If I have been asked to sign an Agreement for Judgment, and the settlement amount is different than the amount of the agreement, what doI do?

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If I have been asked to sign an Agreement for Judgment, and the settlement amount is different than the amount of the agreement, what doI do?

I am settling $6,227.97 worth of credit card debt for $4,000.95. I have a letter from the law office confirming this along with payment arrangement details. I have been advised that in order for the settlement agreement to be honored, I must return the Agreement for Judgment, however, the agreement reads “It is hereby agreed that judgment may be entered in this action for Citibank against (me) in the sum of $6,227.97, with the costs in amount of $241.34 and interest in the amount of $187.20.” Should I request a revision to the agreement for judgment?

Asked on February 3, 2011 under Bankruptcy Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Definitely request a revision and do not sign until/unless you're happy with the amount on the paperwork. What they've given you has you liable for the full amount--there's no settlement. Whatever you sign to is what you will be obligated to, regardless of prior discussions, negotiations, offers, etc. Ask the law firm to revise the amount in line with the letter you have and your discussions. If they won't, there would not seem to be incentive for you to sign or accept the agreement; you would not actually be "settling" the debt but instead you would be agreeing to pay it in full. What they've offered you is basically what you'd have  to pay if they sued you and won.


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