abstract of judgement

[scooter2374]

What is the name of your state (only U.S. law)? tx

negotiated a lump settlement for some cc debt from divorce.


here is the exact wording:

The parties agree that upon entry of the Agreed Judgment , Bank (USA), N.A. may file an abstract of judgment in any jurisdiction it deems appropriate; however, Bank (USA), N.A. may not seek to execute or collect on the Agreed Judgment as long as you are making your payments. You agree that should you miss any payment and fail to correct that situation within 10 days, then Bank (USA), N.A. would be allowed to seek enforcement of the Judgment without either further notice or demand to you.


what makes me wonder is the abstract of judgment. I know what it is etc, but is it just boiler plate language in the agreement? if they are paid, there should be no reason for it to be filed....or is there a deeper darker meaning for it, such as I pay them, they still file one for court costs etc?

 

[Mark Maroon]

negotiated a lump settlement for some cc debt from divorce.

here is the exact wording:

The parties agree that upon entry of the Agreed Judgment , Bank (USA), N.A. may file an abstract of judgment in any jurisdiction it deems appropriate; however, Bank (USA), N.A. may not seek to execute or collect on the Agreed Judgment as long as you are making your payments. You agree that should you miss any payment and fail to correct that situation within 10 days, then Bank (USA), N.A. would be allowed to seek enforcement of the Judgment without either further notice or demand to you.

what makes me wonder is the abstract of judgment. I know what it is etc, but is it just boiler plate language in the agreement? if they are paid, there should be no reason for it to be filed....or is there a deeper darker meaning for it, such as I pay them, they still file one for court costs etc?

Well, we can't see the rest of the agreement, so we don't know what it says. (It could say that the bank gets to sell your daughter into the sex slave trade.) But what you've showed us simply says (to restate it) that the bank MAY, if they want, without notice to you, at any time, file and obtain a judgment against you in any court. But the bank MAY NOT attempt to execute on or collect the judgment UNLESS you miss a payment for any reason and you fail for any reason to correct that missed payment within 10 days.

Here's how this helps the bank: They don't have to serve you with court documents and they don't have to litigate their case against you (they don't have to attend motions that you might file, attend a trial/hearing, etcetera). If they file an abstract of judgment, then I think court allowed interest on the full judgment amount would start to accrue from the judgment date (irrespective of the fact that you are making payments each month to pay it down) - but because they can't attempt to execute or collect on the judgment, by extension they can't attempt to execute or collect any interest on the judgment - so long as you make your payments on time. But if you miss a payment and don't correct it within 10 days, then I think the bank could try to collect the full judgment amount, plus the court allowed interest on the full judgment amount from the date that the judgment was filed, plus their court costs, (possibly plus attorney's fees if it's allowed in the agreement), minus any amount you have paid towards the confessed judgment amount up to that point.

Make sure that the agreement specifically states how much you have to pay each month, and how much you have to pay in total. KEEP RECEIPTS OR OTHER EVIDENCE OF ALL OF YOUR PAYMENTS. You should make sure that the agreement states that within x days after your final payment the bank will file to satisfy any judgment that they might have filed against you.

You should know that there is a separate section of your credit report for judgments. Once the judgment has been paid in full, and the bank files to satisfy the judgment, then you should get a copy of your credit report and if the judgment is there then you should make sure to contest it with the credit reporting agency so they remove it (because you will be able to show them that it has been satisfied).

 

[scooter2374]

thanks Mark,

good advice in your reply, and I have my bases covered in regards to what you mentioned.

Like you stated, it seems like an additional tool they could use if i default on the payment, the language just had me concerned as to if they would do it automatically or if it was an additional safety measure for them.

Thanks again.

 

[Zigner]

thanks Mark,

good advice in your reply, and I have my bases covered in regards to what you mentioned.

Like you stated, it seems like an additional tool they could use if i default on the payment, the language just had me concerned as to if they would do it automatically or if it was an additional safety measure for them.

Thanks again.

If you default, they WILL do it immediately, without notice to you.

 

[latigo]

What is the name of your state (only U.S. law)? tx

here is the exact wording:

The parties agree that upon entry of the Agreed Judgment , Bank (USA), N.A. may file an abstract of judgment in any jurisdiction it deems appropriate; however, Bank (USA), N.A. may not seek to execute or collect on the Agreed Judgment as long as you are making your payments. You agree that should you miss any payment and fail to correct that situation within 10 days, then Bank (USA), N.A. would be allowed to seek enforcement of the Judgment without either further notice or demand to you.

what makes me wonder is the abstract of judgment. I know what it is etc, but is it just boiler plate language in the agreement? if they are paid, there should be no reason for it to be filed....or is there a deeper darker meaning for it, such as I pay them, they still file one for court costs etc?

Perhaps your question contains a deeper darker meaning. But if you are asking whether or not a subsequently recorded and indexed abstract of judgment could add to the bottom dollar of the "agreed or stipulated judgment", the answer is no. By definition an abstract of judgment is merely an accurate summary of the original document as filed with the court.

Here the quoted language indicates that the "agreed or stipulated judgment" was in fact filed.

It is a moot issue and has no bearing here, but what would be more preferable from your standpoint would have been an agreement that a judgment would not be filed as long the deferred payment schedule was honored. With the proviso that if not kept current and upon the passing of a given grace period, then the judgment to be filed and levy of execution to proceed without further notice.

(Noting that under no circumstances is the judgment debtor entitled to notice of the indexing of an abstract of judgment.)

There the possible disadvantage to the creditor being that the indebtedness would not stand as lien upon the debtor's real property holding(s) until such a default occurred, the judgment then filed and an abstract issued, recorded and indexed. But that too is a moot issue here inasmuch as the present agreement conditionally postpones the indexing of an abstract of judgment.

Where I'm puzzled is in the intended import of the language "may file an abstract of judgment in any jurisdiction it deems appropriate". If its purpose is to permit the future filing and indexing of an abstract of judgment in any county in the state of Texas and thus secure a judgment lien on appropriate land situated within the county, understandable. (See: Texas Property Code Chapter 52 Section 52.001 Judgment Lien)

But not acceptable if it is intended to apply to sister state jurisdictions and to bypass the authentication and notice requirements under the Uniform Enforcement of Foreign Judgment Act or a state's similar adopted laws pertaining to domesticating and enforcing a foreign judgment.