Expert: Apex Credit Services, LLC - 12/31/2007

Question
i have 100,000 mortgage and 50,000 home equity and my home in nj is worth about 230,000..my problem is i have 2 judgement liens on the property for 10,000 and 30,000 for credit cards that i was a cosigner on and i refuse to pay these lowlife collection agencies...i need to sell my house as the equity is all i have to live on as i currently unemployed and i cannot refinance because of the judgements, which by the way do NOT show up at the county clerks office when i checked at the courthouse last month...i really need this equity to give me a breather to start over again, can i file for bankruptcy to avoid paying judgements and then sell the house or can i sell and not pay judgements since the county clerk says only lien showing is my 1st mortgage (not even my HEL shows up)..please help as i have tried every thing including offering a settlement for money i dont feel i even owe and made motion to vacate which the judge gave me 30 seconds to talk and ruled agins me but these guys Pressler and Pressler have the courts in thier back pockets here in NJ..

Answer
Jose:

    Unfortunately, the judgments may show on your credit reports or other data base although they do not show in your local courts.  As you've experienced, creditors are not very inclined to settle debts once reduced to judgments insofar as they know that they will e paid in full if property is ever sold.

    With that in mind, I would consult a loan officer and see what public records are showing on your reports.  If it is only one judgment, you may consider paying that if your scores are high enough to allow you to re-finance.  If not, then Bankrupcty will allow you to discharge the judgments if you are eligible under the new guidelines.

             Apex Credit Services, LLC