Payments after Judgment

[smalt]

I have a judgment from Citibank for $8k. I went back to court for the payment arrangement..I've never sat with a judge, just the atty representing Citi. First time it got continued because I don't make much money. Second time I agreed to $50 a month but the interest is $100 a month, I still make the same money and can't afford more. We are supposed to meet in court again to re-evaluate in Oct. I can't settle because I don't have any cash. Any advice other than bk?

[nascar]

First, just know that there isn't anything you can do about the interest. It's included in the judgment, allowed by statute, and will continue to accrue as long as an unpaid balance will remain.

Having said that, and this sounds really simple, but you you either pay or you don't pay. There are several factors that will determine your urgency to do so ... or not, but if you aren't in a position to make payments, there is only one option that really makes sense. That is, you need to pay the least you can, regardless how much interest builds over time.

Don't forget, this is a judgment. It is no longer a debt that, by paying, you continue to toll a statute of limitations. If you're paying $50.00, or less, or nothing, per month, and the judgment expires without the judgment creditor renewing it, it's done.

Since you're in Massachusetts, that may not be of much comfort. Massachusetts isn't really favorable toward judgment debtors. So, this really comes down to your financial survival. If the judgment creditor won't play ball and insists that you pay more than you are able, you have to be prepared to make the debt go away. It that means filing bankrupcy, then so be it. With a judgment for 8K and 12% interest piling on for year after year, you're never going to pay the judgment anyway.

Also, you can beat the creditor at his own game. Way back before you were ever sued, someone wrote your debt off as loss. Any successful recovery after that point is money found. Right now, they're in the hole even more since they've had to foot the bill for filing suit. By filing bankruptcy, and not paying the judgment, they've not only lost the 8K (which was probably 75% bogus interest and fees anyway), but they'll lose the 4 or 5 hundred they shelled out to get the judgment against you.