timdawson

Trying to settle- Judgment and Lien already gotten

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Hello,

Hoping for some advice and maybe some strategy help.

I have a Discover bill that has gone to a law firm for collection.

It's a debt from 2005, well within the SOL.

About 2 weeks ago, after a few phone calls where I asked for some time, I received notice of a judgment. Last week, I discovered they placed a lien on my checking account.........very quick action from judgment to lien.

The judgment was for $33K, about $4K of which is from legal fees and interest.

I called the firm to explore some options.......possibly even a $10K settlement. They said the best they can do is $28K, 85% of the balance. After discovering the checking account only had about $500 in it, they dropped another 5%, to $26,400 and said that was it..........They had a judgment and they weren't gonna accept less.

I can go into more detail, but basically was curious if anyone here would advise on how to go forward...........

I guess I'm really surprised they are refusing to accept $10K........or at the very least counter with a more affordable offer. I already have a poor credit report, several other debtors, and don't make much money........

Any helpful suggestions are greatly appreciated.

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Were you ever served court papers? It sounds like you didn't go to court and they got a default judgment against you. If they have a legit judgment, I don't see them settling for much less.

Need a little more info, proper service and such and what and if anything happened in court.

There's a whole other side of this story that you're not telling that would help with responses for your situation.

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Not trying to hide anything, just didn't want to write War and Peace in my intro.

I screwed up in 2005 and have been trying to catch up ever since.........usually trying to deal with what was affordable (great settlement offers) or what had to be addressed immediately (the ones that would call me at work).

Regarding the legal issue, I was not served in person. Everything went to a PO Box I opened when I moved........and it was NOT sent certified. I didn't show and they got a judgment. I was never made aware of a motion to place a lien on my checking account (not sure how getting that is done)

I considered trying to get the judgment vacated, but all that would do is buy me a few months (even if I'm successful, they'll just go through proper procedure next time and I think it'll cost me a couple thousand in attorney fees)

I figured I can scrounge up 10K-12K between borrowing from a friend and borrowing from my 401K, but I can't do much more than that.....and their settlement offer seems too high.....I think.

I would have thought 10K would have been accepted........maybe a little more if they thought 30% was too low.

So, yeah they have a judgment for $33K..........and a lien on an account that had $500 in it when it was put into effect. No wage garnishment threat yet, but my guess is that's coming.......

Just looking to see if you think they will come around to accepting less than 80%, or refuse less even if it means taking years to get the money through legal recourse.

Thanks in advance for any help..........

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I had a discover card and I had a very difficult time with them. They always start at 85% - then they go to 60% and the lowest I got them was 50% - when they finally settled with me. I was still with them and was not making payments - about 170 days delinquent they dropped to 50% and they told me that was the lowest they would go. However, I've read about some lower ones but I was almost at chargeoff and didn't want to try to settle after a charge off.

I would not be surprised that they would accept less if you waited a bit. If they see they are not scaring you into paying the 85% they will probably drop that in a few months. I would ignore them for a while and then try again. They have their judgement, depending on the state you are in, it may not be worth a garnishment procedure.

If you read and look at sample law, you may be able to file your own vacate paperwork - sending a summons to a PO Box is not legal.

Best of luck - they were the hardest creditor I had to deal with.

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