Should I pay off these Judgments?

Submitted by Anonymous (not verified) on Fri, 01/26/2007 - 20:09
Forums

Greetings!

I have two judgements filed against me in the state of Minnesota. (MN Judgment SOL = 10 years) I have called the courts and they have verified these judgments. Also these judgments show up in all 3 CRAs.

One has been filed by Liberty Credit Services on April 2003.
Total amount: $3200
Liberty recently sent me a letter saying, "Liberty Credit Services Inc will agree to satisfy the above-mentioned account for $2500. Payoff good through the 31st of January 2007. Satisfaction of judgment will be mailed after funds have cleared the bank."
Should I pay balance in full and ask for Paid in full letter or pay settlement amt of $2500? Which looks better on credit report or does it even matter?

Another one has been filed by Afton Recovery LLC on August 2004.
Total amount: $4500
I have sent two certified mail with return receipt letters to Afton Recovery requesting verification of debt & settlement offer but both letters have come back to me. I have called their 800 and their local contact # that I found in the internet, but none of their phone numbers work. I have a feeling Afton Recovery is out of business.
Should I file a motion to vacate the judgment?

Currently I live in California. Since I live in a different state now, could the judgment be enforceable in my current State? [CA Judgment SOL = 10 years]

Is it a good idea first to dispute it with the CRAs saying "I have no judgment due and owing or unsatisfied in the amount of XXXX with XYZ court".

Your responses and any advice in this matter would be greatly appreciated.

If Liberty Credit Services is prepared to give you the Paid in Full letter after you make the payment then you should pay off the amount.

The second judgment filed against you is by Afton Recovery LLC, as you have doubts if they are still in business or not, check with the Department of Financial Institutions. If still in business DFI will have their updated record.

Should I file a motion to vacate the judgment?

You need not file a motion to vacate the judgment because when the court proceedings starts, if they are not present then you will automatically win the case.

Currently I live in California. Since I live in a different state now, could the judgment be enforceable in my current State? [CA Judgment SOL = 10 years]

Yes the judgment can be enforceable in the other state provided the CA has a license in that state.

Fri, 01/26/2007 - 23:47 Permalink
Sean (not verified)

Liberty Credit Services says I owe them 6000K but refuse to tell
me how and why? what are the purchases? I am refusing to pay.
I do not want this on my credit report. Advise.

Wed, 01/27/2010 - 18:09 Permalink
Joy Hannon (not verified)

If you agree to pay $2500 with Liberty Credit, please be advised that you will receive a 1099 for that year's taxes indicating you have been paid $700 by Liberty Credit and have to include that amount as income (tax liability) and it is perfectly legal. They take the loss of the difference of what you owed and what you paid - it is a loss for them, and considered income for you.

Tue, 07/06/2010 - 19:49 Permalink

you should receive a 1099 for $700, its true. but in all of my settlements I have never received one. that doesn't mean they won't. Regardless, you will save money by settling

Tue, 07/06/2010 - 22:40 Permalink

My mother in law had one a couple years ago after the bank sold her home. Fortunatley she was forgiven since this all resulted from the death of her husband. So if anyones problems result form a death of a spouse keep in mind to ask your tax collector if it can be forgiven. Just thought I would add that in case anyone does get one.

Fri, 07/09/2010 - 13:14 Permalink
crorkz matz (not verified)

5vD3kL Thanks-a-mundo for the post.Really looking forward to read more. Really Cool.

Mon, 08/04/2014 - 22:00 Permalink