Expert: Michael Brotherton - 5/16/2007

Question
QUESTION: A judgement was served to collect on the remainder of what was owed to car that was repossed and I have 20 days to reply.  They are asking for apx $7000.00 (after deducting $2100 for the car sale) and $3000 for attorney's fees.  I do not have the money to pay this amount and do not know what to do.  Can you please help.

ANSWER: Your response depends on what you can realistically afford to pay. Write a letter to the attorney and make a payment plan. Tell them you may agree to sign an agreed judgment if they agree to your payment plan and dismiss the case once it is paid. If you need help call me 877 270 8204. I may be able to assist you. More information is needed for me to advise you and this is a sticky issue that I need to review before I can give you any specific options. I can tell you there is a way to resolve this.

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QUESTION: I've never done this before should I attempt to reply to them initially with what I can afford to pay and give them a payment plan.  Do you think I can ask them to reduce the $7000.00 since I did pay 17.25% in interest for a car that I paid from 1999 to 2005?

Answer
First, they do not have a judgment yet, they have just filed the suit. Their attorney fees are excessive and I would fight this. A strong negotiator may be able to get this reduced and work out a reasonable plan for payment. You may contact the attorney but keep in mind they work for the creditor. Some collection attorneys are hardcore so you may need to make an appearance in court and ask the judge to cut their fees and set a minimum payment you can afford. If you have resources or cash available offer them 30
nd see how they respond. They may dicker a bit but you could save a lot of money by doing this.