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Portfolio Recovery Garnishment Assistance understanding reporting

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C_DUBYA
Regular Contributor

Portfolio Recovery Garnishment Assistance understanding reporting

Hello all.

 

I am recently married and my wife has a debt that hit the mail recently.  She had an old credit card with Home Depot that went to Portfolio Recovery.  They have since referred it to a local lawyer in our state (michigan) and recently they were awarded a garnishment of her state taxes. We got the paper in the mail Friday saying this.

 

Currently on her credit all I see is the Collection under Portfolio Recovery.  I am working with the lawyer directly now setting up a settlement to pay to close out the debt.  This will happen within a day or two.

 

So now for my question:

Since this is a garnishment judgement already, will that judgement hit her credit regardless of what I do?  

Who reports the garnishment to the credit firms?  Court?  Lawyer?  Portfolio?

If the garnishment judgement hits her credit, does the collection get removed or is it a double ding?

 

Basically, I want to resolve this item for her BUT I need to know I will be clearing her credit in the process.  Portfolio currently deletes the tradeline if you pay them for their debts, but since this is in a lawyers hands I am scared I am going to do all this and still have her credit be bad.

 

Thanks for any tips or info on the above.

Starting FICO8 June 2017: EQ: 514 - EX: 491 - TU: 521 Pre-BK7
Current
FICO8 March 2023: EQ: 703 - EX- 680 - TU: 671
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1 REPLY 1
gdale6
Moderator Emeritus

Re: Portfolio Recovery Garnishment Assistance understanding reporting

Per agreement settlement with many states AGs, Judgments will no longer be reported on. Previously companies such as Lexis Nexis sent runners to the courthouses to collect the info then they sold it to the CRAs.
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