I apologize for the length of this email but I want to provide the necessary documentation for someone to give informedadvice.

We have a debt that we fell behind on. We foolishly ignored calls from the creditor hoping to rebound and re-assume our payment schedule and get caught up. This went on for approximately 4 months. The situation escalated and the creditor used an attorney to file in our local jurisdiction for judgement.

We contacted the attorney's office and were granted an extension for the hearing by issuing a payment of $500 in good faith. During the extension period we were graced by an improving business and became in position to settle the debt. I contacted the attorney with a payment plan of another $1000 in good faith followed by one year of payments just under $500. This will satisfy the debt in its entirety. Yesterday they agreed to the terms. I was told to fax the DJ a letter acknowledging the debt and letting the DJ know to cancel the pending case. I received this in email this morning. I have bolded the part that concerns me:

Dear MDJ [name ommitted]:

We are currently scheduled to attend a Hearing in the above-referenced matter on May 25, 2010 at 10:30 a.m. At this time, the Defendant has acknowledged the debt of $6,297.54, and since we last wrote you, has made payments totaling $1,500.00. The debt owed by the Defendant to the Plaintiff as of the date of this correspondence is $4,945.58. The Defendant has agreed to make ongoing payments to pay off the debt.

In order to ensure ongoing payments and toll the statute of limitations, the Defendant has agreed that Defendant owes a debt to the Plaintiff in the amount of $4,945.58 and has agreed to the entry of judgment against the Defendant in favor of the Plaintiff in the amount of $4,945.58. Therefore, the parties respectfully request that your Honor enter judgment against the Defendant, and in favor of the Plaintiff, in the amount of $4,945.58, without the need for a formal hearing.

The parties respectfully request that judgment be entered as indicated above and that the hearing scheduled for May 25, 2010 be canceled. I have asked that the Defendant write to you confirming Defendant’s acknowledgement of the $4,945.58 debt and Defendant’s agreement that judgment be entered in this amount. If you have any questions, please do not hesitate the call.

Thank you for your consideration.

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Should we send our acknowlegement to the DJ? This was in the body of the email from the attorney:

You will continue to make payments monthly beginning on June 15, 2010, and in exchange for those payments, the judgment will not be entered with the Prothonotary.

Is this attorney's "promise" to not enter with the prothonary via email legally binding. Can they, at will decide to place property liens? I am not even sure what this means. Does this still go onto a credit report as a judgement? We had a 760 credit rating prior to a terrible business downturn in 2009. Things are looking up and we are not deadbeats but I'd like to know our rights.

Thank you so much in advance for any advice.

Buhler? Anyone?

Buhler? Anyone?