What are you negotiating? Interest Rates? Payoff? Are you current on your debt? Sometimes if your in default and haven’t paid, you have more leverage believe it or not. Especially with an unsecured debt. If theres difficulty collecting they are more willing to work with you. There are ways of determining leverage, say Im trying to avoid bankruptcy, I have another offer from another card with a lower interest rate, can you possibly save some cash and offer cash settlement? There are many ways to do it. Analyze where you are at, what you can pay, and work with them, dont come across as being my way or the highway or chances are slim.
Just call the 1-800# and if you don’t like what you hear, ask to talk to a supervisor etc…The worst they can say is no, but at least your trying…. IM just going of a book that I read, so hope this helps some. There’s alot of information, so if there’s anything specific, let me know and I can try to help you.
I’m trying to get them paid off. I have been giving the settlement company money every month so I don’t have much of my own to use as leverage. I’ve read that if I ‘settle’ with one of the creditors I can’t make monthly payments on that settlement. I have to give them the amount I settled right then. (ex…if I agree to ‘settle’ for $2500 on a $5000 debt then I have to give them the $2500 right then. I cannot negotiate to pay them the #2500 on a monthly basis).
If you settle with them for a certain amount, then you have to negotiate one lump sum, over 4 months, etc…. But I didn’t know you were already with a debt settlement company. They should of already settled for much less for you right? How much longer do you make payments with the settlement company? Thats why your paying the settlement company, to do the leg work for you…
My advice would be to negotiate with the judgment creditor on a possible settlement of your account. Any agreement must be in writing. I would also advise them that if they refuse to negotiate you will file for bankruptcy and they may get nothing! depending on your situation. You also demand in the stipulation that they ask the court to vacate the default judgment and any liens,garnishments etc. that they have on you as long as you keep to the settlement agreement. I would also check the bankruptcy exemptions in your state using the nolo-author website www.legalconsumer.com.
They’ve settle 2 of 6. Two of the four I have still to be settled have balances (with all the fees and such) of over $5,000. One has a balance of over $10,000. The last is being negotiated now. It’s about $1500. I don’t have money to negotiate the $5k or $10K debts. It seems like, even with the money I give the settlement company every month, that it will take forever to negotiate. I could be sued in the meantime.
Thanks for the answers to my questions – I am calling the stettlement company today. They did tell me just to forward all correspondence to them, which I did do, so I didn’t realize that a summons was part of the correspondence. Also, an arbritration judge in Minnesota is the one that determined the debt was valid, again with no input from me.
Was the judgment given only by an arbitrator from a private organization(such as American Arbitration Association or National Arbitration Forum) or was it entered in a court of record? If it is in a court of record you need to ask the court how to file a motion to vacate a default judgment and if a private organization did it you should contact them and ask how you can have the case reopened. I believe in most if not all states a judgment must be entered in a court of record in order to be enforced by such means as execution of property or wage garnishment.