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CalAttorney2, Attorney
Category: Business Law
Satisfied Customers: 10244
Experience:  I am a businesses law attorney, with experience advising and representing owners and investors.
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I have a judgement against me from a credit card company. it

Customer Question

i have a judgement against me from a credit card company. it was years ago and we were going through some rough times and due to loss of income and exploding mortgage payment we were paying mortgage with credit card. needless to say, we fell way behind,
could not pay any more, so we had to stop making payments. I was served papers years ago (5 or 6 years ago), and showed up to court, admitted guilt. i was young, and didnt know what to do from there. time went by, and i totally forgot about it. it is not on
my credit report, so i have not been reminded. until, recently....the same house i mentioned above, has been sitting vacant for almost 6 years. we had to move back to california and re-establish ourselves. thankfully, we have...anyways, the house has been
listed for sale as a short sale for over a year, we finally got an offer, bank approves offer, and last minute....boom. there is a lien on the property. well...that buyer walked due to another concern they had regarding an active lava flow. 5 months later,
and we got another offer. we just submitted all the work required by bank, so the lien will come up again. my question is...... when i contact the collector should I offer a lump sum? payment plan? what % of amount due would be an acceptable lump sum offer?
i appreciate your time. chris
Submitted: 2 years ago.
Category: Business Law
Expert:  CalAttorney2 replied 2 years ago.
When trying to settle a debt, creditors generally prefer lump sums over payment plans. They are often willing to accept an amount less than the full debt (the trade off is that they get a quick payment and don't have to worry about ongoing collection costs or administration). If you do not have the ability to offer a lump sum for something the creditor will accept (some will accept a small portion, while others want close to the full amount), you can try a payment plan, these are less satisfactory to the creditor (especially if they have a lien on your property already), but if you are willing to offer something with a reasonable chance to get the creditor a large amount of their debt back, you are likely to get them to accept it. Whenever working with a creditor, make sure that you keep your communications in writing (if you speak to someone by phone, promptly send a confirmation letter to summarize your conversation), as this will help to ensure that there is no confusion later on, and you will be able to enforce your settlement against any future collection efforts.
Customer: replied 2 years ago.
thanks for the response.
Expert:  CalAttorney2 replied 2 years ago.
You are welcome, thank you for using our forum, and please do not forget to rate my service so that I can receive credit for assisting you today.
I do wish you the best of luck in this matter, and thank you again.