What Can Happen if I Don't Pay a Judgment?
Full Question:
I have a judgment on my record from 2006 that I was never served on. Thus a default judgment was issued. The plaintiff was an LLC but is no longer in business. I contacted the attorney of record and they do not want to settle for anything less than everything with interest and can not produce a receipt in the company's name. They want me to pay them and they can disperse the funds. This is not a mechanic's lien, so, can it be dismissed? What are my options?
08/27/2011 |
Category: Judgments |
State: Texas |
#25406
Answer:
Once a judgment is obtained, the creditor will likely be unwilling to negotiate a settlement and may place liens on property, such as bank accounts, or garnish wages. In some cases, a debtor may be able to negotiate a settlement with the creditor, although this is more difficult once a suit has been filed. In some cases, the creditor may settle for a lesser amount if the debtor is insolvent, since a promise to pay something is better than collecting nothing. These types of agreements are called an accord and satisfaction. If it is possible, a debtor should get a release included in such an agreement so that the creditor may not pursue the full balance of the debt claimed.
