Settlement after judgment

[IamOld]

Hello Rogue - hey, if you can settle with them so be it- as you said, then you're done! Just be sure that you know that these lovely people will likely send you a 1099 - for "forgiven" debt - of course if you fill out an IRS form and show that you were insolvent at that time, IRS will waive the taxes on the "forgiven" debt...

[GoingDown]

My wife was offered a 25% settlement on a three-or-four-year-old judgment. The first offer was 50% after two years.

We are NOT in FL and she's as collection-proof as anyone. The amount in questions is something around $11K.

If the judgment holder sees that there's no movement of any kind on your credit report and nowhere to collect from, they *might* act as described...

As always, YMMV.

Good luck to us all.

Yes, this is what other people have told me, too.

The older a judgment is, the more likely they are to settle for far less than the amount of the judgment.

Any debt becomes less and less likely to ever be collected over time. The older it is, the less likely it is for them to get anything. So they get desperate and try to get anything rather than get nothing.

Also, if it was a junk debt buyer who sued you, they likely paid just a few pennies on the dollar for the debt, so if they get 25% of the debt, they are still making a huge amount of profit from it.