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
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