Judgement help please

[Anonymous]

In 10/12 I had a judgement against me for. $2402. I made arrangements to pay $50 a month.  I just asked for the statement on my account.  They say I have a balance of $4100 with $17xx in interest owed.  I have made $1650 in payments the legal interest rate in my state is 12%.  Does this sound right to anyone if so can you explain it to men and what is my best line of action?

thank you 

[Anonymous]

Look at your judgement papers, that will tell you what you owe them and at what percentage, sounds like they bamboozled you, somewhere.

[StartingOver10]

Would have to know more info like when the judgment was issued and your state's statutory interest for judgments for each year since the judgment was issued.

Once you have that info you can put in the amounts in a calculator to determine an amortization schedule - I am not surprised that the amount is higher if you are only paying $50/month you aren't paying enough to pay down the interest nor the principal. 

[gdale6]

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@Anonymous wrote:

In 10/12 I had a judgement against me for. $2402. I made arrangements to pay $50 a month.  I just asked for the statement on my account.  They say I have a balance of $4100 with $17xx in interest owed.  I have made $1650 in payments the legal interest rate in my state is 12%.  Does this sound right to anyone if so can you explain it to men and what is my best line of action?

thank you 

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2402 x 12% is 276 in interest if the principal remained at 2402 for 1 year. At 50/mo you are paying enough to pay the interest and the principal. You are being ripped off. You might want to engage legal counsel

[StartingOver10]

Gale you are right. I don't know what I was thinking last night.

[Anonymous]

Judgments are always going to have $1000 to $1500 (or more) in legal fees, plus statutory interest added, unless they are filed in small claims court. The initial court filing and what shows up on your reports will NOT reflect this added amount. The only place you will see it is on the final judgement decree.

At 12% interest you're racking up $41 a month in interst each and every month. You'll be paying on it the rest of your life at this rate. Your best option, IMO is to try and make a lump sum settlement if possible. Otherwise you need to increase your monthly payments.

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

In 10/12 I had a judgement against me for. $2402. I made arrangements to pay $50 a month.  I just asked for the statement on my account.  They say I have a balance of $4100 with $17xx in interest owed.  I have made $1650 in payments the legal interest rate in my state is 12%.  Does this sound right to anyone if so can you explain it to men and what is my best line of action?

thank you 

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2402 x 12% is 276 in interest if the principal remained at 2402 for 1 year. At 50/mo you are paying enough to pay the interest and the principal. You are being ripped off. You might want to engage legal counsel

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If he's going by whats on his reports for the amount, a $2400 judgement could easily total over $4k. My $3100 judgement, for example, totaled over $4800 when interest and legal fees were added.

[Anonymous]

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@StartingOver10 wrote:

Would have to know more info like when the judgment was issued and your state's statutory interest for judgments for each year since the judgment was issued.

Once you have that info you can put in the amounts in a calculator to determine an amortization schedule - I am not surprised that the amount is higher if you are only paying $50/month you aren't paying enough to pay down the interest nor the principal. 

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I'm geussing they allowed such small monthly payments because they felt he was potentially uncollectible - might make them consider a lump sum settlement....