Writ of Execution on Bank Account

[DavefromCali]

My jurisdiction is: California

Hi there!!

I need your advice. Last week a local Sheriff delivered a copy of Writ of Execution to have my bank account frozen (and so far they've withdrawn only a small amount from my checking account ). What are my options at this point? What it is the worst that could happen? Is it too late now to pursue a debt settlement to lower the debt by 50- 60% with the plaintiff? I've failed to answer the plaintiff's claim within the time allowed by law, and the court entered a DEFAULT JUDGMENT against me. The sum of the small claim is $2010.00 from an old credit card. I am a college student and still live with parents. Please Advise.

-Dave
California

 

[Michael Wechsler]

You can still settle the outstanding debt for less than the amount owed with the creditor - that's up to them. The real question is why they would have incentive to lower your debt by 50% and take a loss, especially after they have already started withdrawing money from your bank account. I don't know why you blew off the case since now you are subject to actual costs - in court and for execution fees. You can certainly try to reduce the debt but you'll probably need to pay that settlement amount quickly.

 

[DavefromCali]

Thank you!!

First thing in the morning I am sending to the Court a petition to vacate judgment ( form sc135 in CA). Do you think I stand a chance to get the default judgment vacated since I was never told when/where the hearing took place? Is this a good call? If I get the judgment vacated, what should I do next? Thanks, Mr. the-law-professor !!!


PS: Just wanted to say how much they've withdrawn from my account: $3.00..would this fact give me more leverage to negotiate and lower the debt..... but regardless of the small amount of dollars, they have a default judgment against me, so they can go after any bank account...

 

[Michael Wechsler]

This is probably more effort than the case is worth but it's your time and effort and perhaps it's the principle of the matter.

1) If you weren't served properly, that's a very good reason to qualify for step 1.

2) Even if it's $3, that's fine so long as you can show the court that the default judgment should not have been granted and that you have a legitimate case which can only be decided with a fair hearing. If what the bank did was right and you can't explain why it was not, then essentially there is no need for another hearing of the same case.

Good luck to you - let us know how it all turns out!

 

[DavefromCali]

Hi lawprofessor,

Thanks for the reply. So far, so good.. I need help understanding two parts of the letter of settlement I've received from the attorney office.
Letter has:

I.Parties II. Recitals. III Agreement

1-" in reliance on the foregoing facts........ in the sum of $1312.73 and other value consideration as follows:
As uses in this agreement, "subject matter of this release shall mean and refer:
a. The agreement, the Dispute and all papers.....The subject does not include:
b) any all of attorney's fees or cost any kind whatseover incurred....

6. The agreement shall be effective...upon clearance of said funds Plaintiff shall provide an Acknoledgment of Satisifaction of Jugment. Plaintiff will provide a letter ....account has been settled in full

7. Should suit be commenced concerning any provision of this agreement and relative to the subject matter hereof, the prevailing party ( means them) shall be entitled to receive, in addition to any sums, its costs and reasonable attorney's fees as determined by a court of competent jurisdiction.


Okay..so my question is, After paying the amount I am being offered ( as the debt settlement) am i still obliged to pay for attorney's fee and other costs? Upon paying the settlement off, what is going to happen with all extra costs from the court and attorney fees? Are they just trying to fool me into this so that in the end I'll have to pay the whole debt anyways ($2090)? It's hard to tear apart things in the obscure language of these things..


Thanks


-Dave