Judgments And Encouraging The Judgment Debtor To Settle

For both judgment debtors and judgment creditors, there are several benefit to settling the judgment between them, as compared to the normal extended recovery tactics to enforce a judgment. My articles are my opinions, and is not legal advice. I'm a judgment referral expert, and not a lawyer. If you ever need a strategy to use or legal advice, you should contact an attorney.

Both sides need to cooperate. For judgment creditors, what is needed is a realization that judgments aren't cash and that (for example) half of the money owed is better than one hundred percent of no money. In judgment enforcement, it all depends on your debtor. In some cases, when you have poor debtors as an example, when you compare settling for a tiny percentage of what is owed; with your judgment debtor filing for bankruptcy, the tiny fraction payment is a huge win.

For judgment debtors, what is required is a realization that when they have available assets, including any personal assets of value; they're far better off by settling. If they don't settle, they may be subject to potential legal actions to enforce the judgment against them, during the life of the judgment. A few recovery specialists have levied the judgment debtor's pet! Settling avoids a bunch of stress and avoids extra expenses; for example the accruing interest owed, costs the creditor incurs at the court, the Sheriff, and perhaps process servers.

When either a judgment creditor or the judgment debtor isn't flexible and realistic enough, settlement talks won't work. A judgment debtor needs more than an intention to settle, they also need to have some money to actually settle. When judgment settling works, the judgment creditor is paid; and the judgment debtor gets their judgment satisfied, so no one will ever legally bother them again about that judgment.

The most common thing that causes failure in settlement agreements is when a debtor fails to repay the judgment creditor. The judgment owner needs to be careful to write into the agreement, that should the debtor not pay the agreed funds on time; the settlement agreement is void, and the original amount is now due, and judgment recovery procedures will commence and repeat until the judgment is paid.

While taking care to never threaten the debtor in any way, politely remind the debtor of the probable hassles, expenses, and time limits for typical judgment recovery procedures. Without making any type of threat, tell the debtor that you're serious in settling or recovering your judgment, and all of the possible options available to you, without implying that you plan any particular procedure or action.

Sometimes, a beginning settlement offer comes when a judgment creditor mails their first "demand letter" to the debtor. When your judgment has been around for long enough for significant interest to have been earned, then you may decide to offer some discount on all, or a portion of the interest owed, with prompt payment.

In all settlement offers, it is a good idea to write in some time limit. Common time limits are between ten to thirty days. When the judgment debtor flakes or snoozes, they lose. All later offers should be less advantageous to the judgment debtor than the previous agreements. This way, the debtor will figure out that the longer they procrastinate, the harder it will be for the debtor to get any type of discount.

When your judgment debtor begins to make settlement offers or counter-offers, that is progress, and one should "strike while the iron is hot". Respond to all offers initiated by your judgment debtor with a counter offer that is more advantage to you, than their offer. As an example, if their starting offer to pay you $100 a month for 23 months, you could respond with a proposed offer of $130 per month for 18 months.

When a judgment debtor makes you an offer, you can assume the debtor's offer is one they are comfortable with. What one may not be aware of is whether their offer is the best they can reasonably pay. Responding to them with your counter-offer might show what they can really afford to send you. Getting some money each month is more fun than not being any money.

When the judgment debtor really cannot afford to pay more than they wrote on their first offer, take their first offer. If they request that you suspend all the interest owed, one could agree to discount or omit the interest only if they have promptly completely every term of the agreement.

Whenever you reach a settlement with your debtor, make sure that every detail is ironed out, and all agreements are in writing. Approach judgment settlements in a businesslike fashion. Make it very clear that if the judgment debtor fails to follow the specific terms of the agreement, any discounts and deals are void, the original amount is due, and you will enforce the judgment at full force.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com