Chargeoff - Settlement Offer

[Anonymous]

I have a repo charge-off account that updates on a monthly basis faithfully since 2014 and needs to have this account settled.  The car was sold at an auction for $6700 and the balance is showing at 15k which is the majority of interest. How would you suggest to approach the creditor with a settlement?  They are very firm and difficult to work with.  They already entered a judgment so I am not worried about stirring up further collection actions by reaching out to them.

[RobertEG]

I would not assume that the fact that they have already obtained a judgment means they will not or cannot take further action.

A prevailing plaintiff can always, if the consumer has not satisfied a judgment (and the judgment is still enforceable), return to the judgment court and request an additional "writ of satisfaction," which is an additional and specific order by the court that permits the immediate attachment of assets or garnishment of pay in order to force the satisfaction of the debt.

The creditor thus has the clout of being able to pursue collection of the entire debt.

They have less reason, with a judgment in pocket, to accept less than the award of the court.

How high of a percentage can you offer?

By offering, you are inferring ability to pay, so that could act as incentive to pursue the full amount.

I would, if you begin negotiations, be willing to face their attempt to go after the full $$ amount.