Legal Question in Credit and Debt Law in California

Unbeknownst to me, apparently there was a $13,000 default judgment entered against my small business back in 2008 (on a 2004 lawsuit) and the unscrupulous creditor has waited until just 2 months ago to notify me via a Levy of Execution. I really don't want to file for Bankruptcy protection but will do so if there are no viable alternatives. With interest, they claim I now owe $21,000. I own a primary residence (Homestead exempted) and also another house in which my 84 year old mother resides and from which I operate my business. The owner of the Collection Agency told me,"I sign the attorney's paychecks and what I say goes. I have lawyers working for me and I am a high school dropout" This is the type of guy I am dealing with. He offered to settle the matter for $10,500 with $5K down and payments of 6 months for the remainder of the balance. I told him to send it to me in writing for review and he has failed to do so. He had threatened to do a Sheriff's Sale of my other house but I won't allow that to happen. I have over $100,000 in equity in that house but more importantly, my Mom means more to me than money. What can I do to protect my interests in my properties since the collector is not negotiating in good faith? Are there any rules of law that I can proffer to protect my property? I have a Family Limited Partnership filed with the State of California in 2010 that I can add my two real properties and assets for asset protection.


Asked on 12/19/14, 11:10 pm

1 Answer from Attorneys
Charles Perry Law Offices of Charles R. Perry

It is hard to see how bankruptcy will protect you very much, if you have assets to pay the judgment. The same is true with a transfer of assets to the FLP.

It is unclear whether you have any basis for setting aside the default, or whether you have defenses to the underlying debt. It is not possible to really advise you without that information, and indeed, I do not think you would get specific advice in a public forum like this.

I do not see why you think the other side is not negotiating in good faith. He has a judgment, he has offered to discount it, and his efforts to collect appear to be within the law. The fact that he did not confirm his offer in writing also does not support a claim that he is negotiating in bad faith.

I understand your frustration and anger, but suggest you take a step back from the situation. I also suggest you consult with an attorney for an hour or so for advice. Sometimes a letter from a lawyer carries a good deal of weight.

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Answered on 12/20/14, 12:55 am


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