Riverside, CA asked in Contracts and Business Law for California

Q: I sigmed a stipulation for a default judgment. Next month i am retired and i cannot pay anymore. Any solution?

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1 Lawyer Answer
Julie King
Julie King
  • Monterey, CA
  • Licensed in California

A: You have three choices: (1) you can call the company and see if they will restructure the debt, although they are not obligated to do so, since you already have a contract to repay; (2) do nothing and you will have a judgment entered on your credit records and will likely be subpoenaed to attend a court hearing at which you tell the company to which you owe money every asset you own, every bank account you have and how much is in it, etc. -- that's called a judgment debtor examination; or (3) pay the debt. Companies are more open to restructuring debt if the reason you can't pay is COVID-related. If not, then it is up to each company to decide what it wants to do. Sorry you're in this spot but take heart; there are a lot of people there with you. Hopefully we will all emerge from this season much better off than before!

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