should i sign stipulation of settlement?

Question

I made arrangements with creditor to pay 100 every month. We have a court date on 11/30. I received today a stipulation of settlement I don't know if I should sign it. It says for me to pay 1641.41 100 every 15th of every month. if i pay every month they will not take any legal action on me.

Answer 1

Slimick and Echo's advice is perfect.....

Keep these points in mind.

1) You have a court date, and this document is designed to inform the court that there is an out-of-court agreement. You want this case to be dismissed, not put in abeyance (temporary suspension). They may not allow you to word it that way, but give it a shot.

You want to make sure that the court date is canceled so there is no hearing. That means you have to be sure the court gets a copy of your settlement agreement. So make sure YOU deliver it.

2) What happens if you do not get the payment to them on the 15th as promised? Will they accept the postmark as the day of payment, or is it the day the actually receive the check? Do you want the post office to have control over your agreement? I wouldn't.

3) Be sure that they have agreed to clear your credit report of any negative information. Get it in writing! This settlement agreement is the perfect place for it.

4) Be sure you keep copies of checks or money orders you used to pay them with. This protects you if they claim you didn't make a payment.

5) If you don't have a lawyer look at over, do it yourself. It should be clearly worded, and you need to understand every part of it. If not, do not sign it.

6) Make sure the terms of the agreement are exactly as you said they would be. DO NOT admit to owing the debt or take any responsibility. You are agreeing to make payments, not take the blame for the debt. This is important if you later have to go to court, as you will be signing your death warrant.

Answer 2

I agree with Slimick, see if you can find someone to read over the contract.
You should also request in that contract that they remove anything they are reporting on your credit reports once it is paid.

One other thing that you should "absolutely" do if you sign that contract is to take a copy to the court clerk and request that it be filed in your case file !!!

If you do not file it (and the collector surely won't) you may find that the collector will continue the case and get a default judgment against you. You will not be there to defend yourself since you would have thought by signing the contract they would drop the case.
If you don't file it, the judge will not be informed that there is a prior agreement and will rule in their favor.

Collectors often see those instances as windows of opportunity to back up their claim to the debt through a default judgment. (plus if that happens, you could also be liable for the court costs and possibly post judgment interest, which will raise the amount you owe)

Those types of tactics happen quite frequently.

NEVER TRUST THEM !!!


On another note, have you even checked the collecting SOL for your state? If you are past the collecting SOL you should file an affirmative defense of SOL in your answer to the court and tell the collector to stick that contract. (in my opinion)

Answer 3

You can be sure that whatever you sign will be 100% in their favor and not yours. If you can afford one, go to an attorney who specializes in contracts and have it looked over. If you don't have any money and live in a large city with a law school...contact them about free legal aide. Maybe a third-year law student will look at it for you for free.

If this stipulation in any way enables them to get a judgment against you automatically for not paying by the 15th, I would definitely not sign it.

Answer 4

nope
don't sign anything until you read thru creditinfocenter.com
and then consider suing them back and no matter what
take a Consumer Law Lawyer with you to court because
the Court System and Judges aren't up on FCRA rules
and Regulations. DO NOT SHOW UP ALONE !!!!!

Answer 5

If you do this, then they won't put a garnishment of your wages. I'm not 100% clear, is the total $1641.41? If it is, then you probably have a good deal. But it won't get it off your credit report unless you ask them to see that it comes off your report as you will be making an effort to play ball with them.