Negotiate Judgment

Anonymous · ‎05-02-2011

I called the law office that has a judgment against me today to rty and negotiate a price. They asked me my phone # and address but also wanted my monthly income as well as my employers name and information.

I gave them my address and phone # but told them I didn't feel comfortable giving them my employer or income information. They stated that without that information they don't think "their client" will look favorable towards this and most likely wont accept my offer. I offered $1150 on a $3500 judgment.

Should I have given them my employer and income information? They said they would call me tomorrow with "their clients response to my offer". What do you think my chances are?

Anonymous · ‎05-02-2011

@claydouglas76 wrote:
I called the law office that has a judgment against me today to rty and negotiate a price. They asked me my phone # and address but also wanted my monthly income as well as my employers name and information.

I gave them my address and phone # but told them I didn't feel comfortable giving them my employer or income information. They stated that without that information they don't think "their client" will look favorable towards this and most likely wont accept my offer. I offered $1150 on a $3500 judgment.

Should I have given them my employer and income information? They said they would call me tomorrow with "their clients response to my offer". What do you think my chances are?

You were wise in not telling them. Since they already have a judgment against you, they can use that information to have your wages garnished.

Anonymous · ‎05-03-2011

The law office called me today to say that "their client" would only accept a settlement of $2900 because I will not give the any of my employer, and financial information (monthly income, rent pmt, spouses income, other monthly payments).

I am between a rock and a hard place. I want to get this down as low as possible but yet dont want them coming after my bank account or garnishing my wages. I need to get this satisfied soon because my family and I are house hunting and need it paid before closing.

how should I handle this situation?

Anonymous · ‎05-03-2011

@claydouglas76 wrote:
The law office called me today to say that "their client" would only accept a settlement of $2900 because I will not give the any of my employer, and financial information (monthly income, rent pmt, spouses income, other monthly payments).

I am between a rock and a hard place. I want to get this down as low as possible but yet dont want them coming after my bank account or garnishing my wages. I need to get this satisfied soon because my family and I are house hunting and need it paid before closing.

how should I handle this situation?

What is the date of the judgment?

I think the reasons given to you by the law office is b.s.. They will utlimately accept less.

If they know you are house hunting then they have a distinct advantage knowing that you must get the judgment taken care of. Also, if you give them any employment or other information they can -- and will -- use that to help enforce their judgment against you.

The key here is not letting them know you are under pressure to pay, make them believe you are judgment-proof and really will not pay them unless the terms are reasonable / affordable. It is difficult for the average person to do that on their own. If you have an attorney negotiate this for you it would be easier, but then there is the additional cost for legal services.

I would write the creditor directly and cut their lawyer right out of the picture. Keep the letter short and sweet:

1. You would like to settle this matter if at all possible;

2. You are judgment-proof;

a. You have no bank accounts of value;

b. Your wages are already being garnished to the maximum extend allowed by law; and

c. You own no real property.

3. You can only afford to pay $X.XX and this is the only offer you will entertain.

I also think your offer of less than 35% will be found unreasonable if they believe they have any hopes of collecting.

Rvan1961 · ‎05-03-2011

Let us know how this goes please, Very interesting to hear about and I wish you all the best.

Once a Creditor/CA gets a civil judgment, do they aggressively pursue collection or garnishment? or do they just sit back and know that they have all the time in the world?

I ask this because a relative got a civil judgment against them back in 2006. It was for upwards of 7k. Since then they haven't heard or received anything from the court or the 'winning' creditor/CA....not even a single phone call or harrassing letter? This judgment only shows up on one credit report, the other two have never showed anything at all.

I just thought it was strange because it seems like they would be going as fast as possible to garnish or somehow get what the Law says is theirs to take.

Maybe someone has the answer and will explain?

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Anonymous · ‎05-03-2011

@Rvan1961 wrote:
Let us know how this goes please, Very interesting to hear about and I wish you all the best.

Once a Creditor/CA gets a civil judgment, do they aggressively pursue collection or garnishment? or do they just sit back and know that they have all the time in the world?

I ask this because a relative got a civil judgment against them back in 2006. It was for upwards of 7k. Since then they haven't heard or received anything from the court or the 'winning' creditor/CA....not even a single phone call or harrassing letter? This judgment only shows up on one credit report, the other two have never showed anything at all.
I just thought it was strange because it seems like they would be going as fast as possible to garnish or somehow get what the Law says is theirs to take.

Maybe someone has the answer and will explain?

I think it is a common misconception -- even amongst judgment creditors -- that a judgment = $$. Nothing could be further than the truth. A very significant percentage of judgments go forever unsatisfied. It also helps if the judgment debtor keeps a low profile.

Enforcing a judgment can be often more expensive than obtaining the judgment in the first place so many judgment creditors just sit back and wait for the mountain to come to them. They probably understand that during the 7 years the judgment remains on the judgment debtor's credit report that there is a decent chance that the judgment debtor will want to buy a house or otherwise need / want the judgment showing as satisfied.

Rvan1961 · ‎05-04-2011

Thanks for that explanation. My sis lives in California and not sure how long it stays on record there, but she is actually buying a house in the near future, wonder if she should be quiet or be pro-active and try to make an offer to get this settled.

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Anonymous · ‎05-04-2011

@Rvan1961 wrote:
Thanks for that explanation. My sis lives in California and not sure how long it stays on record there, but she is actually buying a house in the near future, wonder if she should be quiet or be pro-active and try to make an offer to get this settled.

Generally it stays about 7 years.

Difficult to say whether she should reach out and try to settle or not. It depends on many factors.

Anonymous · ‎05-04-2011

I believe the judgment was entered in 05'. I live in Iowa so I believe judgments will stay on your record for 10yrs plus the creditor has the option to reinstate for another 10. Does this sound correct?

So your recommendation is to write them a letter and state what you have outlined? Should I up my offer to around 50% then?

This creditor/law office has actually garnished my bank accunt several years back and took everything. I have moved around for work in the past few years and have lived in 4 states in the last three years. I am now however back in the state where the judgement was taken out.

Hopelives2 · ‎05-04-2011

Take the original amount, less what they wiped from your bank account.

Offer 1/2 of that.

NEVER give them any information on your lifestyle now. If they have found out you are back in the state, they can and might, find your bank account information from wherever they can. I know of one law firm who had investigators routinely surf through garbage of people they had judgments against in order to find the bank name. After that is found out, they took the money again.