Need Help With Trial.....

[unx07]

What is the name of your state? CA

I am headed to trial next month over a credit card balance claimed by a collection's law firm and need to find out what the best way is for me to negotiate a settlement either before trial so to avoid it or at trial to bring about a ruling in my favor for making monthly payments via a settlement agreement? The other side had agreed to accept $10,000 via correspondence exchanged to that end but when I couldn't come up with a lump sum payment any longer, they stopped corresponding with me. I am able to offer $5,000 right now with monthly payments made after that but considering the original amount is much larger, I'm affraid they will just laugh and continue to trial. I was thinking maybe have a cashier's check and settlement agreement drawn up and bring it to trial to show the judge out of good faith but am not sure what road to take now. I was also going to send a letter to the other side offering same but am not sure if I should show any more hands before trial. Advice and help in this matter is greatly appreciated.

 

[Chien]

You have to “show your hand”. The Court is not going to help you and is not going to order a payment plan. If you owe the debt, the Court is going to enter judgment against you and let you and the judgment creditor work out whatever is feasible post-judgment.

Re-open a dialogue. If $5,000 down and monthly payments is the best you can do, let them know that and why (job situation, other creditors, health issues, whatever). If they have no reason to know why you can’t settle for a lump-sum $10,000, they have no reason to accept less immediately or not to try to collect the entire amount, once judgment is entered.

If you can’t negotiate a settlement at $10,000, the next best thing that you can do is avoid a judgment. That will become a public record and hurt your credit. It could do so long after the judgment is paid.

See if you can give them the $5,000 and enter into a conditional Stipulation for Payments and Judgment. You’ll acknowledge owing them the amount they claim, but you’ll pay the $5,000 and mutually acceptable monthly payments until a mutually-acceptable total figure is reached. If you perform as agreed, they hold the Stipulation and never file it with the Court. If you fail to perform, they can take judgment for the amount of the Stipulation, less credit for any payments, and it saves them the trouble of going to trial. They tell the Court that the case is in suspense until X date (the date your last payment is due).

If you perform, they return the original Stip. and dismiss the case. You pay the best figure that you can negotiate with them, but you don’t have a record of a judgment.

(This assumes that you filed an Answer, or they would have taken a default, instead of going to trial. However, if you didn’t answer and they didn’t default you anyway, the same document is called a Confession of Judgment. Otherwise, everything works the same.)

At this point, you’re not going to get anywhere until there is a common understanding of what you can do now and they can do post-judgment. This is not a time to not show your hand.

 

[TigerD]

They won't laugh. You will have to talk with the attorney. What they will probably do is ask you to sign a stipulation to judgment, which means you grant them the judgment and agree to payment terms.

If you fail to fulfill those terms, they will take every action they can. So you will have to make that you meet every requirement.

DC

PS: Be Smart - keep about $1,000 of that money at home in cash just in case something unexpected happens.

 

[unx07]

Need Help With Trial**************

Thank you so much for replying to my distress call. It looks grim indeed. We are homeowners as well with both my husband and I unemployed right now so my other fear is that the judge will grant them a lien against our house which would just make me sick.
If the other side will not negotiate, would it be wise for me to come to the trial prepared with the documents that were mentioned in the previous replies in the hopes the judge will lean my way if I come prepared or write a convincing trial brief ?? One more tiny request, does anyone know of a good site where I can find an outline for writing a trial brief that has to do with fighting collection attorneys and well as case law or cites to reference?

Everyone's help and advice is very appreciated and I thank you very much !!!

 

[Chien]

Do you owe the debt?

Because, if the answer is yes, you're wasting your time doing anything but talking to the other side as was suggested previously. No offense but, if you're asking questions like that on the eve of trial, you're going to get beaten. And the Court is going to help you less than you seem to expect.

And once they get a judgment, they will file an Abstract of Judgment that will create a real property lien. It's not likely that they would consider trying to seize and sell the property, but they will wait until your present financial condition moves you to try to sell or refinance on your own. Then they'll get paid because, right now, there are few other assets that they could go after.

If you owe the debt, spend your time talking and negotiating. If you get a deal, they'll draw up the papers. If you don't owe the debt, I'd suggest Legal Aid, your local law library or your local Bar Association to ask about a free consultation. But it's hard to imagine that the matter could get this far, if it wasn't owed.