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    Default Arbitration Award After Default on Credit Card - What HappensNext

    My question involves collection proceedings in the State of California.

    I defaulted on a credit card in 2003. In 2006 or 2007 an arbitration award was granted against me in connection with an MBNA credit card debt. I have to find the paperwork, but the original debt was $32K and I think the award added maybe $2K or $3K in interest and arbitrator fees, bringing it up to $35K or so.

    The paperwork I do have in the file shows a settlement offer was made to me in March of 2006 on a then-outstanding balance of $38,708. I got a letter today showing a balance of $61K just two and a half years later, and offering me a 50% discount if I pay about $30K now.

    I have checked the files of the superior court in the county where I live and no judgment has been entered against me so far.

    I have several questions:

    1) can the creditor attach my bank accounts, assets or wages without a court judgment?

    2) How easy is it for them to get a court judgment, and will I be advised if they file for one?

    3) what should I do, if anything, if they attempt to get a judgment against me here in Superior Court?

    4) Once a judgment is entered, is that a matter of public record?

    5) Once a judgment is entered, can they then attach my bank account without warning?

    6) Is there an expiration date on an arbitration award?

    7) Is there an expiration date on a judgment?

    8) The original debt is due to roll off my credit rating in December of 2009. If an judgment is granted in superior court, will that go on my credit rating as a new debt and stay on for seven years?

    9) This is not a legal question but how likely is a debt collector to accept a settlement offer from me of about $8,000?

    10) If they accepted less than 100%, I understand I'd be sent a 1099 declaring any "forgiven" portion of the debt as income. I also understand that if I was not able to repay the full amount, this wouldn't count as income but I'll have to make my case with the IRS. Does anyone have experience with this?

    11) Is there any legal limit on the interest rate that can be charged on a debt after an arbitration award is made? Going from $34K to $61K in two years seems excessive!

    Thanks in advance for your expertise.

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