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I was sued nearly 5 yrs ago for not paying for a car loan in a Montana court. The original judgement was $23000, now with interest they say its $38,000 and growing. They have a settlement offer of $19000. They won't accept payments and I can't get a loan to pay this offer. Can I still file for bankrupcy? They have not pursued any collections efforts. How long will this judgement continue to effect my credit score? Can I just outwait? I have completed paying off all other debts and this is the only thing hanging over my head and preventing me from reestablishing my credit.
bankruptcy
Hi Tachini,
Welcome to this community :)
As you won't be able to pay even the settlement money, you can consider filing bankruptcy. Bankruptcy will discharge you from all the debt. However, before filing bankruptcy, you can go for a free counseling session to an attorney. As a result, you will be able to know whether you really need to file for bankruptcy.
Other than this, you can also try to go for a free credit counseling program. A credit counseling program will help you eliminate your debt, and improve your credit.
Hope this helps.
Regards,
Aaron
Judgments can stay on your report for 20+ years . Usually what happens is that the plaintiff has to renew the judgment.