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Author Topic: how to offer a judgment settlement after receiving HOH exemption  (Read 12835 times)
floridasued
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« on: May 28, 2015, 12:47:59 PM »

I live in Florida. I had a credit card debt with BOA for $4500.00 that I could not pay.  They got an MSJ on me back in 2011 and proceded to garnish my wages. I received a head of household exemption against wage garnishment and did not hear from them again.  In April I received notice that attorneys representing CACH LLC had the debt which was now $11,700 from interest and attorney fees from previous lawyer. They indicated they were going after my wages again.  I again went to court and was granted head of household exemption.

I’m tired of this rollercoaster and would like to attempt a lump sum settlement.  I’m looking for advice on the percentage I should ask to settle for and what other stipulations I should include like making sure its final and no other companies can pick it back up and how its reported to the credit agencies.

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cmart56
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« Reply #1 on: May 30, 2015, 10:40:18 PM »

First, you should give very careful thought to any debt settlement.Assuming you are able to reach a settlement agreement with this JDB, lets say for 20 per cent of the debt of $11,700.00, then the 80 % balance of the debt that was bargained away or that you will not be responsible for could become a problem down the line for you. The JDB would issue you a 1099-c with a copy to the IRS.Then guess what, the IRS has become your new creditor.You could as part of the debt settlement ask the JDB not to report the settlement agreement to the IRS.But most will not honor that request as it is the law that they report it to the IRS any forgiven debt.Perhaps another way to go around this would be via novation.You might want to check this link for more information about novation and contract law.http://legal-dictionary.thefreedictionary.com/novation.Also this site.

If I were in your shoes,I would continue to avail myself the Head of Household protections offered by Fl. Stat. 222.Of course you would also have to plan in the event that at some point in the future you would no longer be able to claim that exemption.Better having the JDB as the creditor than the IRS  that has tremendous power and reach that the current creditor does not have.

You might want to consider visiting your local Legal Services office in your area where you can consult your situation with an attorney.I hope this has helped.Finally,please be advised that I am not an attorney and you should really rely on the advice of a licensed Florida attorney.
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