How To Settle a Judgment

A civil case is a case involving money settlement. It usually involves money claims of aggrieved party in a suit. If you lose in a civil case, you will have to pay a certain amount to be determined by the court. This amount is called judgment. Below are the several ways on how you could settle a judgment.

  1. Try to settle at a lower price. When issuing a judgment, it is the court that decides the amount to be paid. Sometimes, the paying party cannot afford the judgment, thus resulting in a ruined credit score. Do not let this happen. If you see that you cannot afford the judgment, contact the creditor right away and try to negotiate for a lesser payment. This is worth a try than totally ignoring the judgment, which could impair your credit score.
  2. Try to come up with a mode of payment that suits your financial standing. If lessening the payment is not an option for the creditor, try to come up and negotiate for a mode of payment that suits your financial standing. It may not lessen the judgment amount, but it will be in a mode that would enable you to pay it little by little. This payment scheme may be done in the courts, or by negotiating with the creditor.
  3. Pay the full amount to the creditor. One of the best ways to settle a judgment is to make a full payment to your creditor. You can either send the check through mail or money order whichever is more convenient for you. Make sure to keep a copy of the money transfer, or of the check in case it was canceled so you will have a proof that payment has already been done. You also have to make sure that the creditor issues Acknowledgment of Satisfaction of Judgment in the court. Judgment is considered settled once this is done.
  4. Pay the judgment in the court. You can also choose to pay the judgment in the court. But to do this, you have to have a request to pay judgment in court form. This would enable you to settle the judgment more efficiently, especially if you are having troubles in physically meeting with your creditor. The court, in such a case, would do the necessary computations including the interest and will be responsible in forwarding the payment to your creditor.
  5. Take care of your credit report. One of the things you are avoiding and could be one of the reasons you are settling a judgment, is the negative remark on your credit report. Once the creditor has given an Acknowledgement of Satisfaction of Judgment form to the court, ask for three copies. These copies may be requested from the clerk office. Send these three copies to all credit bureaus to clear the negative remark.

Being through a hideous full-blown civil trial is already a stress. If you lose, you might be required by the court to settle a judgment depending on the case, whether you are the plaintiff or defendant. If a judgment has been settled against you, do not let this become another source of stress. Just follow any of these ways to assure a smooth flow settling a judgment.


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