The Dreaded Judgment!

Many of my clients have thousands of dollars in credit card debt. Their businesses have failed; they have no steady income, and are unable to make their monthly payments.

At first these accounts start out in the collection departments of the banks, they do their best to collect what they can, but when they have exhausted their efforts, they sell this debt to third party collection agencies.

These agencies have many tactics that they use to scare and intimidate people into paying. They call friends and relatives, a person’s place of employment, and their favorite; threaten legal action and file judgments. Although this sounds scary, and leads people to imagine their wages being garnished and their homes sold out from underneath them, the reality of the situation is that more often than not, nothing comes from the judgment.

This week, one of my clients received a judgment on his outstanding $4600 balance on a Home Depot credit card! The sheriff came to his home and served his wife while she was playing outside with their young child, she was pretty frightened to say the least. As soon as I heard about this, I contacted the collection agency. They let me know that they had no intention to go any further, and asked me if a payment could be made. I offered them a settlement and am waiting to hear back on their answer.

Collection agencies count on these tactics working in order to get payment and make a profit by exploiting debtors who have fallen on hard times. As long as you can see through their empty threats, you will be able to fight back and reach a settlement on your terms.