We qualified for a mortgage but the underwriter noticed a case open on me showing through Trans Union that I owed money on an open case in County Court. At one time a collection agency filed to garnish my wages. Judge ordered garnishment be stopped as I was in process of bankruptcy. That company as well as that particular debt was included in the matrix of my chapter 7 bankruptcy 2 years ago. Now the Collection agency will not file a "satisfaction of Judgment" in order to have that case resolved in County Court and removed from public record. The collection agency will verify verbally with me that it was included in the bankruptcy but they have stopped communicating with me and told me to get a lawyer. The money owed in court has now tripled due to interest. I have never received anything from court systems about this case for 2 yrs. How do I file a "Motion to Request or Mark Satisfaction of Judgment from Creditor or Collection Agency" as I do not find this specific form in Nebraska? Can I draft my own form requesting this? If I have to pay the county court may I request reimbursement as it was included in bankruptcy? This may prevent me from closing on house in 4 weeks.
Since the debt was not paid and satisfied you will not get a Release and Satisfaction of Judgment. The debt was Discharged in your bankruptcy. Has the creditor tried to collect the debt? If so that would be a violation of the Discharge. You should check the Court docket to see if you or your attorney if you had one filed a Notice of Bankruptcy in the state Court case after the Bankruptcy was filed. As long as the creditor is not collecting the debt or still reporting that balance is owed on your credit reports they are not in violation of the discharge. You should also provide a copy of the Discharge to the underwriter.
A bankruptcy discharge is not a satisfaction of judgment and it isn't a justification for sweeping a local court record under the carpet either. The document you file in a civil case when you file bankruptcy is called "Suggestion of Bankruptcy." Now that your bankruptcy is completed, about all you can do is file a "Notice of Bankruptcy Discharge" in the civil case and ask that the case be dismissed as a result of the bankruptcy. Unlikely that the creditor has any obligation to cooperate with you on this. Hope this perspective helps!
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