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Settling a Judgement - Agreement? Payment?


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I'm negotiating with a JDB on a settlement for a default judgement, and I want to be sure I get the right verbiage in the written agreement to ensure it can't come back to bite me later.   We're settling for less than the judgement amount, and I could see them trying to come after me later for the difference.

 

Any advice?  Templates?  Should I tell them what I want their agreement to include, or should I draft my own agreement and say "sign this, send it back (I've got a fax), and I'll send payment"?

 

As for payment --  typical CA -- they kept pushing "give use your bank information so we can arrange payment".  Normally I'd say "no chance in hell" -- but as it happens, I have a shiny new credit union account with a whopping $5 in it, and I'm not using the checking account that came with it .  Would it be a bad idea to deposit just enough to cover the deposit, and let them do the ACH they're so desperate to do?  I opened the CU account to set up a secured credit card, and don't plan on doing any "real" banking there.   And considering they're settling for less than the judgement amount, I'm thinking it wouldn't hurt to throw them a bone  -- *as long as there's no chance of them turning around and hitting me with it*

 

 

 

 

 

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Hi, If you google Bresso Law Blog,  and then click on Creditor lawsuit  Part Six, there is some good (I think) information on how to try and settle a judgment and it is from an atty in CA.   She really takes you through all the options. 

 

 

That is a pretty good resource.  One thing is missing however and another deserves emphasis. 

 

Emphasis:  KEEP GOOD RECORDS of your payments.  Make a photocopy of the checks and your delivery receipt.  Send by certified or other traceable mail.  Put it all in one folder every month so that you have it if you need it later.

 

Missing:  Make sure there is a provision requiring plaintiff to file and serve on you an "acknowledgment of

satisfaction of judgment"  within x days of its receipt of the final payment.  I suggest 10 days.  The relevant code section is CCP 116.850. If this is not done, the judgment will appear unsatisfied to anyone that looks in the public records.  You may also need to send this to the CRAs to get them to update your credit report.

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