Collections advise needed

[DM20]

Update - Being out of options I called my father and shamefully asked for the money to pay them off in full. It's not alot of money but I hate to ask for help.
It was one of the hardest phone calls I have ever made. I wish I had never gotten credit cards.

[GoingDown]

For those reading this thread and facing a similar situation in the future, here are some options...

If you have assets and wages to protect and you don't want to file bankruptcy in the near future, AND you are in a financial position where you can pay off most or all of the debt... Then call the attorney and attempt to work out a settlement with them to avoid the judgment. Don't pay them anything until you get a settlement agreement from them in writing. You can have them fax the settlement offer to your local office supply stores (such as Office Max or Staples) if you don't have a fax machine, or you can get a free fax-email service at K-7 (look it up on the web). Once you receive their written settlement agreement, if it is acceptable to you, then pay them by money order or something like Western Union (yes I know Western Union is costly, but they can't get to your checking account through it). Don't use your personal checking account or another credit card for this. Otherwise they may drain your account if they are corrupt.

If you have assets and wages to protect and you don't want to file bankruptcy in the near future, BUT you are NOT in a financial position where you can afford to pay off most or all of the debt, then you are in a bad situation. Try to make yourself as judgment proof as possible and just ride this thing out until you can file bankruptcy or until you can pay off the debt. Start using cash, and money orders, and pre-paid visa debit cards to pay for everything and get all your money out of checking accounts, saving accounts, investments, etc. Familiarize yourself with your state's exemptions and get ready to claim them in court if necessary.

If you are essentially judgment proof-- no significant assets to protect, no wages to protect (maybe you're self employed, or you work temporary jobs, or you get your income from an exempt source such as Social Security), get into a defensive posture by making sure you are as judgment proof as possible and plan on riding this out until you are either able to file BK or able to pay off the debt. If they get a judgment against you, it will be essentially worthless. They won't be able to do much with it. In this case, there is no sense in talking to them. In fact, talking to them is the worst thing you can do because you might slip and give them info about non-exempt assets, etc. You need to remember that for the most part, they only know what you tell them and what your credit report tells them. The best thing is to keep them in the dark as much as possible. The less they know the better.

[All Cash]

Worst thing like HHM said was to send them that MO. Now you have no leverage and they can still effectively get a judgment for the balance of what you owe.

[DM20]

I overnighted them the balance, copied the courthouse and they are paid in full. They would have proceeded anyway, I am almost certain. It is their reputation and the paperwork was in play. They got what they wanted, hopefully they will be happy. I had no leverage, it was my debt and I didn't pay it. In hindsight I should have worked with Discover to settle before it got to this point. I would have saved money (albeit my father's), time and stress.

[All Cash]

I overnighted them the balance, copied the courthouse and they are paid in full. They would have proceeded anyway, I am almost certain. It is their reputation and the paperwork was in play. They got what they wanted, hopefully they will be happy. I had no leverage, it was my debt and I didn't pay it. In hindsight I should have worked with Discover to settle before it got to this point. I would have saved money (albeit my father's), time and stress.

Well in 7.5 years this blemish will be off your credit report at least.

[DM20]

My credit is trashed anyway! Has been for years - lots of late payments, limited income and children!!! At least I don't have to be tempted with CC offers! Trying to live the simple life now and stay on top of things.

[DM20]

Guess I totally handled this wrong and now I can be upset again. I did however, make and keep copies of everything, copied the court the payment documentation and sent that as well. Everything they have sent has contained the same $ figure. If I owe more I will have to fight them, I have no other sources to borrow from, no savings account and not much in checking at all. I am not employed either.

[DM20]

BigBoy - I hope I am done with this - really. I don't know whether to call the law firm/collections place to 'check status' or what to do. I wonder what the court would say if they still proceed, being that I paid. Wouldn't that irritate a judge? Could they award a judgement if I paid? Not to mention as I originally stated this is NOT the county that I actually live in - but the next one over (about a mile down the road), and the one that most people out of my post office live in - wouldn't that effect it?

I did copy the court my documentation (cc'd them actually). It included copies of the money orders, cashiers check and cover letter to the law office. Including, dates, numbers, amounts as well as postal receipts and verification info that it was rec'd.
I sent the final cashiers check via USMail express and rec'd notification that it was rec'd at the law office.

I have made myself a wreck with all of this!

[ready2puke]

Give it enough time to get over there and maybe get thru the process. Then I'd make the call and RECORD IT!! Make sure your state allows for it but if not you'll have to tell them your recording the call, but do record it..Hopefully you'll get the answers you want and you'll have it on tape if you need it later. Good luck..and try to have a calm weekend as there is nothing you can do right now