Judgment Contests, Settlement, & Lien Removal  Attorneys in Santa Ana

Defense of Judgment Enforcements and Lien Removal

Timing in protecting your assets: If the judgment stands and cannot be overturned, the next analysis is: Do you have anything that can be taken from you? If so, we will advise you on how to best protect yourself from bank levies, wage garnishments, property liens, and asset seizures. Do NOT delay if you even think they are trying to take anything from you such as your money, or business, or your house!

*** Always remember that a spouse’s assets and wages can also be attached, even if the judgment is before the marriage. California is a community property state and therefore judgment creditors can get community assets!

Timing in making Claims of Exemption: If your wages are being garnished or your bank account has been levied, the time period to file a claim of exemption is very short. The failure to timely file your claim can forever bar you from going to the court and asking for relief from the garnishment or levy. Many times we will simply advise you on how to do this yourself. If it makes sense to hire an attorney to defend you, we do so at very affordable rates. We have been successful many times at terminating a wage garnishment and getting money returned.

Judgment Liens can get Complicated: California law does allow judgment creditors to sell your residence under certain circumstances. It can get very complicated. Even if they don’t try to sell your home, the lien against your real estate will just grow and grow and grow…. You must resolve judgment liens or you will be making payments toward a home that you will never own.

Settlement (Satisfaction of Judgment)

When you settle a judgment, what you must get in return is a filed “Satisfaction of Judgment.” This is a special court form that must be filed in the courthouse. It MUST be filed by the judgment creditor (debtors cannot file it).

Judgments can be “satisfied” by paying less than the full amount, but you must have the judgment creditor’s agreement (which should always be in writing). Creditors are notorious for going back on their word, not wanting written settlement agreements, and even failing to file the Satisfaction of Judgment when required. The last thing you want to have happen is to think you have settled your judgment, make all the payments, only to discover the judgment creditor says you must pay more.

Although there are many factors that go into what a judgment will settle for, there are three main factors:

• Who is the Judgment Creditor? Are they a bank? A debt buyer? A hospital? A former business partner? Understanding who is coming for your assets is critical to your success in resolving the amount at a discount.
• Who are YOU financially? For example, a retired person living in a nursing home on social security will get a better settlement than a person with a million-dollar home who makes $200K per year.
• How quickly will they get paid? A single lump-sum payment will always be a lower settlement than a payment plan over five years. I always tell people: OWE SOMEONE ELSE (borrow if you have to in order to settle a judgment)

Fitzgerald & Campbell can get your judgment satisfied for less than the full balance, get a proper settlement agreement, and ensure the creditor files all necessary court documentation to ensure the judgment is closed.

Bankruptcy

The successful completion of a bankruptcy filing will eliminate most judgments. Judgments for fraud, elder abuse, and student loans are some of the exceptions. A bankruptcy filing will also place a “stay” on all wage garnishments, levies, and other judgment enforcement actions. Many times, this is the fastest and least expensive way to get rid of a judgment. Naturally, you must qualify for bankruptcy, and there are other ramifications to filing a bankruptcy.

It is also important to note that discharging a judgment in a bankruptcy does not automatically discharge or remove judgment liens filed against any real estate. A judgment lien is a separate legal instrument and is “secured” when recorded against real estate prior to the filing of any bankruptcy. Therefore, most judgment liens will need to be settled, even after a bankruptcy!