Offer to settle

[neil5623]

As much as I would like to appeal my judgment, it is probably a waste of time and more money, so I have drafted this proposal. Comments?


This is to inform you that I accept the settlement of 70% on the balance, approximately $4583 according to our conversation last week. I cannot commit to an equal monthly payment amount at this time, but I will be able to complete payment by June 30, 2008. Acceptance of this settlement arrangement is contingent on your agreement to perform the following within 45 days of final payment:

An Abstract of Judgment will not be filed,
Upon completion of payment a Motion to Vacate will be entered,
Original Creditor Citibank will inform the Credit Reporting Bureaus to list the status of this entry as Paid in Full.

I ask that you restrict communication to mail only, as telephone calls about this matter can be very inconvenient.


Sincerely,
Me

[jlynn]

Quote:

Originally Posted by neil5623 I cannot commit to an equal monthly payment amount at this time, but I will be able to complete payment by June 30, 2008.

Do they already know this? Might be a deal killer this early into the judgment.

Quote:

An Abstract of Judgment will not be filed,

The judgment creditor does this?

Quote:

Upon completion of payment a Motion to Vacate will be entered,

Have you researched state law to see what grounds a MTV can be done?

Quote:

Original Creditor Citibank will inform the Credit Reporting Bureaus to list the status of this entry as Paid in Full.

This should be reporting this way or similar now. That debt has been paid by being reduced to a judgment.

Quote:

I ask that you restrict communication to mail only, as telephone calls about this matter can be very inconvenient.

IMHO, you've already told them you don't know how you will pay them, only by when. Now your telling them, you can't be bothered on the phone either. Unless you have already talked to them, and are just reducing to writing what has already been agreed to, you might want to look a little more open to discussion.

Just my .02

[drivel]

I'll play the other side:

Quote:

Originally Posted by neil5623 As much as I would like to appeal my judgment, it is probably a waste of time and more money, so I have drafted this proposal. Comments? This is to inform you that I accept the settlement of 70% on the balance, approximately $4583 according to our conversation last week. I cannot commit to an equal monthly payment amount at this time, but I will be able to complete payment by June 30, 2008. Acceptance of this settlement arrangement is contingent on your agreement to perform the following within 45 days of final payment: Ok, not off to a good start fella, you are going to do something by a year from now but I have to do something in 45 days. Oh well, I guess I'll listen.An Abstract of Judgment will not be filed, Upon completion of payment a Motion to Vacate will be entered, Original Creditor Citibank will inform the Credit Reporting Bureaus to list the status of this entry as Paid in Full. Lets see, you want me to have no security on this unpaid settlement for the time period you dictated, with payment amounts as you see fit. Troubling....not to mention the fact that although this debt will be a settled collection account for less than the whole balance, you want it as paid in full? And finally, You want me to vacate a judgment when I am only required to satisfy it. I ask that you restrict communication to mail only, as telephone calls about this matter can be very inconvenient. I agree that phone calls can be inconvienient, Tell you what, if you call and leave a message prior to a bathroom break, I will not call for the next 7-10 minutes. Sincerely, Me

I dont know the creditor's policy on this but if they are going to compromise a balance, they aren't going to do nothing for a year while accepting your sporadic payments and then in the event that you do pay it on time, take time consuming and burdensome steps to make it look like this never happened.

If this letter isn't going to santa claus, you probably better go back to the drawing board.

[direred]

Quote:

Originally Posted by drivel I'll play the other side: I dont know the creditor's policy on this but if they are going to compromise a balance, they aren't going to do nothing for a year while accepting your sporadic payments and then in the event that you do pay it on time, take time consuming and burdensome steps to make it look like this never happened.

Based on other similar situations I've read about, I think drivel is correct.

[jlynn]

Quote:

Originally Posted by jlynn The judgment creditor does this?

Never mind I found the answer to that. On another note, Citi should report this as a -0- balance sold or transferred. Even if you settle a judgment for less than its face, I believe the CRA's would only report it satisfied, as per court filings.

[Enigma]

Agreeing with Drivel and others. You are not in a position to negotiate terms.

I see a garnishment order very soon.

If you have other outstanding debts that could bring a judgment, you might give some serious consideration to filing BK. Even in a Chapter 13 you may be in a better position.

[Pale Rider]

Why rush it? If you can't make payments, there is no need for an agreement at this time. There is not much they can do other than go after bank accounts, so why not wait them out for a while then offer a settlement when you have the funds to negotiate with. If they press you, you may have the BK option to fall back on.

[neil5623]

This was a VERY rough first draft just to get some ideas down. In our brief phone conversation that I initiated some 3 weeks after the judgment was signed, I said that I was not in a position just yet to commit to anything just yet, and I will be in contact later.

Who files the AJ? I don't know for sure, but if it gets filed, I have no incentive to willingly make payment.

I don't think garnishment is an option they have in TX and if it is, that option will end soon. For MTV, I need some grounds for it, original plaintiff does not. All is negotiable even now according to attorneys that I have spoken to since this mess began.

Citi is still reporting as a charge off.

For Drivel, I can commit to a firm minimum payment, but a longer payout time. Their security is that it will get paid in exchange for no AJ. Otherwise, no incentive to pay. The actions that they need to take in the event that I don't pay are more expensive than to work with me.

Some Collection Attorneys appear to take a few months to file AJs. These guys do it fairly fast, hence my rush to do something. Besides, I am in a better position to do something now than I was a few months ago.

[jlynn]

Quote:

Originally Posted by neil5623 This was a VERY rough first draft just to get some ideas down. In our brief phone conversation that I initiated some 3 weeks after the judgment was signed, I said that I was not in a position just yet to commit to anything just yet, and I will be in contact later. Who files the AJ? I don't know for sure, but if it gets filed, I have no incentive to willingly make payment.

So you don't ever plan to own a house in TX, or if you own one, if have no plans to sell it?

Quote:

I don't think garnishment is an option they have in TX and if it is, that option will end soon. For MTV, I need some grounds for it, original plaintiff does not. All is negotiable even now according to attorneys that I have spoken to since this mess began.

You're right - no garnishment in TX. Sure, everything is negotiable, but whether an offer is viable or not is two different things.

Quote:

Citi is still reporting as a charge off.

Is it showing a -0- balance?

[centex]

While garnishment of wages may not be an option, there are other post-judgment remedies available in Texas. If you try and put the holder of the judgment behind the eight-ball, you can bet they will attempt to use those other remedies...and you may not like the outcome.

[drivel]

Quote:

Originally Posted by neil5623 This was a VERY rough first draft just to get some ideas down. In our brief phone conversation that I initiated some 3 weeks after the judgment was signed, I said that I was not in a position just yet to commit to anything just yet, and I will be in contact later. Who files the AJ? I don't know for sure, but if it gets filed, I have no incentive to willingly make payment. I don't think garnishment is an option they have in TX and if it is, that option will end soon. For MTV, I need some grounds for it, original plaintiff does not. All is negotiable even now according to attorneys that I have spoken to since this mess began. Citi is still reporting as a charge off. For Drivel, I can commit to a firm minimum payment, but a longer payout time. Their security is that it will get paid in exchange for no AJ. Otherwise, no incentive to pay. The actions that they need to take in the event that I don't pay are more expensive than to work with me. Some Collection Attorneys appear to take a few months to file AJs. These guys do it fairly fast, hence my rush to do something. Besides, I am in a better position to do something now than I was a few months ago.

No offense, but given the circumstances, I doubt your word will instill a sense of security in the creditor.

[jlynn]

Quote:

Originally Posted by neil5623 Otherwise, no incentive to pay. The actions that they need to take in the event that I don't pay are more expensive than to work with me. .

Since you are a sole proprietor, you may want to rethink this theory. True, in TX they cannot garnish your wages, but they still have a lot of other options - and they cost far less than the appx. $2K you are asking them to eat.

[Enigma]

Quote:

Originally Posted by jlynn Since you are a sole proprietor, you may want to rethink this theory. True, in TX they cannot garnish your wages, but they still have a lot of other options - and they cost far less than the appx. $2K you are asking them to eat.

Is this a consumer debt or a commercial debt?

Do you have W-2 wages or file a Schedule C?

[neil5623]

Quote:

Originally Posted by Enigma Is this a consumer debt or a commercial debt? Do you have W-2 wages or file a Schedule C?

consumer, and I have both.

Did a MAJOR revision on the letter. If I do nothing, they will do what they do. I am hoping that by promising to pay and then doing so, they will not see the need to do whatever their next action may be. I approached them about this. The worst they can do is reject my request. My first impression of these guys is that they are not hard-core pillage and plunder like some of the others out there. Unless they are holding back.

[cajunbulldog]

Quote:

Originally Posted by drivel No offense, but given the circumstances, I doubt your word will instill a sense of security in the creditor.

I agree with drivel here.Judgement creditor is a whole new ball of wax.It will take some real nice terms to convince them not to go straight to enforcement process.

[neil5623]

Quote:

Originally Posted by cajunbulldog I agree with drivel here.Judgement creditor is a whole new ball of wax.It will take some real nice terms to convince them not to go straight to enforcement process.

What could I expect if I did nothing but wait for them to make the next move?

[JayinGR]

Quote:

Originally Posted by neil5623 What could I expect if I did nothing but wait for them to make the next move?

I don't know what they can do in Florida but let me tell you if you are in MI you better bend over and hold your ankles...

In MI you can have your wages garnished, your bank account levied, a lien put on your house and a writ to have a sheriff come in take your property and sell it off at auction to recoup monies.

IMO your best bet would be to try and work out something with them. I know it may be hard and you do not want to put yourself in a worse position but I sure as hell would not like any of the above...

[neil5623]

So I spoke to my interpretation of Satan. Supposedly the AJ has already been filed. I have to pay the settlement amount within 60 days from agreement, or pay full amount over a longer period. Either way it will be released at the end.

[hannah]

Quote:

Originally Posted by neil5623 So I spoke to my interpretation of Satan. Supposedly the AJ has already been filed. I have to pay the settlement amount within 60 days from agreement, or pay full amount over a longer period. Either way it will be released at the end.

That's the way this is done. It will be released when the judgment is paid. The sooner you pay it, the sooner it will be gone from your cr.

[neil5623]

Quote:

Originally Posted by hannah That's the way this is done. It will be released when the judgment is paid. The sooner you pay it, the sooner it will be gone from your cr.

It still stays on the CR for 10 years anyway, right?

[hannah]

Quote:

Originally Posted by neil5623 It still stays on the CR for 10 years anyway, right?

From the date it is paid (or so that's what I interpret the length to be).

[jlynn]

Quote:

Originally Posted by hannah From the date it is paid (or so that's what I interpret the length to be).

Double check the FCRA. I know tax liens stay for 7 years from date paid. But I believe simple judgments are 7 years as with any other tradeline.

Edited to add:

Quote:

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

Is that where you are getting the 10 years Neil?

[hannah]

Judgments are governed by the length of time by state law. In WV, a paid judgment CAN be reported for 20 years. Most are gone in 10 if paid and disputed. Texas is 10 years.

[drivel]

Quote:

Originally Posted by hannah That's the way this is done. It will be released when the judgment is paid. The sooner you pay it, the sooner it will be gone from your cr.

and the sooner you will be allowed into heaven.

[jlynn]

Quote:

Originally Posted by hannah Judgments are governed by the length of time by state law. In WV, a paid judgment CAN be reported for 20 years. Most are gone in 10 if paid and disputed. Texas is 10 years.

The FCRA doesn't say paid for civil judgments, it says date of entry. So Neil's could be there 10 years from the last month or so. Paid or unpaid.

Quote:

Originally Posted by Drivel and the sooner you will be allowed into heaven.

If we move to biblical discussions as it relates to credit, he'll get into heaven in 7 years.