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pauser · May 3, 2007, 08:36 AM

Hello I got a letter saying I was being sued for a debt So I called them and we have setup payment araingments So neither one of us went to the scheduled court hearing. They sent me a letter outlining our agreement. But I also received a default judgement in the mail from the courts. I don't understand so I called the court and they said that they were aware that we settled it out of court with payment arraingements they told me that they always do that?? Have any of you ever heard of this?? And can they get into my bank accounts now that they have a default judgement?? Even though I set up payment arraingements with them and I have a letter from them saying that it was acceptable??

excon · May 3, 2007, 02:33 PM

Hello pauser:

They're lying. IF they didn't show up in court, the case would have been dismissed.

excon

pauser · May 3, 2007, 07:47 PM

Hello excon,

I reread the letter they sent me confirming our arraingment it stated that as agreed neither party would show up at the hearing but a judgement would be made in default. Based on our arraingment. I also called the court and they told me that they were aware of the agreement the other party notified them that neither party would be appearing and that there would still be a judgement. I received the notice of judgement from the court it states that it is a default judgement in favor of plaintiff. But what I was wondering even though we have an arraingment can they still get into my bank account?

Fr_Chuck · May 3, 2007, 08:58 PM

It states there is was a judgement going to be made, and yes there is a judgement, once they have a judgement, they can garnish your paycheck, and attach your bank accounts ( in states where this is allowed)

So what you agreed to in not going to court was that you just let them win, they got the judgement and did not even have to go to court.
You should have at least shown up in court and tried to do something, at least made them show up.

pauser · May 3, 2007, 10:05 PM

How do I find out if my state allows this? Do you think they will get into my account as long as I keep the payment arraingment I am going to call them tomorrow I can't even sleep now I thought I was doing the right thing I just hope that they don't do this. I even have a copy of the agreement this has to count for something right?

ScottGem · May 4, 2007, 06:15 AM

This is a new wrinkle. If the court issued the judgement, then your state allows it. They apparently want to protect themselves if you don't keep to the arrangement.

I would petition the court to vacate the judgement. But you might have trouble doing so since the letter states that its part of the arrangement. Or I would ask the creditor to issue you a new letter stating that, as long as you keep to the arrangement they will not use the judgement to attach any assets. I think you stand a better chance of getting that assurance then of vacating.

If they do attach any assets while you are upholding the arrangement, you can take the letter to court and have the attacchment removed.

pauser · May 4, 2007, 06:16 AM

As long as I keep our agreement what are the chances that they would freeze my account? I am hoping that they do not do this...

ANY HELP GREATLY APPRECIATED

pauser · May 4, 2007, 06:19 AM

Originally Posted by ScottGem

This is a new wrinkle. If the court issued the judgement, then your state allows it. They apparently want to protect themselves if you don't keep to the arrangment.

I would petition the court to vacate the judgement. But you might have trouble doing so since the letter states that its part of the arrangment. Or I would ask the creditor to issue you a new letter stating that, as long as you keep to the arrangement they will not use the judgement to attach any assets. I think you stand a better chance of getting that assurance then of vacating.

If they do attach any assets while you are upholding the arrangement, you can take the letter to court and have the attacchment removed.

Thank You ScottGem I have kept the arraingment so far and plan to in the future I think I will call them and ask them if they will freeze my bank account as long as I am keeping out arraingement Do you think they would lie to me?

excon · May 4, 2007, 06:50 AM

Originally Posted by pauser

Do you think they would lie to me??

Hello again, pauser:

Collection agencies are bottom feeders that prey on the weak. I think they’re the scum of the earth. Given the above, I think they lie. However, maybe you've got one who'll tell the truth. I don't know.

But, it doesn't matter now, because they DO have a judgment and they can go directly to your bank account and drain it, anytime they please. Even with your letter and even if you kept the arrangement, once they take your money, you'll never get it back.

So, I wouldn't call them at all. Your question might put them on notice that you're considering NOT paying them. You don't want to make them skittish. That might prompt them to make a run for your bank. In fact, I'd do ALL my correspondence with them by mail.

excon

ScottGem · May 4, 2007, 07:01 AM

Originally Posted by pauser

Do you think they would lie to me??

Haven't they already? They told you that neither had to show in court, but did they tell you that meant they would still get a judgement? No I wouldn't trust them, no would I ask them that way.

What I would do is send them a letter saying something like the following:

I apparently misunderstood something in our agreement. I assumed, when you told me neither party would show up in court that this meant there would be no judgement. So you can imagine my surprise when I got a notice of judgement.

Since I have entered into a payment arrangement with you in good faith and have every intention of fulfilling that agreement I would like assurances from you, in writing, that you will not use that judgement against any of my assets as long as I adhere to our agreed repayment sechedule.

I think that will be met positively.