Question about offering to settle with CA

[chicksr]

Would it be aalright to offer a CA a smaller amount to settle a judgment?

What is the lowest that they may accept? (ex: 10 cents on the dollar maybe?)

They have a judgment for a large sum, but I want to make an offer so that this will go away. Have been fighting with them in court for over a year. Seems like they always win.

[Methuss]

You can try, but I doubt they would accept. The fact that they have a judgment gives them the ability to simply take the full amount from you if they want to either by freezing assets or by garnishment. They need a reason why accepting a smaller amount would be to their advantage. Threatening a bankruptcy might work because the judgment would be worthless if it gets written off by a BK court. Outside of that, it's their playground you're on.

[chicksr]

Would it be aalright to offer a CA a smaller amount to settle a judgment?

What is the lowest that they may accept? (ex: 10 cents on the dollar maybe?)

They have a judgment for a large sum, but I want to make an offer so that this will go away. Have been fighting with them in court for over a year. Seems like they always win.

I have heard that someone with low income may have a better chance, is this right.

The only income that comes into our house is mine and it is a retirement(1099R) income. That is, it is small.

Some where I read that they may have problems if the income is small with garnishments.

[score booster]

Anytime a judgment debtor has no assets that may be readily seized and sold, they will be open to negotiations on lump sum settlement. They're going to want more like 60 to 70% though. (initially) Although through garnishment they could conceivably get the full amount plus max allowable state interest, they never know what tomorrow will bring. Keep in mind not all forms of income can be attached. You may want to consult with an attorney.

[Methuss]

score booster is correct. Most states have limits on how much can be garnished (usually no more than 25%) per check and limits on the types of income that can be garnished. Social security and other retirement benefits are usually off-limits, except in rare circumstances.

A lawyer would provide the best advice on this. I understand on a low income this may not seem feasable, but there are legal services out there for those on low income. Check with the local public aid office for a referral to a free legal service that can answer your question.

[retmar]

I agree with Methuss and score booster on this. Go to your local agencies for assistance. Another thought is to have yourself determined exempt. It would invovle your going to the courthouse and asking for the forms. Then fill it out and ask for a hearing. Each state has their own parameters as to what is considered exempt. An example would be that your primary car can only be worth $4500. Furnishings can be worth up to $2500. Therefore, if all you have does not exceed the minimums, you are exempt. It won't get rid of the debt, but, it can stop the CA from coming after your assets and/or cause the court to "arrange" setttlement for a lesser amount.

Also, until you know what has to be done, check to see if your income is exempt from garnishments, etc. Then notify the CA as to this so they won't attempt to "freeze" your assets. Send it CMRR. Otherwise, if you don't and they do, it can take a few days to get your funds back. Also notify your bank. Do all you can to protect yourself until you have an absolute avenue to resolve this amicably.

[chicksr]

Should have asked this before. Should the offer be to the OC or the CA.

I will follow up with the court.

Thanks for your responces.

[Methuss]

I would make the offer to the OC, in writing. This way, if the OC takes the money, you can show lack of relationship witht he CA and get it off your report more easily.

I made a reply around here someplace about using restricted endorsement agreements. That is the tactic I would use to ensure your bases are covered.

[wert]

I have settled for 40-50 cents on the dollar telling them I can get the money to them in 6 days, or something like that. If you can get money to them quick they will sometimes settle.

BUT, get it in writing and never trust them.

It also kind of depends on how old the debt is. If it is pretty close to the SOL in your state, they will settle quicker. But then again, if it is close to the SOL you might want to wait it out.

A settled debt is not hardly any better than a write off debt on your CRA. You don't have much to gain UNLESS they agree to the settlement with the stipulation that they will report the debt as Paid in full, never late. If they say settled in full, you are still looking at a big negative and less money in your wallet.