[kiramj]

Hello,

I was sued by a credit card and was able to set up a payment plan with the attorney's who are handling the debt collection to keep it from going to court. They told me I have to sign a Agreed Judgement. What is this and what does it mean for my credit and if I end up having to file bankruptcy?

Thanks!

I currently don't work due to layoffs and don't have a bank account. We are living off my husband's income.

[epawls]

Well... as far as your credit is concerned... anything aside from paying your balances off at the end of each month could have some potential for a negative impact on your credit score. If you pull your credit report, it should say something like, "Debtor wrote off as bad debt" or have a notation about the account being delinquent. Either way, at this point, it is a tarnish against your credit. You are entitled to a certain amount of free credit reports checks per calendar year.

If you are dealing with an "attorney's office", it is probably a debt collector. Debt collectors buy debts from creditors at a fraction of the price. They then lean on you in numerous ways to try to get "their" money. Once the debt is satisfied, it will reflect that in your report, but it will also still have a negative impact on your credit score for a period, even though the debt was paid.

The papework you are being requested to sign is probably a contract from the debt collection agency. This may be a negotiable item.

Prior to signing anything, Google search-fair debt collection practices act. It will tell you everything you need to know about your rights with debt collectors.

If you are planning on filing for bankruptcy, stop where you are at and call a bankruptcy attorney. I do not know how much debt you have, but to file for bankruptcy, you need to fit into certain criteria. It also is not cheap to file for bankruptcy.

Do your research first... consult an attorney... good luck

[excon]

Hello k:

A judgment is what they would have won in court had they sued you. If you sign it, and you miss a payment, by even a day, they can tromp through your bank accounts and take what they want. IF you have a JOINT bank account with hubby, they'll take THAT as well.

IF they're giving you a discount due to your cooperation, AND if you can get them to agree that executing the judgment will be contingent on your making payments, then I'd do it.

excon

[JudyKayTee]

Well...as far as your credit is concerned...anything aside from paying your balances off at the end of each month could have some potential for a negative impact on your credit score. If you pull your credit report, it should say something like, "Debtor wrote off as bad debt" or have a notation about the account being delinquent. Either way, at this point, it is a tarnish against your credit. You are entitled to a certain amount of free credit reports checks per calendar year.

If you are dealing with an "attorney's office", it is probably a debt collector. Debt collectors buy debts from creditors at a fraction of the price. They then lean on you in numerous ways to try to get "their" money. Once the debt is satisfied, it will reflect that in your report, but it will also still have a negative impact on your credit score for a period of time, even though the debt was paid.

The papework you are being requested to sign is probably a contract from the debt collection agency. This may be a negotiable item.

Prior to signing anything, google search-fair debt collection practices act. It will tell you everything you need to know about your rights with debt collectors.

If you are planning on filing for bankruptcy, stop where you are at and call a bankruptcy attorney. I do not know how much debt you have, but to file for bankruptcy, you need to fit into certain criteria. It also is not cheap to file for bankruptcy.

Do your research first...consult an attorney...good luck

It is illegal for a collection agency to call itself a law firm.

Your question appears to be what an agreed Judgment is - it's a Judgment which can either be filed or not be filed with the County Clerk. If you fail to make the payments as agreed the Judgment can be enforced. A agreed Judgment is not a Contract; it's also called a Confession of Judgment.

The contract under which you make the payments should be separate. They are two different things.

The advantage of an agreed Judgment is that there is no need for anyone to go to Court and if you don't pay a Judgment is in force, a Judgment which can be used to collect from you by any means legal in your State.

There is little difference on your credit report between a Court Judgment and an agreed Judgment - both mean that there was a bill which you could not pay. An agreed Judgment would sound better because it indicates you are attempting to pay and stay out of Court but in reality there is little difference.

If you don't understand, please come back and ask.

If you DO agree to a Judgment make sure you read it very, very carefully. It is also a good idea to have an Attorney review it on your behalf - if you can afford to do so.