Small claims won? Does paid collections still affect credit?

[pennyroyaltea]

I'm looking for quick advice from a lawyer or someone who works for a collections agency.

My husband sold a car to a coworker, who failed to turn in the proper paperwork to the DOL (so there is no legal evidence,) We DO however have a copy of sale agreement, (which again, was never turned into DOL so the collections/towing bills are on us -2,000 dollars worth). We ALSO have a towing bill which says the car was abandoned at the address matching his residence on the sale paper.
AND a witness statement from his apt. manager (same address as sale paper).

I am sure we are going to be able to get our money from him in a small claims course. However, since these things take time we'll have to pay the collections by then. Once we win, will it still have affected our credit since we paid collections?! How does that work?!?!?! PLEASE help!

 

[army judge]

Help me fully understand your post.

You sold your car.
A man paid you for that car.
The man failed to file paperwork to title and license the car.
The car was abandoned and towed.
It is being stowed.
You have been billed for the towing and stow charges.

If that is true and you have proof you no longer own the car, why are you being billed?

If you've been paid what do you plan to recover at suit?

Tell me what i've missed and be concise, thanks.


Sent from my iPhone using Tapatalk

 

[pennyroyaltea]

So my husband sold the car to a coworker for 100 dollars (it was a junker). He only has a copy of the 'report of sale' from the bottom of the vehicle registration. Since it was never taken to the DOL it isn't seen as 'proof enough' that the car was no longer ours. This all happened about eight months after we THOUGHT he sold the car.

Now, I noticed last night that the address it was towed from matches the address on the guy's sale paper. I called the apartment and the manager remembers him. Said he not only abandoned the car, but disappeared and left ALL of his stuff in his apt. She is giving us a statement.

Because my husband is stupid and said he was going to fix it (never did and it went to collections) I imagine our credit will still take a hit. I was wondering if I should just pay it, take the guy to small claims to try and get the money back, and then file a dispute with the credit bureau about the negative hit on our credit.
I don't know what else to do.
It wasn't technically our car anymore. But my husband failed to do things correctly.
And SHOULD have been proactive when the bill was just with the towing company.

Wanted to know if the apt. statement, his parents as witnesses of the sale, and our 'unlegalized' sale paper is enough to stand up in court.

 

[jharris352]

When the collection agency contacts you, just work out a payment plan with them. As long as there is a payment plan they will not put it on your credit. Its one of the carrots they use to get you to pay. When you win your case though, beware, it is often hard to collect unless you know how.