topic Re: How would a consent judgment affect me? in Rebuilding Your Credit

How would a consent judgment affect me?

SendMeNoFlowers — Thu, 21 Nov 2024 18:05:04 GMT

In the midst of cleaning up my credit... I have gotten 3 Midland Collections removed so far and still got about 4 collection agencies left, that I'm trying to settle for PFD.

However, I have a few charge offs from two different credit unions... and I start my new job December 1 and the plan was to work out a payment plan to pay them all off.... it totals to $4,500 all combined. However, Michigan First Credit Union decided to sue me after 3 years... I called the law firm and made payment arrangments and they said they would do a consent judgement... and that it won't be added to my credit report since they don't put judgements on credit reports anymore... but it will be on my public record if a lender decides to want to check.

My question is, once it's paid... would this stop me from getting credit cards, mortgages and etc in the future?

I plan to have every debt I own paid off by April 2025... I hope to be squeaky clean by then!

Re: How would a consent judgment affect me?

pizzadude — Thu, 21 Nov 2024 19:23:42 GMT

No, I don't think this will present issues for you in the future with obtaining credit cards. Mortgage lenders may ask you about it but if it's PIF then it also shouldn't cause any issues.

Re: How would a consent judgment affect me?

Patient957 — Thu, 21 Nov 2024 19:32:49 GMT

@SendMeNoFlowers wrote:
My question is, once it's paid... would this stop me from getting credit cards, mortgages and etc in the future?

I don't know the answer to this, but hopefully someone else here does.

The creditor is likely concened with enforceability, as a judgment is much easier to enforce than a settlement agreement if you stop paying as agreed. Perhaps if you're able to pay the debt to this particular CU in one lump sum, they will enter into a settlement agreement instead of demanding a consent judgment. Settlement agreements are generally not public records.

I'm not a lawyer, and this isn't legal advice, but you should consider consulting a lawyer and asking about a settlement agreement instead of a consent judgment.

Good luck!

Re: How would a consent judgment affect me?

FicoMike0 — Fri, 22 Nov 2024 05:01:03 GMT

Muck fichigan!

I wouldn't go for it. If you're willing to make a settlement agreement, that should be it.

Re: How would a consent judgment affect me?

JoeRockhead — Fri, 22 Nov 2024 13:36:52 GMT

I'd strongly recommend you seek the advice of a local attorney to understand what your legal exposure/protections are under state law, by reviewing the consent motion, most notably to ensure there is language granting installment payments, or file a motion on your behalf for an installment agreement to be ordered by the court. Without a court approved agreement for installment payments, and regardless of what they say/promise, they could technically file a writ for garnishment of your wages and other income/assets once the consent judgement is ordered by the court.

In Michigan for example, a court approved installment plan only stops periodic garnishments (wages and other income) as long as you don't miss a payment. It doesn't stop non-periodic garnishments to such things as your bank accounts, State tax refunds and other assets. This is why it's so important to seek the advice of a local attorney before you sign, or agree to anything so you don't have any "surprises" going forward.

I agree with what @pizzadude says about the impact on your ability to obtain credit, or a mortgage in the future.

Re: How would a consent judgment affect me?

jdsinm — Wed, 27 Nov 2024 05:36:22 GMT

@JoeRockhead wrote:
... Without a court approved agreement for installment payments, and regardless of what they say/promise, they could technically file a writ for garnishment of your wages and other income/assets once the consent judgement is ordered by the court.

This right here 100%. IMO thats a trap they are setting.