Your choices are a) pay the judgement or settle through mediation b) file bankruptcy. Im in a similar boat. I had a default judgement on me from a house I bought in 05 and lost in 08. The company got a default judgement against me and renewed the judgement. Other than that, my credit is pristine. I have a 763 Trans/752 EQ, with 40k in the bank/savings/Sharebuilder, making 108K a year with a balance on only one credit card out of 10 and my attorney reccommends I file bankruptcy to avoid the judgement of 61K left over. He said that once they are successful in obtaining a judgement, youre toast. Either pay, settle, or file bankruptcy, and they dont need to settle as they have a legal judgement agaisnt you for the full amount. I have to make that coice right now. They dont want to settle as they have seen some of my assets. (Corvette, 2nd house) and now have a judgment on my 2nd house to satisfy the first house. I have about 70k in equity in the primary residence/2nd house. Im going to offer all of the equity in the house after a refiniancing or I will have to file bankruptcy with a 763 Trans score and 40k in the bank, and 70k in equity in my house. I just got my Venture approved with a 20K limit and my AMEX Plat approved today. decision decisions.
