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So in 2012, Midland got a default judgment against me, but has never come after me for the money. I'm finally getting things sorted out and sent a letter offering a one-time payment of 40% or $2,200 (whichever was greater). The judgment was for $4844.14, but interest brings it to $5428.71.
Midland called today and said they only accept full payment for judgments, but she'd see what she could do. She came back and said they'd take $3799.62 (which is about 68% of the total amount owed!).
I explained that they can't garnish wages and that I could maybe stretch to 50%, but even that would be tough. She said they could do a payment plan. I pushed for a lower amount and she said they've come as low as they can given they typically only accept full payment in judgments.
It's sucky, but better than $5428. Has anyone succeeded in getting a better deal with settling a judgment?
Should I take it (I don't have enough to pay in one lump sum, but could maybe pay in 3)?
They won't send anything in writing until I verbally agree.
My advice is to take the payment plan, they have a judgment, they can stay around with renewals forever in some states and they can seize your bank accounts and then garnish your wages for the rest. I would agree to it via phone and then wait for the official papers in the mail, but whatever you do, do not pay it with a debit card or by giving them a check, use a certified check, money order or a real credit card to make the payments. Good luck
I would try somehow to do a lump sum. Payment plans could be a problem if they lose them or they say they did not get it.
Get everything in writing . Use bank check or money order. No over the phone payment.
I think one reason they haven't garnished my wages yet is that the company I work for is in TX (a non-garnishment state), the judgment was made in OK, and I live in AL! They could transfer the judgment to AL, but that would cost them.
I'm sort of wondering if I wait and tell them I just can't do it, if I'll eventually get a better offer or if this might have woken the beast. They said this offer would be valid until May 30th. I can get about $2500 in cash right now, but I always thought you couldn't pay a judgment with a credit card. If you can, I can put the rest on a card as I have 0% interest for a few months. I'd have it paid off in two months.
id rather do a lump sum than a payment plan and yes, everything in writing, including them filing a satisfaction with the court. I'd like them to motion to vacate too, but I bet they won't. If not, I'll try to get them to agree not to contest my motion to vacate.
i just can't believe 68% is the best they can do.
If they judgment is in OK and you are in AL they would have to domesticate in AL.
Does AL allow garnishments ? The laws depend on the state you reside in.
Yes, AL does allow for garnishment, but my income comes from a company in TX, so I've been hoping that a small deterrent. They could domesticate in AL, but it would be time and effort. I was hoping that would be incentive for a lower settlement, but apparently not. I've heard of others settling for 40-60%, but think those were collections not judgments.
If you can afford to satisfy this judgement, I would do so just to rid myself of it. Judgements can stay around for many years. Take the payment plan, save some money, get this over and done with.
Thanks Shogun. I agree. I was obviously hoping to put this behind me for a lesser payment, but at the end of the day once it's done it's done. I can probably scrape it together to pay in two payments if not just in a lump sum.
It's the last thing on my report of this nature.
Midland often settles for much less than the full amount. For your $4,800 judgment they probably paid 5% maybe or $240.
Domesticating i dont think is a lot of money but mostly is an issue of time for them.
I think you can do better than the $3,800. I would ignore their 5/30 deadline also.
Yes, knowing that they paid pennies on the dollar makes me really not want to give them more than necessary, but they do sort of hold the power here.
I should have gone to the court date, but at the time I was mere days from moving to AL because my mom was dying. I had enough on my plate and pretended it didn't exist, but that never works out.