Settling a Debt Before a Judgment is Entered

[CNSR4500]

My question involves judgment recovery in the State of: KY

I became unemployed in 2008. I finally found a job that paid enough to barely keep going, but not to pay my credit card bill, which I had done my best to keep reasonable. The company tried to raise my limit, but I refused.

I received a complaint last year from their attorneys, and I answered that I disputed the existence of the debt, I disputed the amount based on not having enough information, and I disputed that they had sufficient evidence to make their claim. They sent me a thick phonebook-sized packet of every billing statement ever. I answered back by offering 50%. I didn't hear anything from them after that.

I got my tax return this year and thought, "Hey, I finally have enough money to pay that off." Guess what I received in the mail about a week later? A summons to appear in court in June for a judgement.

I can pay them... now. In fact, I think it'd be great to have this taken care of before the court date. How should I go about doing this?

I thought maybe sending them a cashier's check for 3K (money order would be ridiculous) would work. It comes out immediately, so my bank statement becomes evidence that they received payment. Not that I want them to know who I bank with... of course, it would be better to be able to pay less, but I haven't heard from them in over a year.

I always send mail certified with a return receipt, so they have to sign for it, proving they received it. I can argue that if they refuse to cash the check, then payment wasn't what they wanted in the first place. I'd also include a statement that if they accept this money and cash the check, they also agree to dismiss and no longer pursue ANY legal proceedings stemming from this debt, that they consider this debt paid in full, and they will report within 10 days to all credit bureaus that this is paid in full.

I don't want to give them one of my own checks with my bank account numbers on it. Then again, the cashier's check might not be any better.

Yea or nay? Better ideas?

Thanks in advance.

[Mr. Knowitall]

If by "A summons to appear in court in June for a judgement" you mean a creditor's exam, or a hearing for entry of a judgment consistent with a default, most likely you failed to appear in court per a notice from the court and were defaulted for your nonappearance. You will have to investigate the court file to find out what happened.

If you want to try to negotiate a pay-off, contact the plaintiff's law firm and negotiate.

[CNSR4500]

"I answered back by offering 50%. I didn't hear anything from them after that."

As stated in the OP, I did try to negotiate by making an offer. They have ignored it for the past year. Clearly, they are not interested.

The document doesn't say creditor's exam, it says "for a judgement to be granted". I haven't been asked to appear in court previously, simply asked to answer the complaint, which I did. This is going to have to get more expensive for them before they will be interested in settling. They probably believe this will be an easy judgement, like most, and they will get whatever they want, so settling isn't even on their radar.

I am going to have to go down to the courthouse and find out what else is in the file. I didn't know I could do that, but I read it somewhere else.