Full question:
I have a judgment on my record from 2006 that I was never served on. Thus a default judgment was issued. The plaintiff was an LLC but is no longer in business. I contacted the attorney of record and they do not want to settle for anything less than everything with interest and can not produce a receipt in the company's name. They want me to pay them and they can disperse the funds. This is not a mechanic's lien, so, can it be dismissed? What are my options?
- Category: Judgments
- Date:
- State: Texas
Answer:
Once a judgment is obtained, the creditor will likely be unwilling to negotiate a settlement and may place liens on property, such as bank accounts, or garnish wages. In some cases, a debtor may be able to negotiate a settlement with the creditor, although this is more difficult once a suit has been filed. In some cases, the creditor may settle for a lesser amount if the debtor is insolvent, since a promise to pay something is better than collecting nothing. These types of agreements are called an accord and satisfaction. If it is possible, a debtor should get a release included in such an agreement so that the creditor may not pursue the full balance of the debt claimed.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
