04-12-2012 07:00 PM
I am getting married in around 18 months and I would like to clean up an outstanding judgement before hand. The judgement is for roughly $8500 and it was issued in 2008. I sent a settlement letter to the lawyer and collections agency on the account offering up the amount of $4100 around a month ago.
This week I received one of those seemingly generic looking settlement letters from the lawyer, the one saying "blah blah times are tough, you have one month to act on a 30% discount". They are offering an amount of $5800. We have not talked on the phone yet and only exchanged the offers.
I am planning on calling up the rep on the account tomorrow and am looking for advice. Do I take the $5800? or do I try to get a lower amount? Also do I ask for another letter other than the one they sent me? All it says is that they will stop collection attempts.
Any advice is greatly appreciated, Thanks.
04-12-2012 07:10 PM
Welcome to the forums !
If you can afford to take care of the judgement, then that is good news ~ I would advise that in exchange for payment, you negotiate that the plantiff files a motion to vacate with the court so that the judgement can be removed from your reports. Just paying the judgement won't help your FICO score.
04-16-2012 10:55 AM
When I was settling a judgment to apply for a mortgage I called the law office (Collection Agency) and simply asked "What will you settle for in full if payment is made within two weeks?" The judgment was for 13K and they offered to settle for 4.5K. I don't know if your experience will be the same but it is worth a try. If you don't like their answer just wait a week or so and call back again.
And as Pizzadude said, try to get a vacate order also. (Mine only gave a PIF, wouldn't do a vacate.) Be sure to get whatever agreement in writing before you send funds.
04-16-2012 12:11 PM
Are you being garnished yet? If you are, $5800 is a great deal. If not, I like the $4100 you're offering. I'd give them a call, get thier new offer in writing, and send in a cashier's check based on the new offer.
Note: Anytime you can settle a post-judgment claim for less than 80% of the balance, you're doing pretty good.
04-16-2012 06:12 PM
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