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Reaching agreement to settle before response is due

Date: Tue, 09/22/2009 - 11:02

Submitted by anonymous
on Tue, 09/22/2009 - 11:02

Posts: 202330 Credits: [Donate]

Total Replies: 2


I am currently working with a debt manangement firm and one of the creditors filed a lawsuit against me (in Ohio). The negotiators have worked out a deal for repayment (still waiting for it in writing) where I will pay 20% now and make some monthly payments after that , but my response to the complaint is not due until early Oct.

When an agreement like this is reached, am I correct in understanding that the lawsuit should be moved to a "suspended" status? Will this happen before my response is due, or do I need to file a response anyway? I want to prevent them from obtaining a default judgement against me despite the fact that we have arranged a payment plan.


If the payment arrangement/settlement is arranged in court itself (as per the above noted site) then you will get a "suspended judgement". Yes, this means that there will be no judgement on your records, however if you miss a payment - even if only 1 day - a default judgement will automatically be against you, so be cautious. And yes, you will get it in writing.

If the negotiators have worked out a deal, then make sure it stipulates that the lawsuit is dismissed (NOT suspended) immediately. And yes, of course, wait for something in writing.

It is often better to come to an equitable arrangement in the court itself because you will be face to face with someone, instead of just another voice out of thousands.


lrhall41

Submitted by Chrys Henderson on Wed, 09/23/2009 - 01:41

( Posts: 2538 | Credits: )