Expert: Ontrack Financial Group llc - 6/4/2008

Question
QUESTION: I had a strawbridge card in 2000 and in 2004 i was out of work and unable to pay.  I tried to work something out.  In 2006 I was summon with a court order to appear now the balance was $1340. When i got this order it was $2,000.  It was offered to me to make monthly payments of $30 dollars and I also was offered a settlement for $1340.  Now I made payments of $30 for 14 months total $420.  I received a letter in the mail from the lawyer asking to make the rest of my payments and when I saw that the money I sent only paid the interest I asked to settle this out for $900.  HE refused said the client wouldn't accept it. Wants balance in  full.  My question is can they turned this down and if I don't make any more payments towards this judgement what will happen?  Now on my credit report it says charged off as a bad debt amount owed $930.  Why won't they settle this for $900?

ANSWER: Who made the offer to allow you to make payments at 30 dollars?  The courts or the attorney?

---------- FOLLOW-UP ----------

QUESTION: The people at court.  They said to avoid this going any further and to me to make the payments payable to the lawyer Ron Z Opher at a P O Box Address.  I wouldn't get a monthly reminder to pay.    I'm in the state of Pennsylvania the city of Philadelphia.  Is this legal.  Can they try and garnish my wages if I don't pay because they wouldn't accept my offer to them.

Answer
The plaintiff can execute the order from the courts resulting into wage garnishment.

Creditors do not have to settle, they do it as an offer to compromise.  Since they have already won a judgment it wouldn't be cost effective.  We're not saying that it couldn't be done though.  It will be a little harder.