Legal Question in Credit and Debt Law in California
Looking for Settlement Strategy
Judgment creditor (a collection agency top junk debt buyer) got judgment for $8,000. May get $3,000 from levy if claim of exemption is not accepted (source of funds from Social Security savings in a secondary account). They declined initial proposed settlement because they know the home is paid off and feel they can get full payment. Debtor won't be selling home or mortgaging it (declared homestead about 35-40 years).
Looking for thoughts on settlement strategy, negotiation tips, that would encourage creditor to settle for lesser amount.
Also, thoughts on whether creditor would pursue a forced sale for such a low amount, or more likely wait it out hoping for a refinance?
1 Answer from Attorneys
Re: Looking for Settlement Strategy
Why would they settle? They are certain to get all their money plus 10% annual interest, someday. The best you could do is refinance and pay them off and hopefully repay the loan at less than 10%. Unlikely they would attempt to force a sale, even if they could, where would they get 10% interest on their money? You should have settled before the judgment or fought the lawsuit.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
