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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10215
Experience:  Civil litigation attorney for individuals and businesses.
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Took out a 5000 loan in14. Fell on vary hard times. Working

Customer Question

Took out a 5000 loan in14. Fell on vary hard times. Working back and have been trying to set up a good payment plan. They closed it and sold it to midland and have set a court date tomorow at 1. Irs has a lien on our ss numbers so they cannot get any assets I do not think
Even today and again in the morning going to try to make them understand I will pay it in full but a judgement for full payment is not possible
Any suggestions
Submitted: 6 months ago.
Category: Legal
Expert:  CalAttorney2 replied 6 months ago.
Dear Customer,I am very sorry to learn of this situation.Unfortunately, financial difficulties are not a defense to a breach of contract claim.The creditor (or their successor in interest if they have assigned their claim) is entitled to get a judgment entered in their favor for the full amount owed to them.You can raise breach of contract defenses (see:, and you can ensure that the judgment is limited to the actual amount owed, but the creditor is entitled to a judgment.If you have other creditors (including the IRS) that are earlier in time to the judgment (more "senior") it is unlikely that the creditor is going to be able to actually enforce the judgment. You also have defenses to judgment enforcement (see:, and the judgment is also subject to discharge in bankruptcy (if you choose to exercise that right - something you would want to speak to a local bankruptcy attorney about and consider in the context of all of your finances).