What will a judgement do to a score?

[Tooliebell]

My husband has a credit card that was defaulted on in 2009.  They recently served us with papers and the "pre-trial" court date is March 6.  I have been emailing a representative of the law firm to try to reach a settlement.  The total due is $3600.  Defaulted on about a $2000 balance, so I offered $2000 cash right now.  They won't take anything less than $2952.  I am trying to resolve this without a judgement being put on my husband's credit report.  But i don't have the $2952 and don't have a way to come up with it.  My questions are:

1.  How much is a judgement going to tank his score?  I think he has about a 660 FICO right now.  Great payment history, no lates, and good mix of credit for 2 years now.

2.  How long does it take for a judgement to show up?

3.  Is there a possibility, the law firm won't show up at the pre-trial conference and this will be dismissed?  I am guessing they have invested enough in it now, they will be htere.

4.  WIll the judge say to them, let them make payments, and if they don't, I'll give you a judgement or will he issue a judgement right away?

5.  Debt hasn't be validated, should that be our defense in trying to gain more time to come up with the  money?

6.  Do we have a chance in hell this working out without having all the money right now?

Dh wants to get an attorney, I think that will end up costing us more money. Any suggestions or BTDT?  I thought we could settle this prior to the court date but it isn't working out that way.

[pizzadude]

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@Tooliebell wrote:

My husband has a credit card that was defaulted on in 2009.  They recently served us with papers and the "pre-trial" court date is March 6.  I have been emailing a representative of the law firm to try to reach a settlement.  The total due is $3600.  Defaulted on about a $2000 balance, so I offered $2000 cash right now.  They won't take anything less than $2952.  I am trying to resolve this without a judgement being put on my husband's credit report.  But i don't have the $2952 and don't have a way to come up with it.  My questions are:

1.  How much is a judgement going to tank his score?  I think he has about a 660 FICO right now.  Great payment history, no lates, and good mix of credit for 2 years now.    A judgement will tank his score, probably will drop it below 600 as a guess.

2.  How long does it take for a judgement to show up?  It depends on how often the third party aggregators collect information.  Could be months or longer, it shouldn't be instantaneous.

3.  Is there a possibility, the law firm won't show up at the pre-trial conference and this will be dismissed?  I am guessing they have invested enough in it now, they will be htere.  Not likely.  They probably have dozens of lawsuits stacked up one after the other and they will be there.

4.  WIll the judge say to them, let them make payments, and if they don't, I'll give you a judgement or will he issue a judgement right away?   Assuming that the judge rules in favor of the plantiff, the judgement will order a specific amout of money to be paid.   Don't know about the terms though.

5.  Debt hasn't be validated, should that be our defense in trying to gain more time to come up with the  money?    It's too late for the DV process since you have already been served with papers.

6.  Do we have a chance in hell this working out without having all the money right now?   Possibly ~ I would keep trying, but they have already filed suit so it's unlikely that they will back down now.

Dh wants to get an attorney, I think that will end up costing us more money. Any suggestions or BTDT?  I thought we could settle this prior to the court date but it isn't working out that way.

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I'm sorry that you are in this situation, if the attorney refuses to take a settlement before the court date then I would plead your case to the judge, let he/she know that you haven't been given clear documentation what you owe with fees, interest, etc...  and that you are trying to work it out.   

[RobertEG]

As for validation of the debt, there is substantial case law pertaining to legal action wherein the debt collector has not yet provided debt validation of a timely DV request.

In the case law of which I am aware, it appears to be standard practice for the judge to continue the proceeding until the debt collector has provided the requested debt validation to the consumer.  Some case law raises issues of whether the fact of even bringing legal action while under a cease collection bar is a violation of FDCPA 809(b).  I would predict that if you raise the issue before the court, they will continue the proceeding until the defendant has been provided the requested validation.  All of that being mixed in with the defendent's right, apart from the DV process, to compel discovery of debt-related documents as part of the proceeding itself.  Arguing case law interpretation and making motions based on lack of validation are, in my opinion, matters best handled by an attorney.

When debt validation is provided, do you have evidence to bring before the court to contest the debt, or do you basically concur with its accuracy?

Is it probable that, once the procedural hurdles are addressed by the court, the legal issue of validity of the debt wont be an issue at court??

I would not assume that failure to validate is a dead issue simply because the debt collector has chosed to bring legal action.

I dont see legal basis for the judge to dismiss their suit and require payments without reaching a verdict on the issues raised by the plaintiff.

[Tooliebell]

Thank you both very much for your replies.  I received a message (email) from the attorney's office, saying they would accept, $2500 with $1500 down, and 4 payments of $250.  They sayd this "normally we do with a consent judgement, but since you asking for no judgement, we may be able to do a stip and order for a dismissal with the settlement arrangement"

Sounds like we have come to an agreement.  I am thinking once we sign a settlement agreement, they will send the stip and order for dismissal and a judgement won't be placed on his credit report.

Is that how you would interepret this?

[pizzadude]

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@Tooliebell wrote:

Thank you both very much for your replies.  I received a message (email) from the attorney's office, saying they would accept, $2500 with $1500 down, and 4 payments of $250.  They sayd this "normally we do with a consent judgement, but since you asking for no judgement, we may be able to do a stip and order for a dismissal with the settlement arrangement"

Sounds like we have come to an agreement.  I am thinking once we sign a settlement agreement, they will send the stip and order for dismissal and a judgement won't be placed on his credit report.

Is that how you would interepret this?

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This sounds like a decent settlement proposal to me, but make sure that you get all of this in writing.    Especially them agreeing to dismiss the court case.  

Also keep checking with the court to ensure that the case is dismissed.   If you are not 100% certain that the court case is dismissed ( i.e. the court sending you proof..) then I would show up to court anyway;  you don't want a judgement.

[Tooliebell]

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@pizzadude wrote:

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@Tooliebell wrote:

Thank you both very much for your replies.  I received a message (email) from the attorney's office, saying they would accept, $2500 with $1500 down, and 4 payments of $250.  They sayd this "normally we do with a consent judgement, but since you asking for no judgement, we may be able to do a stip and order for a dismissal with the settlement arrangement"

Sounds like we have come to an agreement.  I am thinking once we sign a settlement agreement, they will send the stip and order for dismissal and a judgement won't be placed on his credit report.

Is that how you would interepret this?

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This sounds like a decent settlement proposal to me, but make sure that you get all of this in writing.    Especially them agreeing to dismiss the court case.  

Also keep checking with the court to ensure that the case is dismissed.   If you are not 100% certain that the court case is dismissed ( i.e. the court sending you proof..) then I would show up to court anyway;  you don't want a judgement.

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Good Idea to show up anyhow, since the court date is next Tuesday.  All of our correspondence has been done through email, which I will print to have DH take with him to the court date if needed.

[Student_Loans_Kill]

dont get a judgement if possible, it really sucks

[pizzadude]

Unfortunately there are many examples where CA/Attorneys still pursue a judgement even after supposedly telling you that you don't need to show up at court.    Until the court tells you not to show up, you need to go.

[Anonymous]

Take the agreement! Get them to send you the agreement to sign and return (make a copy for yourself). Unless they plan on meeting you at the courthouse. Even if they send you paperwork to sign and return, take a copy of it with a copy of your first check/payment and go to the court house as your were summoned. If your name is called show them the copy of agreement and payment. Better to be there with that as your defense as opposed to them calling your name and not being there. The only way I wouldn't show up is if I received a dismissal letter from the court.

You definately don't want the judgement on your credit report. Judgements are public records and weigh heavily. Trust me, I have one on mine.

[Tooliebell]

Ok, so I got the stip and order today and am slightly confused but I think it is okay, just wanted your insights:

Stipulation for Dismissal with prejudice and that this court retain jurisdiction while payments are made. 

1.  That COnsent judgement will be entered in favor of Plantiff against defendant, in the amount plus costs, floating interest, and attorney fees, less actual payment received upon the noticed application of Plantiff's attorney on default of any payment as set forth in paragraph 2 below.

2.  It is further stipulated that Defendant will pay Plantiff through plantiff's attorneys our agreed amount.  Failure to make such payments when due shall not constitute a default hereunder unless Plantiff has provided a notice in writing to defendant's attorney, and defendant has failed to cure such failure within 10 days.

3.  It is further stipulated that the complaint filed by Plantiff will be dismissed with prejudice during the pendency of Defendant's remaining payments; however, if defendant does not cure a default payment within 10 days after written notice to defendant's attorney of said default , Plantiff's complaint will be automatically reinstated upon plantiff's filing with this court and affadavit of default and the court shall enter the consent judgement as provided in section 1, no court appearance being necessary.

4.  It is further stipulated that upon completion of payments in paragraph 2 , plantiff will file a dismissal of this cause with prejudice and without costs.

Long, sorry, but I think this is saying to the court, we set up a settlement agreement and the Plantiff will file a dismissal with the court if all payments are made.  So no judgement unless we default.  And if we do what we need to this will all go away with no judgement on the credit report.  Right????  Please tell me I am right.