I had a judgement filed on me in 2014 and I got a default judgement because I didnít show up for court. I was going through a hard time in my life and wasnít thinking straight. The original judgement amount was $1888.46. I didnít know this happened until I found out this last year while checking my credit. At the time I couldnít pay it, I reached out to the plaintiff last week to find out what I can do. The informed that the balance is now almost $4000. They said I could submit a settlement and see if it is accepted. I sent in a settlement offer for the original amount owed as a lump sum and they responded within 10 minutes saying their client rejected it with no counter offer but that I needed to fill out a Pattern Interrogatories and I could make payments. It has been less than 2 years, is there any kind of cap on interest? Do you I have to fill out the that form they said? Do they get to pick the amount I pay or do I? Do I have any rights at all??
1 Answer from Attorneys
When you ignore your debts, they get out of hand. The interest rate is usually set by the contract you signed to create the debt. You might also owe attorney fees and collection costs depending on the terms of your contract.
You will be required to answer the interrogatories so they can determine how to collect from you. The creditor will put a lien on any real property you have, garnish anything you have in the bank, and set up a garnishment order for 25% of your paycheck until the debt is paid. The amounts are set by statute.
If you have other significant debts, you might want to consider filing for bankruptcy protection.