How to Handle a Judgment

If you owe money to any creditor, that individual or company has the option to take you to court and obtain a judgment against you. You will receive notices, including a summons that you may choose to respond to. If you do not respond, the court will automatically rule in the creditor's favor, and order you to pay the debt, plus interest and fees. If you have received an income execution or notice of judgment from your state's court system you must set up a payment plan or prepare to have your wages garnished.

Instructions

1

Contact the original creditor or your local courthouse (listed on the judgment paperwork) to arrange a payment plan for the judgment filed against you. Typically, you will be required to make contact within 21 to 30 days of the date of the judgment letter. Failure to set up a payment arrangement will prompt the executor to contact your employer and set up a wage garnishment.

2

Give the associate the account number listed on the judgment, your name and social security number. If setting up a payment plan, tell the associate the gross amount of your last paycheck and the frequency in which you are paid. The amount due each pay period is based on a percentage of your wages.

3

Supply the court with any forms or documents necessary to pay your judgment without wage garnishments.

4

Obtain a certified check or money order in the amount of your first payment. Make a copy of the judgment and send it and the money order to the creditor or to the courthouse address listed on the judgment notice. Include a copy of your most recent pay stub if paying on a payment plan.

5

Continue to make payments as required. If you do not make timely payments, a notice of the judgment and garnishment will be sent to the payroll department of your employer and the money will be automatically deducted from your paycheck. Once paid in full, you will receive a notice of satisfactory payment.

6

Keep a copy of any paperwork associated with your judgment.