How to Settle Credit Card Judgments

A civil judgment for credit card debt is harmful to your credit and could have other significant ramifications. The judgment allows the credit card company or debt collector to seek garnishment of your bank account and wages. "The New York Times" reported in 2010 that debt collectors were increasingly turning to wage garnishment to collect money won through judgments. Settling a judgment allows you to avoid garnishment.

Instructions

1

Contact the attorney who successfully filed suit against you. Get the name of the attorney and the telephone number from court papers that you were served during the lawsuit.

2

Offer to settle the suit for the full amount due in exchange for a promise that your wages and bank account will not be garnished. Generally credit card accounts can be settled for 20 to 75 percent of the balance, according to the SmartMoney website, but you don't have any room to negotiate because of the judgment. Paying the full amount in a lump sum or in installments may be your only options.

3

Get terms of the agreement in writing and follow them to the letter to avoid garnishment.