judgment against me, how do I set up affordable payments?

[brian38337]

I live in Iowa,
I am a self-employed, small retail business owner. I have a judgment against me for $3,500 and the plaintiff wants full payment now... I do not have it, but offered to make small payments ($20/month) until I got on my feet enough to pay him.... he said he’d get it other ways. I sent him a $20 check, in certified mail anyway. The only assets I have are a retirement account (from my previous employer), 3 vehicles all paid for, worth less than $4,000 total. I am purchasing the business and the building the business is in on contract, from two separate people (we live upstairs, we own no real estate). I can cash in my retirement account but that will cost me another $875 in taxes and fees. Can the court take possession of my business? Can he have the courts freeze my business and personal accounts (same thing, we are not incorporated)? Can the court take possession of vehicles to sell or until we pay him what we owe the judgment? Can I show the court my business books? I’m seriously just breaking even for the first 5 months of this year and on last years tax statement I lost money too, I had just started in Oct 2002. Will the court set up a payment plan for us? Can I do anything to expedite a hearing, so my accounts are not tied up with this judgment? Is there a limit of what I have to pay monthly, yearly? How can I find out these limits? Where do I start so I can keep him out of my bank accounts that I do business transactions with? My balances vary from day to day $300-$2,500 depending on what checks are coming through, but the money is ear-marked for business expenses and I am barely staying ahead of the bills, if he disrupts my cash flow I'll be in deep doo doo... thanks for any help or suggestions.

 

[stephenk]

can you apply for a business loan to pay off the judgment?

 

[brian38337]

My credit is not the best (bankruptcy filed and discharged last fall).
Small claims court set the interest rate at 4.3%, I can't afford to get a loan with my poor credit rating (min. 12%). I dont have a problem paying this guy off over the next three years... he does. I just need to figure out how to get the court to set my payments so he isn't screwing with my business accounts.

 

[JETX]

"I have a judgment against me for $3,500 and the plaintiff wants full payment now."
*** I am sure that this is not a sudden demand. The judgment creditor has probably made many, many requests for payment that you continually ignored.

"I do not have it, but offered to make small payments ($20/month) until I got on my feet enough to pay him."
*** I am sure that you can make more then that insulting 'token' payment. I have found that a lot of creditors actually HAVE the money, it is just not convenient for them to pay it.

"he said he’d get it other ways. I sent him a $20 check, in certified mail anyway."
*** I predict a surprise in your future!!

"The only assets I have are a retirement account (from my previous employer), 3 vehicles all paid for, worth less than $4,000 total."
*** Not true. You have more assets as detailed further in your post.

"I am purchasing the business and the building the business is in on contract, from two separate people (we live upstairs, we own no real estate)."
*** Ah, assets!!

"I can cash in my retirement account but that will cost me another $875 in taxes and fees."
*** Gee, maybe you should have thought of that over the last several months (years?) when this debt was incurred or payment being requested.

"Can the court take possession of my business?"
*** No. Not in that sense. However, depending on the form of your business, the creditor can seize equipment and other assets.

"Can he have the courts freeze my business and personal accounts (same thing, we are not incorporated)?"
*** Yes.

"Can the court take possession of vehicles to sell or until we pay him what we owe the judgment?"
*** Yes.

"Can I show the court my business books?"
*** Of course you can. But it won't help.

"I’m seriously just breaking even for the first 5 months of this year and on last years tax statement I lost money too, I had just started in Oct 2002."
*** And???

"Will the court set up a payment plan for us?"
*** No.

"Can I do anything to expedite a hearing, so my accounts are not tied up with this judgment?"
*** No.

"Is there a limit of what I have to pay monthly, yearly?"
*** No.

"How can I find out these limits?"
*** See above.

"Where do I start so I can keep him out of my bank accounts that I do business transactions with?"
*** Paying the judgment comes to mind.

"My balances vary from day to day $300-$2,500 depending on what checks are coming through, but the money is ear-marked for business expenses and I am barely staying ahead of the bills, if he disrupts my cash flow I'll be in deep doo doo... "
*** So, pay the judgment. As you can easily see.... with claiming balances of $300 to $2500 per day, your payment offer of $20 per month is ridiculous and insulting. If I were your judgment creditor, I would have you shut down and out on the street in about 20 minutes!!

"thanks for any help or suggestions."
*** You're welcome. Best free advice you will get today... pay the judgment.