Paying a judgment, then what?

[jdebt]

New here,
I have read through a lot of post and found the info/advice great.

So I thought I would ask for some advice/info.

After carefully talking to a lawyer, I concluded that a Chapter 13 would not benefit me.

So I have decide to try to settle w/ my debts.

My question is about a judgment filed in 2003.
The default judgment was for $3550 for H&K investigation.
I was never served b/c I was in college at the time.
Actually I never knew there was a judgment on me, untill they 'froze' my bank account 7/06. When I looked at my Credit Report back in 2005 there was no mention of H&K or the judgment. And as of 7/06 still no record of debt or judgment on any the 3 CRA.

I plan on trying to settle for 50%, but doubt they will accept it and instead demand full amount, but it is worth trying.

So my question is this:
1. When I pay them do I get a letter saying judgment satisfied.
2. Does this protect me against being sued again or for them trying to execute the judgment.
3. Do I have to send the letter to the courts.
4. When they realize that they never reported the judgment to the CRA's
can they report it and then report it as satisfied.

#4 concerns me b/c as it stands now there is no record of this debt anywhere on my credit reports.
Which seems to be in my favor .

[JusticeForAll]

So my question is this:
1. When I pay them do I get a letter saying judgment satisfied.

You should get something in writing! If not, ask for it. Be sure to get the settlement agreement in writing BEFORE you pay them.

2. Does this protect me against being sued again or for them trying to execute the judgment.

They could try to enforce the judgement, doubtful. That is why I mention getting the settlement agreement in writing. Pay them with a check or something you can use later to prove you paid according to the written agreement. Don't let them debit your account electronically!

3. Do I have to send the letter to the courts.

I don't know the answer to this question.

4. When they realize that they never reported the judgment to the CRA's
can they report it and then report it as satisfied.

Yes, I believe they can! Be prepared to get a 1099. Forgiven debt (over $600) turns into taxable income.

#4 concerns me b/c as it stands now there is no record of this debt anywhere on my credit reports.
Which seems to be in my favor .

HTH