Settlement Agreement Voided?

Since they've already got a judgment against you, you're starting from a disadvantage. I'm not entirely clear on the details, but it sounds like the judgment might be invalid -- did you not receive a summons to appear in court? If so, you would probably be able to argue that your due process rights were violated.

Please note, however, that that is definitely speculation on my part -- I am not a lawyer, and it appears that the time has come for you to talk to one. I've never used a lawyer for this kind of thing myself, but I've heard that NACA has been helpful for some people. (I tried to create a link to it, but the board code wouldn't let me.)

On a more practical level, stuff you've probably already thought about, but just in case you haven't: stop using the account that they have a lien against, and if you have any other bank accounts, stop using those as well -- these people are like bloodhounds, and no matter how well you might think an account is hidden, there's a good chance they'll be able to find it. Cancel your direct deposit, all your automatic bill payments, and so on. Use the web to find the nearest branch of your employer's bank, and take your paychecks there to be cashed for actual currency. Use cash for groceries, buy money orders to pay your bills, and so on. Yes, it's a hassle, but it's necessary.

If your lien works the same way mine did, it will probably stay in place for a few weeks, then they'll empty your account and release the lien. Do not be lulled into a false sense of security. As long as the judgment is unsatisfied, they can do the same thing all over again. I'm told it's a common practice, although it didn't happen to me.

Please keep us informed. Good luck.

If they can prove that you bank sent back your post dated check or ACH then it would have voided the settlement.

Why did you sent the court a letter and not show up?

They did send me a summons - and I replied to it by mail - which is what the woman at the court told me to do if I was disputing the amount, which I was/am(I sent the letter after calling the courthouse and speaking to someone - it didn't have a date to show up, so I called and that was what I was advised to do.) I didn't hear back for quite a while. As far as the actual last payment - it wasn't sent back from my bank for insuffiecient funds or anything like that - Asset processed it incorrectly - transposing a number of my bank account so it would not work - the money was there for that payment. This happened one other time, during the payments, and they corrected it and my payments kept going. I can't tell you how many people at Asset I've spoken to and they keep giving me the same run around - "if you can send us the agreement, we will honor it." The lawyers (for Asset Acceptance) have told me the same thing. The problem is now I can't find it. They must have a copy, they sent it to me, but I'm told it's my responsibility. I supposed I'm royally screwed. It honestly feels like they don't want to honor the agreement. I don't know how else to look at this. Oh, and the court that has entered the judgement is not the same one I was notified from. Is that right or legal? I did not receive a summons from this court.

The woman at the court told you that you didn't need to show up? I am sorry that somehting like that happened to you. Anytime anyone takes you to court, for future refrence if needed, please show up.

I highly doubt that Asset Acceptance intentionaly misprocessed your account information. You will not get another copy of the letter from Asset Acceptance without a lawyer.

When the payment didn't come out on schedule, did you call them and ask why?

Since the summons only listed "reply within 30 days of the date of this letter" I called to find out what to do. I didn't know you could just 'show up' So the letter I wrote was meaningless? I'll never make that mistake again.
The first time the payment didn't come out on time - I notified them. The second time it was christmas and it took me a while to realize it, but I did tell them about it. That is when I sent them the copy of the agreement, that was the last time I can remember having my hands on it.

Also I did misread which court this was processed thru. It is the court I received the summons from. There is a little blurb on it from another county where the lawyers are located so I mis-interpreted that part.

FYI - you're right of course, I'm sure they didn't intenionally misprocess it. I'm feeling really backed into a corner at the moment. The frustrating thing is I've made good on my end of the bargain and thought I was so close to being done, only to be sucked back in again.

A lot of people in here have the wrong idea about responding to a summons. Usually, you do have to respond in writing. There may not be a court date for months in a civil case, and it certainly isn't set up front. (The case is usually different in small claims court, where all you do get is a court date, however.)

However, it sounds like you didn't follow the correct procedure, which would have been to respond to AA, and file your response with the court. AA could have gotten your response, then acted like it didn't and pursued the default judgment.

Anyway, at this point it sounds like you probably need a lawyer to help you untangle this mess, but basically you will want to move to vacate the default judgment, quash the garnishment of your bank account, and then you will have to defend your case.

Why would the lawyer settle for $463 if he has a judgment for $3,500? Probably because he knows you can vacate the judgment and quash the garnishment.

It's hard to tell you what your options are without seeing all the documentation and paperwork. Definitely check naca.net and find a lawyer in your area to talk to. Maybe they can send you on your way with good advice, or maybe you will need to hire one. In any case, you definitely need to talk to one familiar with the law where the case was filed.

Thanks for the clarification, Sam.

Great information as usual Sam. KYSIDE38

Thank you for the help and direction. I am very grateful for everything.