First 72 Hours After Receiving a Judgment Notice: A Debtor's Guide

Receiving a judgment notice can be overwhelming and frightening. However, the actions you take in the first 72 hours can significantly impact your options and outcomes. This guide provides a clear roadmap for immediate response.

Hour 1-4: Immediate Assessment

Read the entire judgment notice carefully. Identify the creditor, judgment amount, court information, and any deadlines. Don't panic—judgments are civil matters, not criminal. You won't go to jail for owing money.

Verify the judgment is legitimate. Confirm the court case number, filing date, and creditor information. Scammers sometimes send fake judgment notices. Call the court clerk (using a number you look up independently) to verify.

Hour 4-12: Gather Critical Information

Locate all relevant documents:

Original debt documentation (if you have it)
Any prior communication from the creditor
Proof of payments made (if any)
Your current financial statements

Document your current financial situation: List all income sources, monthly expenses, assets, and existing debts. This information will be critical for evaluating your options.

Hour 12-24: Understand Your Rights

Research state-specific exemptions. Many income sources and assets are protected from collection, including:

Social Security benefits
Disability payments
Certain retirement accounts
Homestead exemptions (varies by state)
Portion of wages (federal and state limits apply)

Check if you were properly served. If you never received notice of the lawsuit, you may have grounds to challenge the judgment. This is called a "motion to vacate" based on improper service.

Hour 24-48: Evaluate Your Options

Option 1: Negotiate a settlement. Many creditors will accept less than the full judgment amount, especially if you can pay a lump sum quickly. A 40-60% settlement is common.

Option 2: Request a payment plan. If you can't pay a lump sum, propose a monthly payment plan you can actually afford. Get any agreement in writing.

Option 3: Challenge the judgment. If you have valid grounds (improper service, statute of limitations, debt not yours, already paid), consult an attorney about filing a motion to vacate.

Option 4: Bankruptcy consideration. If you have multiple judgments or overwhelming debt, bankruptcy may provide relief. Consult a bankruptcy attorney for evaluation.

Hour 48-72: Take Action

Contact the creditor or their attorney. Don't ignore the judgment. Proactive communication often leads to better outcomes. Be polite but firm. Don't admit to anything or make promises you can't keep.

Protect your assets immediately:

If you have significant funds in a bank account, understand that it could be levied
Don't transfer assets to hide them (this can be considered fraud)
Ensure exempt income (Social Security, disability) is deposited into a separate account

Consider consulting an attorney. Many consumer attorneys offer free consultations. They can evaluate your specific situation and advise on the best path forward.

Critical Don'ts

Don't ignore the judgment. It won't go away and will only get worse with interest and enforcement costs.
Don't make partial payments without a written agreement. This can restart the statute of limitations without resolving the debt.
Don't provide detailed financial information until you understand your options. Creditors can use this information for collection enforcement.
Don't assume you have no options. Even with a judgment, you have rights and negotiating power.

What Happens Next?

After the initial 72 hours, you'll need to develop a longer-term strategy. This might involve formal settlement negotiations, setting up a payment plan, filing a motion to vacate, or consulting with a bankruptcy attorney.

The key is to act quickly, stay informed, and make decisions based on your actual financial situation—not fear or pressure. Judgments are serious, but they're also resolvable with the right approach.