Frequently Asked Questions

A civil judgment is a court order stating that one party (the debtor) owes money to another party (the creditor). It is the result of a lawsuit where the court has determined the debt is valid and legally enforceable.

Judgment duration varies by state, typically ranging from 5 to 20 years. Many states allow judgments to be renewed before expiration, potentially extending enforcement indefinitely. Check your state's specific statutes of limitations for judgment enforcement.

Civil judgments may appear on credit reports depending on state laws and reporting practices. Paying the judgment, settling it, or successfully vacating it through legal means can help with credit recovery. Consult a credit counselor or attorney for specific guidance.

A judgment is a court order stating you owe money. A lien is a legal claim against your property (real estate, vehicles, etc.) that secures the judgment debt. Liens prevent you from selling or refinancing property without paying the debt first.

Yes. Many judgments are negotiated post-entry through settlement offers, payment plans, or lump-sum discounts. Both parties benefit from resolution: creditors get paid, debtors avoid enforcement actions like wage garnishment or bank levies.

Common enforcement mechanisms include wage garnishment, bank levies, property liens, and asset seizure. Availability and procedures vary by state. Many collectors also pursue negotiated settlements to avoid lengthy enforcement processes.

Asset discovery methods include debtor examinations (court-ordered questioning), skip tracing services, public records searches, and subpoenas to banks or employers. Always follow legal procedures and state-specific rules for asset discovery.

It depends on your recovery goals, the debtor's financial situation, and enforcement costs. Accepting 50-70% now may be better than spending years pursuing full payment. Consider legal fees, interest accrual, and the debtor's ability to pay.

Yes, in most states. Judgment interest rates are set by state law and accrue automatically from the date of judgment entry. This interest compounds over time, increasing the total amount owed. Use our Judgment Interest Calculator to estimate growth.

Bankruptcy triggers an automatic stay, halting most collection activities. Depending on the bankruptcy chapter and debt type, your judgment may be discharged (eliminated) or restructured into a repayment plan. Consult a bankruptcy attorney for guidance.

Timelines vary by state, typically 30-90 days from filing garnishment paperwork to receiving first payment. The process involves court approval, serving the employer, and waiting for the employer to process payroll deductions.

Ignoring a judgment allows the creditor to pursue enforcement actions like wage garnishment, bank levies, property liens, and asset seizure. Interest continues to accrue, increasing the total debt. Early action gives you more options and leverage.

Yes, in most states. Wage garnishment allows creditors to take a portion of your paycheck directly from your employer. Federal law limits garnishment to 25% of disposable income, but state laws may provide additional protections. Some income sources (Social Security, disability) are exempt.

Exemptions vary by state but commonly include primary residence equity (homestead exemption), retirement accounts, necessary clothing, household goods, and tools of trade. Some states protect vehicles up to a certain value. Consult your state's exemption laws.

Yes. Many creditors accept payment plans to avoid enforcement costs. Propose a realistic monthly payment based on your budget. Use our Payment Plan Calculator to structure an affordable plan. Get any agreement in writing before making payments.

Creditors often accept lump-sum settlements for 40-70% of the judgment amount. Demonstrate financial hardship, offer a realistic payment, and get the settlement agreement in writing before paying. Our Settlement Offer Builder can help structure your proposal.

Bankruptcy may eliminate or restructure judgment debts, but it has long-term credit consequences. Consider bankruptcy if you have multiple judgments, overwhelming debt, or no realistic path to repayment. Consult a bankruptcy attorney to evaluate your options.

Judgments themselves don't typically affect employment, but wage garnishment requires employer involvement, which may create awkwardness. Some employers may view garnishment negatively. Proactively resolving judgments can prevent workplace complications.

Settlement percentages vary widely based on debtor finances, judgment age, and enforcement difficulty. Common ranges: 40-60% for lump-sum settlements, 70-90% for structured payment plans. Older judgments or debtors with limited assets may settle for less.

Absolutely. Always get settlement terms in writing before making any payment. The agreement should specify payment amount, payment schedule, interest waiver, and creditor's agreement to satisfy the judgment upon completion. Never rely on verbal promises.

A satisfaction of judgment is a legal document filed with the court confirming the judgment has been paid or settled. This removes the judgment from public records and stops enforcement actions. Always obtain a satisfaction after paying or settling.

Yes. Many creditors will negotiate even after garnishment begins, especially if you offer a lump-sum payment or structured plan. Stopping garnishment requires creditor cooperation and court approval. Act quickly to minimize wage loss.

If your offer is rejected, ask for a counteroffer. Creditors may want more money or different terms. Be prepared to negotiate. If you can't reach agreement, consider increasing your offer, proposing a payment plan, or consulting an attorney.

After paying or settling, request a signed satisfaction of judgment from the creditor. Verify it has been filed with the court by checking court records online or in person. Keep copies of all payment receipts and satisfaction documents.