How to Respond to a Judgment From Court
- 1). Vacate or appeal it during your state's statutory time frame for motions and appeals. If the judgment was unfairly rendered against you and you have evidence that was not introduced to prove fraud or illegal procedure by the plaintiff or his attorney, then file or have your attorney file a motion to vacate the judgment with the court. If you were unaware of the court case against you because you were never legally served, then you also have grounds to vacate the judgment. If your efforts are unsuccessful and valid legal grounds exist to contest the judgment, appeal to a higher court.
- 2). Negotiate the judgment's terms to lower the amount due. Contact or have your attorney contact the opposing party's attorney or the collection agency responsible for collecting the judgment and make an offer. If the judgment holder feels the chances of getting paid by you are slim to none and it has the opportunity to get some money, its attorney may be willing to negotiate the amount to be paid back. The amount of the judgment will usually include all interest, penalties, court costs and late fees owed. If the judgment holder has an opportunity to just collect the principal amount borrowed under the note, it may be a win-win situation. You will get the judgment amount reduced to something you can afford and the lender will collect a portion of the debt without further collection action.
- 3). Pay it if it is a judgment for debt you incurred. Acquire a second job or sell some property if necessary to pay the debt. A judgment creditor may file an action with the court to garnish your wages through your employer so that payments are taken directly from your check each pay period. Also, a judgment recorded in the real property records of a county becomes a lien against any real estate you own in that county. In order to obtain an equity line mortgage or sell your home, an unexpired judgment may have to be paid or partially paid and the property released at closing. Judgments remain a lien on property until they either expire under state law, are paid, the property is released from the judgment or the lien is removed by a court.
- 4). File for bankruptcy if the judgment is for money. If you are truly up to your ears in debt and cannot possibly pay all you owe, contact an attorney to file for bankruptcy. Bankruptcy laws were put in place to protect people in these situations.
