Negotiating a Settlement for a Default Judgement- Next Steps?

[Anonymous]

FIA Bank
Default judgement $8K, 9 years ago

New Jersey (20 years with option to renew for another 20)
No income for at least 10 years

I don't have the original summons (papers destroyed in a fire), just an entry in my lexusnexus full disclosure. My financial outlook looks like it might be slightly improving in the future (I might be in a position to have a job again), so, if possible, I'd like to settle this without declaring bankruptcy.

What's the best way to approach this? I've gone through some old mail looking for any settlement offers, and, so far, I'm not finding anything.  I get a few calls a day from creditors, but they're most likely from other non judgement unsecured debt (from the same time), so I don't want to pick up the phone in the event it isn't FIA and I say the wrong thing and restart the clock. Nor do I want to confirm to anyone that I'm at the number that they're trying to reach me at.  I'm thinking about calling FIA, getting a total of what I owe, obtaining an address and then making a (lowball) offer in writing. How does that sound?

By reaching out to FIA, I'm showing my interest in possibly satisfying the debt, and that's taking away some of my leverage, correct?  But I don't have a choice, right?

[bass_playr]

First thing's first---NEVER admit to owing a debt on the phone when they call you, unless you're prepared on the spot to get into settlement or paying it off.  Even then, I don't advocate that you admit to owing a debt.

That way, no matter who calls, you're safe from restarting the SOL, as you mentioned.  I would also not be worried about confirming to anyone that you are at the number, because you're not protecting yourself from anything really by not talking with them.  If one of them wants to sue, for example, they will just sue.  They don't need to talk to you on the phone first.

The best way to approach this depends on what you're trying to accomplish.  While the judgment still exists, it should no longer appear on your credit report unless you filed BK, which it appears you have not done.

[RobertEG]

Once the creditor has received a judgment, they then have the ability to file a motion with the judgment court attempting to force you to pay the judgment debt by court-ordered attachment of assets or garnishment of pay.  That applies as long as the judgment is still within its period of enforceability.  From the post, it has apparently be confirmed that the judgment is enforceable for 20 years.

With the ability to pursue forced payment of the entire debt, they may be reluctant to settle for less.

If you make a settlement offer, that implies ability to pay at least that amount.   Their issue would then be whether your situation has changed, and they can now pursue all.

That raises the question of whether the judgment creditor will pursue an order of satisfaction.

If your income/assets have previously been too low and/or exempt from attachment/garnishment but are about to change, then a primary issue is whether the judgment creditor is or will become aware of your change in attachable assets or income.

Are they currently making periodic pulls of your credit report, or otherwise have means to become aware of your changed assets, etc.?