Legal Question in Credit and Debt Law in New York

A creditor is under no legal obligation to work with a debtor to settle a debt or work out a payment plan. After a debt is past due, a creditor may file suit in the appropriate court to obtain a judgement. That judgement can stay on your credit report for 20 years in the state of New York.

However, as a practical matter, most judges make some attempt to settle cases -- so even if the creditor is not offering to settle the case now, they may be inclined to at a later point in time -- under pressure from a judge. Depending on the amount due, you may want to consult with an attorney who can advise you how to best handle this at minimum expense to you.

If you need further assistance, you can contact my office via email.

Good luck!