Satisfaction of Judgment

These are words I never want to have to wait for and hear again: Satisfaction of Judgment.

As I struggled to survive financially back in 2002, 2003, and 2004, I fell behind in tax payments for both the IRS and New York state (and city). I was doing fine on installment plans for back taxes for 2002, never missing a payment. 2003 was not a problem since I had virtually no taxable income. Then I got in trouble in 2004 because I have several months of decent-paying work and I tried to "rescue" my credit record from completely falling off a cliff by holding off on tax payments and using the money instead to catch up on credit card payments. That was a huge mistake, especially since when I did inevitably file for bankruptcy all of the credit card debt was discharged and all of the back taxes remained.

Since I fell behind on taxes in 2004, that put me in technical defaultof tmy 2002 New York state tax installment plan, even though I had made all payments on time. I actually set up a substitute installment plan in early August 2005 to cover both my 2002 and 2004 New York State back taxes, but while I was on the phone with them they noted that a warrant would have to be issued for the 2002 back taxes as part of the process of getting the combined installment plan approved. They gave me a choice: pay the 2002 amount due or the warrant would be filed. I would have paid if I had the free cash, but I was struggling simply to keep my nose above water with my credit card debt. The warrant wasn't really a big deal since nobody was going to arrest me or show up at the bank and empty my account. Yes, it would show up on my credit record, but with all of my credit card debt problems, that was the least of my worries.

Once I had filed for bankruptcy in mid-August 2005, back tax payments were autmtaically suspended, and then I worked out a new installment plan in December 2005.

The warrant does show on my credit record, but otherwise it is simply a minor annoyance.

It has been my intention to completely pay off my New York State back taxes ASAP to eliminate the warrant, but evidently I have paid off enough to cover the 2002 portion of the back taxes. I had actually made some extra payments over the past couple of months as my income recovered with my new job that started in the middle of May.

When I saw the letter head in the mail on Friday I initially assumed that it was another pro forma letter giving my balance or reminding me of the due date. My heart sank when I saw the word "warrant", but then my spirits soard when I saw the word "Satisfaction" and the language that indicated that the letter was actually really good news.

I still have a fair amount of the 2004 back taxes to pay off. but I expect they will be history as well by the end of the year. I am seriously considering paying off the balance before then, but the motivation of eliminating the warrant is now gone.

I hadn't been sure whether the warrant was only for the 2002 taxes or for all outstanding taxes, but this letter lays that anxiety to rest.

I love some of the language, but maybe only because I now have the luxory of being on the good side of the fence. It says:

... it being certified that there is no execution for this warrant outstanding in the hands of the sheriff of any county of the state of New York.

Therefore, satisfaction is hereby acknowledged and the clerk is hereby authorized and directed to satisfy and discharge the same.

"Execution"?? "Hands of the sheriff of any county of the state of New York"?? It makes it sound as if I had been a fugitive from justice and granted an executive pardon. I suppose it might be fun to be a bureaucrat charged with wordsmithing this kind of stuff.

It is difficult to say how long it will take before the warrant disappears from my credit record. I talked about this with the New York state tax people on the phone in July, but the bottom line was that it was difficult to predict but that it shouldn't take more than a few months.

-- Jack Krupansky