Settlement After Judgment

Why Would A Creditor Agree To Settle With Me After A Judgment Has Been Entered?

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: 

• You don't have traceable employment with a W2 or other tax form to garnish.
• You don't have a bank account in your name or a very small bank account, so a levy on your bank account cannot be made. Note that if you must keep an account open, be aware of when bank account levies can occur. This is usually at the beginning, middle, and end of the month. You may want to elect to have paper checks issued by your employer to time your deposits to avoid levies until the judgment debt is resolved.
• You don't own real property for a lien to be filed, or the lien was filed yet remains unpaid.

What Are The Benefits Of Settling After Judgment? 

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. 

How Do I Go About Negotiating A Settlement After A Judgment Has Been Issued Against Me?

1. Step One:  Figure out who you need to pay. You can do this by getting a copy of your judgment from the court where it was entered and calling the law firm that handled the lawsuit. The creditor might have taken the account back from the law firm, and you will need to contact the creditor directly. If the creditor has sold your debt to a third party, you must call them. The bottom line is that you must figure out who is responsible for the debt collection so you can negotiate with them. 
2. Step Two:  Once you have figured out whom you need to talk to, call that person and find out your balance. To know your balance is correct, you should calculate it yourself. To do so, read the copy of your judgment closely: it will have the exact amount owed as of the date of the judgment and interest and legal fees to be added. That number is the amount you owe. 
3. Step Three: Attempt to negotiate with the creditor to pay a lower balance. An attorney would be helpful at this stage. Be prepared because creditors are expert negotiators. Be aware of whatever facts are in your favor.