Judgement

[dina]

What is the name of your state? New York

I have a judgement against me from a hospitalization 10 years ago and my assets have been frozen. What are my chances of making a settlement for less than the judgement amount? (half of the amount is interest). Will I have to pay the entire amount because there is a judgement? I would like to pay one lump sum. Secondly, after I have paid the entire agreed amount, how soon will my accounts be released and liens (if any) be removed? Thank you for your time.

 

[Chien]

In my opinion, the first questions to have answered, before we can answer you are: How much was the judgment? How much is frozen? If there is a differential, what else can the creditor reach?

A creditor is not likely to settle, if it has its hooks in you for anything close to the whole judgment. On the other hand, if it's going to have to chase a large differential, and if it will take time to recover if it finds one (eg. via a wage garnishment), then it incurs additional expenses. That is to be weighed against the present value of a lump sum settlement.

You don't have to post numbers here. You can work it out yourself, because the creditor will be going over the same considerations, when you make your proposal.

You might want to search on this forum, because debtcollector once posted a very good "how to" check list for negotiations, although, as I recall, his contemplated payments over time. Still, the preparation and approach suggestions were excellent. A lump sum payment is more attractive, for the reasons stated.

As far as assets being unfrozen and liens released, you should make the settlement contingent on that being done concurrently with your payment being made. Also, as part of the agreement, you should ensure that you get a written commitment to provide documentary evidence that the court judgment is being shown as satisfied and that information has also been reported to any credit reporting agencies that have record of the debt.

 

[Kanchazi]

http://credit.about.com/cs/debtnegotiation/a/052103a_3.htm

 

[Chien]

After looking at Kanchazi's reference site, which is good and a "keeper", I would still suggest that you do a search for debtcollector's "how to" list and use what's the best and applicable from both. In my opinion, Kanchazi's author is more "generic", for want of a better word. DC's is more "nuts and bolts", to properly get you into and successfully engaged in negotiations. You can't wrap it up until you understand and have the tools to get started. (This is not a paid endorsement <g>, but the observation of one who is regularly involved in such negotiations.)

Almost any collector that you deal with is going to be a seasoned negotiator. You're well-advised to understand the same dynamics as they do.

(With luck, DC may see this thread and re-post for you.)

 

[dina]

Thank you for your input. The entire amount is for almost $7000 - they were only able to seize a few hundred dollars from my account. They have not put a lien on property as of yet (although I'm sure they will) I would like to take care of this before it gets to that point. Hopefully, I can negotiate a settlement, although from what I've been reading, it looks like I may have to pay the whole amount. The collections lawyer involved in this was willing to negotiate a payment plan (50.00 a month!) - I found it suprising that he would be willing to take such a low amount. Do you think it would be wise to have a lawyer call to make an offer or can I do it myself? Thanks again for all your help. I cannot tell you how many sleepless nights I've had over this.

 

[dina]

One more question. They have not seized my daughter's (a minor) bank account. I am on the account as a custodian. Is this something the debt collectors have access to with a judgement? Thanks again-

 

[Chien]

In reverse order: they can't take your daughter's assets but, if your name's on the account, because you're guardian, don't be surprised if they hit it and you have to file to exempt the funds.

As to your situation, the attorney's offer of $50/mo is no offer at all. Post-judgment interest in NY is 9%APR. If there is close to $7,000 remaining after the bank levy, you're just paying yearly interest (unless the attorney agrees to waive interest accrual).

You know yourself and your abilities and confidence level; we don't. We also don't know anything about the attorney with whom you're dealing. There are professionals, who will negotiate for you for a fee. Personally, if you review the sources suggested, I see no reason that you can't do it yourself. Bear in mind the things that you have been told about the dynamics of the process and perhaps do some additional reading on this site. Your problem has been posed and addressed many times before.

And unless the attorney is very hard-nosed, I can't imagine what has already convinced you that you'll have to pay the whole thing.

Are you a single mother? Are you a working single mother. Do you get support payments? Answers to questions like these can all be arrows in your quiver.

 

[Chien]

Ask the questions that you feel that you need to ask as you go along. Most people responding here are just trying to assist you.

 

[Chien]

Here's DC's list:
https://forum.freeadvice.com/showthread.php?p=1221777#post1221777

 

[dina]

Thanks for all your help - Yes, I am a single mother and do not receive support. I received a letter from my bank listing the accounts they had seized (small checking and savings accounts) - my daughter's account was not listed. I am planning on calling on Monday to negotiate a deal - hopefully this nightmare will be over soon. Will they release the money in the accounts after I make the payment or will I pay the amount minus they money they've seized?

Thanks again -

 

[Chien]

Your status as a single mother represents a potential exemption to any attempt to reach assets, and this determines how fast they could effect involuntary recovery. In turn, this affects your negotiating power. You could familiarize yourself with other exemptions but, if you're prepared to make your offer notwithstanding, good luck to you.

 

[Chien]

Sorry, I didn't fully respond to your final question - multitasking.

As to the funds, it can work either way but, if you're concerned, you should get your agreement in writing, so that there's no dispute or delay. If you need those assets released, get that commitment.

This is the way that it works: your bank gets notice, gives you notice and freezes the funds for a period of time - 7-10 days is normal. The purpose is to see if you can assert any legal opposition or any other creditor superior to the judgment creditor is going to claim the funds instead. After that, the funds are released to the levying authority (Sheriff/Marshal), which holds them for an additional period of time - 30 days is common - to see if there is going to be any claim of exemption filed with the court. If nothing has happened in that time, the funds are released to a public authority, like the city or county auditor, which banks the funds and sends it's own payment to the creditor.

So funds can be tied up somewhere for 45-60 days. Depending on where the funds are, the creditor and only the creditor can tell the levying authority to release them. For the purpose of your question, the creditor could accept a settlement sum less funds under levy, but it would probably want your written promise that you would not then file a claim of exemption.

 

[dina]

Yes - I just posted and deleted - got a little paranoid ! Thanks so much for all your help - I'll definitely use your advice regarding my next offer when I call back. I'll let you know what happens.

 

[Chien]

I thought I was going nuts - it was there and then, when I went to respond, it wasn't.

I don't know what caused the paranoia, but I apologize if I disclosed more than you would have wished in the response. By the way, I think you're doing fine.

I don't normally use Private Messaging but, if you have questions as you seek closure and you'd like to discuss them that way, let me know and I'll open it for you. Good luck.

 

[dina]

Please don't apologize - you have no idea how helpful you've been - I really didn't know where to begin. I didn't want to get into the details since this is a public forum - I had visions of the collections attorney searching the internet to see what kind of offer I'm prepared to make
I called the attorney back this afternoon - hopefully this will all be wrapped up soon. I know that this is something I need to take care of since, after all, I did incur this debt, but I appreciate the support in helping me keep the figure as low as possible. If possible, I'll take you up on the private messaging or email. Thanks again - I'll keep you posted...