That is a hard one, they can accept a settlement, but why should they if a judgment was obtained. A court of law found in their favor and is stipulating that the balance be paid in addition to state allowed interest rate. This is going to be a hard one to get them to accept less when they know they have you.
I guess it is a matter of appealing to their sympathies, to have compassion for you to forgive the remaining amount.
They would be able to send you a 1099-C for earned income to be taxed if you save more than $600 on the settlement. But if they did that, no one could later come after you for the remaining amount.
A judgment amount can be settled only before you start paying. As you have already paid 1/2 of the amount, I don't think your creditor or the collection agency will agree to a settlement now. Only if they are generous enough, they may forgive the debt, as Nightstar has mentioned.
Aaron _________________ Keep in touch
Thomas B. Guest
Subject: Garnishment for Colorado
Wed Jul 28, 2010 3:29 pm
Hi, I am currenly being garnished 25% of my disposable income for a 2005 judgement against me. This is a financial hardship. WHat can I do to have the garnishment amount lessened? Also I am a 100% disabled veteran and my inocme to debt ratio is barely covering my debts. I had been paying the Judgement Law office $100 a month for over 13 months with one late payment in May-10 which they have used to continue a writ of garnishment. Can I fight this?
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.