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DON'T BE HAMMERED BY YOUR DEBT

DON'T BE HAMMERED BY YOUR DEBT

Wednesday, November 18, 2009

The Motion To Set Payments--How To Overcome A Huge Court Judgment

You have a debt you can’t pay. It’s ballooned into a huge debt with unreal interest charges and now collection costs and attorney’s fees. You offered to pay monthly what you really can pay and the debt collector wouldn’t give you the time of day and offered you some outrageously huge payoff amount. Now you’ve been sued and you are staring at the possibility of or already are saddled with a huge judgment. You are living with the fear that the debt collection lawyer is going to execute (obtain court authority to take and sell your car, your house or some other asset). There is another option besides bankruptcy court and one that allows to retake some control over an out of control situation. Almost every court (jurisdiction) has some form of what we call the Motion To Set Payments here in Tennessee. It is a court remedy that allows you to file paperwork with the court asking the court to set monthly payments on a judgment. The person filing the motion must document to the court all of their income and debts and must justify that they are making the largest monthly payment they are capable of reasonably making. If the court grants their motion and allows them to make the monthly payments (usually directly to the court and not to the judgment creditor), then the judgment creditor cannot take any enforcement action such as executions, wage garnishment or seizures as long as you are current. This is a powerful tool in the hands of the judgment debtor. It essentially allows you to set your repayment schedule at exactly what you can afford. It is a particularly useful tool if you are simply in a bad patch, unemployed and expect your fortunes to improve in time. Contact the court clerk and ask if they have a Motion to Set Payments or a similar motion. Most courts will and even if they don’t, the court will always hear a motion for relief. The key is to be honest with the court and offer a reasonable payment based upon your current financial situation SS4HTZ6NJ7EY

4 comments:

Anonymous said...

It is rather interesting for me to read the blog. Thanx for it. I like such topics and everything connected to this matter. I definitely want to read a bit more soon.

Anonymous said...

It was certainly interesting for me to read that article. Thanks for it. I like such topics and anything that is connected to this matter. I definitely want to read a bit more soon.

Anonymous said...

I have a gigantic judgement against me from a HELOC gone bad.
I'm talking over 250k.
My home here in FLA is very underwater, and I have NO job.
Can you tell me what the 'motion to set payments' is called here in FLORIDA , I have searched and can't find anything. Creditor is going to make me take a 'deposition in aid of execution' and I'm scared. Any advice will be so appreciated.

j0 said...

what if the debt is not ours and the attorneys keep getting approved to garnish my husband's wages then we file for a hearings, set aside judgments, and they still get awarded coz they say we didn't file on time or didn't file the right documents. also, we never got summoned to go to court the first time and we show proof we never got summoned to go to court made up names they have on the papers or surveillance videos with someone leaving the papers under the mat and the judge doesn't bother looking or take that as proof that they're lying about it. we found out about the debts through his work payroll saying they're garnishing his wages...