I was awarded a judgement against a contracting company for around $10,000 in 2023. The company abandoned my home repairs after they were paid that amount. I took them to court and won a judgment for the $10,000. The next step was to hire a collection firm to collect the debt. I have paid them nearly $1000 so far. They have sent discoveries and motion to compels and nothing is getting done. The collection firm wants more money to continue to collect.
I wonder if I can even write this debt off or not on my personal taxes. If I can, what needs to be done to prove to the IRS that I have done all I can do to get the money back?
