any Debt Collections Settlement Questions ?
I am currently negotiating a settlement with a lawyer handling collections
for a bank where I had a credit card account for which there is judgement
against me. The debt is three years old and I am looking to settle the
debt for less than the full amount owed. The lawyer seems to agreeable --
we have settled on an figure, which I'll make in a single payment. I have
two questions...
1. Does the creditor have the ability to remove the judgement from my
credit report if they desire to do so? I'd like to know if this is
something I can negotiate for.
2. What kind of legal "proof" do I/should I get from the creditor to
protect me from the creditor coming back for the balance of the debt?
I live in New York State and do not have any significant assets.
In California, you can stipulate to have the judgment set aside and
have the case dismissed without prejudice in exchange for the payment.
Or the lawyer can file a document called "Acknowledgment of
Satisfaction of Judgment" showing the judgment as paid. The law may be
different in your state.
Your settlement agreement, cancelled check or Acknowledgment of
satisfaction of judgment should be sufficient. I know in California,
the court puts a stamp on the original agreement stated that judgment
has been entered on the instrument so that the creditor cannot sue
again and get a duplicate judgment. Or you you just ask the attorney
to right a letter or give you a receipt.