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I have been sued by a creditor and it is nearing judgement...Is there a way to still settle for less if I have funds coming?

Oklahoma City, OK |
Filed under: Litigation

I have a credit card with a balance of about $8,500 and I have been sued. They have filed the paperwork and to prolong a default judgment because I did not answer... I filed a response saying I owe the debt, but do not make enough to even have my wages garnished in the state of Oklahoma (I made about $11,000 last year) and I also asked them to provide proof that the amount is correct.

That was a few months ago, and I have finally received the findings back and they are requesting that the judge just file and immediate judgement, since i admit I owe the debt. So I have family members that are willing to help there something I can file to still settle for a lesser amount, and also I am moving to another state...will the judgement be enforceable there?

Attorney Answers 2

  1. You can always settle a lawsuit, and always compromise a debt, but whether the creditor will have any interest in doing that seems less likely since they've already had to sue you.

    Sometimes creditors will make a deal because they'd rather get paid voluntarily than have to chase the debtor, especially when the debtor is moving around. Contact the creditor's lawyer and offer a payment plan that you can afford, see if they'll go for it. Remember that if you can scrounge up a lump sum now, they're more likely to accept a compromsied amount. Make sure if you settle, you get the terms in writing and that they agree to dismiss the suit with prejudice and to release you from any and all claims.

    Yes, a judgment can be enforced in the state you're moving to, although it will require the creditor to "domesticate" (get the judgment recognized) in the new state.

    Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

  2. You might be able to leverage your position with the credit card company by explaining that if they will allow you to enter into a payment plan, then you have some friends and family that will help you to make the payments, but that if they obtain a judgment, that support will not be there and the credit card company will obtain nothing because you are essentially judgment proof.

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