OK this is a little confusing but, I was just taken to court for a balance of a credit card, and the

asked that a judgment be placed against me however one has not yet been placed. Today I got a letter saying that they are willing to set up a payment plan to avoid further legal action? Im confused by this whole situation.Will a creditor usually still offer to set up a payment plan even if they are seeking a judgement against me? and if they do get the judgement and I set up a payment plan and pay on time and everything can they still garnish my wages in addition to the payments im making? Does anyone have further advise or info on this matter or better my rights in this matter should I get a lawyer? The creditor has been really nice non harassing etc, should i trust that they are willing to accept payments and stop legal action..... thanks! And arent judgements usually placed on the court date?

OK this is a little confusing but, I was just taken to court for a balance of a credit card, and the creditor?credit rating

If the creditor only filed for judgment and you haven%26#039;t actually been to court, then yes, the creditor can withdraw any further legal action.

A creditor is still giving you a chance by setting up a payment plan before court, but that can also happen after judgment as well.

If they%26#039;ve already received judgment and you%26#039;re paying the agreed amount, they will not garnish your wages.

Garnishment comes after receiving judgment and you still don%26#039;t pay.

According to the Fair Credit Reporting Act, judgments are only on your credit report 7 yrs. from the date of entry, not 10!

I had one in 2-02 and it will be removed 2-08.

If they%26#039;re giving you another chance, just make a reasonable payment plan and stick with it. You%26#039;ll feel better in the long run.

OK this is a little confusing but, I was just taken to court for a balance of a credit card, and the creditor?

loan

A judgment takes time because it must be place on your credit record. A judgment is basically a way of saying you owe money. Most people who receive judgments never pay. Don%26#039;t pay them anything, unless you like paying for something twice. Next time the collector calls you tell them you have been to court and a judgment has been placed against you, and then never speak to them again, or you can ask them to Verify the Debt. Do research on Verification of Debt often called VOD%26#039;s. A great place to start is www.SuiJuris.net|||Judgments can be placed against an individual, once they have WON the judgment in court. This judgment hits your credit report, and remains there 10 years AFTER date of satisfaction. That is the rule for public records. Plus, the judgment will lower your credit score.

Chances are very good the creditor will win in court. Simply because you signed an application saying you would pay, then when you charged items, you further agreed to pay the debt. and so on.

The creditor is still open to negotiating because they really just want to get paid something and move on. My suggestion, is offer a settlement, make payment arrangements and really stick to it. Make sure you get everything in writing and that the judgment is NOT still awarded.

I am in the lending business and a small mishap like this will cost you THOUSANDS of dollars more in higher interest charges because it will effect your credit score that drastically.

If you can keep the judgment from hitting your credit report you are much better off, even paying the debt over a longer period of time.

Hope this helps,