Legal Question in Credit and Debt Law in Alabama

Stipulation form

Is signing a stipulation for entry of consent judgment the only way to stay out of court. I have been making payments to a law office for a debt owed to a finance com. Now they want me to sign this form with a 26.132% interest rate. I can't tell that they have deducted any of my payments. I'll never get it paid off. Is this the only way?

Asked on 1/20/09, 3:03 pm

2 Answers from Attorneys

Randal Ford Ford Firm

Re: Stipulation form

There is no way I would let ANY client sign a stipulation agreement with 26.132% interest. If they get a judgment the interest wouldn't be that high. GET A LAWYER TOMORROW!

Fight it! You might win.

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Answered on 1/20/09, 9:14 pm
William Pfeifer Pfeifer LLC

Re: Stipulation form

I cannot think of any benefit to you in signing a consent judgment that locks you into a 26% interest rate. If they obtain a judgment against you in court, the statutory interest rate is 12%. From what you describe, you would be better off losing the case after a trial than you are if you take their settlement offer. I would suggest that you take a copy of all the paperwork related to your debt and related to the demand of the law firm, and go have a consultation with an attorney who handles civil court claims. Do not sign anything until you have had it looked at by a lawyer. It sounds to me like you have nothing to gain from this arrangement.

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Answered on 1/20/09, 3:20 pm

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