A couple of questions. First, do bankruptcies discharge civil judgments? Second, has anyone here negotiated with a judgment holder and had judgment deleted from report? Your experience is requested. Thanks.
To answer your first question, if a judgment exists, you or your attorney will need to file an action with the court to have it vacated. At least in MD, it does not happen automatically. And as far as I know, most attorneys charge extra for this. (in addition to the charge for taking care of your bankruptcy)
If you have a judgement and then file BK and list the judgement it should be included in BK. I had a judgement and got a deletion by negotiating it. Each creditor is different. It just depends on the creditor.
I plan to negotiate it by mentioning possible bankruptcy to the creditor. I then will negotiate a lower payoff for the deletion. Can the creditor actually direct the CRAs to remove the entry?
Yes they can....it's the best way to get a deletion when the creditor requests it from the CRA. Keep in mind...if the amount you negotiate is a savings of over $600 the creditor can send you a 1099 and you'll have to declare the savings on your income tax. Example....debt$10,000...you settle for $7000...you get a 1099 for $3000. Keep this in mind when settling.
Example....debt$10,000...you settle for $7000...you get a 1099 for $3000. bigmon ================ What if say 500 of the 3000 is unearned interest. Do you pay tax on 2500 or 3000?
