payment plans after judgement?

[Stash]

What is the name of your state?What is the name of your state?What is the name of your state? OH I have a judgement against me from a collection co originally from a credit card and want to pay up. What is the best way to contact them for a payment plan with a guaruntee/agreement that they will not seize/levy/garnish while I am paying them? I want to pay them up and be done with it though as I stated in an earlier post do not want them just taking it out of my account as they see fit as this would just lead to robbing peter to pay paul with the frozen bank account. Or just save it up, keep it in the safe and cut them a check once I have it? Would they even accept a settlement amount? Should I contact them with what I believe to be a good amount for settlement and pay it all at once as they seem to want to do as opposed to payment plans?
I offered to pay a debt today to a collection co- the whole amount- in monthly plans and they instead took 75% due next week. Why does that seem to be the case a lot of the time?

[seniorjudge]

Originally Posted by Stash

What is the name of your state?What is the name of your state?What is the name of your state? OH I have a judgement against me from a collection co originally from a credit card and want to pay up. What is the best way to contact them for a payment plan with a guaruntee/agreement that they will not seize/levy/garnish while I am paying them? I want to pay them up and be done with it though as I stated in an earlier post do not want them just taking it out of my account as they see fit as this would just lead to robbing peter to pay paul with the frozen bank account. Or just save it up, keep it in the safe and cut them a check once I have it? Would they even accept a settlement amount? Should I contact them with what I believe to be a good amount for settlement and pay it all at once as they seem to want to do as opposed to payment plans?
I offered to pay a debt today to a collection co- the whole amount- in monthly plans and they instead took 75% due next week. Why does that seem to be the case a lot of the time?

Why do you think the creditor wants "a payment plan" instead of money?

[Stash]

If you are referring to the judgement debt I think they want one because they "offered" it to me in a letter over CHristmas. I think however it is just to get info and they will use it to collect the judgement however they can.

If you are asking me why they want a payment plan is because I offered to pay the whole amount as that is what I owe they stated their client would rather have 75% now and be done with it. I would rather have all of money owed to me if I was them.

[Stash]

payment plan= 100% debt recovery

settlement= less

What are my options for negotiating with a creditor who has a judgement for less than the judgement amount?


If I agree to a payment plan like the one they proposed how do I get them to legally honor it and not levy/garnish/seize like it "suggested" in the settlement?

What is the likelihood that their written response to my contacts to pay this will be a certified mail debtor's exam summons?

[Chien]

I think debtcollector could give you some insights. Until then, allow me to offer a few suggestions.

I think other readers may be less personally concerned with your last question, so let me try that one first: why 75% instead of the whole thing?
1) What makes you think the creditor isn't hurting and an immediate 75% (less agency fee) is more appealing than 1/12 a month over a year?
2) I sometimes suggest that creditors think about accepting a reasonable discounted offer now than 100% over X months. Why? Because I do due diligence and find that the debtor has IRS liens, state tax liens, is already in other litigation etc. etc. The idea is "they want to pay over a year, but we don't know they'll be operating in 6 months. Do you want 75% now or 50% before they close their doors. Then, if they file bankruptcy, the last 3 months can be "preference" items that you have to give back to the BK trustee anyway." It's always the creditor's final decision, but I let them know how the dice are loaded.
3) In CAs, debts are sometimes "moved from desk to desk". If John isn't successful in 60 days, it gets transferred to Joe to try. If a collector is getting paid on commission, it can be more attractive to get his % of 75% now than the % he'll get later on.
(P.S. This dynamic can also influence the reason for "wanting it all today". Maybe by next week, someone else gets credit for the collection.)

The answer to your first question - how do I structure the settlement agreement and protect myself? - is simple. You put in it writing - EVERY SINGLE DETAIL - and you both sign. It spells out what you pay and when. If there's a grace period (because a due date could be on a holiday or something), that's spelled out. If they can't take any enforcement measure as long as your payments are timely and made in good funds, that's spelled out. Their obligations when you've fully performed (satisfy a judgment, dismiss a case, whatever) are spelled out. If you breach, they can do anything and that's spelled out too. If they breach that, you have an agreement that you can enforce in court.

Maybe they accept and maybe they balk but, if they understand that, when you later make the same offer to their attorney, it will be accepted because, in the end, it saves them a lot of time and money, chances are you'll get your agreement. Just make sure that you're making the proposal to someone high enough up the food chain to understand the implications.

[Stash]

Thank you Chien. That makes a lot of sense. How do I know who is agreeing to the terms and doing the signing? Are they authorized? Would you suggest, if I get some kind of agreement in writing, to take a copy and put it in the case folder in the courtroom that way it cleary states what the repayment/collection procedures will be? Or just contact the attorney who represented them in court?
I know what you mean about my last question not necessarily applying to everybody though I have read plenty where people think the judgement has already been entered and the courts have agreed et etc. The only way that happens is if you get certified mail from the court where you are being sued. I was led to believe I had ALREADY BEEN SUED by getting a copy of the plaintiffs motion to file judgement a couple months before they did and I errantly thought that was not the case as I had just entered into a payment plan with them and made a payment. They simply took my account info, continued with their lawsuit efforts and tried to levy the account. So yeah my guard is up, I know they will say anything and then do whatever they can. Not that I blame them - i owe the $$ But I have no intention of letting them take it and messing up all the rest of my financial obligations with a bank levy. As DC and I went around on this yesterday- both sides are fighting fire with fire. Neither party in the past has done what they said they will do. Bottom line the creditors will say anything to get your info and I don't want to think I am opening my returned and signed agreement because somebody said they would send it back when it is in fact a subpoena for a debtor exam.

[seniorjudge]

Originally Posted by Stash

Thank you Chien. That makes a lot of sense. How do I know who is agreeing to the terms and doing the signing? Are they authorized? Would you suggest, if I get some kind of agreement in writing, to take a copy and put it in the case folder in the courtroom that way it cleary states what the repayment/collection procedures will be? Or just contact the attorney who represented them in court?
I know what you mean about my last question not necessarily applying to everybody though I have read plenty where people think the judgement has already been entered and the courts have agreed et etc. The only way that happens is if you get certified mail from the court where you are being sued. I was led to believe I had ALREADY BEEN SUED by getting a copy of the plaintiffs motion to file judgement a couple months before they did and I errantly thought that was not the case as I had just entered into a payment plan with them and made a payment. They simply took my account info, continued with their lawsuit efforts and tried to levy the account. So yeah my guard is up, I know they will say anything and then do whatever they can. Not that I blame them - i owe the $$ But I have no intention of letting them take it and messing up all the rest of my financial obligations with a bank levy. As DC and I went around on this yesterday- both sides are fighting fire with fire. Neither party in the past has done what they said they will do. Bottom line the creditors will say anything to get your info and I don't want to think I am opening my returned and signed agreement because somebody said they would send it back when it is in fact a subpoena for a debtor exam.

The only way that happens is if you get certified mail from the court where you are being sued.


Who told you this?

[Stash]

prior experience and a lawyer and a court magistrate. I believe it is called due process.

[Chien]

OP-I can't give guarantees. I can't promise that someone won't try to backdoor you. You asked about a way to protect yourself, and I tried to give you a thumbnail of a way to approach that that (1) I've never known to be violated and (2) had some teeth in it, so a court could easily recognize a violation. I don't know what more to suggest, but it's an open forum.

In my experience, most courts don't require such documents to be filed, but it certainly couldn't hurt, if you're that concerned. Better than trying to figure where you mislaid it a year from now.

[Stash]

Thanks Chien you are very helpful.

[debtcollector`]

Reasons collectors like settlements:
1. Time value of money. If they aren't getting interest on the money, spreading payments out over a year or two is taking a loss on that money. $100 in one year isn't worth $100 today; it is worth $97.312 today.
2. If the debtor fulfilled payment plans the account wouldn't be with them.
3. Carrying costs of the account. It costs money to process payments, track accounts and pay collectors to follow up when payments are late.
4. Faster turn around for our client. We look good by closing accounts faster.

Reasons you can't negotiate to pay the full amount over time:
1. We already know we are going to get it -- especially when a judgment is involved.
2. There is no benefit to us -- see above.
3. That is our negotiating point. We offer you the payment plan. If you ask for it great, we'll supply the terms.

Negotiating a settlement --- I posted a how to on this before Just search my posts.

DC