Midland Funding Default Judgment and Payment Plans
Being sued by Midland Funding and have default judgement against me. I am being sued by midland funding I did not attend the court and now have a defaul judgement against me. I received a letter for a prove up hearing. My husband employer only allows direct deposit and our accounts are joint. I want to settle this by making a payment arrangement with them.
I have a judgement against me for $4.500 from Midland Funding.. I would like to settle this before they levy our account. I do not work my husband is the sole provider but our accounts are joint. Can I still settle with them if the judgement hearing is next week? Will they levy our account even if they agree on a payment arrangement? Thank you
—Nancy
Generally speaking, if you are not going to settle the debt with Midland in 1 or 2 payments, I would suggest you get the payment arrangement as part of the court record at the hearing. I am suggesting this because of many instances where someone thought they had a payment arrangement with a debt collector or debt buyer who already had a judgment, and where they had paid on time, only to wake up one morning and see the checking account has been levied and now other bills were getting paid late.
You can Settle Debt with Midland Funding
How much is the judgment for? Can you come up with half of that amount from any source? Loan from family member? That would be ideal if the judgment is against you only, and where you are not working and can take your name off of the joint bank account. Do you live in a community property state? Was your husband named in the lawsuit?
If you cannot come up with the money to settle with Midland, what kind of payment are you able to afford each month? Is it enough to pay off the judgment rapidly? Judgment interest is making the balance you owe – grow. Too small a payment can make it seem like you are not getting anywhere on the debt. This is another reason settling is ideal, but I understand that may not be an option.
Making a Payment Agreement with Midland Funding
If all you can do is make payments with Midland, you may want to consider getting that set up through the court by showing up at the hearing. If you are trying to avoid the hearing, perhaps consider settling up the monthly payment agreement with Midland, and also removing yourself from the joint account with your husband (if he is not part of the lawsuit). This way you can remove the concern that they would take the monthly payments and still try to levy a bank account they find that you are on.
I have a ton more to share about Midland Funding and Midland Credit Management here: https://consumerrecoverynetwork.com/midland-funding-mcm-encore-receivables/
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 judgement enter / recorded in 2016 and now have this lien on my property in the amount of $3,744.12 from Midland Funding. This judgement was against my co bower on the property and not on myself. Is there any way that I can have this resolved from me, because I am trying to get a home equity loan and it states this judgement has to be cleared first
You typically find you have to clear the judgment of any co-borrower before you can proceed.
Midland funding had a judgement against my client. Client paid the full amount and has copy of letter from Midland stating it has been paid in full. Midland is dragging it’s feet in clearing the judgement with the court. In fact after it had been paid in full Midland assigned 3 lawyers to represent them in the matter. We call them daily, they are in no hurry to clear the matter. How do we get them to clear the judgement. Local court said to serve them notice, but not sure where to have them served, they only give a PO Box.
I would consider filing a state bar complaint against the attorneys involved if they are not responding to a material concern related to a case of theirs in court, and in a timely manner.
I just got a letter from MCM telling me that they will take me to court if I do not respond my June 19th with either the total amount owed or a payment plan. When I called MCM they are undet the impression that I have a lawyer?? I do not have a lawyer- if I could afford a lawyer, I think I could pay on my old debts, lol… well, now I can not even get any info from them to work with them until I send what the rep called, “Removing Atty Privileges,”?? Is this for real?? All I wanted was something in writing from them telling me about the debt, whom it is from, etc… I do not even know what debt this is… I have no credit cards, let alone a living wage, lol… I need to know what debt they think they have on me and they won’t.
p.s. They are threatening wage garnishment and I already make the minimum wage in my state (MI). Thank you.
In the prior comment you left you mentioned they will take you to court, and in this one you refer to a threat of wage garnishment. Garnishment cannot happen without a judgment. Is this an existing judgment they are trying to collect on? Is all this coming direct from Midland? Is it coming from a collection law firm working the account?
How much is the balance owed?
Who does the letter say was the original creditor?
Is that original creditor not on your credit reports today?
Did you ever have an account with that creditor? If not, have you any other signs that you could be a victim of identity theft?
I have a quick question, I have 2 old judgments through midland. The 2 judgements, I disputed through all three credit bureaus and they removed them from all 3 of my credit reports. I am going to be trying to buy a house and I just don’t want them popping up again. Midland has agreed to settle both for a total of $1614.24 if I pay by tomorrow. They are supposed to be faxing me a settlement agreement and then I will pay the $1614.24 tomorrow. What should I make sure that the settlement agreement says? I am so nervous they are going to lie, LOL
Check out this post about what to look for in a settlement letter.
I got a default judgement against from Midland Funding for $895 but I never got paperwork for the hearing. I tried to offer them half on several occasions before this. What can I do to at least buy me some time to delay payment?
Were you served the lawsuit? What state are you in?
I’m in Ohio. I got a Judgement letter but no court date.
I understand about the judgment notice, and their being no court date for that. But did you ever get served the original summons and complaint? In other words, is the first you heard about any of this the judgment notice you got in the mail? And do you know when the judgment was entered in the court record?
Had a judgement against us by Midland funding in 2010. For some reason they never garnished our wages. I noticed this should drop off our credit report this March. Should i do any thing with this or just let it drop off credit report?
What state are you in?
Judgments are still collectable once they come off your credit reports.
Hi there I am hoping you can offer some guidance . I had a judgment filed against me in August 2010 by midland funding in Pennsylvania for 5000.00 $. I have never heard from them however I checked my credit report and it states that the judgment was on the date of August 2012…but that is not the date of the court records so not sure why there is that discrepancy. When I pulled up the court
Record it says expired . I really want to get this off my credit report and off of public
Records and I have no idea how to begin . There is no attorney name on the court record only midlund funding . I have 2000$ tjay took me a long time to save and I’m not sure if that would be enough to settle with them or not I’m very worried they could put of the blue take this money from my account as I head they can do without settling and then I wouldn’t have anything solved . Should I contact midlund funding and risk opening up a can of worms
When they have never contacted me ? I really want this behind me Any help I would so appreciate
A judgment on your credit report can stay for 7 years. The 2012 entry is an error if the judgment was entered in 2010. That would mean the judgment is set to stay on your credit for 2 more years than should be the case. You can dispute that. What is the exact date of the courts judgment order?
Judgments in Pennsylvania appear to need to be revived after 5 years. If the record shows it expired than the attorney may have failed to do that. If that is the case, there may be little motivation to resolve this if the debt is set to come off your credit reports and the judgment is no longer enforceable.
I would want to cover all of this with an experienced debt collection defense attorney in PA.
Hi Michael,
Thanks for all the awesome resources you make available!
I have a capitol one credit card I defaulted on in 2008. Midland funding sued me and got a default judgment in march 2010.
Since then, they’ve garnished my bank account 3 times, and received around $315 total.
I’ve been self-employed on and off since 2008. I own an e-commerce website that brings in less than $10,000-$15,000/yr. I’m single. I have no assets. I live with family.
The principal/ charge-off balance is $3,225.13.
Total balance (including interest and fees is) is $8,123.50
I would like to get this settled with Midland.
My question is, do they ever give up? The default judgment is almost 7 yrs old. They’ve only been able to collect around $315 in the past 7 yrs.
In your opinion what would be the least amount they would settle this debt for?
I have $500 available on a credit card. Do you think they would consider settling for that amount?
I don’t want to contact them to make the offer, if there’s no chance they would consider it. Because I don’t want to open up the can of worms again. I haven’t heard from them for several months.
The law firm Midland sued me through is Johnson Mark. Do I call Johnson Mark to settle, or go through Midland?
Thank you so very much,
I do not see judgment creditors give up. They may have gotten paid nothing, but still renew the judgment (depending the state – the judgment can be renewed forever).
My realistic lowest target in this situation would be 50%. There is no chance at all they settle for $500.
You typically have to go through the attorney they have it out with.
Hi Michael,
Thank you so much for this resource!
Midland Funding garnished my whole bank account. I am wondering if this is legal? I only had about $350, and I think remember reading somewhere that amounts less than $500 can’t be garnished?
Also – I live in Oregon and the statute of limitations on debt is 6 years. I originally stopped paying on the debt on June of 2011. Midland bought it in May 2012. Would I be “in the clear” in June of this year? If so, does that include all of the attorney fees that Midland has tacked on?
Thank you so much!
They sued you within the 6 years. The judgment is good for 10 years from date issued, and can be renewed for another 10 years. It will not be in the clear, and will be growing with whatever interest the court granted.
Your bank account may have a $400 dollar wild card exemption that can be applied to cash in your bank account. Check with an experienced debt collection defense attorney in Oregon to confirm that. You will have to assert the exemption from what I can tell.
Hello. I have a default judgement on my credit reports from 2011. I was sued by midland in my home state (no longer live there) and do not ever remember being served with anything about the suit. Its been about 6 years and never heard a word from them. What the best course of action?
Is your goal to resolve the debt? How much is owed? What is your ability to raise a lump sum of cash in order to negotiate a lower pay off with Midland Funding?
Thanks for the reply. I can pay it no problem. My goal is to get it off my credit reports ASAP. Whatever it takes and of course for the least money possible.
Amount owed is just under $3000.00
As it stands today you cannot get judgments off your credit reports, but the 3 major credit bureaus are set to remove all judgments from credit reports this summer.
Midland Funding has a new policy to remove accounts they credit report on if the debt is 2 years since you stopped paying on it, and you resolve it. That does not mean pay in full only. The policy also applies to accounts you settle with them for less. See more about Midland Funding credit reporting policy.
It is typical for a resolved judgment to take a couple months to reflect as such in the court record. Debt collection law firms usually wait 21 days after a payment clears to schedule the work to file with the court. That can take a few more weeks, and then the court can hold things up a few days.
If you have the agreement to settle in writing, and proof of payment, you can use that to accomplish things too. Like providing that to a loan officer so they can get a head start on a home loan.
thankyou
I am being sue by Midland Funding LLC just got served with the complaint how do I go about this suit? I don’t currently work my husband is the only bread winner in my house hold and he is not apart of the suit. I am being sue for $1,116 but I have to mean of paying that amount upfront. Do I have to write a letter to this company or to the court it self? Any advice would be appreciated I live in the state of NJ
If your goal is to resolve the debt, could you come up with 60 to 70 percent of that balance if you had several months to save?
Hi Michael,
Just wanted to update you on my situation with Midland as they finally contacted me. A rep called and I answered, she was very kind and said because I had no funds at the moment the best she could do was call me back in 2 weeks to see if there were any progress to be made. Shortly after a letter arrived, the initial collection notice. I noticed on the letter it states if I pay the account, make an arrangement and pay the account by January 28th 2017 they will not report the account to the credit bureaus. I tried to call the rep to get more info, but got machine. I left a message and waiting on call. I know for sure that sometime by January I will have some funds to at least offer 45-50% each as a settlement on a balance of 12080 and 940 (I have two accounts with them now). How likely is it that they will accept 45-50% on both balances? Will this also affect their offer of not reporting if I settle for less than what is owed?
Thank you
Midland has a credit reporting policy that allows you to resolve debts they get early on, and prevent the credit damage. It does not matter if you are paying in full upfront, or over payments, or whether you are settling for less with a lump sum, or over payments. You just have to get things set up prior to that date they gave you. Give me a call if you struggle to get them to a decent settlement.
I owed roughly $6000 to Barclays Bank on a credit card from 2009. I almost reached the statute of limitations for my state ( AZ ) when I was served with a lawsuit by Midland Credit Management in July of 2015. I ignored the lawsuit since I have been out of work since 2008 and did not have the money to pay the debt.
As a result, I had a judgment against me early this year. I received a letter from one of their attorneys about a month ago, asking me to fill out a financial disclosure form, and stating that if I don’t respond to them they may subpoena me to answer in court.
I have no substantial income ( only about $300/mo. ), but I do have a bank account with a small amount of money ( a couple hundred dollars ). My income is from self-employment, not from W-2 wages.
Am I required by law to respond to this attorney’s letter? If I give them my bank account number, as they request, will they freeze my account or mess with it in any way? Any help/guidance you can give me would be most appreciated!
Arizona protects up to $300 in your bank account from judgment creditors. They can take anything over that unless it is from an exempt source (like social security or disability).
You would be compelled to answer those questions if the court pulls you in. Answering now would not be overly problematic given what little there is to share.
How much is the judgment Midland has?
Hi Michael,
The balance I owe Midland is $6,400.
I guess my question is this: If I answer this letter from Midland’s
attorney, is it wise to disclose that I have a bank account at all?
Maybe I’m just being paranoid, but I have read that some of these collection companies attempt to freeze bank accounts first, and then it becomes up to the account holder to prove that
the funds are exempt from being taken, etc.
Will they find out where I bank easily? Should I just go directly to Midlands website and try to get a hardship reprieve?
Thanks again for shedding some light on this for me.
You can call Midland directly. They may have you connect with the attorney though. Filling out the paperwork establishes your hardship for the most part.
As far as finding out where you bank, it is pretty simple for debt collectors with judgments. Watch this video about dealing with garnishment and bank levy.
I am being sued by midland funding for a debt I thought I had cleared up with Chevron back in 2013 They say i made a payment in 2013 so I guess that is still in the statue of limitations. I don’t remember getting anything from Chevron or Midland before the summons. The total is for about $2600. I looked into an attorney and he wanted $2500 to take the case. ( didn’t seem worth it) also looked on the California court web sights but the paper work seems very confusion and a little scary. I am at a lost as to what to do. i don’t have the money to spend on an attorney especially when it is the same amount. i emailed midland figuring I would settle but they have not gotten back to me. I don’t know what to do at this point. I have about the 23rd of October to respond.
What is your goal for resolving this?
I started receiving advertisement letters from lawyers stating that I am being sued by Midland. I’m not sure for what. I received no letter from Midland about any debt or offer of settlement. Apparently, they went straight to lawsuit/garnishment. I contacted my local Court, they verified that there is a pending civil suit from Midland against me.
As of now, I still have yet to be served and was wondering what my options, if any, are?
Pull up the court case on line. How much are they suing for? Do you recognize the debt? What is your goal?
As of yet, none of that information is available to me. I am unable to locate it online. My goal, once I have all the information, is to settle for as little as possible as fast as possible. This, assuming, the debt is legitimate and accurate.
Just received information. I do recognize who the debt is from. They are suing for $4500.
Collections that reach the court rarely settle for less than half, and that is a chore sometimes. Can you come up with 50%? How long would it take?
I can. I can have it by this week.
That is good. Your floor in these situations is often half the balance owed. You may not get all the way to 50%, but I see enough of them to suggest it is possible.
You can reach out now to try to settle, or defend the lawsuit and settle later on too.
So just call Midland and say I can give you half right now and see what they say basically?
It is a bit more nuanced than that. And you will be calling the attorney for Midland now that it has reached the courts.
Check out this page about settling when sued for more tips and details that apply to you.
I received a summons on yesterday to take immediate action and respond within 30 days for a credit card, with Credit One Bank that went into collections with Midland Funding. My balance is $911. How should I respond to this?
What is your goal?
My goal is to get the $911 but I don’t have the money right now.
If it is going to take more than a couple weeks to raise money to offer to settle, or pay the full amount, I would file a response to the court in order to buy time if it were me.
How long would it take to raise, say $600?
Can you explain to me what you mean when you say buy time? Also, can you give me details as to what I should say in my response. This is new to me and I am lost but I want to take care of this. My plan was pay it out at the beginning of the year so it would show as being paid on my credit report.
Check out this video about how getting sued can give you time.
I’m looking over your blog and it has been so helpful so far. I received 2 letters the other day, one for my wife and one for myself. We both had an account with Credit One (Separate Accounts), and during some rough times we let the cards default. Credit One sent a letter saying that Midland Funding has bought the accounts on September 22nd. We want to deal with this, but simply cannot right now. One is for the balance of 1240 and the other is for 1018. The best we can do is settle in maybe January or February. I have read that midland funding llc is very likely to sue. Is there any chance possible that I have until at least January or February to save the money to settle? We are in deep debt to the tune of 10,000 spread across a few cards. We can’t afford being sued as we have a baby and if our accounts are levied we would literally be screwed. We live in Dallas, Tx by the way.
It would be better to deal with Midland Funding when they first get your accounts. Read my update in the article above. You can keep them from ever appearing on your credit if you catch this in the first couple of months they purchase your accounts. If you need help setting up a deal you can afford, call me and lets talk about what you are capable of. I am at 800-939-8357, ext 2.
Thank you for your reply. I really want to settle it, but unfortunately my circumstances are unable to at the moment. However, around January and February I should be able to. I would have saved maybe 40-60% by then. I really want to avoid court as my family would be so concerned and put themselves in debt to help me (which is how I got in trouble in the first place). Is it likely that they will sue me before January or February?
Also, do you have any experience with Synchrony? I have quite a few cards with them that are either closed or charged off and also sit in fear they will all attempt to sue me before I could come up with some type of settlement or money.
Thank you,
I would like to call you, but unfortunately I would not have access to make calls for quite some time from now. I am partly trying to find some positive answers for my wife who has been extremely stressed and depressed about this situation. She is afraid that we will be served papers before we could come up with money to deal with it. All of our accounts were either closed or charged off between February-April of this year.