Category: Debt reduction

Re: Judgement

judgmentThis happenend to us a few years ago. We ended up getting an attorney, and she lowered it down from over $6,000, to the a little over $2,000 that we owed. They try to say that they didn’t get what you owe on the car from the auction, which is totally wrong. Now whenever we buy a car we get GAP insurance so that if we do have to give a car back because of a major illness or something we won’t get sued for the GAP in what they get from the auction and what we owe.

I would contact the original creditor in writing and ask for verification of an amount other than the $4,000. I would also clearly state that you only intend to make payments directly to them, not to any third party, hired by them or not.

I would request a complete mailing address and verification. I would not pay a cent until I got the response. Having it in writing is your only leg to stand on. Send letter with a signature required (the bright pink receipt at the post office).

To my eye it sounds like you are just signing a letter agreeing to the payments…something else they can use against you if you are unable to pay later. But I would check with a lawyer to be sure. I was served a judgement last night at my apartment door. I couldn’t keep up with my credit card payments when my boyfriend moved out over two years ago (he paid the rent and now I do alone). So I signed up with Effective Financial Solutions, and I draft them $200 a month, which supposedly will eventually be enough to offer my creditors a settlement. Well, my payments weren’t consistent and it hasn’t added up much. But EFS has power of attorney.

Anyway, what do I need to worry about? Will they be able to garnish my wages? Will I have to go to court? Should I have declared bankruptcy? (I saw a lawyer about this, he said it would cost $2000, and I declared BR in 1989 so I didn’t want to do it again). Does anyone know what things I should be concerned about?

I would not sign it because that also gives them an opportunity to add another form of information on your credit report if you are late or do not pay as agreed. I would just wait until I could pay a lump sum.

From you description, I believe this is an affidavit of consent of judgment. Basically, by signing it you’re agreeing that you owe the creditor the amount of money in question. With this document, the creditor will not need to pursue a lawsuit to have a judgment entered against you. Two things you might consider doing first (1) seek the advice of an attorney (2) make sure that the creditor does not file the document UNLESS you default.

It will show up as a “public record” if the judgment is entered against you. You can make a payment arrangement before the court date and enter into an agreement with Bally’s lawyer that no judgment would be requested unless you default on the payment arrangement.