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Expert: Regan Shinski - 1/16/2010


Question
I recieved a summons in a civil action from a cc company. I know that I owe that debt but I am unable to pay the lump  sum settlement. I was wondering in the answer to the summons is this were i would ask for a consent judgement or what can i do to make payment arrangements?

Answer
Hi Becky:

I would not ask for a consent judgement.  It's basically the same thing as if you went to court and lost or simply did not show up.  It will affect your credit in the same negative way.  IF you want to settle, you need to contact them.  Sometimes you can get better terms or a reduced amount.

You should be aware that the best time for settling has already passed.  The creditor has now spent money on court fees, a processor, and possibly attorney fees.  You will be trying to ask them to give up the hammer of a judgement, which can give them powerful collection techniques.  This would be the only reason to ever accept any type of judgement, but I still think you should try and avoid it at all cost.  My point here is to be aware that you are now asking for them to give up a pretty major concession.  They may not want to do it.  Anything you say or write to them may also be used against you in court, so you have to be careful with your wording.  You should always be prepared for the worst.  Not because it's guaranteed to happen, but to prevent you from getting in a really bad situation you were not ready for.  Research collection options for judgement holders in your state to know what the creditor can do if they get a judgement.  It may or may not affect your daily life and therefore affect how you proceed in these negotiations.

Good luck,
Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

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