why am i paying a lawyer for a judgement and a collection agency is on my credit report

This will go on your credit report, destroying your credit. This makes it more likely you will go back to the collection lawyer to offer to pay off the whole amount now to ease up the harm of the judgment.

Full Answer

Can a creditor enforce a judgment without hiring a collection agency?

If a creditor expends the time and money required to sue you and obtain a court judgment, the creditor is likely to enforce the judgment on its own rather than lose money by hiring a collection agency to procure payment from you.

Can a creditor sell my debt to a collection agency?

Although it may appear that the original creditor sold your debt to a collection agency, if the original creditor already obtained a judgment against you, it's more likely that the collection agency is merely collecting the judgment for the original creditor in exchange for a portion of the proceeds.

What to do if a debt collector has a judgment against you?

If a debt collector has a judgment against you, here are some of your options: If the judgment was obtained by default, you may be able to bring a motion to vacate the judgment. This will give you a chance to defend yourself.

Why did the collection lawyer send me a “consent judgment?

“Why did the collection lawyer send me a ‘consent judgment’ and what does it mean?” You have been sued by a debt buyer/debt collector and you have received your letter from the supposed mediation firm of Ferry & Nichols. Here’s a hint: they are a great way to lose your money and get a default judgment.

Does a paid Judgement affect your credit?

Judgments Don't Affect Your Credit Score, But Can Impact Your Application. Since judgments are not included in credit reports, they won't be factored into credit score calculations.

Can court Judgements be removed from credit report?

If you've had a judgment taken against you for a debt, there are a few ways you can remove judgments from your credit report. You can appeal for a vacated judgment, dispute the inaccuracies, or simply pay it.

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

What happens if you pay the creditor instead of collection agency?

If your debt has passed into collections, it'll put a hefty ding in your credit score. But paying it off may not fix that. Paying a debt collection agency may do more harm than good to your credit score. That's because actually paying your debt will lower your credit score.

How do you get a Judgement removed from credit bureau?

If you pay the full amount owed before that time, the judgment will be removed from your credit report as soon as the credit bureau receives either proof of payment from the credit provider or a valid court order rescinding the judgment.

How do I not pay a Judgement?

You might be able to prevent collection of a judgment by negotiating with the creditor or claiming property as exempt. If a creditor sues you and gets a judgment, it has a whole host of collection methods available to get its money from you, including wage attachments, property levies, assignment orders, and more.

What should you not say to debt collectors?

3 Things You Should NEVER Say To A Debt CollectorAdditional Phone Numbers (other than what they already have)Email Addresses.Mailing Address (unless you intend on coming to a payment agreement)Employer or Past Employers.Family Information (ex. ... Bank Account Information.Credit Card Number.Social Security Number.

How do I write a letter to a collection agency removed from my credit report?

I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment.

Should I respond to collection agency?

If you receive a notice from a debt collector, it's important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.

Is it better to pay the original creditor or the collection agency?

It's much better to deal with creditors than debt collectors. Whatever the past-due debt is for – doctor bills, credit card payments, car loan – the creditor may still see you as a potential return customer. A debt collector's only interest is squeezing money out of you.

Why you should not pay collections?

Making a payment on the debt will likely reset the statute of limitations — which is disastrous. If the collection agency can't show ownership of the debt. Frequently, the sale of a debt from a creditor to a collector is sloppy. A collection agency hounding you may not be able to show they actually own your debt.

Can I pay original creditor instead of collection agency?

Working with the original creditor, rather than dealing with debt collectors, can be beneficial. Often, the original creditor will offer a more reasonable payment option, reduce the balance on your original loan or even stop interest from accruing on the loan balance altogether.

“Well, What in The World Is A Consent Judgment?”

It is what the name suggests.It is a judgment.Not a fake one. Not a kind of real judgment.It is a real, actual, legitimate judgment.And it is one y...

“Why Does The Debt Collector Want A Consent Judgment Against Me If We Agreed to Terms to Settle The Case?”

Here are the reasons: 1. This will go on your credit report, destroying your credit. This makes it more likely you will go back to the collection l...

A Consent Judgment Is A Real Judgment and This Will Haunt You For Many years.

The collection personnel at a collection lawfirm will minimize the importance of this but a consent judgment is a real judgment.It goes on your cre...

If You Have Questions About An Alabama Collection Lawsuit Against You, Feel Free to Contact us.

You can reach us by phone at 1-205-879-2447.Ask to speak to Carolyn and she will get your information,Then, she will set up a meeting or call with...

What is a collection agency?

A collection agency will take many of the same actions against the debtor that you have probably taken. Third-party collectors are aided by specialized phone systems, computers, and software designed to automate the process and make it more effective and cost-efficient in retrieving payment on delinquent accounts.

What is the best way to collect unpaid debt?

The most obvious choice to collect an unpaid debt is a collection agency. Agencies come in all sizes — some are local, some specialize in handling certain kinds of debts, and others are national in scope.

What to do if your letter has failed to resolve a debt issue?

If your letter writing, personal meetings, and phone calls have all failed to resolve a debt issue, it’s time to call in a professional — a debt collection agency or a lawyer specializing in debt collection. The most obvious choice to collect an unpaid debt is a collection agency.

Is it cheaper to hire a lawyer or a collection agency?

Most companies refer debt to a collection agency first and then turn to an attorney if the agency can’t do the job. While it might seem that a collection agency would be cheaper than hiring a lawyer, that’s not always the case. The price of a collecting a debt depends on the complexity and magnitude of the collection — sometimes debt can be ...

Do attorneys charge a fee?

Attorneys usually charge a minimum fee, or require the debt be of a minimum amount . Payment to the attorney will be in addition to any court-related fees and charges connected with a lawsuit, if you decide to pursue a judgment in court.

Is an attorney more effective than a collection agency?

They can be more effective than a collection agency, especially if the debt is serious enough to consider legal action. An attorney may charge an hourly fee, collect at least one-third of the amount recovered, or both. Attorneys usually charge a minimum fee, or require the debt be of a minimum amount. Payment to the attorney will be in addition ...

What happens if you miss a judgment?

If you ever miss a payment, the judgment will be executed which means your wages will be garnished, your bank accounts garnished, and even your property can be sold or a lien placed on it.

Is a judgment a fake?

It is a judgment. Not a fake one. Not a kind of real judgment. It is a real, actual, legitimate judgment. And it is one you agreed to — you “consented” to it.

Can you make a judgment if you are making a payment?

If you are making payments, almost every judge will allow the case to be put on an “administrative docket” so it is still around but you can make your payments over time.

Is consent judgment a real judgment?

A consent judgment is a real judgment and this will haunt you for many years. The collection personnel at a collection lawfirm will minimize the importance of this but a consent judgment is a real judgment. It goes on your credit report. It is listed in the courthouse. When you apply for certain types of credit or other business transactions you ...

What happens if a debt collector violates the FDCPA?

If a collector violates the FDCPA, you have a legal claim against them for up to $1,000 in statutory damages, plus provable out-of-pocket and emotional damages. The debt collector also has to pay your attorney fees and costs.

Why are good deals hard to come by after judgment?

Good deals are hard to come by after judgment because you've lost most of your leverage. But if you can demonstrate a significant financial hardship, or have a lump sum of cash available, you may be able to get the creditor to knock a decent chunk of the balance off.

What is a collection defense?

Collection Defense. A debt collection judgment is a court order that you owe the creditor money. The judgment is the final decision in a collection lawsuit. It gives the debt collector the power to garnish your bank account and wages. It has a negative impact on your credit score.

How long does it take to get a judgment vacated?

Think of it as a do-over. But you're only able to get a debt collection judgment vacated in very limited circumstances and the process typically takes a couple of months.

Why is it important to answer a summons and complaint?

Having a judgment against you is an unpleasant situation to be in and is one of the main reasons why it's so important to answer the summons and complaint. If a debt collector has a judgment against you, here are some of your options:

Does bankruptcy stop garnishment?

Bankruptcy puts an immediate stop to garnishments and other collection activity and will allow you to wipe out or manage all of your debts, not just the judgment debt.

What is debt collection judgment?

What is a Debt Collection Judgment? What is a debt collection judgment? It’s the ruling court order giving a debt collector the authority to collect any outstanding debt by necessary means. Typically a debt collector files a collection lawsuit in an effort to force the individual to pay up.

Who is responsible for collection fees?

The creditor is responsible for any fees that result from an execution of the collection judgment. Upon the satisfaction of the debt, a record of satisfaction will be mailed to you or the person who paid the debt.

What is a bank levy?

Bank levy. A court-approved bank levy freezes the funds in your bank account until the debt has been repaid. The creditor may or may not notify you prior to the levy. If a creditor suddenly levies your account and drains it of all your funds, then you have been subjected to “gutter service.”.

What happens if you have a judgment that goes unpaid?

When you have a payment that goes unpaid, you receive letters or calls from the creditor as more time passes. Eventually, the debt is turned over to a collection agency, which then sends more letters or calls repeatedly in an attempt to collect the debt.

What happens when a creditor drains your bank account?

When a creditor drains an individual’s bank account, sometimes people are unable to pay for their rent, food, and other bills. If debt is forcing you into overwhelming hardship, consider contacting a bankruptcy attorney. There are many things to consider before filing bankruptcy.

How long does a judgment lien stay in place?

Judgment lien on real estate. After a lien certification is placed on any property you own, it stays in place for 20 years. It’s initially recorded for ten years, then rerecorded for another ten years in the Official Records of the Clerk’s Office.

How long does a collection judgment stay on your record?

According to the Fair Credit Reporting Act (FCRA), the collection judgment may remain on your record for at least seven years and even up to 20 if the creditor renewed it as per required by law. When you have all of the necessary details, you can make a more informed decision. A professional attorney will work with you to determine the best course of action to settle the collection judgment against you.

What happens if a judgment creditor accepts a reasonable offer to pay?

A judgment creditor who receives a reasonable offer to pay will often stop a lien, levy, wage attachment, garnishment suit, or assignment order. (For tips on negotiating with creditors, see Strategies for Negotiating With Creditors .) You might consider contacting a debt counseling agency for help in negotiating and setting up a repayment plan.

What happens if a creditor sues you?

If a creditor sues you and gets a judgment, it has a whole host of collection methods available to get its money from you, including wage attachments, property levies, assignment orders, and more. Fortunately, in many situations you can still take steps to try to head off collection efforts. Read on to learn how to prevent a judgment creditor ...

What is a claim of exemption hearing?

You can request a hearing, which is usually called something like a claim of exemption hearing, to argue that it will be a financial hardship on you if the property is taken, or that your property is exempt under state law.

Can you take your clothing to pay off debt?

In most states, your clothing, furniture, personal effects, and public benefits can't be taken to pay a debt. Nor can some of the equity in your car and house, most of your wages, and most retirement pensions. (Learn more about Using Exemptions to Protect Property From Judgment Creditors .)

Can you challenge a claim of exemption?

Still, you can request a claim of exemption hearing if the debt (now part of the judgment) was for a basic necessity. The creditor may not challenge your claim. Or, the judge might not care whether the debt was for a basic necessity and may consider only whether or not you need the money to support your family.

Is it too late to negotiate a judgment?

It's never too late to negotiate. The process of trying to grab property to pay a judgment can be quite time-consuming and burdensome for a judgment creditor. Also, the creditor might fear that you'll lose or quit your job due to a wage attachment, or that you'll file for bankruptcy. None of that would help the creditor get paid.

Can you claim exemption for debts for necessities?

Debts for Necessities. In most states, you cannot request a claim of exemption to protect your wages if your debt was for basic necessities, such as rent or mortgage, food, utilities, or clothing. The law says that you should pay for your necessities, even if you suffer a hardship in doing so.

How long does a collection agency stay on your credit report?

Once you pay the collection agency, the debt will remain on your credit report for six more years, two years longer than not making a payment. Even if the collection agency agrees to accept less than the full amount owing, it’s still on your credit report for six more years. In other words, paying a collection agency can mean ...

What happens if you have a collection account?

Every month your creditor has been reporting missed or late payments to the credit bureau. Once the account goes to a debt collector, the debt is marked as a collection account.

What to do if you have a debt and want to clear it up?

If you have the money to pay the debt and want to clear it up, you could talk with a not-for-profit credit counselling agency and arrange a debt management plan .

How long does a debt stay on your credit report?

So the debt can remain on your credit report for six years after you complete your debt management plan.

How long does a credit counsellor stay on your credit report?

A new note will be placed on your credit report when you enter into a debt management plan. This note will remain for two to three years from completion.

How long does it take for a credit card to disappear from your credit report?

You have an outstanding credit card bill that you haven’t made a payment on in two years; based on credit reporting rules, it will automatically disappear from your credit report in four more years. You have the money, so you decide to pay the debt collector.

What happens if you don't pay your credit card?

If you don’t pay your bank loan, credit card or other debt, the lender may decide to send your file to a collection agency. A collection agent’s job is to phone you and take whatever measures they decide are necessary to collect the money. They want to collect because that’s how the collection agency gets paid.

Where delinquent debt goes: third-party collection agencies

When you can’t pay your debt, most creditors follow a similar process to increase their chances of persuading you to pay. One of the tools at their disposal is selling your debt to a third-party collection agency.

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What happens if a credit card company gets a judgment?

If the credit card company gets a judgment, it can use all sorts of collection methods against you to get paid. A credit card company can get a judgment against you in several ways after it has filed a lawsuit. Read on to learn how a credit card company can get a judgment, and what types of collection actions it can take once it gets ...

What happens if a creditor files a lawsuit against you?

If the creditor files a lawsuit against you, the case may eventually proceed to trial. At trial, the burden is on the credit card company to prove that you owe money. If it has provided enough evidence to show this (typically in the form of a signed credit agreement and accounting or billing statements), the court will issue a judgment in its favor, unless you have proven to the court that you don't owe the money. There are many steps in a lawsuit between the complaint and the trial—to learn more, see Creditor Lawsuits: What to Expect When the Case Is in Court.

How does summary judgment work?

Summary judgment is a means by which the creditor can obtain a judgment against you without having to go to trial. The creditor files a motion for summary judgment and tries to convince the judge that none of the facts of the case are in dispute—for example, that you signed a legal loan agreement, made no payments, and have no defense as to why you're not paying. The creditor also must convince the judge that it is entitled to judgment as a matter of law. If the judge agrees with the creditor, the judge can enter a judgment against you without any trial taking place. The creditor should not win if there are any material (important) facts in dispute (for example, if you claim you didn't sign the agreement).

What does it mean when a creditor negotiates a judgment?

This means that you agree that a judgment will be entered against you for the settled amount.

What happens if you don't file a complaint?

If you do not file an answer to the complaint within the response period, you lose the right to challenge the creditor's lawsuit. If the creditor presents enough evidence to the court showing that you owe the debt, the court will grant a default judgment.

Can you get a judgment as part of a settlement?

Getting a Judgment as Part of a Settlement. At any time before the court issues a judgment, you may enter into a settlement agreement with the creditor. In a settlement agreement, you and the creditor agree to certain terms.

Can you keep your retirement account in bankruptcy?

If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.

3 attorney answers

They just will refile the suit. Dismissal without prejudice means they can file again. They didn't get a judgment if they didn't show up. It may be beneficial to try to settle if you can now before they try to sue again.

Marc Gregory Wagman

It depends upon whether the case was actually dismissed or the Plaintiff lost its case. It the case was simply dismissed and there was no trial, then it depends whether the Plaintiff can bring the case again (dismissed without prejudice) or whether the Plaintiff is prevented from filing suit again.

Judy A. Goldstein

A dismissal without prejudice is not a final and appealable order. It will do nothing for you to cleanse your credit report