My fiance' has two judgements against her, totalling.......$5,710.00.
Other credit card/store credit debt, totalling.....................$1,597.00.
According to a law firm that deducts money from her bank account every two weeks, she has repaid $2,400 towards one of the judgements. However, the client's name (a collection agency)shown on the law firm's letter does not match any creditors listed on her credit report. Further, the "placement amount" and/or
"total debits" (after interest and charges) listed do not match either judgement shown on her credit report.

We recently applied for a mortgage. I have good credit. Our loan rep said that if my fiance' had filed a bankruptcy, he could get us a mortgage today. If she does not, he may still be able to get us approved, but with a greater expense.

Here are my questions:

1. My fiance is not in extreme debt. She is a single mom of one with a (recent) gross income of $25,000/year. She owns no real property, and her only car is a clunker. Would it be worth her filing Chp. 7, before they change the bankruptcy laws in October--and before we marry--or, would you suggest she just pay her debts?

2. At least one of her creditors is now out of business. If she pays off her debts, how can she clear up this one?

3. The law firm collecting for one of the judgements has been difficult to work with; it took six phone calls and a threat of "I am moving and will be closing my bank account" just to get a statement of her account. Since their name, their client's name, nor the judgement amount match anything on her credit report, how could we find out which judgement is almost paid off?

Thanks again, and in advance.