Legal Question in Credit and Debt Law in California
Credit Card Debt
I just have found out that there is a judgment against me from one of my credit card companies which I owe them about $40000, my father has agreed to loan me $20,000 so I can pay my debt, I need to know now that they have sued me, will I still be able to settle with them for lower amount and clear the judgment or I have to file for bankruptcy?
Thank you.
2 Answers from Attorneys
Re: Credit Card Debt
If the creditor has a judgment against you they are under no obligation to accept less than the judgment. However, many creditors are willing to negotiate the amount of their judgment and accept less than the entire amount, it just depends upon the creditor. You should be aware that judgments in California accrue interest at the rate of 10% per annum from date of entry of judgment until paid. Further, judgments are valid for 10 years and can be renewed every 10 years indefinitely.
Whether you should, or even are eligible to file bankruptcy depends upon your specific situation. You should consult with an attorney that practices in that area to determine your options.
Re: Credit Card Debt
I agree with Mr. Hoffman's comments. However, I am also pragmatic. If the money your father borrows is going to create a financial hardship for him and/or he has to take a loan against his property or retirement funds, you should consider that when weighing whether to file for bankruptcy protection.
Feel free to contact me directly.
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