Negotiating Judgement

[Kathy4NU]

Hoping someone here has some experience with this topic.

2 years ago I became very sick and accured lots of medical bills.  I had 27 medical collections on my credit report and one judgment for $50,000.  They are garnishing my exhusbands paychecks (the entire judgement was not my medical bills but an accumilation of bills).  I have had 100% success rate thus far in paying off my collections with PFD.  In the past 30 days I have paid off 13 of them and all have been deleted.  I shold be able to pay the remaining 14 off in the next 60 and have them all deleted.  (Most are with the same collection company who are happy to delete for 80% payment).  Only other baddies on my credit report are student loans.  I am in rehabilitation and will be done the first of the year.

The company with the judgement are not so nice.  In fact, they are rude and impossible to talk with.  They call me names and hang up on me.  This last time they wouldn't give me any information saying I was trying to frame my ex-husand.  Not true - we are on very good terms.  Nonetheless, I would like to get this judgement taken care of but  they won't really talk with me.

I've come up with a plan but I am not sure if this is a good one.  I talked with my credit union today and they will do a signature loan of around $15,000.  The current balance on the judgement is $44,000.  Because they won't even talk to me I was leaning towards hiring an attorney to negotiate this out for me.  Do you think there is any chance of getting them to settle at 33 % of the amount still owed?  Would I be pushing it to also include that they vacate the judgement once it is settled?  Because they are garnishing my ex-husbands pay I have wondered if they will even negotiate.  The reason I want to is because my ex is wanting to file bankruptcy because of this.  We were thinking maybe have him file the bankruptcy to get them to realize we are serious (thus far they have told him that he is to much of a coward to file bankfuptcy and they will keep garnishing for the next 30 years until it is paid of) and than withdraw the bankruptcy once a settlement is agreed.  I called the courts and the wait time from when you file bankruptcy until your hearing is 3 months - enough time to negotiate, take out the loan and settle and than withdraw the bankruptcy.

Any thoughts?  Where is my thinking wrong?  Better ideas?

[RobertEG]

I would not recommend filing for BK as a pressure tactic on the judgment creditor.

Aside from the issue of bringing action you dont intend to pursue, the judgment creditor has the upper hand.

They have a judgment affirming the debt is legit, and a court order further setting terms for satisfaction of the judgment. 

The creditor cannot  just unilaterally vacate a court judgment or the order of garnishment.  Only the court can vacate their holdings.   They might, upon showing of actual and final satisfaction of the court orders, support a motion to vacate at a later time, but I dont see basis for going back to the court on an unsatisfied debt.

That leaves you as the emporer with no clothes.

[Kathy4NU]

I believe my exhusband is truely wanting to file bankruptcy on this.  He will be 80 some years old by the time the judgement is paid off at the rate it is going now.   I am not exaggerating when I say they will garnish for 30 years.

Do you think their is any realistic chance they will negotiate it down to 30% in order to avoild getting nothing because of a bankruptcy?  That is the most the bank will loan me.

Thanks!

[StartingOver10]

They might negotiate for the amount you are planning to get from the CU.

It is probably best if you do have an attorney represent you in the negotiations. Your attorney would include the judgment to be vacated as part of his negotiations. You would need to be very specific with your attorney that you want it vacated and not just Satisfied. If the judgment holder won't vacate it, then a satisfaction would need to be recorded in the public records. Make sure the judgment is vacated/satisfied as to both you and your ex so both of you are released and not just one party released.

Get a good attorney. Not all attorney's have the negotiating skills to get a judgment holder to back down.

Don't file BK as a strategy. Once its filed, then it stays on your ex's credit report for 10 yrs (in the case of a Ch 7). Also, normally a Ch 7 takes about 90 days from filing date to discharge date. The 341 meeting is usually held 30 days after filing date. Unless your ex plans to follow through with the BK, its not a good idea to play chicken with judgment holder using the BK card.

[3darcher2]

Absolutely you can negotiate and that seems reasonable.

I recently settled a nearly $6K judgment for 35% up front lump sum.  I used an NACA attorney.  Tell him exactly what you want to do.

Robert is not correct in that the judgment was vacated.  My attorney prepared paperwork and the attorney for the plaintiff agreed and signed it.  The motion was put before the judge and it was vacated because both sides petitioned it to be so.  The judgment was a civil action between to private parties - the court has no skin in the game.  Two parties can agree to anything that is not illegal and in this case you agree to vacate in exchange for payment.  It is a business transaction and in my case it from the day I sent the check I had it vacated and removed from all thre CRAs in less than a month. 

Will it work for you?  IDK, but it is certainly worth a shot and it is perfectly legal.