Should I sign an agreement for judgment on a credit card debt? 23 Answers as of September 07, 2011
I admit I owe said debt. I have been out of work since Jan. 2009 because I am legally blind. I am on social security disability my only income. I have a trial date on Sept.26,2011. There is a judgment hearing on Sept. 14,2011. The Plaintiff sent me an Agreement for judgment form to sign. Should I sign it even if I admit I owe the debt. Here is the agreement from Plaintiff. (1) Defendant agrees to judgment for $8,116.53 plus 12% interest and court cost (2) Plaintiff agrees to waive all claims to attorney fees (3) The parties agree the Defendant has no present ability to pay and Plaintiff has right to review Defendant's ability to pay in 6 months (4) The parties agree that agreement be filed with the court. P.S. The Plaintiff has so far will not budge on a lower agreement and also the Defendant has nothing to give for settlement. My worry is will the Plaintiff come after my house and if so what effect will it have on me. I am considering on signing this agreement. Any help will greatly be appreciated. Thanks.Free Case Evaluation by a Local Lawyer!
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Breckenridge and Walton | Alan D. Walton
Since you will lose the case anyway, and your income is 100% protected from judgment, should be no reason not to sign it - the judge will enter a judgment for the same thing after your trial. The judgment lien statute does not allow the sale of your home out from under you - they can only collect from proceeds of sale.
Answer Applies to: Michigan
Replied: 9/7/2011
Dan Wilson Bankruptcy | Dan Wilson
You need to talk to an attorney. Do you own your home? If so, a creditor who obtains a judgment could place a lien on your house. That means that if you want to sell your house or refinance the judgment will have to be paid to release the lien. However, it is very difficult to foreclose a judgment lien on a residence. If I was your attorney I would not let you sign this stipulation. I don't see how it benefits you. (Caveat I would want to know a lot more information.) It looks like the collection attorney knows he is unlikely to get anything out of you and would rather have you stipulate to the judgment rather than go to the trouble and expense of preparing for trial. Realize that if you sign this stip it is the same as if you went to trial and lost. You could discharge this debt in bankruptcy. You would have a $90,000 homestead exemption. That means if you have more than $90,000 equity in house it would be at risk.
Answer Applies to: Colorado
Replied: 8/31/2011
Law Office of Maureen O' Malley | Maureen O'Malley
You really need to talk with a Bankruptcy lawyer (nacba.org will give you a list of good ones in your area). Normally, I suggest you go to court and deny the debt and then make them prove it. This form may be saying they're not going to try to collect, though that's doubtful. They can't take social security as long as it's in an account without other funds added to it. If your house has equity, there could be a problem if they decide to pursue, thus my strong suggestion to talk to someone asap so you can speak in particulars and so you can protect yourself.
Answer Applies to: Virginia
Replied: 8/26/2011
Burnham & Associates | Stephanie K. Burnham
Please speak with an attorney. You will be giving up your right to a trial, you will be giving up your right to be heard regarding the dollar amount and interest, and you will open yourself up to a lien on your home. Do not sign any documents that are going to a Courthouse without speaking with an attorney.
Answer Applies to: New Hampshire
Replied: 8/25/2011
The Law Offices of Kristy Qiu | Mengjun Qiu
Your primary residence is your own castle, it's a homestead protected by Florida law, no creditors can go after it even if it's completely paid off (if it's not, then your mortgage lenders can go after it). If you have no other income besides disability, you have no other significant asset (i.e. a car that's worth a lot, or bank accounts, CDs, investment profolios), and your name does not appear on the title of another house, car, etc. with another person besides your primary residence, then you're pretty much judgment proof - meaning that they can't touch you even if they obtain a judgment against you. Whether you sign the agreement or not will be the same - they can't come after you at all, it will only be a waste of time for them.
Answer Applies to: Florida
Replied: 8/25/2011
Theodore N. Stapleton, PC | Theodore N. Stapleton
I you owe the debt there is no reason not to consent to judgment. You probably qualify for a chapter 7 bankruptcy in which you could discharge the debt.
Answer Applies to: Georgia
Replied: 8/25/2011
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
It sounds like the collection attorney knows that they are beating a "dead horse" right now and in the future. Collection attorneys follow a certain procedure in these cases and by getting you to sign an agreement for judgment is just a quicker means of getting the judgment without filing a moition for the default judgment. If you live in MA your property is protected under the Homestead exemption. I would also go online or go to the registry of deeds to file the Homestead to get the additional protection. You should speak to an attorney to guide you better in this area of dealing with your creditors.
Answer Applies to: Massachusetts
Replied: 8/25/2011
AZ Law Group of Trezza & Associates | Stephen Trezza
I don't like the clause that states they can review your ability to pay in six months. Does that mean you must provide them with your financial information in six months? 12% interest is above the legal rate the court would award which is 10%. I like that they are waiving attorney fees but I'm suspicious of that and it makes me wonder why since this is a breach of contract case which would entitle them to an award of attorney fees. It's a toss up. I think you need to consult with a local attorney and let him advise you further.
Answer Applies to: Arizona
Replied: 8/25/2011
Law Offices of Joseph A. Mannis | Todd Mannis
I would not sign this. While it does not sound like there is much if anything they can go after, what is the advantage of signing this? There isn't any. It would seem to me that a BK makes much more sense. The amount you owe isn't staggering as far as straight numbers are concerned, but based on your situation, $8,000 might as well be $8,000,000 - you can't pay it. If I can be of any further assistance, you're welcome to call.
Answer Applies to: California
Replied: 8/25/2011
Jackson White, PC | Spencer Hale
I'd be hesitant to sign it without more knowledge as to the assets you have and their values. It may very well be that you do not have anything that the creditor can take from you. Also, the interest rate seems high. I wouldn't accept anything more than 10%.
Answer Applies to: Arizona
Replied: 8/25/2011
Tucker Legal Clinic | Samuel Tucker
Your home is most likely exempt from a judgment lien. With the consent judgment the creditor can still come after your home if there is non-exempt equity in it. You are other wise judgment proof... or so its sounds.
Answer Applies to: Mississippi
Replied: 8/25/2011
Charles Schneider, P.C. | Charles J. Schneider
File your bankruptcy case. It will be cheaper and you will sleep better.
Answer Applies to: Michigan
Replied: 8/25/2011
Goldsmith & Guymon | Marjorie Guymon
If you sign the agreement it sounds like they're willing to waive attorney’s fees. So by signing you save a little money. If you don't sign you'll get a judgment at trial, plus fees. So I recommend signing the agreement unless you are considering filing bankruptcy to avoid the judgment and payment of the debt altogether. A judgment may be recorded against all real property but they cannot forcibly sell your home or encumber up to $550,000 equity in your homestead. The bigger concern would be if they attempt to collect against your income.
Answer Applies to: Nevada
Replied: 8/25/2011
Thomas Humphrey, Attorney at Law | Thomas Humphrey
As you have recognized, there are serious consequences to stipulating to a judgment. Once the judgment is entered, the plaintiff will, in fact, put a judgment lien on any real property you have. I recommend consulting an attorney before you agree to confess or stipulate to this judgment. If you are on a fixed low income, the state Legal Services may be able to help you. You should also contact the State Bar and inquire whether you would qualify for assistance from the pro bono program.
Answer Applies to: Idaho
Replied: 8/25/2011
Law Office of Harry L Styron | Harry L Styron
The Answer to this question depends on the amount of the equity in your house and whether you are using your SSDI to make house payments. However, the maximum interest that a judgment creditor can get in California is 10%, not 12%, so you should consider negotiating that in any event. Your house is exempt from seizure for a debt if the equity in the house does not exceed $175,000 (assuming disability). If you were to file bankruptcy, and you have no more equity than that, it is likely that the debt would be entirely discharged without you paying anything. A detailed review of your situation is necessary, though, so I recommend that you consult with a bankruptcy attorney.
Answer Applies to: California
Replied: 8/25/2011
Heupel Law | Kevin Heupel
If you owe the debt, then a judgment is going to enter against you. It's basically a timing question. You can sign the stipulation now for a set amount or the judge will order it in September. Waiting will most likely result in a higher amount as the judge may order you to pay the creditor's attorney fees.
Answer Applies to: Colorado
Replied: 8/25/2011
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Your homestead exemption is $175,000.00. So unless you have equity above that you have nothing to worry about in terms of them taking the house right away. However, once they get a judgement they will file a lien on the house. You should see a lawyer about bankruptcy and getting rid of this headache.
Answer Applies to: California
Replied: 8/25/2011
Ursula G. Barrios Law | Guillermo Machado
No. File bankruptcy and get rid of the debts for good.
Answer Applies to: California
Replied: 8/24/2011
Mercado & Hartung, PLLC | Christopher J. Mercado
If you admit you owe the debt, they will likely win anyway. Nevertheless, it sounds like you're judgment proof if your only income is SSI so they wouldn't be able to enforce the judgment through garnishment. If you own a house though, the judgment will become a lien on the property.
Answer Applies to: Washington
Replied: 8/24/2011
Guerrieri & Cox | Michael A. Cox
I would not sign the agreement unless the Plaintiff perhaps agrees to forgo filing a judgment lien against your house. Your social security income is exempt and you are entitled to a homestead exemption for your personal residence of $21,625.00. With the terms of the agreement you outlined, the Plaintiff could still file a judgment lien and there is no advantage to you signing off on the agreed judgment.
Answer Applies to: Ohio
Replied: 8/24/2011
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
You can agree to a judgment on a credit card debt. A provision in the judgment is that it accrues the legal rate of interest, namely ten percent. If you do not have the ability to pay you should legally protect your assets. For instance, you should file a written homestead if you own your residence. A stipulated judgment is enforceable the same as a court judgment that is the result of a trial.
Answer Applies to: California
Replied: 8/24/2011
Law Office of Michael Johnson | Michael Johnson
I would not agree to anything. I think you should consult with an attorney as you should be able to eliminate all of the debt.
Answer Applies to: Florida
Replied: 8/24/2011
Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
This is not a bankruptcy question
Answer Applies to: California
Replied: 8/24/2011
