Need Advice on settlement

[goodgirl008]

I just received a letter from the Law Firm representing the OC and it states:

Ms. XX,

As you recall, after settlement was recited into the record, the judge ordered a judgement to be prepared reflecting its terms as stated. I have prepared a judgement which is enclosed herein. Please sign and return to me for filing with court.

Please send check or money order in the amount of $5000.00 payable to XXX to me at the above address. Please refer to the account no. XXXX-XXX on your check and/or in your cover letter.

After your check clears, a Release of Judgement will be filed with the court.

So now when I send off the money orders, I will have to get (5) $1000.00 ones. How would I word on the money orders that the account is settled in full. Would I say This is 1 of 5 checks for $5000.00. If this check is cashed it constitutes payment in full????

I am making the money orders out to the OC....?? Advice please

[iviguy]

I just received a letter from the Law Firm representing the OC and it states:

Ms. XX,

As you recall, after settlement was recited into the record, the judge ordered a judgement to be prepared reflecting its terms as stated. I have prepared a judgement which is enclosed herein. Please sign and return to me for filing with court.

Please send check or money order in the amount of $5000.00 payable to XXX to me at the above address. Please refer to the account no. XXXX-XXX on your check and/or in your cover letter.

After your check clears, a Release of Judgement will be filed with the court.

So now when I send off the money orders, I will have to get (5) $1000.00 ones. How would I word on the money orders that the account is settled in full. Would I say This is 1 of 5 checks for $5000.00. If this check is cashed it constitutes payment in full????

I am making the money orders out to the OC....?? Advice please

Use a cashiers check and you will only have one check to be concerned with.

[goodgirl008]

Well my husband already went out and got the money orders before consulting with me about this. Anyhow, what do I do for wording on them?

[iviguy]

Well my husband already went out and got the money orders before consulting with me about this. Anyhow, what do I do for wording on them?

Well, If it were me, I would get a copy of all 5 checks attached to a copy of the letter you send with the payment explaining that this is full payment as agreed. On each check I would list the account number they are going toward prior to making the copy.

By accepting the payment and cashing the money orders they accept the agreement. Make sure you have gotten a signed letter from them about your agreement to settle the debt in full for the $5000. Make sure everything is in writing and signed.

Out of curiousity, I am also going through this and will probably wind up settling. Can you tell me what the original amount was to give me an idea of what I maybe can expect?

Thanks

[goodgirl008]

My original debt with the OC was $9400.00......

Thanks for the advice, I will definitley get a letter signed and make copies of all money orders and letter of agreement.

Good Luck to you.....

[iviguy]

My original debt with the OC was $9400.00......

Thanks for the advice, I will definitley get a letter signed and make copies of all money orders and letter of agreement.

Good Luck to you.....

Thanks. So if I understand this, they filed a complaint to sue you but before you got a judgement for the full amount you settled out of court with the lawyer. But you still will have a judgement shown against you on record? Is that correct? You stated that the judge issued a judgment based on the settlement.

Thanks again.

[goodgirl008]

That's my understanding.....we did settle before Judge issued judgement for full amount. It does read that after my check clears, a Release of Judgement will be filed with the court. I know this may not do much for my credit history, but i will just have to work harder at cleaning that up. I just want to be able to move on with my life and not have to worry about this debt everyday...i have 4 kids whom I would much rather worry about.

[goodgirl008]

I've also read on this website that:

Some collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes "I don't agree" on the check, she can't come after you for the balance. The states in which this law is enforced:

Arkansas

Colorado

Connecticut

Georgia

Kansas

Louisiana

Maine

Michigan

Nebraska

New Jersey

North Carolina

Oregon

Pennsylvania

Texas

Utah

Vermont

Virginia

Washington

Wyoming

I live in Texas, so if I write on all five money orders that "once check is cashed and cleared, this debt is considered paid in full"....then they or no one else can come back after me for the remainder? Am I understanding this correctly? So what would i write on my money orders: " this check is 1 of 5 (2 of 5, 3 of 5...etc- on each check) for $5000.00 to account #XXXX as payment in full" ????

[iviguy]

You just need to make sure that you have a signed agreement from them that the $5000 is the agreed amount and their receipt of that amount is considered and agreed as payment in full for the account in question.

I can write that if they cash my $10 check that payment is in full but I doubt any court would honor that for a $10,000 balance.

[goodgirl008]

Well in the Judgment papers to be filed with the court they state:

On the 3rd day of June, 2005 came on to be heard in the above entitled and numbered cause, wherein (creditor)is Plaintiff and (me) is Defendant. Plaintiff appeared by and through its attorney of record and Defendant appeared in person. The parties announced to the Court that all matters of fact and things in controversy between them had been fully and finally compromised and settled. The compromise and settlement agreement was stated orally to the Court and based theron, the Court makes the following orders:

It is therefore, ordered, adjudged and decreed by the court that MBNA America, Plaintiff have and recover from (Me) defendant the sum of Five Thousand and 00/100 dollars ($5000.00), said amount to be paid ti Plaintiff on or before June 27, 2005

All costs of court are taxed against parties bearing same.

The parties are allowed such writs and processes as may be necessary in the collection or settlement of this judgement.