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How to Settle a Credit Card Judgement

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  • 02-19-2014, 11:31 AM
    Rumnot
    How to Settle a Credit Card Judgement
    Hello. I have a default judgement against me for the amount of 8289.00 from discover card. I live in PA. There was never an attempt to collect from me since the judgement was entered back in 2009. My question is should I try to settle with the lawyer who is listed on public records or should I try to settle with the original creditor? Also will they take less then amount owed? Ty
  • 02-19-2014, 12:16 PM
    Dogmatique
    Re: How to Settle a Credit Card Judgement
    PA creditors cannot garnish wages directly, but they can certainly attach your bank account (certain exemptions notwithstanding).

    If you wanted to negotiate, the time was before it got to court. Still, it wouldn't hurt to ask the creditor.
  • 02-19-2014, 05:59 PM
    Rumnot
    Re: How to Settle a Credit Card Judgement
    Yes I realize I should of took care of it before i got sued . But I was uneducated on what a mess that it would become. I guess that now I want to resolve this I was hoping for some advise as to how n whom I speak to and what I should expect. Any help is appreciated...and Ty for responding!
  • 02-19-2014, 06:11 PM
    adjusterjack
    Re: How to Settle a Credit Card Judgement
    Discover has likely written off the debt (but you still owe it) so you would deal with the lawyer whose name is on the lawsuit papers.

    And, yes, they often do take a discounted full cash settlement but you have no leverage unless you offer it in cash.

    The minute they hear chump change or payments they will likely shut you down.

    I suggest you start with an offer of 60% and see how that goes, if you have the cash.

    Keep in mind, however, that the judgment of $8289 from 2009 has probably grown some by now with interest, fees and costs added to it.

    If you are going to do this I suggest you deal with the lawyer face to face and don't hand over any money until he puts a written settlement agreement and a "Satisfaction of Judgment" on the table in front of you.

    Another alternative is bankruptcy if you have other financial issues that make it worthwhile. Would be a lot less costly than paying the judgment.
  • 02-19-2014, 06:49 PM
    Dogmatique
    Re: How to Settle a Credit Card Judgement
    I wish we had a "like" button here. Jack, excellent response :)
  • 02-19-2014, 07:09 PM
    jk
    Re: How to Settle a Credit Card Judgement
    The judgment debtor owes the money to the judgment creditor. The attorney of record at the time the judgement was ordered may or may not still represent the judgment creditor. I would start with contacting the judgment creditor. If they are represented by counsel on the matter, they will refer you to whom is their current attorney.

    it also makes no difference if Discover wrote off the debt. That is meaningless in regards to ownership of the judgment but along with the possibility that Discover has sold the judgment to a junk debt buyer, the attorney of record was representing Discover so it is unlikely they also represent the subsequent owner of the judgment if it had been sold.


    I have not found how judgment rights are transferred but many states require any transfer of rights to be recorded in the court record. The court clerk may be able to enlighten the OP regarding this. I would call them and ask if when the judgment rights are transferred to another party whether that must be recorded or not. If is must be recorded, then whomever is listed as the current judgment creditor is who you would contact. If a subsequent holder of the rights does not have to be recorded, I would start with Discover and let them direct you to their current counsel.
  • 02-19-2014, 07:37 PM
    Rumnot
    Re: How to Settle a Credit Card Judgement
    Great advice I thank you guys for replying. I'm trying to stay positive about this . I have cleaned up my old debts and I'm debt free today except for this judgement. Lump sum about 60% is where I'm going to start n hopefully they go for it. Make sure I get it in writing and make sure they are willing to vacate the judgement. Am I correct? Once again thank you so much for all the help!

    - - - Updated - - -

    I meant (satisfied judgement)
  • 02-19-2014, 07:43 PM
    jk
    Re: How to Settle a Credit Card Judgement
    I will just about guarantee you they are not going to vacate the judgment, at least without some incentive to do so.

    Jack spoke of a satisfaction of judgment. They are two very different things. The satisfaction of judgment is simply the creditors statement that the judgment has been paid in full (even if it was for less than the amount ordered by the court) that is recorded along with the judgment to show it has been paid.


    Vacating a judgment is where the judgment is cancelled, like it never was ordered. It can usually be done but it cost the creditor money and effort so doing it for free should not be expected. Many creditors simply will not do this. There is no requirement they do it and it is only for the benefit of the debtor so they are generally not inclined to bother with it.


    I see you edited your post while I was typing
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