How to Prevent a Judgment

Confronting debt before a judgment is a step in piecing your credit together again.

Garnishments, liens and property seizures are the costs of carrying unpaid debt. Collectors work through the U.S. court system's civil divisions to hold consumers accountable for debts that have not been settled. Fortunately, there is a way to stop the destruction of your personal finances and property as a result of a court judgment. The solution is to prevent the judgment, before you walk into the courtroom.

Instructions

1. Contact the company or person overseeing your account. This could be a debt collection agent or the attorney listed on the summons you received for the civil suit brought to settle the debt. Negotiate an amount that would settle the debt before your court appearance date.

2. Establish a payment agreement for debt amounts that are too expensive to pay at once. Have the first payment ready to make. The debt collector will want a down payment as a sign of good faith. While making the payments, be sure to remain on time and complete every payment. Failure to abide by the agreement will only create another civil suit and danger of a judgment yet again.

3. Get everything in writing. Have the debt collector or attorney draw up the terms of the payment agreement or send a receipt marked "paid in full" for settled debt. Take these to court to ensure that the judge in the case has been notified. You can also contact the court clerk's office prior to the appearance date to submit the documents and ensure that the case has been dismissed.

4. File bankruptcy if your debts are simply too much for you to handle. This is a decision to be made with the help of an experienced attorney. Bankruptcy does come with 10 years of a low credit score and difficulty obtaining any new credit-related items (loans, credit cards, employment, housing, etc.).

Tips & Warnings

• Even if you negotiate the debt outside the courtroom, expect to pay court costs and attorney's fees in addition to the original debt. After all, the debt collector did have to go through the motions of filing and building a case. The attorneys and court must be compensated. Try not to put your credit and personal property at risk by making this a sticking point in negotiations.

• The case is not over until you receive documents from the court marked with the word "dismissed." No matter what your arrangement may be with the debt collector, keep pursuing documentation until you receive these dismissal papers.

References

• University of New Mexico: Collection of a Judgment
• Jay C. Schenfield Attorney at Law: Frequently Asked Questions
• Moran Law Group: Lawsuits