A sort of buyer’s remorse. You’re hauled into court. You’re ashamed, disgraced, embarrassed, and you agree to darn near anything to get the heck out of there – including an affordable monthly payment on a $7,000 law suit. But that payment, with Massachusetts judgment interest at 12%, means the debt will never go away.
It’s is not too late to settle for less. A lot less, possibly. I can ask the judge to vacate judgment if one entered, or I can simply file an answer and counterclaim (yes, counterclaim) if a judgment has not entered.
Vacating a judgment is discretionary. It will depend on how much time has passed and how strong the answer and counterclaims are. But it really happens.
Paying something like $20/month for the rest of your life is absurd. It’s disgraceful that American justice frightened you into entering the lion’s den without representation. Yes, it is worth getting a lawyer for this $7,000 dispute. There are cost-effective defenses to explore. There are counterclaims to explore.
In all likelihood, a bankruptcy can be avoided. Of course, if there are other debts then bankruptcy becomes a more feasible option.