Legal Question in Credit and Debt Law in California

I have a friend who has a problem with a judgment that was granted against him in 2000, judgment

creditor is moving to renew the judgment. Judgment debtor recently offered creditor a sum of cash

(approx. 60% of current amount due) plus costs to settle and creditor accepted. Now creditor has

changed his mind as he mistakenly believes debtor may inherit real estate some time in the

future and feels he would be able to place a lien for entire amount of judgment plus interest and

costs. Debtor knows that he will not be inheriting any real estate and informed creditor, but creditor does not believe him. Creditor obtained abstracts of judgment and filed with 3 county recorder's office in case debtor does inherit real estate. Judgment is only the amount of $1,570 ($760 plus interest to date). Creditor accepted offer of $600. plus costs to settle, via telephone conversation, but has now reneged. Can creditor be forced to accept settlement since there was an oral agreement? Debtor is interested in paying off debt as he agrees that it is at least partially owed and stopping accumulation of interest. Debtor is permanently disabled and collecting SSI, and may not be in a position to settle this case in the future.


Asked on 10/16/10, 4:49 am

2 Answer from Attorneys
Tony Carballo Carballo Law Offices

If your friend is on SSI and no property that can be taken then why worry about the judgment? If the creditor accepted an amount to settle on the phone then that is an oral contract but as the old saying goes: An oral contract is not worth the paper it's written on. That's because later people can deny there was an agreement or say that the deal was different. The amount involved is so small relatively and the effort to collect so intense that leaves me to believe it must be a creditor who has taken the matter very personally. It is hard to settle in this situation because it is not about the money but about wining and punishing the other person. Therefore, if your friend cannot afford to pay the judgment in full and the creditor will not accept what your friend can afford then continue to wait because there is nothing the creditor can do to collect from your friend on SSI.

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Answered on 10/21/10, 6:20 am


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