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Hi everyone.
Maybe someone here can give me some help. My Brother and his Wife told me recently that they were sued by a Collection Agency (CACH LLC). They didnt answer the summons or show up in court so of course the CA won by default. Neither of them work right now so the court or the CA put a lien against their house. They couldnt show me any documentation from the CA and they never tried to seek validation of this debt of $9,630.
My question is...do they have any recourse at all? Can they try to validate this debt now...or will they have to hire an attorney and try to have the judgement vacated? I dont know if they have any options now.
Any advice is greatly appreciated!
court judgment
Hi foreverandever,
They don't need to validate the debt now. If your brother and his wife wants to know if the debt is at all a valid, they can get the details from the court. They can request the court clerk to give the paperwork on this debt.
As for the attorney, yes they can consult an attorney regarding this. However, they can also try settling this judgment amount. Debt settlement lowers the outstanding debt amount by 40-60%.
Thanks,
Aaron
Hi Aaron,
I figured going through an attorney would be just about their only option...as for settling the debt...i think the CA is waiting for either of them to go back to work so they can garnish wages and then they would get the full amount, i mean why settle when they can get the full amount?
settle
Hi,
As far as I understand from your first query, the judgment is about putting a lien on their assets. Well, as for the settlement, what you said is true. All collection agencies do not agree to settlement. Still, they can atleast try.
Thanks,
Aaron
The thing is that if they were legally served and chose not to show for court, then the judge has ruled that the debt is valid.
If they have a mortgage on their house and the current value is less than they owe then lien will not pay the CA if they sell. the mortgage has the first lien. So in that case they would open to settle. But if they own the house outright, then it will be tough for the CA to decide to take less. but they might anyway to get their money faster.