In 2006 ,I went to work for a guy that wound up being a con artistTo make a long story short at the beginning of 2007,Ilooked up and found myself with $230 K in debt and no income.everything in 2007 went wrong and it wasnt until 2008 that I began reestablishing an income. I have since paid off all installment loans approx $130 K. During that time AMEX sued and got a judgement against me. I have 8 cc debts left. Amex would be number 5 on the list.
Where do I put the judgement in line for the debt snowball? All other credit cards have reached the SOL in Texas.Do I continue to work from smallest to biggest or do I move the judgement up to number1?
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Since the debts have been taken over by JDB’s,I will probably try and settle them.I have not arranged a payment plan for the judgement.I have no assets and in Texas they can’t garnish wages so I have let it sit.(it’s 1 year old)I had to finish the installmet loans that did not default 1st before I could get to these so I haven’t really formulated a gameplan.There was simply not enough income leftover.
I have been contacted by two different Debt collection attys on two of the accounts. I have responded ,with the aid of my attorney, and they are well aware of the SOL status. I have not heard from them in the last 2 months.
Okay. You have good things going for you right now. You are in a consumer law friendly state, you only have 1 of 8 accounts that have any ability to pressure you, you have an attorney assisting you.
Put a plan together for the judgment debt. Judgment debt can be settled for less too. If you can come up with a lump sum of money, a reasonable target for a judgment that is a year old is 50% of the balance. Not knowing all the details about you, what can be seen through skip tracing etc., you may be able to get something lower, or may get nowhere and have to agree to a payment plan. Be sure to get everything in writing. Your attorney will be able to assist you in this regard.
While you won’t be garnished in TX, your bank account can be levied. Put a plan together for the judgement debt and implement. Move on to each of the 7 remaining debts by settling the accounts that offer the best savings first. Play them against each other. Your credit report looks terrible and they will see that. Say something like “I have x amount and if you could see my credit report (they can) you would know that I have a bunch of old debt to pay. If you don’t want to resolve this account for x, I will put you at the bottom of the list and move onto another account”.
Hi Bret,
From the sound of it, you should place the judgement debt at the top of your snowball list.
I have a few questions though.
You have a total of 8 cc cards, 7 of them having not been paid for a long enough period that the SOL to legitimately sue and collect through the courts has tolled. Are you attempting to pay the debts off in full or working toward settling each account one at a time?
Is your intent to set up a payment plan for the AMEX debt? One that you can manage given your monthly cash flow?
Have you had any recent contact from collectors on the other 7 accounts?
I have some suggestions and perspective I would like to share in the comment section of this post, but would first want to know the answers to the questions I have posed.
Please comment further.
Best,
Michael