$45K Judgment Settled for $18K in 90 Days

The Situation

Maria owned a small retail business that struggled during the pandemic. A commercial lease dispute resulted in a $45,000 judgment against her personally. With the business recovering but cash flow still tight, she faced the threat of wage garnishment and bank levies.

The Challenge

Maria needed to resolve the judgment quickly to protect her business accounts and personal finances. However, she couldn't afford the full $45,000. She had approximately $20,000 available through a combination of savings and a small business line of credit.

The Strategy

Working with our settlement framework, Maria developed a three-part approach:

• Documentation: Compiled comprehensive financial statements showing business recovery trajectory and personal financial constraints
• Timing: Identified that the creditor was a property management company likely motivated by quick resolution over prolonged collection
• Offer Structure: Proposed a lump-sum payment of $18,000 (40% of judgment) payable within 10 days of acceptance

The Negotiation

Maria's initial offer was $15,000 (33%). The creditor countered at $28,000 (62%). Through three rounds of negotiation over two weeks, they agreed on $18,000 with these key terms:

• Payment within 10 days of signed agreement
• Judgment satisfied in full upon payment
• No admission of additional liability
• Creditor to file satisfaction of judgment within 30 days

The Outcome

Maria paid $18,000 on day 8. The creditor filed the satisfaction of judgment on day 22. Total resolution time: 90 days from initial contact to judgment satisfaction filed.