Legal Question in Credit and Debt Law in Pennsylvania

I lost a car accident lawsuit over 10 years ago for 10,000 dollars i was advised to file bankruptcy but i would rather try to settle this debt. Can the creditor wave interest fee an posibly agree to a lower judgement?


Asked on 4/05/10, 11:26 am

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

The creditor can settle for whatever they want. However, the difference between the amount you owe them and the amount you settle for will be taxable as income.

Alternatively, if you file a bankruptcy, there is no forgiveness of indebtedness income.

I trust this answers your question but feel free to call or e-mail me on a free initial basis.

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Answered on 4/13/10, 8:43 am


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