We Have Judgments Against Us But Don’t Want to File Bankruptcy. – Merlene

“Dear Damon,

We dreamt of someday buying a second home, so we tried to consolidate our bills to fast tract to that goal; unfortunately it led to our decline into debt country, due to the fradulent practices of Allegro Law Firm, for nine months we paid $1148.00, there were zero resolution. Afterwhich wewere was bombarded with creditors and debts collection companies, we have settled most of the the debts, but there were two companies not willing to work with us and have now filed a judgement against us.

We have two that went into collections and the calls are daily. Filing bankruptcy is not a good option at this time since we would like to purchase a home, we are working on clearing up our credit. Our car and home payments are current, we have since payed off a 28,000 dollar second mortagage, we have about 5 smaller account which are current and can be addressed without much hardship

What can we do to rebuild our credit? My score is 547 and my husband is 609. Also what is the best course of action for the two judgement and the two collection? .


Hello Merlene,

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Congratulations on settling most of your debts on your own. The only way to have the judgments not be collectible is to either file for bankruptcy or work out a settlement agreement with the creditors that hold the judgments.

For the sake of argument, lets set the goal of purchasing a home aside since, depending on your situation, whether or not you file bankruptcy or attempt to raise the cash to clean up these debts, the time line for eligibility to purchase a home, might be very similar either way. Are there any other reasons you do not want to look into filing bankruptcy? We need to first determine the most appropriate financial solution for resolving this problem.

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How much are the judgments for? How much do you owe on the other two collection accounts? What is your ability to be able to pay off these debts at a reduced amount if a settlement is possible?

Do you have any savings to use toward a down payment on a home? If not, and you had to raise the cash to settle the judgments and a few of these other debts, how long would it take you to save the money to settle these debts and additionally put a 10 to 20 percent down payment on a home?

Please post your answers in the comments section below.

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