Legal Question in Business Law in California

Re: signed default judgement under diress

None, I'm afraid. You agreed to entry of the judgment, and then your husband risked your money with your friend. The creditor didn't agree to take that risk, and it isn't responsible for the consequences. It might agree to an installment plan, but it does not have to.

Re: signed default judgement under diress

You do have one recourse and that is bankruptcy.

There is nothing that forces your creditor to negotiate with you. However, creditors typically do negotiate because a bankruptcy filing can force a creditor to accept a payment plan and typically costs both sides more than a negotiated payment plan would have.

Re: signed default judgement under diress

A "confession of judgment" is illegal unless it is also signed by your own attorney.

Soliciting such a document is an unlawful debt collection practice for which you can sue the creditor or collection agency under the Fair Debt Collection Practices Act. See a local attorney who does FDCPA cases.

Your attorney fees will be paid by the creditor.

Re: signed default judgement under diress

If the default judgment was signed under "duress", then arguably it is voidable. However, as a practical matter, the creditor should negotiate with you if you are making payments and intend to continue to make payments in good faith.

Bankruptcy might be an option, but working out a payment plan is the better option. You(and your husband) should consider hiring an attorney to assist you in dealing with the other side and trying to work this one out.