Paying off Creditor before Judgement

[sobroke]

What is the name of your state? Virginia

I am paying so much in child support that I am unable to pay the credit cards that were agreed on in a seperation agreement.

Citi Bank sent my bill to a collection agency. I am not sure if the collection agency purchased this or not (new to me). The amount of the debt (purchases) was $2,300 and there are $2,200 worth of interest and fees. I called Citi Bank and they agreed to the $2,300 payment but the collection agency (law firm) indicates that they will only accept $4,000 to be paid before the court date of 8-29-04.

Should I pay the $4,000 or go to court hoping the judge will drop the fees and interest part?

Thanks

 

[Ladynred]

Don't expect the judge to make them drop the interest and fees. In fact, you'll end up with MORE when they tack on lawyer fees and court costs !!

You will likely be offered a chance to settle before you go before a judge. Go armed with a WRITTEN settlement offer and payment plan (if you need one) you can afford.

Is your child support paid voluntarily or is it going out as a garnishment ?? If a garnishment, then CBUSA would be waiting a long time until that first garnishment is paid before they can garnish for anything. Could be an inducement for them to accept a settlement.

 

[sobroke]

child support

There is a singed agreement (that should have never been signed) that payment of support is 450 per week. He only brings home 550 per week and it leaves him no room for truck payment, insurance or gas. The child support was to be re-worked in August, which her lawyer has not responded yet. Therefore; there is no money for credit card payments. Parents sent check to lawyers for payment of bad debt, now the second creditor sent things to another lawyer. He should have stayed on top of this, now he is paying more than he would have if he had arranged payment with the creditor.

New question: Will the judge make judgement on an unsecured loan (ie, credit card)?

 

[Ladynred]

Yep, happens all the time.

So, he's paying the child support but its not being garnished from his check ?

 

[sobroke]

garnishment

The judge ordered garnishment. She decided she did not want that as my son pays her faithfully every other Friday. If they garnish the wages, she will not get payment until Tuesday or Wednesday so her attourney decided not to have the garnishment.

I have to admit, my son is taking care of his family financially (well we are since we are making all of his other expenses for him).