# If a default judgement has been entered against you in court, can you still work out a payment plan in court

Question

Thanks for the answers. Here is what I did last week.

I called the Collection Agency and explained that I was unemployed and I didn't have any assets. I told him that I wanted to pay $100 a month. I have a relative who can help me with this. The CA wanted a lump sum and I explained I couldn't do the lump sum but I could do the monthly payments. He became rude and hung up. The debt is for $2000 with Capital One.

So should I just try calling Capital One Monday? I have a return and answer date in court scheduled on Tuesday.

Answer 1

A judgment means you own the money. The method of payment is a separate issue.

Answer 2

First of all you need to find out if the state you are in is a GARNISHMENT state. You can do this on the internet by putting in garnishment states in a search engine. If you are in a garn. state Capital One can levy your wages when you go back to work based on the state laws, if you don't settle the account. You are best off offering 50% as settlement in full, and pay back your relative monthly. A judgment can really mess you up if you apply for a job, insurance, or major purchase and is good for 10 years if signed under seal. If the word (seal) is next to your signature on the contract that is signing under seal.

You are correct in calling Capital One on Monday. Speak ONLY to a decision maker (very important). Do not talk to a collector or customer service person. They don't make decisions.

Answer 3

Bad Credit Repair Solving The Problem
By: Alexis Dey

Answer 4

Ideally, the courts just want to satisfy the whining party that is taking the action against you. So with a judge on hand, you will be able to explain your financial situation and get your payment plan. I went through similar litigation and was able to get the court to settle for "whatever I could afford a week".

Just stand firm and don't be pushed over. Capital One is one that will stick out their suits.