Dear Attorney,

I received a judgment against me (when my husband’s business failed) for $20,000 and with interest and attorney’s fees the judgment came to $24,952.

My wages have been garnished for over two years and I only owe $5,900 to pay off the entire judgment, according to my payroll department.

My house is now getting sold through a short-sale and the attorney is holding up the sale by demanding an additional $7,000 (so I am paying $12,000 in interest on a $20,000 judgment).

My question is, can the attorney legally ask for more money than the judgment? I feel he is taking advantage of the situation, as he cannot provide any documented reason for these fees.

Cecilia, city unknown

Dear Cecilia,

It sounds like an abstract of judgment was recorded in the county in which you are about to short sell your house.

When an abstract of judgment is recorded by a judgment creditor, it becomes the principal lien on your real property. This means the property cannot be sold (or even refinanced) without first paying that lien.

I’d really have to take a look at the documents to determine if the amount the creditor is demanding is correct or not – that seems to be the only thing you are disputing.

I can tell you that interest does accrue at the legal rate of 10 percent in California, so it’s just a matter of doing the math.

Dear Attorney,

Last year my husband lost his job and we tried to keep up the payments on our bills, but we fell behind and we ended up losing our Advertisement

Alternative Care Clinic truck.

It was repossessed by the credit union and we didn’t have a problem with that because we weren’t paying for it.

What we do have a problem with is the credit union. [They] turned around and sold our car for peanuts and then they billed us for the rest.

Now they want us to pay about $18,000 for a car we don’t even have. Can they do that?

Linda, Murrieta

Dear Linda,

They can and they do. And it goes downhill from there.

Obviously, if they sue you and you do owe the money, they’ll get a judgment against you.

Once that happens, they will take the necessary steps to collect the money, including but not limited to garnishing your wages, recording an abstract of judgment (see this week’s previous question) and levying your bank account.

I’m not sure what your financial situation is, so I can’t speak specifically to the judgment creditor’s ability to collect on a judgment, but I can tell you that a lawsuit usually does follow an unanswered demand for payment, so you can pretty much expect to experience the events set forth above.

And here’s the thing: if you couldn’t afford to pay for your car while you were driving it, you certainly can’t afford to pay for it while someone else does.

You should talk to an attorney right away. You might find you are judgment proof or that you should file bankruptcy or that it’s possible to negotiate with the judgment creditor.

Most attorneys give a free consultation, either over the phone or in person. Go get one.