Legal Question in Civil Litigation in California

My husband was sued for payment by a company who provided clean up services after a water leak.

He was strongly advised by the bailiff to settle and not appear before the judge as he stood to lose our home. We made 3 payments of $400 to the company. We will have a balance of $3500. My husband has been out of work for 2 years. We have no more savings, no retirement, his car was repossessed. I make enough to feed us and pay for utilities. The house will be the next to go. We can no longer pay them.

Can we ask for relief? Have the settlement modified? What should we do?

The suit was only in his name.......all our assets are joint.


Asked on 9/13/10, 12:04 pm

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

You might speak with a bankruptcy lawyer in your area. The lawyer might help you examine your options -- including eliminating the debt to the clean-up company and to other creditors, and perhaps loan modification, based upon your income. The bankruptcy court has a filing fee waiver program for those who qualify.

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Answered on 9/18/10, 12:33 pm
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. Cohen. You cannot modify a settlement agreement unless the other party is willing to modify it. You should also be advised that settlement agreements are often enforceable as judgments pursuant to Code of Civil Procedure section 664.6. That section applies to settlement agreements in writing outside of court, or in court on the record and assented to by all the parties.

If the original contractor was foreclosing a mechanic's lien, and the settlement provisions provided for that in the event of non-payment, I would suggest you not breach the settlement agreement until you speak to a bankruptcy attorney.

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Answered on 9/18/10, 2:28 pm


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