I have a debt from 2006 that started at $3,000, in 2011 I started getting garnished. I then found out they put a judgement against me in 2007 but sent the paper work to an old address, so they won on default, they had my correct address. They are noW stating I owe $8,000 they refuse to set up a reasonable payment plan because they are getting $400.00 every two weeks garnishing me. Can I do anything?
They could voluntarily agree to reduce the garnishment, but that is unlikely due to the fact that they have the upper hand right now. You may be able to contact a collection defense lawyer in your area to see if the default judgment can be removed, but it has been awhile since the judgment was entered, and you may wish to see if the work required to do this will be cheaper than your other options. You can probably file a bankruptcy for $2-3K, so that should be considered as well.
The company has no incentive to negotiate with you at all. I do think that you should meet with a Washington consumer law attorney to evaluate whether filing a motion to vacate the underling judgement would be worth a shot or, failing that, whether either Chapter 13 or Chapter 7 Bankruptcy would ultimately be more cost effective than your present course.
Please consult an attorney who is licensed in your state to evaluate your case if you have any questions at all. This communication does not in any way create an attorney client relationship.