I had an old account with Cap 1. Was paying regularly. Got divorced. Was unable to pay regularly. Cap 1 hired lawyers and I was served with a notice of pending judgemnt for $3400. I called the lawyers office and tried to work out some sort of payment plan. (this was about 6 mo ago)Explained to them that I am a single mother, going to school and that I don't have a job, but was willing to pay $50 month for the next year and give them my tax return (while finishing school) and then would be able to pay a higher amt upon graduation. Plan was refused. Couldn't afford a lawyer, had a free consult with one she told me to let them get their judgemnt, as I own nothing, have no money/assets, or employment that they couldn't hurt me and to pay it in full asap after graduation. Now they have turned it over to the local sheriffs dept for collection. I have since gotten a job but work limited hours. My financial situation hasn't really chgd-still in school for 1 yr. they want $143 mo. Doesn't sound like much but is when you don't have it.

My ?s are-what can they do to me if I don't pay $143 mo

If I pay less than the $143 will it make any difference?

Will a judgement really make it so that I will never be able to get a mortgage/car loan-this is what their lawyers said

Is this situation as hopeless as it feels right now?-will I ever see the light of day. Im living as sparsely as I can already.

Well, it costs them every time they send the sherrif out to attempt to collect. So each time they do it the amount adds to your court costs - for one thing. But, if they come out to collect and you give them something they'll keep coming. If they come up dry, they'll give up.

I don't believe your credit situation changes or improves until you completely pay the whole thing. It will keep you from buying a home. Usually you can find auto financing if you have a job. It will be high interest, but there are people out there that will do it.

Don't agree to terms you can't abide by. Personally, I'd wait until you have a large chunk - like at least half of it and see if they'll accept that and dismiss the judgement. If you can do that just make sure you get the proper documentation.

The situation is not hopeless if you do not dwell on it. You need to look into your state's "homestead exemption" in order to protect your home furnishings, and perhaps a car, from the sheriff's levy. One problem you have is that the judgement may be accruing interest at the legal rate (as set by state law) while it goes unpaid. You should try to pay at least the interest each month so that the debt is not compounding. You should find a way to enhance your income in order to pay the debt.