What are the best options for a judgement that I cannot pay: I voluntarily and turned in my vehicle due to loss of job and the payment was $800 a month. I could no longer afford it that amount so I tried having it refinanced and tried to trading it in. The last result was turning it back in to the bank. I have tried settling out with what I have, but the bank won't accept and wants me to continue to make payments on a vehicle I don't have. If I sold my house or any of my assets, a lawyer from the bank told me they would get their money off of the top. Do I have other options concerning the decision to sign another deed to assure them that they would get their money if I cannot pay it now.
Donald's answer: If your house secures a mortgage, then they're lying and anyone with a first priority lien on the property or assets will have first dibs on the proceeds of any sale of those assets. The bank can't have their cake and eat it to. You already returned the vehicle, so they're obligated to mitigate their damages by selling the car and reducing your obligation by that amount. Are you sure you have a judgment against you? A judgment is a legal term of art and means that a court has awarded them a fixed amount - based on the facts you've presented I'm skeptical that there is an actual judgment as opposed to just threats. If there is no court order, they have no legal recourse until they file an action against you.
I can't afford my car payment anymore, what can I do?: Monthly payments are to high
Donald's answer: I agree with the previous attorneys that responded, but would also like to add a fourth option: if you don't need the car, let them repossess it and return it to the bank. Your credit will be adversely affected, but you might be able to negotiate an improvement once the car is returned since the obligation would no longer be secured with the vehicle.
What is my next step if the collection agency does not accept my settlement?: A judgment was placed against me for $745. I was advised by the collection agency to pay $849 including court costs and interest accrued. I went to the credit union and was only able to borrow $800. I sent them a copy of the check with the settlement letter advising I could forward this check within a week if they accepted my offer. Because this involved a vehicle, the court placed a temporary suspension of my license with DMV until this is resolved. I advised the collection agency this was all I could pay and would like to settle this debt. Is there anything else I can do to restore my license ( I also asked if I could petition the court for a restricted license to get back and forth to work and I was advised no, there is ino provision)? I can't afford an attorney either.
Donald's answer: They're trying to squeeze blood out of a turnip. If they're not willing to negotiate, threaten bankruptcy if they won't work with you. If you declare BK, the debt goes away. You might also ask them to work out a payment arrangement to make it affordable over time. Since this is a judgment, contact the attorney who filed the lawsuit and try to make these arrangements. Don't work with the collection agency. They don't usually have much authority, but the attorney should help you with your situation. After all, all they want to do is get paid.