QUICK QUESTION!

[Derrick1977]

I have two judgements on my credit report and both are scheduled to fall off in 2012.  One of the judgements is for $563 from the credit union and the other is for $594 from bellsouth.  What are the pros and cons of paying them or setting up some type of payment arrangements.  I am trying to get my credit reestablished and don't know whether this will be a good idea.  Please give me some advice, PLEASE!.

[Anonymous]

I'm in a similar boat trying to clean up two judgments myself.  One option you have is to check into the form for satisfaction of judgment your court uses and see if it has a dismissal clause in it.  If so, I would recomend sending a modified PFD letter to the plaintiff or their counsel of record requesting that you will send payment in full if they agree to sign the satisfaction form (as always, get it in writing).  A similar approach if your court does not have a dismissal clause in it's standard satisfaction form is to request in the letter offering to pay that they agree to have the judgment dismissed by the court, not just marked as satisfied.  Having that in writing gives you something to bring to the court and have the judgment dismissed in case they agree to do it, but don't follow through.  By having a judgment against you, they have leverage and are less likely to settle for a lower percentage.  Also, judgments can be renewed in most jurisdictions and without paying it will haunt you for years to come.  Your other option is trying a motion to vacate.  It's a bit tricky (I know from failed experience), but if it's a default judgment and they made any mistakes such as improper service or innacurate documentation and you have never appeared in court for the matter (as well as having proof of their error) then you might have a chance.  Keep in mind if it's still within SOL and you get the judgment vacated they can still sue you again.

Message Edited by Myriad on 06-12-2009 12:44 PM

[Anonymous]

From what I heard in the past, its definitely possible to work out a pymt argt with the counsel representing the creditors in exchange for "vacating a judgement or dismissal of lawsuit."

[Anonymous]

Yes, negotiate payment in exchange for "vacating" the judgment, which wipes it away as if it never happened.

[Derrick1977]

Ok, if I was to try and negotiate this with them, how would I go about it.  A Law Office is representing them and the same law office has both judgements.

[Anonymous]

Looks like you have a shot at "one stop shopping" since the same firm is involved in both judgments. They gain nothing by having a judgment against you after the judgment is satisfied.  I'd handle these matters as individual issues in seperate letters, but you can mail those letters together if you want to take care of them at the same time.  I recommend you find out which method of removal your court prefers since all courts handle things a little bit differently (Illinois prefers their satisfaction dismissal form over having anything vacated, but other courts prefer an agreed order to vacate).  Whichever method, be it a dismissal or a vacate, have the law firm agree to sign the release in exchange for payment.  Most firms will go for it since all they want is the money and like I stated above, a $0 ballance judgment does nothing for them.

Message Edited by Myriad on 06-13-2009 01:07 PM

[RobertEG]

All of the suggested options for satisfying the judgment in exchange for them agreeing to motion the court to vacate the judgment are great!

The only course of action you have to be careful about is going into violation on any terms establshed by the court in the judgment, or any terms subequently agreed to.   Then you might find ourself back in court and hit for violation of the court judgment.

[Anonymous]

RobertEG brings up an excelent point.  If you don't already have copies of the judgment then you need to go to the courthouse and talk to the county clerk about getting a copy of the judgment.  In most places all it costs is the copy fee (a couple of bucks at the most) and you will know all of the stipulations involved in the judgments.  Armed with this knowledge you can move forward without the risk of exposing yourself to possible violations of the judgment.  Most times it's pretty clear cut, but it never hurts to know for sure.

[Anonymous]

Just to add....even when the counsel agreed to vacate or file the motion or whatever, it is usually still up to the judge.

While there should be no reason for the judge to deny, seeing as all is in agreement......judges can and have denied.

If your state allows judgments to be renewed, I'd for sure get it taken care of so that you don't end up with it for another 7 years on your CR or longer.

Also, if you want to purchase a home soon, the lender will most likely required them paid.

Paid always looks more favorable than unpaid to a lender.

[Derrick1977]

I appreciate all the information and I am excited now about paying these things off and moving forward!  Do anyone have a sample letter that I should send them.  I would greatly appreciate it.