Legal Question in Credit and Debt Law in California

Can you settle your original debt with the creditor if there is a judgment against you?

Asked on 5/16/17, 3:58 pm

1 Answer from Attorneys

Scott Jordan Jordan Law Office

Of course. If they are willing to accept less, that is an agreement between you and them. Be careful though, if they agree to accept less than the judgment amount, any amount they write off will be considered taxable income to you and you will need to pay state and federal taxes on the amount written off. There are exceptions to that general rule, including bankruptcy.

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Answered on 5/16/17, 4:27 pm

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