Judgement Settlement

[ggfoxx]

What is the name of your state? FL

I recently had a default judgement entered in FL for $12000, on a credit card debt that was charged off in the amount of $6500...

I was served that a suit had been filed against me by a collections attorney, but received no other communication from either the courts, or the attorney regarding any type of disclosure, or hearing dates, etc (is that even relevant?).

Upon receiving notice of final judgement, I sent the Attorney a $3000.00 check...The check was returned to me with a counter offer of $8000.00 lump sum, which I do not have.

If anyone can help me with these questions, I would be grateful!!

1) What legal options are open to me in the state of FL as relates to disputing/vacating either the judgement, or the amount of the judgement ?
2) I have no real assets other than the equity in my home, which, as I have understood, is off limits in unsecured credit card debt, or am I misinformed?
3) If I elect to do nothing, where does the legal process go from here? More hearings (and more legal fees) for financial disclosure? Garnishment of wages? Lien on property? If garnishement, how is the amount determined? And if lien, can they foreclose on my house?

Sorry for the rambling...and thanks in advance for any help...

[Debt Guy]

1) What legal options are open to me in the state of FL as relates to disputing/vacating either the judgement, or the amount of the judgement ?

A. Based on what you said, you have no options. You were served and you never responded. The summons contained a notice of the deadline for response.

2) I have no real assets other than the equity in my home, which, as I have understood, is off limits in unsecured credit card debt, or am I misinformed?

A. FL exempts the equity in your home from attachment (unless you have more than 1/2 acre and live in town or have more than 160 acres and live in the country).

3) If I elect to do nothing, where does the legal process go from here? More hearings (and more legal fees) for financial disclosure? Garnishment of wages? Lien on property? If garnishement, how is the amount determined? And if lien, can they foreclose on my house?

A. FL exempts wage garnishments for the head of the household. Otherwise, they can garnish up to 25% of your after tax pay. They can wipe out your bank account. Except in limited circumstances your home is exempt.

Judgments last a really long time -- 10 to 20 years. This will continue to haunt you.

The creditor has the right to insist on payment in full. You can't make them accept less if they don't want to.

[Ladynred]

1) What legal options are open to me in the state of FL as relates to disputing/vacating either the judgement, or the amount of the judgement ?

The Summons you got should have had instructions for what you should have done- namely filing an Answer to the Complaint. Since you didn't do that, you lost automatically. You can appeal the judgment, but what would be the grounds for your appeal ??

2) I have no real assets other than the equity in my home, which, as I have understood, is off limits in unsecured credit card debt, or am I misinformed?

FL has a 100% homestead exemption, they can't touch your home. However, the exemption for a vehicle is only $1000 in equity and only $1000 in personal property (furniture and such). If they can't touch your house, they'll try for something else.

3) If I elect to do nothing, where does the legal process go from here? More hearings (and more legal fees) for financial disclosure? Garnishment of wages? Lien on property? If garnishement, how is the amount determined? And if lien, can they foreclose on my house?

They can't get more legal fees, those were in the final judgment. They could summon you to court for a debtor's exam and make you disgorge all your financial information, where you work, bank , etc. They can sieze your bank account(s). They can garnish wages. Wage garnishment is a percentage of your net pay. If you are head of household and can prove it, you may be able to avoid wage garnishment.

It's not going to go away if you ignore it, they'll just keep trying to get paid any way they can.

[ggfoxx]

I sent the Attorney a check for 3k as an offer in compromise...he rejected it with a counter offer of 8k, and also filed a "praecipe for recordation of judgement as lien"...and the county clerk recorded a "judgement lien" the next day..what's that?

I'm sending him a check on Monday for $5.5k...which is half the difference between my original offer and his counter-offer, and also all the cash I can scrape together...

Should my posture be aggressive or conciliatory in the letter? Should I remind him of the FL statutes that protect my home? Can he gain access to bank balances, etc., without my knowledge or permission?

This has gotten to the point where I feel the need to hire my own Attorney...what do you think?

Thanks again all...can't tell you how much I appreciate the help..

[Debt Guy]

Q. I sent the Attorney a check for 3k as an offer in compromise...he rejected it with a counter offer of 8k, and also filed a "praecipe for recordation of judgement as lien"...and the county clerk recorded a "judgement lien" the next day..what's that?

A. I'm not so good with the latin -- but I think this means the attorney filed a motion to record the judgment as a lien. Someone more familiar with FL procedures can perhaps answer the question more specifically. It seems clear to me that there is now a lien on your assets. I would expect the next step to be some sort of asset hearing to determine what assets are exempt and what assets are not. As you have been told, your home is exempt provided you have complied with FL law regarding designation as homestead. Your auto and bank accounts are vulnerable, as are any personal property of value.

Q. I'm sending him a check on Monday for $5.5k...which is half the difference between my original offer and his counter-offer, and also all the cash I can scrape together...

A. Sounds like a plan.

Q. Should my posture be aggressive or conciliatory in the letter? Should I remind him of the FL statutes that protect my home?

A. Personally, I think your posture should be unemotional and factual. He knows FL statutes better than you do so I would not go spouting off as you could say things that would be harmful later. Personally, I would say what you just said "this is all the cash I can scrape together and I think this offers your client the best present value recovery". Be professional.

Q. Can he gain access to bank balances, etc., without my knowledge or permission?

A. Well, you are not going to get a letter "hey, we are going to take all the money in your account on the 7th of next month". You are already on notice since the judgment has been granted. Most likely, it will just happen and you will not find out about it until a check bounces. I suggest that your first action should be to close your bank account, open a new account in a different bank and do not have your name on the account -- the account should be only in your spouse's name.

Q. This has gotten to the point where I feel the need to hire my own Attorney...what do you think?

A. If you think so, go ahead. But, I don't know what your attorney would do for you now. The right time to have hired an attorney would have been a year ago.

[ggfoxx]

Chalk this one up to expensive lessons learned..and I know I should've hired an attorney when this first became a "legal issue"; or better yet...settled it for $3k when I had the opportunity to do so 18 months ago.

I guess I just took the calculated risk that nobody would take the trouble to sue me for a $6500 unsecured debt...and since the original charge off, I've rebuilt my credit to the point that I was able to refinance my house at a decent rate, and buy a new car; but boy was I wrong...

And just an update...

I did send the attorney a check for $5750 as a compromise offer..to which I've received no response...

And I didn't close my bank account (but I did clear it of everything 'cept the $5750 and a small buffer), 'cause I wanted to wait and see if he deposited my check.

Tried to use my ATM card tonight, and was rejected....and checked my balance when I got home...and it appears that he's withdrawn the full judgement amount from my account...i.e...my banks showing a negative balance of approximately $6250...

Wow...this has now become comical in a surreal sort of way...but who is on the hook for THAT money?

How can somebody take over $6000 that isn't there out of a bank account?

It's Friday night - so I can't call the bank..

But damn...thank God I have a sense of humour...

[Ladynred]

How can somebody take over $6000 that isn't there out of a bank account?

What happened to the $5750 + buffer you were supposedly keeping in it ??

How can they take what isn't there ? Simple, they bank must comply with the order they got and now you'll owe the bank the difference and they know it.

You should have done as DG suggested, closed the account and used one just in your wife's name.

[ggfoxx]

The amount of the check that I wrote the dude...with the buffer...was in the account when he cleared it out...

The default was for 12k +/-, which is apparently what Amsouth paid him....there was 6k in my account 'cause I didn't want to bounce the check that I offered in compromise..hence the negative 6.5k balance

I'm admittedly somewhat ignorant of the law in this case..

But if my understanding is correct...he can garnish wages, seize property, lien my house... and freeze and clear out my bank account..

But he can't hold Amsouth responsible for anything more than what I have on deposit...

This is gonna get even uglier...I can see it now...