Basic Details:
Default Judgement against me personally for $8,521 (original debt of $6,312 plus fees, etc.) in 2010
Wage Assignment against me personally for $11,576 (original judgement of $8,521 plus fees) on July 8, 2014 goes into effect this Tuesday for $385 per week.
About a month ago I got a phone call from a debt collection law firm. He said he was giving me a chance to respond before they filed a wage assignment action against me for a default judgement in 2010 that was from Capital One credit card bill from 2006. This was completely out of left field and I had no idea what he was talking about but I did remember having a business Capital One credit card that went unpaid when a corporation I owned went belly up. I had a few other accounts and I had a lawyer negotiate settlements for all those accounts back in about 2008 but Capital One wouldn't settle and, as I remember it, they just stopped contacting me.
I don't ever remember receiving a summons in 2010 but regardless, there is a default judgement against me. This never showed up on any credit reports or anything so this was the first I was hearing about it. Unfortunately, the guy got me rattled and somehow I said my employer's name. I told the guy he needed to send me documentation proving I owed anything and we ended the call.
Fast forward to Monday a week ago and my employer walks in an gives me a copy of a wage assignment order. I immediately go see a lawyer. The lawyer at first says he doesn't think there's much he can do but he agrees to at least go pull the case files as part of the initial consult fee. When he does, he says he thinks I have a case. The reason is because the only documentation for the original judgement from 2010 is a two page Affidavit. My name does not appear anywhere on the Affidavit. The Affidavit only mentions the corporation. However, the judgement is definitely against me personally, even though, according to him, they had no "jurisdiction" on me and provided no evidence of my personal indebtedness.
Now, I honestly don't remember if I signed personally or not. I don't remember signing personally. I DO remember signing personally for American Express (who we also had to settle with) because they make it very explicit. However, again, the ONLY documents provided in the original case in 2010 was this two page affidavit that ONLY mentions the corporation.
So after all that explanation. Here is my dilemma/question. My attorney said he has only had one other case in 33 years experience where he (successfully) fought a judgement, but he can't find that case file and doesn't remember the details. He _thinks_ we have a good case to file a motion to quash the wage assignment and a motion to set aside the judgement. However, that's going to cost me some money (which I don't mind spending) but if it fails, he doubts the law firm will be willing to settle (whereas they have already expressed a willingness to settle for approx. $6,800, the original debt). Plus he thinks they will get a few weeks wages in the meantime which will add up fast at $385. He's suggesting I may want to try to settle with them for somewhere in the neighborhood of $4,500 before they get that first check (next Tuesday).
Now, although I make a good salary, we are still about a year away from paying off all that mess from way back in 2008. We do not have any sizable lumps of cash sitting around where we can just shrug, pay these guys $5,000 - $6,000 and go on with life. We also can't afford to have approx. $1,600/month of our salary go to pay off these guys.
Do I roll the dice and have him file the motions to dismiss and hope for the best, or do I try to gather up the $5,000 or so to make a settlement offer?
We are 99% sure that it has been 6 years since I last paid on this debt so if the motions succeed, he thinks they won't be able to collect anything because of SOL.
Can someone give me any more confidence that the motions to dismiss will succeed or point me to research relating to this issue?
Default Judgement against me personally for $8,521 (original debt of $6,312 plus fees, etc.) in 2010
Wage Assignment against me personally for $11,576 (original judgement of $8,521 plus fees) on July 8, 2014 goes into effect this Tuesday for $385 per week.
About a month ago I got a phone call from a debt collection law firm. He said he was giving me a chance to respond before they filed a wage assignment action against me for a default judgement in 2010 that was from Capital One credit card bill from 2006. This was completely out of left field and I had no idea what he was talking about but I did remember having a business Capital One credit card that went unpaid when a corporation I owned went belly up. I had a few other accounts and I had a lawyer negotiate settlements for all those accounts back in about 2008 but Capital One wouldn't settle and, as I remember it, they just stopped contacting me.
I don't ever remember receiving a summons in 2010 but regardless, there is a default judgement against me. This never showed up on any credit reports or anything so this was the first I was hearing about it. Unfortunately, the guy got me rattled and somehow I said my employer's name. I told the guy he needed to send me documentation proving I owed anything and we ended the call.
Fast forward to Monday a week ago and my employer walks in an gives me a copy of a wage assignment order. I immediately go see a lawyer. The lawyer at first says he doesn't think there's much he can do but he agrees to at least go pull the case files as part of the initial consult fee. When he does, he says he thinks I have a case. The reason is because the only documentation for the original judgement from 2010 is a two page Affidavit. My name does not appear anywhere on the Affidavit. The Affidavit only mentions the corporation. However, the judgement is definitely against me personally, even though, according to him, they had no "jurisdiction" on me and provided no evidence of my personal indebtedness.
Now, I honestly don't remember if I signed personally or not. I don't remember signing personally. I DO remember signing personally for American Express (who we also had to settle with) because they make it very explicit. However, again, the ONLY documents provided in the original case in 2010 was this two page affidavit that ONLY mentions the corporation.
So after all that explanation. Here is my dilemma/question. My attorney said he has only had one other case in 33 years experience where he (successfully) fought a judgement, but he can't find that case file and doesn't remember the details. He _thinks_ we have a good case to file a motion to quash the wage assignment and a motion to set aside the judgement. However, that's going to cost me some money (which I don't mind spending) but if it fails, he doubts the law firm will be willing to settle (whereas they have already expressed a willingness to settle for approx. $6,800, the original debt). Plus he thinks they will get a few weeks wages in the meantime which will add up fast at $385. He's suggesting I may want to try to settle with them for somewhere in the neighborhood of $4,500 before they get that first check (next Tuesday).
Now, although I make a good salary, we are still about a year away from paying off all that mess from way back in 2008. We do not have any sizable lumps of cash sitting around where we can just shrug, pay these guys $5,000 - $6,000 and go on with life. We also can't afford to have approx. $1,600/month of our salary go to pay off these guys.
Do I roll the dice and have him file the motions to dismiss and hope for the best, or do I try to gather up the $5,000 or so to make a settlement offer?
We are 99% sure that it has been 6 years since I last paid on this debt so if the motions succeed, he thinks they won't be able to collect anything because of SOL.
Can someone give me any more confidence that the motions to dismiss will succeed or point me to research relating to this issue?
