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How is the best way of settling a collection judgment?

Sanger, CA |

I am the defendant in a default judgment for a department store collection account. The collection firm is Midland Funding LLC and have hired Hunt & Henriques to collect for them. Under C.C.P 473.5 I qualify to motion to vacate the judgment but I just want to get rid of the debt. The original debt on the summons back in January 2010 was $4,200 and now is $6,599 after interest and penalties. I never answered their original summons because I never received it and the paperwork states it was mailed to my parents address where I have not lived at since 2004. My parents claim they never received anything from anyone by mail or in person. They cannot garnish my wages since I currently have another creditor getting 25% of my wages...any advice?

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Attorney answers 3

Best Answer
Posted

I would file the motion to set aside the judgment. Rather, what I do in these cases is send H&H a letter threatening to file, and outlining the facts. Often they will stipulate to set aside the Judgment at that time. Once they re-file, a good credit card defense attorney (ahem) can often get a dismissal or, at very least a significant reduction in the amount at issue, by offering a strong defense.

Mr. Ridley practices credit card defense law throughout the state of CA, with offices in Ventura and Los Angeles Counties. He is also licensed to handle bankruptcy matters throughout the California Central District: Los Angeles, Ventura and Santa Barbara Counties. His phone number is (805) 244-5291, and his email address is ridley.eric@gmail.com . His website for more estate, bankruptcy and business information is www.ridleylawoffices.com .

Eric Ridley can be reached at (805) 244-529, by email at ridley.eric@gmail.com, or at http://www.ridleylawoffices.com This answer is intended to provide general information only. It does not create an Attorney-Client relationship, nor should it be construed as legal advice or an opinion on specific situations. Eric D. Ridley is licensed to practice law in California. The Law Offices of Eric Ridley emphasizes Estate Planning, Bankruptcy and Consumer Law & Litigation.

Asker

Posted

I live in Sanger, CA (Fresno County-Central California). I am an Oxnard native. What is a good time to call you tomorrow morning or can I email you my documents first (complaint, summons, entry of judgment, judgement) for your review so we can discuss my case more in detail and your attorney cost. My court accepts court call.

Posted

Have an attorney negotiate on your behalf. There are issues in these types of cases that you do not know about. Credit reporting. Receiving a 1099-C and paying tax on any negotiated reduction. Etc.

Also, 473.5 is not the only grounds for a motion to vacate.

Asker

Posted

The funny thing is that I work for the I.R.S. Form 982 is for debt cancellation; I am fully aware of the procedure. It will do me no good unless I get a lesser amount of what the original claim amount. I can claim insolvency and it will be taken care of. I have already spoken to various attorneys and none have given me any good reason to make it financially worth my while to set aside the judgment and run the possibility of losing and paying more or getting it vacated and getting a horrible settlement offer + attorney fees......it's a catch 22...

Richard Scott Lysle

Richard Scott Lysle

Posted

No one can make any guarantee as to results, especially on a public forum and when all of the facts are not set forth. All I can say is that you may have defenses, such as the Statute of Limitations. The plaintiff will have the burden of proof; if they do not have evidence that is admissible in court, and witnesses who are competent to testify about the matters in issue, you have a strong defense. If you successfully defend the case, you may recover your attorney's fees from the plaintiff.

Asker

Posted

Thank you very much. I am going to speak with a civil advisor from the A.D.R (Alternative Dispute Resolution) office in my local superior court. They will guide me on how to resolve the matter and refer me to a local paralegal to fine tune my motion to vacate the judgment, memorandum of points and autorities, etc,....

Posted

If you can get the judgment set aside, then dispute any attempt to sue you again. If not, you can always try to settle. Explore all options first. If you settle the deb, you might want to familiarize yourself with IRS Form 982 and its instructions.

Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.

Asker

Posted

The funny thing is that I work for the I.R.S. Form 982 is for debt cancellation; I am fully aware of the procedure. It will do me no good unless I get a lesser amount of what the original claim amount. I can claim insolvency and it will be taken care of.

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