Giving Up - Preparing to Settle Judgement

[Circe]

I received a Judgement on 3/8 in a suit by Equable for just over $13K with court costs on a Chase card I didn't settle before they sold it (I'd settle many others, this one they were just faster on ditching).

I lost because I didn't 'appear' properly and I just need this to go away for my health's sake. I could motion to vacate based on 'confusion' in the way they served me a summons, then a Request for Admissions/Production of Documents - I answered only the latter & left out a certificate of mailing as well.

Paid a lawyer for a $50 consult at my spouse's urging and he said unless I really thought I could win based on assignment of the debt/paper trail and/or jurisdiction then I'll just be racking up more debt in court costs and I should probably get a lawyer's help which would then also cost more cash for me.

The credit card originated before we were married and I'm the only one named in the suit so from what I've read they can't touch his wages. My name is not on my spouse's checking account at this time. We own a house together. I receive Social Security Disability which they can't touch. Our cars aren't worth enough to go after. I work a few hours a week making only $50-$100/week so it would be a long slow garnishment for them.

I'm trying to get us a refinance (no, not telling them this - I know better) so I can pay them. In our favor we have lots of equity. Against us I have lots of charge-offs but worst case scenario we get the new loan only under his credit which is far better looking.

I'm hoping to settle for a lower amount and to have them remove the bad debt from my credit report and never put the judgement on it. Unless an overwhelming amount of you recommend trying to get my judgement vacated.

I have two questions:

1. They've already tacked on two months of the per anum interest - can they do this? It's been 3 weeks.

2. I want to open my negotiation with them at 50% of the original debt plus court costs - so about $7K. Truthfully w/o a re-fi or cashing in a retirement account the most I can come up with might be $8K and I'm hoping they'll go for that. Am I crazy to start this low or crazy like a fox?

Thanks all! This forum community has been so helpful & supportive even if it didn't work for me the first time through the ringer.

Edited March 28, 2012 by Circe
I really should preview. :p

[Coltfan1972]

Unless an overwhelming amount of you recommend trying to get my judgement vacated.

Based on your post, that would be a waste of time and money.

1. They've already tacked on two months of the per anum interest - can they do this? It's been 3 weeks.

Probably prejudgement interest. They get the interest while the case was being decided.

2. I want to open my negotiation with them at 50% of the original debt plus court costs - so about $7K. Truthfully w/o a re-fi or cashing in a retirement account the most I can come up with might be $8K and I'm hoping they'll go for that. Am I crazy to start this low or crazy like a fox?

You can pay them 7K or 8K in a lump sum right now? They will probably will send a limo to pick you up and bring you to their office to do the deal.

[TomnTex]

Then you will have to worry about a 1099-C after all that. If it wouldn't hurt you much more, how about a bk 7 and just get rid of them all and start new. Not that I am a fan of bk's, but, sometimes you just have to take the plunge. Good luck.

[Circe]

Then you will have to worry about a 1099-C after all that. If it wouldn't hurt you much more, how about a bk 7 and just get rid of them all and start new. Not that I am a fan of bk's, but, sometimes you just have to take the plunge. Good luck.

That would take away my husband's credit cards & such which he needs for business. Also, right now he can get loans on his own as all the bad stuff is on my credit report/score and we'll need to buy a car in the next 2-4 years.

Also, his pride.

If married couples could file separately, I'd do it in a heart beat.

Also, the spouse doesn't take many deductions and my taxable income is almost nill so we've never paid out of pocket for those 1099-Cs. I mostly want clear credit in my justified 7 years since I became to ill too work full-time+ & had to quit my $50K management track job.

So, our tax refunds will be around $8K which will allow me to pay a settlement of that size no matter what in less than 60 days - so long as they go for it which it sounds like they probably will like sharks after chum.

Edited March 28, 2012 by Circe
spelling typos

[Circe]

Based on your post, that would be a waste of time and money.

Probably prejudgement interest. They get the interest while the case was being decided.

Thanks for the reassurance & clarification. You're a gem Coltfan!

You can pay them 7K or 8K in a lump sum right now? They will probably will send a limo to pick you up and bring you to their office to do the deal.

Their office is 2 hours away. I wouldn't want to have their slime on me that long - LOL!

[TomnTex]

As I understand it, Oregon is NOT a community property state. That means that you could file individual BK and it would not effect him, nor could they come after him. That way he could still keep his credit cards etc. Good luck.

[Circe]

As I understand it, Oregon is NOT a community property state. That means that you could file individual BK and it would not effect him, nor could they come after him. That way he could still keep his credit cards etc. Good luck.

Intriguing. I'm going to look into that then. It could possibly eliminate some other debt I have on closed account payment plans/pending charge-offs and get me/us a fresh-er re-start so to speak. From what I read on one Oregon site, the only thing that might be an issue is the spouse's income as it 'counts' - though it doesn't say specifically what that issue is. I'm guessing it's what determines how much you can repay on re-organized debt...