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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 38303
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I attended mediation yesterday on a large balance charged off

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I attended mediation yesterday on a large balance charged off Bank of America credit card debt, but now owned by Asset Acceptance (collection co.). The account is in my name only...individual. I am unemployed, own no real estate, and the only bank account is funded by my husband's SS Disability and pension. I agreed (Consent Judgement) to a full amount settlement minus accumulated interest, penalties, court costs, etc. and $50 per mon. payment. ThAt this rate the debt will not be paid in full for 60yrs. I am 58. My questions are 1) Is a consent judgement reported in my local paper? 2) Is a CJ reported on my credit report even though I remain current with my payment? 3) Does the judgement ever expire and if so when? 4) If the debt has not been satisfied at expiration, or I die (highly likely, duh) beforehand does the collection process also stop or will my estate be burdened with this mess. 5) Would a Chapter 7 be a better alternative? At least there would be peace in the meantime and only 10 years of reporting for certain.
Submitted: 1 year ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 1 year ago.
Thank you for your question. Please permit me to assist you with your concerns.

Please allow me to respond in order listed.

1) Is a consent judgement reported in my local paper?
Any judgment that is not governed under a settlement or a confidentiality claim, or is otherwise sealed is potentially public record. I cannot tell you if your local paper will report it, but the paper can obtain this record, and can potentially publicly disclose it (as it is already public record).

2) Is a CJ reported on my credit report even though I remain current with my payment?
Yes, it is still a judgment so it is still reported against you with the credit bureaus. It still shows it as a debt even if it is being paid regularly.

3) Does the judgement ever expire and if so when?
If you make payments then it does not generally expire. The other party has 7 years to collect and can charge up to12% interest on the balance but if you make a payment, it renews the statute meaning that you could not simply stop paying after 7 years and tel them that they cannot collect.

4) If the debt has not been satisfied at expiration, or I die (highly likely, duh) beforehand does the collection process also stop or will my estate be burdened with this mess.
Your estate remains burdened but if you have no assets, it is fairly tough to obtain this obligation from your executor.
5) Would a Chapter 7 be a better alternative? At least there would be peace in the meantime and only 10 years of reporting for certain.
That depends on the size of this judgment and your other debts. If you have over $10K in debt and you are not expecting to obtain any sort of credit or financing over the next 7-10 years, then bankruptcy may be a viable option. Otherwise, however, it would not serve if you have other obligations, assets, interests, or pursuits.

Good luck.
Customer: replied 1 year ago.
Hello Dimitry, I am not clear on answer to question 3. Are you saying that each time I make a pymt, the statute begins all over again? Therefore, the judgement would be neverending, right? Also, you say the creditor has 7 years to collect, so would they need to renew judgement? Please clarify. What happens if I become unable to pay? Interest has ceased and is not to be accrued, so no 12% if I stick to prompt payment schedule, right?
Expert:  Dimitry K., Esq. replied 1 year ago.
Thank you for your follow-up, Lois. I would be happy to clarify.

That is essentially correct, yes. A creditor has 7 years to perfect his judgment and begin collections. Once collections begin, each time a payment or some sort of activity takes place, the judgment renews. So in that sense the statute of limitations does not expire if you keep making payments. If you stop being able to pay, then they can take you back to court and record a new judgment with additional late fees and court costs, and potentially attempt to seek to intercept your other sources of revenue such as your tax returns or even your social security payments if you begin to receive them. Interest can likewise be accrued against the late fees, court costs, and the principal since it is ceased only if you do not default on your current judgment. They would not need to renew their judgment if you continue to make payments.
Customer: replied 1 year ago.
I'm thinking more about Chapter 7 to make this a done deal. You're the first to tell me Social Security attachable. All others, judge, bank, mediator, bankruptcy lawyer, internet legal forums tell me it can not be attached...that I am "judgement proof" with no income, no real estate, etc. My husband has only household income from SS and pension and IS not responsible for this debt. I'm afraid I should have not offered to make payments as the judgement was first wrote without payments, but stupid me was afraid I would be harassed for the gigantic lump sum even though I told them BK was a consideration and I am so called judgement proof. I volunteered the payments...stupid, eh? Judge has not signed, can I revoke or change mind within 3 days? without payments
Expert:  Dimitry K., Esq. replied 1 year ago.
Lois,

Social Security is generally exempt but there are ways to get around that. For example pursuing your bank account into where the funds go can be one means of bypassing the restrictions. You can still contest it by going to court and proving that the funds are exempt but while tht is taking place, your assets are frozen. No, it is not foolish at all to volunteer the payments, you are describing a stipulated judgment whose conditions are most favorable to you. Short or bankruptcy I doubt you could have done better. You can generally now only revoke if there are conditions or an error with the agreement itself (fraud), if you already signed. My apologies but there is no 3 day right of rescission for agreements such as this, once you signed it, it is binding. But you can still always choose to pursue BK anyway. To be frank I do not see why, the agreement here is fairly favorable, but that would be your choice.

Good luck.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 38303
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
Dimitry K., Esq. and 12 other Legal Specialists are ready to help you
Customer: replied 1 year ago.
Thank you so very much for bearing with me through my tedious questions. I have never bankrupted in 58 yrs., but am only considering knowing $50 will take 60+ years to repay technically and did not want to burden my future estate. Very ashamed and embarrassed at t
One last question, if I may. ***Could judgement have been all enforced with a non applicable payment schedule ($0) by demanding the whole amount from a "judgement proof" debtor? The 7 yr. thing frightens me either way...payments or left blank as the opposing attorney had begun to do. I am in GA, and the mediator said GA rules allow a change of mind within 3 days. BUT, will start the process over and would most likely go to court with NO chance for mediation.
Thank you sincerely, Dimitry. You have been superb!
Expert:  Dimitry K., Esq. replied 1 year ago.
Lois,

Glad to help, truly. My apologies, but I am unclear as to your question. Being 'judgment proof' is not a ruling, it is a subjective standard that a good attorney or creditor can evaluate and see whether or not it is worth pursuing someone for the money. But it is not a formal ruling made by the judge. Someone who is de facto judgment proof can still have a large judgment entered against them in hopes that if that person ever obtains funds, that judgment can be collected upon. And such a judgment can still be enforced.

Good luck.

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