Legal Question in Credit and Debt Law in California
I had a credit card that was written off. A collection company bought the debt. Sent paper work to my rental property, tenant took paperwork and I was not notified until it had already gone to court. To stop process on wage garnishment I opted for a payment plan, but debt is double what the write off is ($20K) and they are still reporting it on my credit. Can I get the amount reduced and is there a recourse for them still reporting although I'm in a payment plan?
1 Answer from Attorneys
Depending upon when the judgment was entered against you, you may be able to have it set aside to defend the action (although if you owe the debt, it may not be worth the cost to set it aside). The creditor will continue to (and is legally entitled to) report the debt to the credit reporting agencies whether you are in a payment plan or not and the only way to have the amount lowered is to negotiate with the creditor. If the creditor is unwilling to reduce the amount you owe, you will continue to owe the total amount of the judgment. Judgments in California are good for 10 years, accrue interest at the simple rate of 10% per annum until paid, and can be renewed every 10 years essentially forever until paid.
Depending upon your financial circumstances, you may want to talk to a bankruptcy attorney.
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