What is Judgment Settlement?

Judgment Settlement

What is judgment settlement? A post judgment settlement is an agreement which is designed to lead to a satisfaction of the judgment debt. This is a means by which one can sometimes simplify the process of judgment collection.

Settlements of disputes may occur at various times. A settlement is an agreement to resolve the dispute and bring it to a conclusion. It is common for a settlement to include some sort of monetary payment by one party to another party in the dispute.

Sometimes disputes end with a settlement agreement before a cause of action is even taken to court. Other times a settlement is reached while legal proceedings are progressing in court. Other settlements are reached after the lawsuit and after the court’s decision has been rendered. This post-judgment settlement is what this post is concerned with.

A favorable court judgment is certainly no guarantee that the judgment debtor will actually pay the money that the judge ordered to be paid. Because only about 4 out of 5 court ordered money awards ever get paid, it is wise to consider whether a settlement is in order. Afterall isn’t receipt of a partial something better than receiving nothing?

Sometimes a judgment debtor (or his attorney) will approach the judgment creditor with some kind of offer to settle the judgment. There are other times when the lawsuit winner will be the one to choose to offer a settlement option. Whoever does initiate a discussion about a possible settlement, it provides an opportunity for both parties to negotiate an arrangement that is feasible.

As with any negotiations, there is a possibility that through some give and take, both parties can find a way to craft a settlement agreement that is a win-win for everyone.

Of course there are times when the judgment creditor believes that it will be reasonably easy for him to receive payment in full on the judgment, including any allowed fees or interest. In those cases there is little motivation for the creditor to pursue a judgment settlement. In many cases the judgment debtor has absolutely no intention of ever paying the judgment. This is obviously not a situation where post judgment settlement will apply.

Normally a judgment settlement is an agreed upon payment plan leading to satisfaction of the judgment. The amounts of payments, interest, and frequency of payments are the most notable terms of these agreements. Since it is a negotiated arrangement, most any terms and conditions are fair game to be hammered out between the parties or their representatives. In the end, the success of any settlement negotiation hinges on both parties believing that the judgment settlement is better for them than not settling.

As a judgment creditor I have found a post judgment settlement may sometimes be a better option than pursuing other methods to collect my judgment.

In any case, when two parties do reach an agreement to settle the judgment, the original court ordered money judgment will be legally satisfied whenever the terms of the judgment settlement are met. At that time the judgment creditor or his lawyer will file a satisfaction of judgment document with the court.

Take a look at this other blog article on the subject of post judgment settlement by clicking on this link: http://www.enforcementinstitute.com/?p=119

 
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