we are in Washington state
Dan – Who was the original creditor on that larger balance judgment? Is that who sued, or is their a different plaintiff listed, and if so, who?
I had a credit card with a $500 limit on it that I stopped paying on in 2002 after a really bad car accident. Apparently a judgement was placed on me in 2005 for $13,800, which I didn’t know about until today when I received a Garnishment Summary on my door saying I owe $22,100! I’m really freaking out because I just cannot afford for them to take 25% of my wages. And I just don’t understand how a $500 credit card bill can legally end up being worth $22,100! Is there anything I can do other than to file bankruptcy? I’m just getting ready to start a business and I don’t want a bankruptcy to affect my new business. Any advice you can offer would be greatly appreciated.
April – What is the interest rate set by the court for the judgment? Can you show with documentation the correct amount charged off by the original lender? What is the name of the company that sued, and the attorney they hired? Is that the same company and attorney pursuing the garnishment?
Are you working for anyone else right now, or just focused on the business? What state are you in?
I’m not sure what the interest rate is but here’s the breakdown:
Judgment Principal: $13928.21
Interest: $8130.26
Judgment Costs: $38
Garnishment Costs: $97
I do not have documentation showing the correct amount charged off by the original lender. Is there a way to obtain that information?
The original lender was Direct Merchants Bank. On the Summons under judgment creditor’s name it says, “Worldwide Asset Purchasing LLC assignee of Direct Merchants Bank, NA. The attorney’s office pursuing the garnishment told me they purchased it from another company, not sure who that is, but under Garnishee’s Name it says “City National Bank.” And the Judgment Creditor’s Attorney’s Name is Protas, Spivok & Collins, LLC.
I live in Virginia and I do have a job that doesn’t pay bad. The 25% of my disposable earnings will come to approximately $675/month. I have a husband but we keep our finances separate. We have bills to pay and I just cannot afford to have $675 taken every month. I’m starting a dog training business but I plan to work at my job until my business becomes busy enough to quit.
At this point is there a way to appeal the original judgment from 2005? And why wasn’t this on my credit reports? Over the last 5-6 years I’ve really been trying to get my credit straightened out and I never saw this on my credit reports. I’ve not received any correspondence from the attorney’s office going after the wage garnishment. Do they not have to contact me?
As for bankruptcy, my husband has a clearance and says that I can’t file a bankruptcy because it will cause him to lose his clearance. Do you know if that’s true?
I really, really appreciate any advice you have.
April – After this long, it would be unlikely you would be able to get the information from the original creditor. If you had an old copy of a credit report?An old box full of statements?
With all of the answers you provided, and the additional details, the next step in my opinion would be to talk with an experienced debt defense attorney about your options in court with the judgment. While I am not optimistic about any efforts in court being of much use this far along, I do not mind being wrong, have been wrong, and hope that I am here. This type of attorney will generally offer an initial consult at no cost, and may have dealt with Protas, Spiok and Collins in the past, so will have those insights. I can refer you some contact info for attorneys with this experience. Just post the name of a nearby larger city, or email that to me.
You can indeed file bankruptcy separate of your spouse. I would encourage you to talk to an experienced bankruptcy about how that would work given the clearance concern, the household income and assets, etc.
You also can look into your options to reduce or eliminate the amount they are able to garnish by contesting it with the court. If the notice did not have instructions about how to do that, call the court clerk and ask about how, and then get that ball rolling.
Of the figures you shared, the judgment amount concerns me. But as mentioned, I am not sure what can be done about it 9 years later. But another option will be settling this for a lower amount, but only after you know that will make the most sense (better than chapter 13 bankruptcy, or affecting security clearance, no way to argue this in court).
Yesterday I called Tyler, Bartl, Ramsdell & Counts, P.L.C. in Alexandria, VA to make an appointment, but I had to leave a message for Mr. Counts and I’ve not heard back from him yet. Do you have any other recommendations for attorneys in that area?
Thank you very much, Michael. I really appreciate you taking the time to offer advice.
April – I sent 4 experienced attorney contacts to your email.
Thank you kindly!
I received a warrant-in-debt for a FIA credit card in the amount of 3,859.00 yesterday. I live in Virginia. I had this credit card for many years, & always made payments regularly. However, in 2010 when the economy took a dive, my income was reduced significantly, as I am a sales manager & my income is based on sales. Glass & Glasser law firm is handling this account. Is it possible to set-up payment arrangements directly with the attorney prior to going to court on April 10, or do I have to attend the hearing & ask for payment arrangements at that time? Also, is a payment arrangement that is made prior to the hearing date still considered a judgement, that will be reflected on my public record? I am still employed, & would definitely like to prevent garnishment as well as a levy on our bank account. Any information you can give me will be greatly appreciated. Thanks in advance.
C – You can call Glasser and Glasser and set up payments, but you should indeed be prepared for them to want you to sign off on a consent to, or stipulation to a judgment. Different deals, law firms,and creditors like FIA Services suing, can mean the stip does not become part of the public record as a judgment unless you fail to make an agreed payment on time. I have also see these docs filed straight away, and show up on credit reports shortly after.
When you are talking to them be sure you cover this area, and your concerns, with clarity. Get all questions answered ahead of time. If not answered to your satisfaction, I would get this hammered out at the court house.
You would be in the best shape if you could come up with an amount to offer as a settlement in full. How close could you get with raising, say 60% of the amount they are suing for?
Michael,
I was recently sued for a medical hospital bill they put a garnishment on my check however im head of household for 6 kids and my spouse what can i do ? I offered them to pay 3000 in full to cover the 7000 i owe? is the the right thing to do. Also i do no recall getting previous letters of court order ? so i was charged with default judgement?
Michael – I would first call the clerk of the court the judgment is in (you could go the court house too), and find out the protocols for getting a hearing to show you are fully, or partially, exempt from garnishment. It is at this hearing where your income and expenses will be weighed, and a determination made, about what they can take.
Trying to negotiate with a dbet collector when they have a wage garnishment is going to be a waste of time in most cases. They are guaranteed to get paid the full amount of the judgment while you have that job, unless of course, they cannot garnish as much, or at all.
Once I put things in motion about contesting the garnishment, I would start looking into my concerns regarding a judgement against me where I knew nothing about being sued. When you are at the court house, pull the case up and look at what the docket says for when and how you were served, and by whom. Does it say you were served at the address you live? Is there a generic description of who was supposedly served?
When was the judgment entered into the court record? When was the date that a medical service was received?
There was a judgement against me in the amount of $2792 in 2008. I called the Kanter Law Firm (working for CCR Unifund Partners) and made payment arrangements with them. I would pay $200 a month until the debt was paid in full. I paid $3000 total and never received a receipt or any other correspondence from them. This week, I found out that there was a lien on my bank account and that it was garnished in the amount of $792, plus a $100 processing fee. My bank and I have called the Kanter Law Firm several times to see if I can speak with someone there, but no one ever picks up the phone. The bank provided me with copies of all 15 cancelled checks. Yesterday, I received a copy of the judgement that they used in order to garnish the amount, but it says that I only paid them $2700. I don’t know what else to do.
Nita – Was there legal/judgment interest referenced in the court record? Were there monthly payment fees? If so, what was that set up like?
If you cannot get a return call from the Kanter collection attorney (and calling Unifund will get you nowhere), I suggest filing a debt collection complaint with the CFPB against both. You can file your complaint here.
I filed bankruptcy and thought I didn’t own property. It turns out my mom put my name on her house thinking if she died it would make things easier for me and I wouldn’t have to go through the legal process. Now that she is trying to get a loan using the equity in her house she has found that there is a lien in my name for a judgement of $12,000 even though it was wiped clean through my bankruptcy. Seems they filed it before and didn’t remove it. After calling my attorney he says he can’t really help me because I didn’t disclose to him that I owned property. I told him I didn’t know I owned property. He says he would have to reopen the bankruptcy and let all of the creditors back in and the judge could choose to liquidate my assets since there is equity. So now what do I do? My mother is devastated.
Catherine – I am not sure how that would be viewed by the court, but what your attorney said makes sense. It would not hurt to get another opinion from a different BK attorney. If you cannot/will not open up that can of worms, are you able to fund a settlement?
I can fund a settlement. Do you think they would negotiate at this point and if so what amount do you think would be reasonable for me to offer and think they would even consider or does it even work that way 😉
By the way this lien is from 8/2011
Catherine – I can better answer about the willingness to negotiate if I knew more about the creditor or debt buyer that sued, and what condition your finances are in today.
In general, yes, judgment creditors are willing to negotiate. Once you get a deal put together over the phone (can take a few calls), you get it documented, then pay the agreement. Either party can update the court and/or county records (where necessary), but it is better to have the plaintiff do all that.
My concern is looking into whether your states home equity exemptions are in your favor, and all other parameters of the BK stay the same. Judgment debts can settle for a varying amount of the balance owed. I see 50% as fairly common. That means 6k, where reopening the BK and going that route (if advisable) may cost much less.
I would talk this over with a different BK attorney than the one you used prior. Get a fresh perspective on this. Post what you learn and lets go from there. Settling the judgment if you have the money is not complicated. Just be sure that is the right path to take.
I have a judgment against me from capital one and brachfeld law group for $3,300 dated june of 2011. I am in escrow tying to sell my house, now they want $4,400.00. Is it too late to settle for less? I don’t even remember what the original amount is. Thank you.
Joe – If the title company already sent Brachfeld Law or Capital One a demand request, I really do not like your chances of settling for less at this point, unless the home is under water and you will get nothing from the sale. Do you know if they are aware of the pending sale?
Yes, unfortunately that’s how I found out I had a judgement against me. Went to escrow company to sign some documents and that’s when they showed me the letter from Brachfeld Law.
Joe – In that case, it does not look good.
It does trouble me that you were not aware of having been sued by Capital One. If you do have time to dig deeper into that, let me know. But most folks with a pending sale do not want to lose the buyer.
I guess I will just suck it up and pay the judgement. No one’s fault but mine. Thank you very much for all your helpful advice.
Hi, We are wanting to buy a house.We live in NC. Our house now is in my name. My credit is good but my husband makes all the money and he has a judgment against him. It is for credit cards. I think it was like $8000 dollars (in 2007) . I recently called the court house and they said he now owes $ 22,000. Do you think they would settle for the $8000 now? and how do I go about finding out what they will settle for. Thanks for your time, Pam
pamela – After this long, it is very possible that the debt can be settled for the 8k. You can use much of the feedback throughout this page to negotiate your own settlement, or hire someone to knock this down. If you do want help, you can consult with a specialist at no cost by calling the settlement number in the right column.
Is your husband paying other debts on time that show on his credit report? If so, how many?
Michael,
You had helped with a question previously – thank you.
I have a follow-up question.
Is there some general amount of time that a creditor will look for and attempt bank garnishment, before giving up? And what sorts of events would cause a renewed interest in searching for assets?
My specifics – Barclays won a default judgement on me for $5100 in July 2012.
I have no income or assets other than my garnish-proof SSI payments. No property or vehicle of any type.
In February 2013, I received court documents that the attorney garnished (serve only) 2 bank accounts (which had already been closed). Their interrogatories on the accounts would have revealed that I had only a few hundred dollars in them when they were open.
I had since opened an account with a big bank (November 2013), and have not yet received any court documents to reveal that it has been pursued by the creditor/attorney.
Am I able to assume that my new bank account will not be garnished because the attorney’s past searches revealed an absence of assets?
and
What sort of events would cause a renewed interest in searching for funds of mine? like Changes to my credit report, How about income reported to the IRS, or a Car loan, or Bank loan?
JJ – Debt collectors, whether trying to collect on a judgment, or without having sued you, are often paying attention without you knowing. Your credit report is the main way they do that. Changes to the credit report that show you settled with another debt collector; applied for a loan; new employer was added, etc., all could be cause to see you as more collectable.
I would not say there is a specific time a judgment creditor will give up trying to levy a bank account. I have seen bank levies attempted in rapid succession, then cease for good, and I have seen bank levy attempts years later.
When it comes to a bank account with only SSI deposits, and assuming you are not letting many months of it build up without use for bills etc., those monies are protected. When the money is mingled with non exempt deposits, not so much.
I had old cc debt that I had been making payments on through an arranged settlement, I thought I was done but just rec letter to reentry a judgment against me. I have the balance due can I call them and pay to keep out of court
Billie – You can generally offer full payment on a judgment at any time. Was this a stipulation to judgment agreement you had that you were paying on?
I recently received a notice of levy on my bank account which is in my deceased husbands name and mine. I filed a notice of exemption and then contacted the collection agency to ask if it was possible to settle this judgment. The collector explained that since I filed the notice they can’t discuss a settlement. I talked with the supervisor and this is the same response I received from her. What is your suggestion for the next steps?
thanks for any help,
Elaine – Was the judgment against you and your husband, or just your husband? What state do you live in? What is the premise for your filing the exemption notice?
I have debt incurred when I became ill and had to sell my home and because unable to work. However I have not been successful in getting disability which I anticipated to use to assist with settling my debt. I have several judgements and closed credit accounts with balances due. I live in VA and have the possible ability with assistance from my family to try to settle these debts. What do you feel my best course of action would be. Start with the Judgements and try to settle first.
Kwarner – I could better offer feedback if I knew the amounts of each collection, who is collecting on them, and which ones are judgments. Post your answers in a comment and lets go from there.
My immediate goal is to get my credit score to a minimum of 620. We are hoping to buy a new house using my husband’s VA benefits in the next year. As of two weeks ago, my credit score was 587. My husband’s is 640, so we are good to go with his credit. I am looking at my credit report, and of course the judgement was the biggest obstacle on it. However, we have a $1300 closed Capital One credit card balance, a $380 HSBC closed credit card balance, a $359 Old Navy closed credit card balance along with about $3400 in 11 different medical bills tht have been reported to my credit. That was the end of the derogatory items, thank goodness!!! Our home is in my name alone. (Ironically enough when we bought our home, our credit situations were reversed.) We have 2 vehicles and a $6300 loan in both our names that is helping my credit situation. We owe about $3000 on that loan (We will be paying off as soon as we have the judgement situation taken care of.) I have a Capital One credit card, a Best Buy (Capt One) Card, and a Credit One credit card in just my name that have ZERO balance on them. Soooo, after all that, can you suggest a quicker route to increase my credit score? THANK YOU AGAIN FOR YOUR ADVICE!!!
Michael,
I have 2 judgements filed on my in the state of CA in 2008 while I was no longer living there. I moved to Oklahoma in 2006 and now have two foreign judgements filed, which I was never served with proper paperwork. I want to buy a home but now I show 4 judgements on my credit report. Can I pay the original ones filed in CA and by doing so will the foreign judgements be voided. Can you please help me.
Lilly – I would encourage you to talk about your options with an experienced debt collection defense attorney. If the only thing holding you back from buying a home are the judgments from 2008, resolving them would help you over the goal line. You may want to connect with a local broker, or loan officer (if you have not already), and talk to them about how underwriters view your scenario once the judgments are paid or settled.
How much are the judgments today?
Hello
Thanks for your very helpful information! I was one of the lucky ones who was able to negiotate a cc debt settlement with very low monthy payments.
They did enter a judgement against me, but stated in writing they would take no further
action on it if I kept my account current. I have done so for over 2 years.
Out of the blue 2 weeks ago, I got served a Notice of Right to Have Exemptions Designated.
I contacted the cc company -they had made a clerical mistake.
In writing, they ackowledged their error & stated “no further action is necessary on your part”.
(I had asked them if I needed to still submit the Notice to the court). I assume their reply was in answer to my question about submitting the Notice, but I want to be sure from another source that I do not need to submit this now. Would the court have any stipulation of me still submitting this? Would I loose any rights by not doing so?? Thanks for any advice.
tara – your best resource for an answer to your courts procedures, and making certain you are not waiving any rights, is contacting an experienced consumer law attorney in your state.
Hey Michael, just a quick update for you. The atty’s ofc that actually sued me for Citibank (Sears credit card) gave me a bottom dollar settlement amount of $3592. It wasn’t the $3000 I was hoping for, but it’s much better than 70% of the entire debt. In fact, the total balance was actually $7200 that included the court costs and interest fees. Thankfully we will be able to pay the balance in the next month or two. I verified with the attorney’s office that they will send the “Letter of Satisfaction” to the court so the judgement will be taken care of. Now, my new question is how will the satisfied judgement improve my credit? Will it help to increase my credit score at all?
Amanda – Great job, and congratulations on putting this behind you.
It is hard to say how one thing is going to impact your credit score. There are many things about you, and your credit profile at the time any new information is added to the mix that makes a confident reply a moving target.
Generally, I have seen credit scores improve after a judgment is shown as satisfied, and I have had files settle a judgment, and have the credit score drop for a few months after the credit report shows it is satisfied.
Is there a particular credit goal you have right now, or in the next 3 to 6 months?
My pay has been garnished for about 8 years from a credit card I had from College. The original company was Citibank. The principle amount was 4035.21. Int, court costs, and attorney fees made the total 7049.66. They filed July 26, 2005 and have been garnishing ever since. Before I called the Law office in 2013, I was just letting them do it because I figured by now after all these years I have to be close to settlement. When I called the office, they stated the amount has gone up to 16k due to int. I was thinking I would die by the time they received their money. As of today, the amount is 11,676.08 and Ive paid 8608.32 into the debt. I have a family of 5 and now its getting overwhelming to have them deduct out of my pay. Since working the last 16 months, they have taken over 4k from my pay. Ive paid off the principle date and now I feel that I’m just giving them money for no reason. Ive tried to settle and they will not do so. Ive paid 1558.66 over the principle and I want this to stop. Please Help!
Kevin – Contact the clerk of the court where the judgment is entered and ask about the process for you to contest a garnishment as being too much of a burden for your family. Each state has garnishment exemption limits. If you can show how, with your income and expenses, you qualify for full or partial exemption, that is how you can get this to stop.
Also, what state do you live in? What is the interest rate you are being charged according to the final judgment in the court record? Who is the plaintiff that sued if not Citibank? Who is the law firm handling this?
Thank You!
I live in DE.
The interest is 24.99%
Dahlink Financial Corporation
Clark C. Kingery, ESQ
Kevin – I found conflicting information about the interest rate limits for judgments in Delaware. It is clear that judgment interest can be set at 5% over the federal reserve discount rate, but I found additional references to contract rate allowed if certain requirements are met. It is the former that would be the result of your debt increasing to the size it has, even while some payments are being made.
On top of looking into your garnishment exemptions, I would also encourage you to run your situation by an experienced consumer law attorney with experience handling collection lawsuits (for answers to the interest rate limits).
Thanks again,
So you are telling me (if Im wrong please explain better please) that I’ve been paying more for this than what I was supposed to pay?? Because you stated conflicting, means to me that they are doing some illegal things in regards to this debt and since no one ever contest, they get away with all that they are doing. I want to get this taken care of as soon as possible, not just for me but for my family as well. This has been going on for way to long and they are taking food from my families mouth.
Kevin – I am not implying that. Just sharing what I found and encouraging you to look into it and verify what is, and what is not allowable. The contradictions I refer to are not unusual in law. This equals this, unless that…. Hard to keep track of for most of us. Get to the bottom of it as soon as you can. It would be great if you post an update with what you learn.
i have just negotiated a one time payment on 2 credit cards at 25% of what i owed the creditor is cash,llc & the attorneys are rsie&h llc i am happy with the settlement but what i need to know is what do i need to get from them before i send them the check i am going to send them a certified ck. what would be your advice from this point forward? thank you terry
terry – Great work on getting those good settlements negotiated. Check out the these reports:
For details on what to look for in a settlement agreement: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements/
Options for paying your settlements: https://consumerrecoverynetwork.com/paying-your-credit-card-debt-settlements/
I took your great advice & checked out the websites you gave me, they really were exactly what I was looking for. Especially the list of the things that must be on the letter. So i called the gal @ the law firm & told her that i would accept the settlement & what i would like on the letter i’m sure it was a form letter but i got what i wanted. I wasn’t so sure @ first as after I read all of the things I was looking for, the letter stated that additional settlement offers may be made to me in the future . If made they may be more or less favorable to you than this one. iI dont understand why they would say that but i think its incase this one falls apart. thank you so much again terry