Getting sued by a creditor...how to negotiate it?

[wa3more]

Yes, you right. I got it wrong. My bad....

for that kind of money, it might not be long.  Good luck.

[Azuieldrago]

For the people saying that the courts don't care. In my area they do. They will ask you what you can afford. Even have to turn in a financial statement. If what you can pay is reasonable, thats what you get. Doesn't matter what the creditors want. I have seen this and experienced it. Even more so if you are a vet. You may have differennt experiences but these are mine as a Wisconsin resident. You don't want a judgement, that is true. But in case, there could be hope for you. Also, I would have been making payments on it. If they were to outright payment, it voids the debt. If they accept it, now it sets presidence in payment history. 

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[Anonymous]

@AzuieldragoWhat specifically are you talking about in the court? What type of action? Are you talking about for alimony where they consider and will work with you? Are you talking about during bankruptcy/chapter 13 that they will work with you? Or are you talking about when a creditor sues for a judgment?

Because I cannot imagine a court during a dissolution proceeding or post dissolution proceeding (which proceedings are state specific) deciding the rights of creditors who are not even a party to the action. That would violate their rights under the United States due process clause as the creditors have right to notice of any proceeding in which they’re going to be bound, and to be at the hearing, and speak their piece.

So maybe you can clarify what you’re trying to tell us because it’s not making sense.

Now if you’re talking about chapter 13, when the creditors are put on notice, that’s not state specific that’s federal, and yes they work with you than that’s the whole point of re-organization.

But most importantly, it really doesn't matter whether or not the court cares.  They're not legally able to take any action that determines the interests of a creditor unless they are a party to that action or have at least been given notice.

Does the state of Wisconsin require that you give notice to all creditors during a dissolution proceeding?

[Azuieldrago]

As the OP is getting sued by a creditor, lets stick with that scenario. Atleast in my state, or perhaps just my county. When you are sued by a creditor, a letter is sent out. Along with a financial disclosure form. After you fill that out and attend the hearing. Once there, the creditors will be able to say their peace. Verify the debt, collection attempts and what they would want per month. Then the defendant has their chance to verify the debt is theirs or not. Go over the financial disclosure. At which time the judge will ask what can be safely afforded to be paid on a monthly timeline. If the financial disclosure supports that statement, the judge will rule in that favor. This is non bankruptcy. Simple everyday debt repayment. We are a pro person state. Or atleast getting there. I have seen it go more for the defendant then creditor provided answers were provided and were honest. There is no law saying that the creditor has to get exactly what they want, just that they have a right to get paid. So as long as its as reasonable as possible that does not hurt the debtor in such a fashion to cause hardship. I have sat in that chair upwards to 20-30 times. I was quite dumb when I was younger. I owed one creditor about $3k, Judge asked me, could I pay $50 bucks a month. The judge's only concern is the debtor isn't financially hurt and the creditor gets paid, duration of payments don't matter. Well if its a person (like a landlord) vs a company. A landlord would be upped a little higher since its a massive financial hit not to be paid back quicker but the payment would be far lower vs a collection company where as long as they get paid it doesn't matter.

@Birdman7

[Anonymous]

@Azuieldrago Now it’s making a lot more sense. I think myself and many people misunderstood you, because they thought you were trying to say to do this as part of a post dissolution proceeding, which is between the spouses and has nothing to do with the creditor per se.

You’re speaking of a suit by the creditor against the debtor.

[Anonymous]

Fascinating...another poster on this thread said something similar. It must be a county thing. I'm in Waukesha County...what county are you in? 

[Azuieldrago]

Im Douglas county. I live in the Duluth/Superior area.