As you likely already know there are a number of ways creditors will enforce judgments.  These actions taken against you may include:

Wage Garnishment: where the court orders your employer to withhold a portion of your wages to satisfy the judgment. 

Bank Account Levy:  the court may allow the judgment creditor to levy your bank accounts, seizing funds to satisfy the judgment.

Property Liens:  a judgment creditor may place a lien on your real property (such as a home or land) or personal property (such as a car). If you sell the property, the creditor is entitled to the proceeds to satisfy the judgment.

Asset Seizure:  the sheriff under court order can seize and sell your personal property (other than exempt items) to satisfy the judgment.

Judgment Debtor Examination: you may be ordered to appear for a judgment debtor examination, where you must answer questions about your income, assets, and financial situation under oath.

The good news is you can put an end to all of this by negotiating a settlement of your judgment and avoid being subject to aggressive collection tactics.  Here are some steps you can take to do this:

1. Assess Your Finances:
Before initiating negotiations, evaluate your own financial situation. Determine how much you can reasonably afford to pay as a lump sum or through a structured payment plan.

2. Contact the Creditor or their Attorney:
Reach out to the creditor or their attorney that obtained the judgment. Explain your situation, and express your willingness to work towards a settlement. Ensure that you are communicating with the right party and that they have the authority to negotiate.

3. Propose a Settlement Offer:
Clearly present a reasonable settlement offer. This can be a lump sum payment for less than the total judgment amount or a structured payment plan. Be prepared to provide reasons why your offer is fair and reasonable.  Most Judgment Creditors will grant a substantial discount to satisfy the judgment to avoid further collection costs and waiting to be paid.  There are also instances where the creditor will agree to a payment plan.  

4. Highlight Financial Hardship:
If you are facing financial hardship, provide documentation or details explaining your circumstances. Creditors may be more willing to negotiate if they believe you genuinely cannot afford to pay the full amount.  Please note that you should not provide any specifics as to the location of accounts or who you are working for to avoid them using the information to initiate garnishment processes.  

5. Be Prepared to Negotiate:
Be flexible during the negotiation process. The creditor may counteroffer, and there may be room for compromise. Consider factors such as interest reduction, the removal of certain fees as part of the negotiation, and more substantial discounts for paying the agreed upon amount now as a lump sum.

6. Get the Agreement in Writing:
Once a settlement is reached, ensure that the terms are documented in writing. This could be in the form of a settlement agreement or a written confirmation of the agreed-upon terms. Both parties should sign the agreement.

7.  Fulfill the Agreement:
Adhere to the terms of the settlement agreement. Make payments promptly and as agreed upon. Failure to comply with the terms could result in the creditor resuming collection efforts.

8. Seek Professional Assistance:
If negotiations are challenging or if you are unsure about the best approach, consider seeking professional assistance from a lawyer or by going to the U.S. Consumer Financial Protection Bureau for help.  They can provide guidance and may negotiate on your behalf.

Remember that negotiating a settlement is a voluntary process, and neither you nor the creditor is obligated to agree to a settlement. However, many creditors may be willing to negotiate to avoid the time and expense associated with further collection efforts. It’s essential to communicate openly, be honest about your financial situation, and work towards a mutually acceptable resolution.

Consult an Attorney

If you encounter challenges in the negotiation process or just want help from the start,  David Stewart is able to intervene and negotiate on your behalf.  He will negotiate all terms of a deal for you and prepare the agreement without any up front payment.  He is paid a flat fee only after you sign an agreement with the creditor.  If you do not enter a settlement agreement you do not owe him anything.  This ensures he will focus on your situation and negotiate a settlement that is acceptable to you.  Contact David Stewart today by calling (405)633-1277 for a free consultation on your situation.  Please feel free to email questions to David@stewartlawok.com if you prefer and he will respond promptly.  If David agrees to take your case he will send you an Engagement Letter and get to work as soon as you sign and return it to him.  Please note that no attorney-client relationship is established until an Engagement Letter is signed.