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Settling a Debt

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Lisa1171

Guest
What is the name of your state? Ohio

Wondering if anyone can help?

I just went to small claims court over an issue from when I lived in an apartment in 1999. The case was settled with us owing $800.00 to the Plantiff. We were put on payment schedule to pay the debt.

Sept.7, 2002- $200.00
Sept. 22, 2002- $200.00
October 7, 2002- $200.00
October 22, 2002- $200.00

We waited until we had all the money and paid it in full on September 14, 2002 (the complete $800.00)
The attorney sent the check back to us and now wants to garnish our wages for 1,600.00. He stated the first payment was not paid on time, but doesn't care that we sent in the rest of the money early. We know he is just playing games here.
Is there anything we can do to get him to accept the money? Can we write the judge a letter and explain? Please help! Thank you!
 


I AM ALWAYS LIABLE

Senior Member
Lisa1171 said:
What is the name of your state? Ohio

Wondering if anyone can help?

I just went to small claims court over an issue from when I lived in an apartment in 1999. The case was settled with us owing $800.00 to the Plantiff. We were put on payment schedule to pay the debt.

Sept.7, 2002- $200.00
Sept. 22, 2002- $200.00
October 7, 2002- $200.00
October 22, 2002- $200.00

We waited until we had all the money and paid it in full on September 14, 2002 (the complete $800.00)
The attorney sent the check back to us and now wants to garnish our wages for 1,600.00. He stated the first payment was not paid on time, but doesn't care that we sent in the rest of the money early. We know he is just playing games here.
Is there anything we can do to get him to accept the money? Can we write the judge a letter and explain? Please help! Thank you!


My response:

If you breached the settlement agreement by paying late, you're stuck. You should have followed the agreement that you signed - - and that meant, you agreed to make your first payment on September 7th.

While I haven't read the agreement, I can pretty much make an educated guess - - and that is, you blew it.

Writing to the judge is of no value. Insofar as this matter is concerned, the judge is "out of the loop" and cannot come to your aid.

IAAL
 
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Lisa1171

Guest
Thanks for the response

I am truly kicking myself right now. I thought I was doing the right thing by paying the dept as quick as possible.

We never signed off on the judgement. Only the Plantiff and judge did.

Can the Plantiff just pull a figure out of the air now and try to get us to pay that?

Would it do us any good to contact an attorney?
I truly am so upset over this issue. I wish I could go back and change what we did. We really just want to end this that is why we agreed to settle and pay the money in the first place.

Do we go back to court now to deal with the garnishment of wages?

Thank you!
 
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Lisa1171

Guest
Further question

Not to go and on about this, but we feel we are being harassed by this attorney. He could've just accepted the money. He has most of it in advance. He just wants to drag this out further and collect more money. Can we do anything or do we just give in and pay?

Can we take him to court (with an attorney) and would that get us anywhere?
 

stephenk

Senior Member
did the judgment state that any missed payments would result in the higher amount ($1,600) now being owed? If yes, then you blew it by missing the first payment. There is no obligation for the other side to now accept your $800 when they are entitled to $1,600 under the terms of the judgment.

Did you contact the other side or their attorney before September 7 telling them that no payment would be coming on Sept. 7 and that the balance would be paid by September 14?
 
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Votan

Guest
You say the case was settled. Was it out of court settlement or a judge decision?

It appears to me that you defaulted on one payment, the payment of 9-7. You are not late on the other three payments. What are the provisions of the settlement if you defaulted on any one payment? Read the settlement papers carefully, is there any provision that says the penalty of defaulting on one payment is double the amount you originally owe?
 
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Lisa1171

Guest
Reply

Thank you for the posts.

The matter went in front of a judge and he made the decision. The journal entry states that the plantiff was originally going for 1,213.29 plus 10% interest from Sept. 1999. But further down it states that the matter was settled for $800.00.

It does make reference to making payments in a timely matter or the Plantiff can take further action. We assumed there would be somewhat of a grace period and now know that I guess there is not when it comes to a court entry. If only we could go back and take care of this differently.

My husband decided to call the lawyer for the plantiff to give it another chance and see if he would accept the $800.00. The lawyer said that he wants an additional $200.00 to call this even.

Please let me know what we should do. What is the guarantee that if we pay him the additional money that he will stop?

Thank you!!
 
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Votan

Guest
There is no grace period, fine. Now, late payment is subject to penalty on the payment of 9-7, not on the other payments.

Your statement does not specify what action plaintiff could take when the payment is not timely. I would assume that, based on your statement, the action is meant to seek a relief from the court, but only on the payment of 9-7. Whether the court will reward him $200, I could not guess what the judge would decide.

My personal opinion is that $200 dollars penalty for a few days late payment of $200 is too much of a penalty. Perhaps you could negotiate with plaintiff's attorney to pay say 10% penalty on the late payment of 9-7. He may raise it a bit, still better off than $200. If he insists on $200, make your decision, court or not.

The guarantee that he will not pursue further action after you pay him the extra money is to get from him a written statement, dated and signed, that he has received the money and you owe him nothing more. Make sure the person to sign the document is entitled to do so.
 

JETX

Senior Member
Votan, your suggestion to try to negotiate with the attorney is of little, if any, benefit. It is clear from the posters message that they have already attempted to negotiate with the attorney and that negotiation resulted in a reduction from the original claimed $800 down to $200.

And though I agree that this sounds excessive, we are only hearing one side of this story. Simply, by NOT making the payment on time, the writer has opened the door to the attorneys demand (even 'unreasonable' ones).

My suggestion.... call the attorney and verbally agree to give them the $800 now, with $200 of it to apply to the 'late fee' and that you will make the last payment of $200 on 10/22 as ordered by the court. Then, just 'forget' to make any further payment. The attorney would then have to prove that the $800 payment wasn't for payment in full.... which could be hard to do since your total paid matches the ordered amount. Let him go to court to try to justify his $200 demand.
 
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Lisa1171

Guest
This is exactly what the journal entry says:

Trial started, Plantiff and Defendants all in court. Upon the conclusion of the presentation of Plaintiff's case the parties agreed to settlement in open court. By agreement of the parties and for good cause shown, judgement is hereby rendered in favor of the Plaintiff on its complaint, in the sum of One thousand, Two Hundred, Fifty and Twenty Nine Cents (1,213.29) with interest at ten percent (10%) from Sept. 1, 1999 plus costs.

By further agreement of the parties, it is ordered that the Defendants shall be permitted to make four payment of the above judgement. Plaintiff has agreed to settle this debt ont he condition that the four payments listed below are timely paid. Defendants payment schedule shall be as follows:

Sept.7 $200.00
Sept. 22 $200.00
October 7 $200.00
October 22, $200.00

By further agreement, it is ordered that execution shall not issue against the Defendants until Defendants have failed to timely make a scheduled payment listed above. In the event that the Defendants shall be in default then, and in that event, Plaintif's rights to execution and other post judgement remedies are hereby reinstated, instanter, without further order of this Court.


It is signed off by the Attorney for plaintiff and the judge.

Does timely mean on the date due or is that open for interpretation?
After my husband spoke to the attorney today trying once again to settle the debt, the attorney said he would draw up a document stating that this debt is fully paid if we agree to the $1000.00 now instead of $800.00. He wanted even more than that at first. We did not agree to it yet. Should we?
Before even saying this he just threatened to garnish our wages and said that was the action he was going to take. We just received two documents in the mail that are titled Payment to Avoid Garnishment and the indebtedness amount he listed is $1,691.16. He sent seperate letters to each of us with two seperate forms for the garnishment telling us to return them.

We are at a loss of what to do. Thank you!
 

JETX

Senior Member
Okay, what you have is an 'Agreed Judgment' (for $1213.29) and then a reduction for agreed payments (to (4) scheduled payments of $200 each).

The judgment is CLEAR that in the event you miss ANY payment, then the full, original judgment ($1213.29) is reinstated ("Plaintiff has agreed to settle this debt ont he condition that the four payments listed below are timely paid."). That is why the attorney initially requested $1200. And still can!!!

So, to answer your questions:
Q1) "Does timely mean on the date due or is that open for interpretation?"
A1) The judgment CLEARLY shows the first payment must be paid by September 7. There is NO alternative 'interpretation'.

Q2) "After my husband spoke to the attorney today trying once again to settle the debt, the attorney said he would draw up a document stating that this debt is fully paid if we agree to the $1000.00 now instead of $800.00. He wanted even more than that at first. We did not agree to it yet. Should we?"
A2) In my opinion, yes. Your not making the agreed payment on 9/7 allows the plaintiff to DEMAND the original agreed full amount ($1213.29) and without ANY additional court order. The attorney is apparently willing to settle now for only $1000. Do it, and count the $213.29 as saved money.

Q3) "Before even saying this he just threatened to garnish our wages and said that was the action he was going to take."
A3) And he CAN do it.... for the full amount, plus costs.

Q4) "We just received two documents in the mail that are titled Payment to Avoid Garnishment and the indebtedness amount he listed is $1,691.16. He sent seperate letters to each of us with two seperate forms for the garnishment telling us to return them."
A4) Don't know where he is getting the higher number, but it really isn't important. Pay the $1000, get a receipt and a signed "Satisfaction of Judgment" from him and move on.
 
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Lisa1171

Guest
Thank you!

Halket and everyone else who replied-- thank you very much!

My husband and I were thinking that this would be the best option. We need him to put it in writing to protect ourselves and he said he would. This is a major lessoned learned on our part!

Now we have to deal with a collection agency also trying to collect this debt from us. Does the attorney have to notify them to stop when this is completed? The collection agency told us that is what would have to happen.

Geez and this is all over a debt that originally started out as the claiming we owed $700.00 for cleaning charges to the apartment complex when we left the place spotless. They never even had any pictures or proof in court. It was our word against theirs and they had an attorney. LESSONS LEARNED!!!
 
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Votan

Guest
when you sign the paper that all things are settled, remind plaintiff's attorney to notify the collecting agency about the settlement. If you receive a notice from the collecting agency afterward, send them a polite letter telling them that you settled the debt and forward a copy to plaintiff's attorney.
 

stephenk

Senior Member
Go to the attorney's office with either a cashier's check or cash for the $1,000.00. In return, have the attorney give you a signed and dated Satisfaction of Judgment with the boxes marked showing the entire debt has been satisfied.

Make two copies of the original Satisfaction. go to the court and file the original Satisfaction and have the other two copies stamped by the clerk as copies of the filed original.

Contact the collection agency and tell them you are faxing and mailing them a copy of the Satisfaction of the Judgment and do not want to hear from them again. Send a letter to the Collection agency with the copy you are mailing to them, noting the debt has been paid and you do not want any further contact from them. Keep a copy of the letter with a copy of the Satisfaction.

Go and sin no more. hehe
 
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Lisa1171

Guest
thank you

These replies are much appreciated, so thank you to everyone who took the time out to do so. We have taken the advice and are paying the $1000.00 and are most certainly obtaining that satisfaction to clear up this matter permanently. This has been a complete nightmare and a lesson to both of us. We just bought a new home and $1000.00 is like the world to us to have to part with.
 

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