Settlement offer rejected, how should I respond?

[Fireclown]

What is the name of your state? NC

I am getting letters from an attorneys office in regards to a credit card debt. I am judgment proof and my state does not allow garnishments. I sent a letter offering to settle but it was rejected. How should I respond? I figure my options are:

1. Do nothing, wait for them to change their minds, or to sue me.
2. Write back acknowleging receiving the letter and letting them know that the settlement offer I gave is the only offer I am willing to make.
3. Ask for validation of the debt to slow down the process even more (I specified in my letter than I was not acknowleging liabilty and that I reserved the right to request validation).

What should I do?

 

[justalayman]

Hey, why care, you're judgement proof, right?


Just because this is ruining your credit rating and although you may believe you are judgement proof, many folks that believe that get little surprises when they least expect them.

Ever want to borrow money in the future?

 

[Fireclown]

Hey, why care, you're judgement proof, right?

Don't be a jive turkey. I obviously care or I would not have sent them a settlement letter, or came here to get suggestions. And since that is something you are either unable or unwilling to provide, why are you posting here?

 

[justalayman]

You are the one pointing out you are judgment proof. If you have that attitude, why even bother with it.

Now, if a person were truly interested in doing the right thing, that statement would never come to mind. They would simply pay their debt.
Everything you posted involved paying less (or even none) of your debt. Since when is stealing somebody elses money ever right. (that is essentially what it is when you buy something, contract to pay for something, etc. and then fail to pay)

So, what are you after?

So, what you should do:

pay off your complete debt. That is the only right thing to do.

 

[Fireclown]

You are the one pointing out you are judgment proof. If you have that attitude, why even bother with it.

Now, if a person were truly interested in doing the right thing, that statement would never come to mind. They would simply pay their debt.
Everything you posted involved paying less (or even none) of your debt. Since when is stealing somebody elses money ever right. (that is essentially what it is when you buy something, contract to pay for something, etc. and then fail to pay)

So, what are you after?

So, what you should do:

pay off your complete debt. That is the only right thing to do.

This is a legal advice forum. Not a philosophy/ethics forum. Therefore, I did not come here to find out how to "do the right thing", but to decide what is in MY best interest from a legal standpoint.

 

[Some Random Guy]

The legal standpoint is that you owe somebody money and they are trying to get it back.

Since you are dead set against paying them what is owed and you claim to be judgement proof, I'd suggest waiting until you get sued.

 

[Chien]

I did not come here to find out how to "do the right thing", but to decide what is in MY best interest from a legal standpoint.

By an unfortunate coincidence, given the three other options that you're considering, justalayman's suggestion and your goal turn out to be the same thing in this instance.

 

[Fireclown]

By an unfortunate coincidence, given the three other options that you're considering, justalayman's suggestion and your goal turn out to be the same thing in this instance.

I wish I could pay them all I owe. Unfortunately it is not possible given present circumstances.

 

[justalayman]

This is a legal advice forum. Not a philosophy/ethics forum. Therefore, I did not come here to find out how to "do the right thing", but to decide what is in MY best interest from a legal standpoint.

Ok, from a legal standpoint, the best thing to do is pay the debt, in full, right now, with certified funds.

Ok?

the problem is, you are looking for a way to get out of paying (at least that is what I see your post as). You believe it is impossible for them to collect the money so, if you don;t want to pay, then don;t pay and live with the consequences.

what else do you want?

 

[Chien]

I wish I could pay them all I owe. Unfortunately it is not possible given present circumstances.

Ok, you made an offer and they rejected it. You also want to do what's in your best interest. We'll assume that means a willingness to pay what you can but what you can is less than they want (because what you can is the minimum definition of what's in your best interest.)

Option I:
They think circumstances will change for you and are willing to take a judgment and sit on it until they do.

Option II:
(see Option I but) In their heart of hearts, they'd like to get paid now and they don't believe your offer is valid and as much as you really can pay.

You make them believe the offer is legitimate. You offer redacted pay stubs, tax returns, bank statements - anything that shows you're legit and anything that represents a potential source of recovery in your state (I know they can't wage garnish, but pay stubs show them your earnings = bank deposits and other discretionary income that they might reach in another way). They should be able to determine real property ownership on their own, but help them, if they need help. Convert them to believers.

If you show them all that they could get involuntarily and it's the same or less then you're offering voluntarily and they still want a judgment and to sit, I can't help you.

 

[Debt Guy]

What was your offer? How much do they claim you owe?

 

[Fireclown]

What was your offer? How much do they claim you owe?

I owe them 5000, I offered them $1000, $50 a month

 

[Fireclown]

If you show them all that they could get involuntarily and it's the same or less then you're offering voluntarily and they still want a judgment and to sit, I can't help you.

As far as I can tell they can't get anything involuntarily. I do own a house, but the state exemption on real property is $10,000 and I have nowhere near that in equity.

I have no savings, and any personal property I have is also worth much less than the state exemptions.

In my settlement letter I did indicate that I have no property that could be used to satisfy a judgement.

 

[Debt Guy]

Well, there is your answer.

Your offer is way too lowball. In their minds, they would rather take the judgment and bank it against the potential that you will not always be "judgment proof". It is just a business decision -- it is not personal.

Judgments last a really long time -- 10 years I think in NC and they can be renewed once. Someday, you will have income or assets. At least that is their bet and statistically they will be right. Besides, the interest meter continues to tick.

I've seen this happen many times. You will think they have forgotten all about you and when you least expect it -- snap!

If you really are judgment proof, why don't you just file bankruptcy and get it all over? The judgment has already screwed up your credit and, in my opinion, the BK is not going to make it much worse.

 

[Fireclown]

Another aspect to this is that they can only charge 15% attorneys fees in my state which is about $750. I don't know what it costs to file a lawsuit, but I'm guessing if I drag the process out it will significantly exceed that. I would not mind if they get the impression that I will fight it, and think about this when considering the settlement.