If you or a loved one is trying to settle a judgment obtained by a creditor, you should speak with a consumer protection lawyer. They know how to help you understand and appreciate your legal options. Fitzgerald & Campbell has a lot of experience taking on creditors on behalf of debtors. We are here when you need us. Contact Fitzgerald & Campbell for a free consultation by calling (844) 431-3851 or contacting us online.
After a judgment has been rendered against you, fortunately, you may still be able to get the creditor to agree to allow you to pay less than the total amount owed. This can be done by entering a settlement agreement, in which an attorney can be of great assistance. This article explains the possibility of settlement after judgment.
A judgment occurs when a party loses a civil case either by default (not showing up) or at trial. The court will issue a judgment which is essentially its final decision. If the judgment is for money, the defendant will be ordered to pay the money to the winning side.
A judgment is valid in accordance with California Law for ten years, after which it will automatically expire. However, a judgment can be extended for another ten years at the creditor's request.
Under California Law , interest accrues at 10 percent per year on the principal amount of a monetary judgment remaining unsatisfied. After ten years, the judgment is effectively doubled upon renewal, so it's best to pay it as quickly as possible. If you don't have the full funds on hand, this can be done via a settlement.
Once a court enters a judgment against you, the creditor is called a "judgment creditor," and you are called a "judgment debtor." Judgment creditors have many more collection techniques than creditors trying to collect debts before getting a judgment. These techniques can include taking wages directly through your employer ("Garnishment"), putting a lien against your property, or getting the Sheriff to take or sell your personal property ("Levy").
A settlement is an agreement by both parties to the lawsuit that resolves their dispute. This usually occurs before trial but can occur after trial in some instances.
Yes, if you have been delivered a judgment awarded against you by a debt collector, you should still be able to reach an agreement to avoid garnishments or bank levies. Settlements can be negotiated at all stages of the collection cycle, although it is always best to settle before judgment because the debtor's power is more limited.
If you attempt to negotiate before the creditor has taken measures such as garnishments and land levies against you, this is an advantage as it's more work on their end. If it is difficult for the creditor to enforce the judgment against you, they will be more inclined to negotiate a settlement. This is where it is beneficial to have a California debt collection attorney's assistance. Instances that would create difficulty for the creditor to collect are:
It is beneficial to settle after judgment because you can reduce your payments and, ideally, not pay for the entire ten years. With the interest rate being 10% per year, you are paying double the debt if you do wait the full ten years, which only increases if the payments are extended to twenty years.