settling a judgement

get the settlement agreement,and something to the effect that you will owe nothing more once payment is received in writing before paying.if you don't they can sell the balance.just know that since the amount forgiven is above 600.00 you will be given a 1099c for the 2,900.00.

Thankyou so much for your input this judgement is 7 years old I just got sick of going to court every 3 months. Dont want to go forever. Why would I get a 1099

okay now were getting someplace.if a judgement was placed.the SOL is at least ten years.if you settle any debt and the difference is more than 600.00.the creditor has to declare that at tax time.that 2,900.00 is considered income unfortunately and you will receive a 1099c for that 2,900.00 to file with next year's taxes.unless you can work out a payment plan to pay the entire debt that is the way it works.any amount over 600.00 saved on a settelement must be declared by the creditor.thus you pay taxes on that amount.hope i cleared it up somewhat.

Thankyou so much i really appreciate your help. You did clear it up. One more question if you dont mind. The law office was on my credit report for 7 years and then then all of a sudden it came off and it has been off for a while. Can they put it on again Thankyou