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SashaM

Settling judgements and collection account that won't even send me documentation

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Okay,

 

I've been slowing getting my personal credit together and I have a few of curious ones.

 

1)  I have a rather large judgmeent for $9000 (with interest its probably almost 12000 now) that I got in 2011. I do owe it and all the service and everything was proper. I set up a payment plan for $200/month that's documented on the docket with the courts that both the attorney and myself agreed to it. I can comfortably pay the payment plan but with the size of the judgement and the interest on the judgement, it would take me almost 15 years to pay it back and I would pay $16,000 in interest alone!! I don't want that, I'd like to buy a house in a couple years. I don't have enough to pay off the entire balance but I could probably pay around $5000 in a lump sum. I should clarify that this debt is out of my current state of residence and they are unaware of my employment or bank accounts (not sure that matters?). My question for this one is would they have any incentive to take a settlement of less than is owed at this point? Should I even pursue a settlement? My take is I figure since I'm abiding by the payment terms anyway, I can't really lose. Any thoughts?

 

2) I have another judgement (I only have 2, I swear lol) This one is smaller and older. Only $1000 and granted in 2007 from Capital One and it was done properly. Also out of my current state and unaware of my employment and bank accounts. With interest this one is probably around $1300, which I could probably handle. I don't have a payment argeement with them but I wanted to try and settle for around $600. I'm not sure if that's enough but they havent been able to collect for almost 6 years so maybe, right? Again, any thoughts on likelihood of them to accept a settlement? How should I approach them about a settlement? Call? Write?

 

3) This one makes me angry. I have a collection account on my credit reports from some CA. They do not own the debt and its collecting on behalf of an apartment complex. It's from 2007 and apparently from an apartment complex I used to stay in. I did stay in the aparatment complex but when I left, I didn't owe anything as far as I know and never got any paperwork for past due owed. It's for about $4000. By the credit report dates, it will drop off my report next year in August. By the state SOL, it will be past the SOL in August of this year. Also out of my current state, unaware of employer/bank accounts...for now I guess. I called the CA and asked them to send me some verification of the debt. Or some documentation that I owed it. They said they did send out info in 2007 (to some address I didn't recognize) and they would not send out anymore paperwork to validate the debt. WTH? Well, Im not paying a debt they won't even send any documentation for. So how do I proceed with this one? Just let it roll off in 2007? If they decide to sue in these last few months they are able, will they have to sue me in my current state or will I have to travel all the way back to the state the apartment complex was in? And will they have to find me first? Maybe I'm worrying too much about it but my plan was to let the SOL pass and then contact the CRA and see if I can get it removed. Also they told me a payment was made on the account in 2009, I didn't make it, does that matter? I've heard it can reset the SOL? Thoughts?

 

Any feedback or comments are appreciated. Also would like to hear from anyone who has ever settled a judgment for less than is owed. What did you settle for (percentage) and what were circumstances (old debt, garnishing wages, etc.), get it in writing?

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 My question for this one is would they have any incentive to take a settlement of less than is owed at this point?

 

 

Unlikely, because they have you for the full amount. At this point, what is your bargaining power? Very little. You can try, but it's very doubtful they'll pass up the 16K in interest for 5k.

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Ugh, I figured that was the response I would get. I kind of hoped my bargining power would be the fact that it will take them 15 years of payments to even get 16K in interest and that's assuming I don't pay it off faster (I probably will pay it off in like 2 years but just not all at once). I currently owe only $12K including interest. Also if i decided to just stop paying the payment, they would have to find me first to collect and that will cost them time and money. As far as they know I am still in my original state and unemployed. (I wouldn't really stop paying the monthly payment but I would hope they would think that and want to settle to get as much as they can now). Oh well, thanks!

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I kind of hoped my bargining power would be the fact that it will take them 15 years of payments to even get 16K in interest and that's assuming I don't pay it off faster (I probably will pay it

 

You are correct. It happens every day. Guaranteed money now is way more attractive to these people than the mere possibility of money later.  Give it a try.

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You are correct. It happens every day. Guaranteed money now is way more attractive to these people than the mere possibility of money later.  Give it a try.

 

I agree with nascar .......... I had a judgment from a couple of years ago that the creditor couldn't collect on. Got a letter from them a few months ago offering a 50% reduction for a lump sum payment ........ I grabbed it rather than let the interest accumulate and taking the chance that someday I'd have to pay a LOT more.

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Hmm.....now I'm thinking I have nothing to lose maybe i should just try it out with the larger debt and see what happens. I don't see a down side.  Worst they can say is no. Thanks for the input. Any point to any sample letters I could use? I've heard the ones on the main part of this site arent that great.

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If you are current on the large debt payment plan, I would take my lump sum $5k and try to clean up the 2 smaller amounts first. This will give you a little practice at negociation and getting things in writing. If you clear the two smaller debts, then in 12 months reload your Lump Sum gun. Then take a final shot at the larger debt....

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