Judgement and lien on home

by S. Willis
(Hudson NY)

Years ago, my ex-s/o piled up a $16k credit card debt as an authorized user. We have since parted but circumstances forced me to default. I was sued, but I do not remember it, nor being served. This was soon after I was recovering from major back surgery and I had multiple things going on.

I have sold my house, but at a loss. I will not have enough to cover the 16k plus $9k in interest and other costs (plus the $69k left on the mortgage). Any ideas? Will the collection co. Take less interest as right now I'm thinking bankruptcy? I live in NY state?

Comments for Judgement and lien on home

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Mar 14, 2016
your situation
by: DebtCollectionAnswers.com

I am not sure I fully understand your question. It sounds like you have a collection account plus a deficiency from a home sold at a short sale--is that correct?

Judgments can sometimes be negotiated but it's not guaranteed by any means. And it sounds like in your case you have a very large debt ($69K) that you need to negotiate in addition to the small one. What will you do if the collection agency with the small judgment offers you a settlement but the large one doesn't? You may wind up having to consider bankruptcy if both won't come up with a settlement you can afford.

You can certainly try negotiating but in the meantime we'd recommend you talk with a bankruptcy attorney. The attorney will tell you whether bankruptcy is an option in your situation. Then you will at least have a Plan B if you can't negotiate settlements you can afford on both debts. You can request a free initial evaluation with a bankruptcy attorney here.

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