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Does a creditor have to accept my payment on a judgement?

Houston, TX |

I had a judgement declaired agianst me. Then the company decided to charge me for what they reffered to as "legally un-obtainable" fees and services. They turned over the judgement to a collection agency along with the other charges. I sent the creditor a check to be aplied to the judgement only. It was the full amount of the judgement. They refuse to take my payment. They will only apply money towards the total amount of the collection. Can they lump it together and refuse my full payment of the judgement??

Since it was turned over to a collection agency, Does that mean that I can no longer directly pay the original company I aquired the debt with? What happens if I send the company the full payment of the judgement amount, instead of the collection agency, but the company also refuses to accept the payment?

Attorney Answers 3

Posted

TX may allow you to pay the judgment amount to the court, which would then label it satisfied and send the fund on to the Creditor. You should talk with a local attorney to see if this is possible. The attorney could also negotiate a settlement on your behalf. It might be worth it to get this behind you.

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Posted

Once a creditor obtains a court judgment, they don't have to accept payments from you but can seize anything they can find that isn't protected by a state exemption. I am posting a link to a description of exemptions allowed in all 50 states for you to review.

I appreciate that you would like to settle the debt for less than the total amount the court awarded, which would include interest & legal fees, but the creditor isn't buying it.

Whether or not you should pay the judgment to the original creditor or to the collector is really a decision for the original creditor, not you, to make. Ask the creditor who the payment should go to. Some creditors sell debts, others simply assign debts to be collected on a commission basis.

Hope this perspective helps!

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2 comments

Dorothy G Bunce

Dorothy G Bunce

Posted

Sorry, forgot to give you the link - chewing gum is bad for the brain! It is http://www.legalconsumer.com/bankruptcy/laws/

Asker

Posted

I apreciate the time to read and answer my question, but I think you missunderstand when I say that I am trying to pay them the judgement amount only at this time. When I say I tried to pay them the full amount, that is including the 5%interest rate set by the judge and the court fees incured(there was no legal representation, they filed in small claims court on their own). They are atempting to charge me for a bill of a totally seperate matter, not pertaining to any charges that relate to the judgement in any way. They gave the judgement along with the seperate bill to a collection agency. The collection agency is only seeing the charges as one total sum. There are in fact two seperate charges. There is the judgement, with all incured costs and interest, and there is a seperate bill for a totally seperate matter. The judgement amount is owed to them and i did not need a judge to make me understand that. Are they allowed to refuse my money? Are they allowed to tell me I must pay for everything and Im not allowed to pay my judgement???

Posted

If the creditor is refusing to accept full payment of the judgment, take a look at Texas Civil Practices and Remedies Code Sec.31.008 for information about how to deposit an unclaimed judgment with the court. I'll include a link to the Code below.

My comments are for general informational purposes only, and do not apply to any particular set of facts. Reading or using this information in any way does not create an attorney-client relationship.

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Asker

Posted

I have read over Texas code 31.008. Maybe I am not understanding it correctly, but it looks as if I must contact all parties that have the authority to accept payment on my judgement and if they do not respond, I can take this to the court to pay it. But what Im not seeing is the difference between having someone contact me back, and someone accepting my payment. Is it saying that if I put forth all reasonable effort to contact them reguarding my judgement, and they do not respond, then I can pay it at the court-But if they do contact me, I cant pay it at court???? Or is it saying that if I Contact them and they continue to refuse my payment, then I can pay it at the court??

Asker

Posted

It just looks to me like if they contact me back then I cant pay this judgement at the court. But what if they are only contacting me to let me know that they are refusing to accept payment?? The code talks about trying to find them/contact them, but it makes no reference to continued rejection of my payment.

Asker

Posted

Never mind. I see it now in section (g). ............ Thank you very much. If I hadnt chosen a best answer already, I would have chosen yours.