Ok , Now I know we did not handle things the right way. We ignored this problem and it has only grown. Trying to fix it now I know is only a big mess as a result of ignoring it. We owed an apartment complex 3633 for moving out 2 weeks prior to the end of our notice. The rent check for our final month stay bounced and last year we were served with notice that we were being sued. We live paycheck to paycheck as most do and did not see that we could resolve this and so we ignored it. Just one month after the judgement was obtained we got a letter that said we now owed not 3633 but over 6K part was the 1K in lawyer fees (ok I get that) and it was gaining interest at 8 % compounding daily and the debt was now over 6000 after only a month or so. That was back in october I am terrified to see how much it is now. Is there anything we can do other than pay what must now be over 20K debt less than a year later. We still have no savings but I am hoping to have a better paying job soon and if we have to move we are afraid we will not be able to even rent a apartment or a house. I would like to pay this debt but dont know if we have any options to do so. If we put all our effort into paying it I am afraid it would continue to grow faster than we could pay it. Would it be better to hire a lawyer? could they negotiate a settlement or is it too late for that? Who collects the interest? The court or the people who filed the lawsuit? If I paid the origional amount could they sue us again for the accrued interest? Are we screwed for the next 20 years???
You cannot keep your head in the sand. Who was the OC and who is the JDB and or CA? You need to find out how much the judgement was for. Also has anyone been in contact with you to execute ? There are ways to deal with this and you may end up getting it satisfied for a lot less than the am ount of the judgement. Give us the details. Woofer
You owed $3633 for two weeks rent? You were living in the Astrodome? Most people don't know what to do, so they ignore these. Depending on the situation, it might be no worse than fighting and then losing. It might have made sense to stipulate to judgment or something less than that to avoid some of the fees, making the assumption you had no argument for not paying. A month after the judgment or a month after you moved out? It seems like they are charging more than 8%. If they say $10,000, perhaps you could use this to point out that they are supposed to charge the percent that they can legally charge. $20K? Are you sure they didn't charge you 80% or 800% interest? You are right that whoever is thinking about renting to you might look to see if you have previously not paid all your rent. Which is why you might want to make it clear to the judgment creditor how he can get some money out of this. You can expect a "supplementary proceeding". Don't avoid this or they will put out a warrant for your arrest. They'll also try garnishing your wages, most likely, if that's available to them in your state. The lawyer would've been good right out of the box. Now you'll have to decide whether or not it will appear that you have money because you can hire a lawyer if you hire a lawyer. Of course when they ask you in the supplementary proceeding, you will have to tell them everything anyway. The people who have the judgment get the money. They have a judgment against you. It includes all the current fees and original debt and the interest. If there is some way to attack that judgment, I don't know, that's what the lawyer is about. If by "screwed" you mean, will you owe this ever increasing debt burden for the next 20 years (or however long it lasts in your state), yes.
I guess that a lot of people think that certain debt will just go away. I owed $3000 for yellow pages advertising and it was handed over to a local attorney, they called and called and got court papers and only then did I call them. The lawyer was very polite and said to me- Joe, did you think that this will vanish into thin air??? Once it goes especially to a local attorney and is a valid debt(and you know it is) I think you are screwed. He still allowed me to pay 50% as I said he was nice. We all learn the hard way sometimes. Joe
