How to Avoid a Financial Judgment

A financial judgment can takes its toll on your personal budget. This is a court-ordered payment that you must make to a debtor, and cannot only wreak havoc on your credit, but also land you in legal hot water if you don't pay the amount of the judgment in a timely fashion. Your best bet is to avoid a judgment at all costs; even if the court date has been set, it may not be too late for you to work something out with your creditor.

Instructions

1

Look over your monthly budget and figure out what you can offer your creditor to satisfy your debt. Even if you cannot pay it in full, some creditors will settle for a percentage of what you owe. Be realistic and don't offer an amount you know you cannot pay or that will put you further in the hole with other debtors.

2

Contact your creditor and try to set up a last-minute payment arrangement . They might not want to hear what you have to say because they likely tried to pursue this avenue previously; however, it is at least a show of good faith on your part that you are trying to make things right. Ask if you can have a payment plan and explain what you can offer. They might want to pursue a judgment anyway, just to be sure you actually pay.

3

Show up to your court date if your creditor does not want to negotiate. You may be able to negotiate in the court room if you have a solid reason for not paying your debt. In most instances, if your debt is legitimate, the court will side with your creditor but may show you leniency in terms of your repayment conditions. Either way, avoiding the court date or dismissing it altogether only shows further carelessness on your part.

4

Ask your local legal aid office for assistance. Bankrate.com suggests bringing legal counsel to court with you to help you navigate what is a very complicated process. Not only can an attorney help to negotiate with the courts on your behalf, but they can help you follow proper procedures in the courtroom. You can also ask your local bar association if there are attorneys in the area that do this kind of work pro bono.