If a debt was sent to a collection agency2 years ago, if the debtor settles with the agency does satisfytheir obligations with the court?

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If a debt was sent to a collection agency2 years ago, if the debtor settles with the agency does satisfytheir obligations with the court?

I ask this because I am trying to seal the record and don’t want to jeopardize the process. I owe $623 in court costs.

Asked on February 22, 2011 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You say you are wondering about your "obligations with the court" and then describe the $623 as "court costs."

The answer depends on exactly what these costs are and to whom you owe them. If these are the opposing party's court costs which you have been ordered to pay for some reason, then settling with opposing party should also settle or dispose of  these costs as well.

However if these are your own costs which you owe directly to the court, then settling the debt to the creditor/collection agency will *not* satisfy the court costs. You cannot settle with one party (the collection agency) to satisfy costs owed to a separate party for a different reason.


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