Legal Question in Credit and Debt Law in Georgia
i have a garnishment against me and would like to settle it. how do i get the settlement down to a resonable amount not just 10 percent off? my understanding was that these collection agencies buy the debt pennies on the dollar so a better deal should be able to be made. or would a bankruptcy be a way just to owe nothing and walk away. i would pay something in a settlement that is fair then have to file chapter 11 or 13. so what is my best approach. thanks jeff
2 Answers from Attorneys
"Fair" is not really a factor given that you are asking to pay less than you owe. Given that they apparently have a judgement you need to offer a better deal than they can get in a garnishment. What they paid for the debt does not affect what you owe or what they can get. If you want to to file a bankruptcy because you don't think it is fair that you are asked to pay portion of your debt, you can certainly see a BR lawyer.
In waiting until you lost a suit and face garnishment, you lost your best time to negotiate. Since they may get 100% in a garnishment, it will be very hard to lower the amount. Bear in mind that lowering it has a bad side effect - you will usually get a 1099 and have to report the forgiven debt as taxable income on your income taxes.
Since a bankruptcy can stop a garnishment and may either eliminate the debt or reduce it if you qualify you should see a bankruptcy lawyer soon to assess your options.
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