Author Topic: Judgment Settlement Letter  (Read 9499 times)

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jezter6

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Judgment Settlement Letter
« on: August 16, 2011 10:53:57 PM »
I have a judgment from a major CC company that was actually filed a few years ago. I'm fairly sure I signed for the paperwork when it was delivered and just ignored it as I was a 23 year old youngster with my head stuck somewhere stupid.

In any case, the judgment amount is about $4000.
In ~2009 the law firm sent me some "we attempted to contact you, but you've ignored our demands for payment. we have judgment and if you don't do something we'll instruct to sheriff to perform a levy on your property, blah blah blah." I didn't have any property and in fact had moved out of state and they never tried to move the judgment over so I wasn't worried about their demand...but I also just ignored it because I was broke as a joke.

I'm finally to the point where I'll have about 50-75% of original judgment amount and want to get this cleared up. The judgment is there, so no real point in fighting too hard, just want to pay my obligations and move on (that is, so long as it's still with the OC, I won't pay a JDB a nickel until the court says so).

That said, obviously I don't have 100% of the original judgment, nor 100% of the judgment plus statutory interest which I'm sure brings this up over $5000.

Also, I'd like to get the most bang for my buck. I was going to just offer money for a satisfaction, but then I saw letters with no 1099, and even some letters that included vacating a judgment.

How far do I push, knowing I don't have nearly what they want? If I offer too little (with high demands) in the letter, might they just ignore me or not be willing to negotiate with someone who's way off their rocker??

In any case...I need a settlement letter. Hopefully to include terms that include vacating the judgment, no 1099, etc. I also don't want to offer all my "stash" to settle so I do have some room to negotiate....

Any thoughts on what to put in there?

KFMAN

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Re: Judgment Settlement Letter
« Reply #1 on: August 16, 2011 11:36:49 PM »
10% wouldn't be a bad place to start, along with getting the Judgment Vacated, deleted debt, and no 1099.  I would hate to pay more than 30% of the Original Judgment and wouldn't agree to any type of payment plan.

In a Hurry to Settle? Read this:
    http://www.debtorboards.com/index.php/topic,7217.msg18.html#msg18

Has a CA contacted you about the judgment? 



jezter6

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Re: Judgment Settlement Letter
« Reply #2 on: August 17, 2011 02:46:29 PM »
The original lawyers sent me something ~2 years ago about the debt, threatening the sheriff sale ...funny, because as I look back at it, I'd love to try and sue them over some of it (threatening to do something they didn't intend to do, or couldn't do because they didn't domesticate the judgment into my state).

In any case, I'll read the in a hurry to settle thread and see what I can come up with.

KFMAN

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Re: Judgment Settlement Letter
« Reply #3 on: August 17, 2011 05:24:03 PM »
The original lawyers sent me something ~2 years ago about the debt, threatening the sheriff sale <Removed>...funny, because as I look back at it, I'd love to try and sue them over some of it (threatening to do something they didn't intend to do, or couldn't do because they didn't domesticate the judgment into my state).

In any case, I'll read the in a hurry to settle thread and see what I can come up with.
Have they sent you anything recently or contacted you about the alleged debt?

1692-g-30 day validation notice within five days of the initial communication


1692g(a)(4)- Must state right to have verification (and/or) judgment mailed to consumer.


http://www.debtorboards.com/index.php/topic,5159.0.html
« Last Edit: August 17, 2011 05:38:15 PM by KFMAN »

jezter6

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Re: Judgment Settlement Letter
« Reply #4 on: August 18, 2011 06:30:02 PM »
Have they sent you anything recently or contacted you about the alleged debt?

1692-g-30 day validation notice within five days of the initial communication


1692g(a)(4)- Must state right to have verification (and/or) judgment mailed to consumer.


http://www.debtorboards.com/index.php/topic,5159.0.html

They haven't sent anything recently. Again, the letter I got was in 2009. That said, they are the original lawyers to the judgment, and I'm guessing they probably sent me something back when they were in the pre-lawsuit/start of lawsuit stages. Even if they didn't...the letter is 09, so 2 years...which IIRC is past SOL anyways. Plus, isn't that one the hardest to beat so long as they show that they have procedures in place to send out the dunning letter?

Maybe if I was wise, and they didn't sheriff sale me (they didn't) I could have sued them back then for threatening to take an action they had no intention of ever taking...but my guess is that's 1 yr SOL too, which is beyond where we're at now.

jezter6

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Re: Judgment Settlement Letter
« Reply #5 on: August 19, 2011 04:24:00 PM »
So here it is. I didn't want to toss out a supremely low number and then ask for it all. If they ask me to come up on the $$, then I'll add in more requests.


Thoughts??



Dear Mr. Attorney:

   In checking my credit report, I have found that a judgment is being reported on my by your client. I have validated at the (Original) County courthouse that you are the attorney of record in that lawsuit from 200x.
 
   In the interest of making good on any past debts and move forward, I would like to offer your client a settlement to resolve this matter once and for all for both parties. According to my credit report, judgment was granted in the amount of $xxxx. At this time, I am willing to offer a onetime payment of $xxxx (approx. 33%) to settle this matter as payment in full.

   In return for this payment, I would request the following:

1.   Appropriate release of judgment/lien filed with the County Courthouse within 10 business days with a courtesy copy mailed to me
2.   Agreement that your client will permanently cease any and all collection efforts on the remaining balance and release myself from any liability for that amount
3.   Agreement that your client will not attempt to resell any remaining balance to any third party

   If your client is interested in this offer, I will request that you (as the legal experts in this matter), draw up this offer for settlement signed and notarized by an authorized representative and mailed to me before September 15th, 2011. Once I have read and agree to the settlement terms, I will sign my end of the agreement and forward the agreed upon funds via cashierís check or money order to your office. If I do not hear back from your office by September 15th, I will assume that this offer is rejected and will consider moving forward with another creditor. Please be assured, however, that it is my intention to get this resolved with your client.

   Thank you for your attention in this matter and look forward to hearing from you in the very near future. If you have any questions, please do not hesitate to contact me.






KFMAN

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Re: Judgment Settlement Letter
« Reply #6 on: August 19, 2011 07:32:36 PM »
VACATE the Judgment and 33% to pay the Judgment In FULL or settle the Judgment.

jezter6

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Re: Judgment Settlement Letter
« Reply #7 on: August 19, 2011 08:27:16 PM »
huh???

I dont get that. Should I really request vacate on 33% of the judgment (with statutory interest, it's probably close to $1800 more than the original judgment)?

I was figuring they'd complain that 33% of the original judgment (about 26% if you include postjudgment interest) was too little, so if they wanted to go to 50%, I'd put in VACATE. Each time they ask me to give a little in the negotiation, I ask for something in return.

Sounds like asking for something up front doesn't give me much room for negotiation.



cgoodwin

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Re: Judgment Settlement Letter
« Reply #8 on: August 19, 2011 08:48:30 PM »
With these types of settlements, it usually works the other way because they are usually "hostile".  You ask for everything including the kitchen sink and start to scratch stuff off the list. Starting with the kitchen sink.
If you think this is legal advise.......
ask yourself why I wasn't smart enough to avoid this myself?!?

jezter6

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Re: Judgment Settlement Letter
« Reply #9 on: August 19, 2011 09:01:54 PM »
Is that an indication that I should start a little lower than 33% of judgment? i'm a little wary of getting under 15% of "current balance" to start. I do want to be taken seriously and not blown off as a tire kicker.

cgoodwin

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Re: Judgment Settlement Letter
« Reply #10 on: August 19, 2011 09:32:14 PM »
Trust me, in these situations, they more trouble you are, the better settlement you get. 

Nice guys finish last in this game.

Start out completely unreasonable, and become more reasonable as things continue.  That's what they will do.
If you think this is legal advise.......
ask yourself why I wasn't smart enough to avoid this myself?!?

KFMAN

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Re: Judgment Settlement Letter
« Reply #11 on: August 20, 2011 12:17:40 AM »
I would start at 10% of the original Judgment amount to settle the judgment in full and have the Judgment vacated.  Stand firm!

kevinmanheim

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Re: Judgment Settlement Letter
« Reply #12 on: October 11, 2011 04:00:45 PM »
What incentive do they have to contact you?

You have already showed your hand in this game. You let them know that they have something you need - a satisfaction of the judgment.

This tells them you are trying to clean up your credit to buy a house, etc.

If you were them, would you be jumping to take your offer?

Or, would you sit back and wait for desperation to make the offer richer?

jezter6

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Re: Judgment Settlement Letter
« Reply #13 on: October 13, 2011 03:35:36 PM »
I guess you are right. There is little incentive for them to contact me (other than getting the money of course).

Luckily, I'm in no real hurry here...just at a point where I was hoping to get rid of this thing once and for all. At the very least, I was hoping to at least initiate dialog with them...some sort of counter offer or at least a straight out "no."

My only real concern is that I've woken them up and they're looking into other avenues (ie: bank account freeze). I was already smart and took out most of my meager savings so that they couldn't lock up every dime I had, but now I guess I have to be somewhat cautious about how much I leave in an account at this point until I think it's safe to continue normal banking.

That said, I'm going to take whatever money I saved up for settlement and will pay off my car, which will free up $300/mo towards savings again and will contact them again maybe in 6 months with another lowball offer.

HeadsUp

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Re: Judgment Settlement Letter
« Reply #14 on: November 23, 2011 10:07:26 PM »
I'm still wondering why you are doing this?

If they haven't domesticated the judgment in your new state, they really can't do much to you.

Why are you waking up sleeping dogs?

Why are you throwing rocks at a hornets' nest?
Finally a collector admits it...

"The reality is that there are people who can't pay and the job of an agency in my opinion is to separate those who can and those who cant and to not waste resources and efforts on those who cant." -- Dr. Evil.

All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

 

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