How Do I Settle a Judgement?

A judgment occurs when a court of law finds on behalf of either the plaintiff or defendant. If a judgment has been entered against you, the plaintiff has the legal right to garnish your wages, pull money out of your bank accounts and recover property to pay the debt owed. Attempting to settle a judgment is possible but should be carefully considered. If your creditor is not pressing you for payment, making contact may awaken interest in your case and could result in aggressive collection efforts. If you decide to attempt to settle a judgment, a few pointers will help you successfully negotiate a settlement.

Instructions

1

Review your finances carefully and determine the amount you can pay toward the debt. If you have the resources to pay the debt in full, you can still attempt to negotiate the debt.

2

Contact the company that holds the judgment. If possible, record the phone call. Provide your account information and advise the representative that you would like to see if you can arrange a settlement on the account. Explain that you wish to settle the debt but are unable to pay it in full. Always remain polite.

3

Hold your ground. Expect the representative to deny a settlement and possibly threaten garnishment or property seizure. Legally, the creditor can garnish your wages, so this is not a lie, but the threat of garnishment is often used as a scare tactic to get you to agree to pay more. It costs money for the lienholder to pursue these routes, however, and his bottom-line goal is to receive some money.

4

Convince the representative that you can only pay a certain amount. If you can convince him you are doing the best you can, the representative is more likely to accept a settlement. If you are borrowing the funds, explain this and let him know it is the most you can possibly arrange.

5

Never disclose your bank account information. Explain that you will pay the creditor with a money order or certified check upon written confirmation of acceptance of settlement. If you are unable to reach a settlement agreement, try again at a later date. It often takes more than one attempt to settle.

6

After payment has been made, get the creditor to sign a release and satisfaction of judgment. File this document with the court.