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If you have a judgment against you and cannot pay it all can you settle for less than what is owed?
Wiki User
∙ 19y ago
The party involved can try to negotiate a settlement, but it's unlikely if a judgment has been awarded. Once a judgment is in place the creditor has several options for executing it for payment of funds owed. If the debtor is gainfully employed the creditor will probably enforce the judgment as a wage garnishment and collect the entire balance of the debt.
Wiki User
∙ 19y ago
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Can you settle a judgment?
You can try to settle the case any time, but each case is different. Unless you file bankruptcy, you cannot force a creditor to compromise a debt. Some creditors will settle debt before it goes to judgment in order to avoid the expense of attorney fees and other litigation costs. Others will get the judgment and try to collect before agreeing to settle. Others won't settle at all. It depends on how aggressive the creditor is and your ability to pay.
You have been told by a collection agency that they will aceept only total amtof credit card debt is this true?
Some collectors will settle for less than the amount owed, but it is a matter of choice not a legal mandate. Collectors generally will not settle a debt for a smaller amount if they believe they will be successful in obtaining a judgment against the creditor which they can use to collect the full amount of the debt plus legal costs and other fees. If the debtor is employed chances are good that the collectors will sue to obtain a judgment to use as a wage garnishment.
What does never settle for less than your best mean?
what this means is to do your best and don't settle for less
How can you make a settlement on your student loan?
No you cannot settle student loan debt for less than what you owe. Student loans are federally backed, and will find that student loan lenders will not settle for less than the principal balance that you owe them. The best they can do is offer a deffered payment plan or a forbearance.
How do you fix a judgment against you when the company that sued you has filed bankruptcy?
The judgment becomes an asset of the bankruptcy estate and thus the "property" of the trustee. The trustee may decide to abandon the judgment as not worth collecting, or may pursue its collection. Either call the trustee's office or check the docket and documents in the bankruptcy court. If by "fix" you mean pay, check with the trustee's office before sending any money or bank check to anyone. You may be able to settle the claim for less than the full amount. If you are uncomfortable doing it yourself, get a bankruptcy lawyer.
What do you do when there is a judgment against you and you are on disability?
It makes no difference in Law ,a judgment is a judgment- which will stay on your record irrespective for anything up to 6 years,however,you may have grounds to plead on mitigating circumstances/compassionate grounds based on your disability and the courts may allow you more time/and or less payments/installments.[Syed Amir]
What is the preferred spelling of judgment?
The usual spelling is judgment. The spelling judgement is the less-used variant.
If a credit card company has started judgment procedures against you should you try to settle?
Absolutely. Neither the credit card company nor its lawyer wants to spend time and money in going to trial, getting a judgment, then trying to collect through garnishment or levy. Most want to simply get a decent amount of money and close the file. Also, many credit card debts include unconscionable amounts of interest and fees. This means the company has enough of a cushion to accept less than the amount owed but still make a profit. Plus, the company will probably take a bad debt tax deduction on the amount between what is owed and the amount you settle for. So even if you settle for, say, $1000 less than what is owed, the company will get a tax deduction of maybe 25%, meaning that it really loses only $750. Many companies have standard percentages they will settle for. For many it is about 70%. But you might have to pay it immediately. Remember, if the complaint has been filed and served on you, be sure to file an answer on time.
Is the court likely to let a collection agency get a judgment against you if there is less than a year left on a auto repossession before it has to come off your credit report?
It is a situation a matter of what you are behind on. You can lose a car and have judge,ent against you for owing a few dollars.
Why do settle out of flowing water as it slows down?
Because it has less energy and can carry less sediments.
Do you have to pay the creditors attorney fees and assorted fees tacked on to the original debt if sued or can you still settle for less at that point?
Possibly, but only if the creditor suing is willing to do so. A settlement is purely voluntary. If the creditor believes it has an open and shut case against a debtor for both the debt and fees, the creditor might have no reason to accept less than it would get in a judgment. It is always worth it to try to settle for less than the total amount sued. There are several reasons that motivate creditors to take less. Creditors almost always will take something less than the full amount if the case can be closed. If a creditor gets a judgment and has to garnish wages, it will take some time before the amount is paid, there will be lots of bookkeeping involved and the judgment amount will earn a low rate of interest. It is better for the creditor to take even 70% or less of the debt just to close the file and move on. Also, keep in mind that sometimes, creditors throw in those extras like interest and attorney fees to inflate the amount sued for just to scare the debtor into "settling" for the full amount of the original debt. Some creditors know they will not be awarded these extras but they sue for them anyway hoping the debtors do not know this.
What happens If the bank forecloses and sells your home for less than the mortgage?
Depending on where you live and the type of loan you have, the lender may be able to go to court and get a deficiency judgment against you for the difference (in most cases they can do that)
