Renegotiating with Xxxx is it possible?

[The Grinder]

What is the name of your state?IL
OK 2 yrs ago I avoided going to court over $2800 CC debt by agreeing with Xxx, a law firm out of Chicago to make $120 a month payments to satisfy debt. I did ok then things got worse in my finicancial world, and started sending them half ($60) without issues, then unfortunatly I couldnt even make that so I stopped paying last Fall. My balance is now $1300 and Law firm is taking my to court this Thurs for balance.

Is my best bet to call Law firm and try to reestablish payments? If I get a court ordered judgement against me, can law firm try withdrawing full amount from a savings or checking? Or should I show up in court (as opposed to calling the collector) and plead my case, ie going back to making payments hoping judge will rule in my favor? I can probably swing $60 month payments BTW

Any advice would be welcome as I really dont trust Law firm, I've heard some pretty bad things about them....
Thank you!

 

[quincy]

There is a "sticky note" at the top of this forum with tips on negotiating with a debt collector. The thread was created by a former debt collector, now attorney, TigerD.

I suggest you read through that first and, if you still have questions, post back.

 

[The Grinder]

OK will do, but this is really re-nogotiating but I bet same principles apply right? thanks

 

[quincy]

Yes. The same principles apply.

 

[The Grinder]

I realize this is hard for you to say, but is it cheaper for the collector to try and arrange payments with me (one more time!) as opposed to going to court and getting a judgement and garnishment fees etc? I know that in this county, thursday mornings are when all the debt collections cases are heard usually by one attorney who represents all the banks, CC companies etc.....so is it my favor for citibank to have one less debter (me) for their attorney to deal with, assuming I can negotiate terms w the collector?

 

[quincy]

I realize this is hard for you to say, but is it cheaper for the collector to try and arrange payments with me (one more time!) as opposed to going to court and getting a judgement and garnishment fees etc? I know that in this county, thursday mornings are when all the debt collections cases are heard usually by one attorney who represents all the banks, CC companies etc.....so is it my favor for citibank to have one less debter (me) for their attorney to deal with, assuming I can negotiate terms w the collector?

A judgment often can be preferred once it gets to the point where a suit has been filed only because the judgment creditor can garnish wages and attach assets and does not have to concern himself with missed payments.

But it never hurts to negotiate.

 

[The Grinder]

How does a garnishment work? I have no paycheck but have checking & savings with very little in there, do they just w/o warning deduct entire amt in one big swoop? Do they obtain yr acct numbers by cross referencing w yr SS numbers??

 

[quincy]

How does a garnishment work? I have no paycheck but have checking & savings with very little in there, do they just w/o warning deduct entire amt in one big swoop? Do they obtain yr acct numbers by cross referencing w yr SS numbers??

Do you have an employer?

 

[The Grinder]

I'm self employed

 

[quincy]

I'm self employed

Thank you for answering my question.

Instead of a garnishment, then, the judgment creditor is more likely to freeze your bank accounts so you cannot access the money you have deposited.

You will be required to submit financial information, including all bank account information and information on any and all personal assets you hold, to the judgment creditor. This is AFTER the judgment is granted by the court.

You can try to negotiate with your creditor to see if a payment arrangement or, more likely, a lump sum payment will be accepted as a way to settle the case pretrial. It is really up to your creditor at this point what is done with your debt.

Good luck.

 

[The Grinder]

Thanks for yr help, why would the collector even negotiate a lesser amount if they know they can receive full amount at a later date? And can I go into court and ask the judge to give me one more chance at payments? Or isnt that his call?

 

[PayrollHRGuy]

Even with a judgment from the court, it doesn't mean they will ever collect all of the money.

 

[The Grinder]

Like Quincy said, the court can freeeze my accounts, then do they just deduct all funds in one EFT?

 

[quincy]

Thanks for yr help, why would the collector even negotiate a lesser amount if they know they can receive full amount at a later date? And can I go into court and ask the judge to give me one more chance at payments? Or isnt that his call?

It takes time and effort (and money) to garnish wages, attach assets, and pursue payment. Sometimes it is easiest for a creditor to settle for a lesser amount just to close the account.

If you have cash to pay off a significant amount of the debt, that can be enough incentive for the creditor to settle pretrial.

The creditor is unlikely to want to take a loss in what they paid for the debt at this point but they might be satisfied with collecting a portion.

 

[The Grinder]

On a $1300 (orginally $2800)outstanding debt, any idea where to begin to offer them? If I offer them a lump sum do they make the assumption I have further funds? I'm thinking $700 to settle or am I way off?