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socrateaser, Attorney
Category: Bankruptcy Law
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Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Re: Person has TWO California judgments against them $11K and

Resolved Question:

Re: Person has TWO California judgments against them $11K and $7K. All other debts are now past statute to sue.

The $11K debt judgment from Chase bank appears to have been purchased by Asset Acceptance. They are offering to settle for 10% of debt...receive letter in mail. I've had zero communication with them.

My understanding is judgments are serious and are far reaching. To eliminate this debt for $1,100 seems awesome but I'm wondering if it's necessary.

Can a collector who PURCHASES the debt garnish wages, take bank accts, etc? How do I know if they working for Chase or if they purchased the debt?

If I don't take this offer could they renew debt (judgment entered June 2006) and empty out my bank acct years from now? Or are they not allowed to renew if they purchased the debt and they aren't the original plaintiff.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 1 year ago.
Can a collector who PURCHASES the debt garnish wages, take bank accts, etc?

A: Yes. An assignee of a judgment steps into the shoes of the original judgment creditor and attains all of the same rights and duties. Code Civ. Proc. 673(a)

How do I know if they working for Chase or if they purchased the debt?

A: Send an Fair Debt Collection Practices Act (FDCPA) letter requesting that the creditor "validate" the debt. Also, explain that unless the debt collector prove that it is the assignee of the judgment pursuant to CCP 673, that you will assume that it has no power to enforce judgment, and further correspondence will be ignored. There are dozens of sample FDCPA letters floating around the internet. Any one is acceptable as a starting point. One other useful point is to provide notice in the letter that you will require all future correspondence be in writing, and that you will record any phone call attempts to contact you. The purpose of the debt collector is to avoid you obtaining proof of any promise or threat made, by conducting all "negotiations" by phone. Your best interests requires that you do not permit any phone conversations, because they are all a total waste of time, since you can't prove them, without recording them as they happen.

If I don't take this offer could they renew debt (judgment entered June 2006) and empty out my bank acct years from now? Or are they not allowed to renew if they purchased the debt and they aren't the original plaintiff.

A: As long as a judgment is renewed within 10 years of entry or prior renewal, it can be renewed indefinitely. Most debt collectors don't renew, because from their perspective, anything that actually creates out-of-pocket costs is a nonstarter. Debt collectors want to be paid free money, or the usually look to greener debtors.

Hope this helps.
Customer: replied 1 year ago.
So odds are they won't renew? I'd still be gambling and running risk of 11k debt over my head for years if I don't pay?

I'm thinking of trying to settle but $1,100 still a lotto me. I'm thinking $700 settlement if possible.
Expert:  socrateaser replied 1 year ago.
Yes, odds are they will not renew. But, there is a risk.

I don't know if bankruptcy is an option for you, but if it is, and the judgments do not find fraud, willful and malicious injury, or misappropriation while in a position of trust, then you can wipe out the debts in Chapter 7.

Assuming bankruptcy is an option, and even if not, you can tell the debt collector that you will settle for $X, in exchange for satisfaction of judgment filed with the Court, simultaneous with your payment, which you will deliver by cashier's check to the debt collector's representative at the Superior Court civil clerk window when the clerk stamps the full satisfaction as entered into the court docket.

And, you can say that if this is unsatisfactory, then you will spend the money that you would have paid the debt collector on the bankruptcy court filing fees, and the debt collector will get nothing.

Worth a shot. Go lowball.

Hope this helps.
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34114
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 1 year ago.

quick follow up if ok: Are you saying NOT to call and negotiate only to WRITE? deadline for offer says end of June. I was thinking calling asking if they'll take $550. Only bad thing about communicating is if I don't settle they'll know I'm alive/etc and my file might get more attn. if I don't settle.

Expert:  socrateaser replied 1 year ago.
Anything you negotiate over the phone, the debt collector can deny, if it changes its mind later. For me, phone negotiation with these businesses is a waste of time. I want them to know that I am not a pushover, and that I know the law better than they do!

Frequently, that's enough to get them to just go away and find someone else who's easier to tap.

Hope this helps.
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34114
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 1 year ago.

Sorry, one more thing. This being a $11K debt it's pretty serious for me.


 


I'm thinking of moving out of California, would this possibility factor into my decision?


 


Say the collector renews the judgment before June 2016, could they try to collect from me if I move to say Nevada for example for the next 10 years? I looked up the court fee to renew a judgment and it's only $30.


 


If they can collect from me in another state too, then I think I'll write a brief letter explaining my dire straits, possibly bankruptcy (which is true), and requesting an even more reduced settlement for say maybe 5% on the dollar or $650. My research says Accept Acceptance only pays 3-4% for debt.

Expert:  socrateaser replied 1 year ago.
I'm thinking of moving out of California, would this possibility factor into my decision?

 

A: If you move to Texas or some state that prohibits wage garnishment entirely, that could make it practically impossible for the creditor to collect. However, you can't change your bankruptcy exemptions by moving to a new state until two years has passed (730 days). So, in bankruptcy, moving would have no effect.


Say the collector renews the judgment before June 2016, could they try to collect from me if I move to say Nevada for example for the next 10 years? I looked up the court fee to renew a judgment and it's only $30.


A: Once you leave the jurisdiction, the creditor must register the judgment in your new state, in order to enforce it against you (except for a child support judgment). After that, the new state's judgment renewal periods apply.


If they can collect from me in another state too, then I think I'll write a brief letter explaining my dire straits, possibly bankruptcy (which is true), and requesting an even more reduced settlement for say maybe 5% on the dollar or $650. My research says Accept Acceptance only pays 3-4% for debt.

 

A: Looks like a plan to me. Best of luck!

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34114
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and 3 other Bankruptcy Law Specialists are ready to help you

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