Bank accounts frozen, what is the best way to negotiate with the collection agency?

Question

I woke up today to find my checking acount with a zero balance, I went to the ATM and could not withdraw funds from my savings accoung. I called up my bank and asked them what was up and they said by court order my funds were frozen and gave me the phone number to the lawfirm.

The amount they are seeking is twice what I have in my accounts, the bank representative said my money is still there - I just need to reach an agreement with the lawfirm to get my funds released otherwise they will need to speak with my bank's lawyers to try to seize the funds.

Do I have any leverage in this situation, I know the agency has already recieved a judgement against me - as can be seen in my credit reports. Do I have to pay the full amount or is there a chance I can settle for a %? Previously they sent an offer to settle at 80% but that was over a year ago. I would rather not go the bankruptcy route (chapter 13), but is that an option or is it too late?

What options do I have?

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Follow up
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Ok so my first question to the collection agency, if I decide to talk with them directly (instead of hiring a lawyer), is what does this judgement represent (is it twice the LEVY?). Gosh, I really don't want to get stuck paying twice I owe :(

Answer 1

I think it's a little late now to be wondering how much your gonna pay

Answer 2

You don't have many. They have a JUDGMENT against you and, from the sounds of it, you are in NY (the double amount of the levy is NY law). Judgments in NY are good for TWENTY years, and that freeze will stay on your account indefinitely until you make some arrangements to pay this judgment.

You CAN still try to negotiate, it IS possible, but since they can also garnish your wages, it's not going to be easy. The judgment is accruing statutory interest so it's growing and has been growing since the court rendered it.

If you do not remember being sued and served with a summons, then get to the courthouse and get a copy of the judgment case file. Depending on how old this judgment is, they may or may not negotiate.

Bankruptcy is still an option. If your income is above the state median income, you may not get a Ch 7 and Ch 13 is the only thing open to you.

Answer 3

Since it's come this far,I don't think they are going to be very open to negotiation. Since you forced them to go as far as filing a judgement, locating your bank accounts, filing writs....I don't think they care.

Their next step will probably be to garnish your wages. The bank account is the easiest and fastest source of collecting, that's why they went there first.

Without knowing the rest of your financial details (income, other debts) I can't recommend bankruptcy.

As for the amount, once a judgement is entered they can also collect any expenses involved in collecting the debt. That includes lawyer fees, filing fees, and interest from the date of the judgement. Expenses like filing for writs are also added. So you are not going to get very far trying to dispute the charges in court.

And regarding a previous response...since you claimed you already knew about the judgement I assume you were served and givin a copy of the judgement. Your time to dispute it has long past.

Answer 4

Not many options.
Since you let it get that far, they don't trust you, or believe you.
Are we talking over $30,000?
Can you borrow the money from family?

BK (Chapter 7) may be your only out.
Last resort would be to meet and advise them you want a fair resolution or you will fire Chapter 7. It sounds ugly, but it's the only stick you have to swing.
Forget Chapter 13. Your credit is screwed for seven years either way. If you change your ways you can build your credit up in a couple of years and the BK will be there, but your new "good" credit will make the BK less intrusive on your life.

Answer 5

Have you tried going to a credit counselor? They give free advice and do a lot of great things. They are usually found in the yellow pages of your phone book. Bankruptcy advice may be given, but once they do, they must end their conversation with you if you decide to go that route.

Answer 6

if you ever want to start a business or share in a business with anyone else do not file bankruptcy.

i hate to be the bearer of responsible news, but i feel it would be best to pay off the debts you have. you may not believe it but it's been reported that taking care of nagging concerns (many choose to ignore or simply leave on their real or proverbial "to do lists" indefinitely) can add up to 8 years to your life--not to mention the sense of accomplishment that adds to your quality of life.

personally, i've found that--no matter how painful it feels at a given time--when i act responsibly my self-esteem and my sense of "can do-itiveness" continually grows. i have found no problem i have insurmountable when i stop doing and be in the moment and take the right approach for me.

-meli

Answer 7

it it was a collection agency...they can't ad on interest.

try conatcting the website below.


and they should garnish wages first before they freeze accounts. do you have an over-the-counter paying job?

Answer 8

i would have to say your negotiation period is over, you had that chance before they levied your bank account. the best thing for you to do is be done with it and let it pass. hey the bill is paid.
sorry

Answer 9

Call your Local Legal Services and they may be able to assist you.

Answer 10

go to the loaqn office and try to arrange a samll payment plan