How to avoid paying a civil judgement

When you receive a judgement from the court in relation to a debt collection lawsuit, you might believe you don't have any choice except to stick to the decision. Many people also have this misguided belief that the lender may strip them of everything they own, just like what happens in the movies. There are particular exemptions depending on the state where the decision is filed.

If you're wondering whether there are ways on the best way best to get out of paying a decision, the solution is YES. There are measures which you can do in case you are not able to pay the amount that was granted to the creditor.

This guide will explore different courses of action available to you in the event that you want to understand how to not pay a judgement.

How To Not Pay A Judgement

At a debt collection suit, a"decision" refers to the final decision that's issued by the court. This choice is going to be entered in the public document and also the winning party can use this judgement as a legal tool to accumulate the debt you owe.

How to not pay a judgement

If a creditor files a complaint in the court and wins a judgement against you personally, this celebration is now known as the"judgement creditor", meaning that they have a legal claim to collect the money from you or the"judgement debtor". The decision creditor can then recover the debt by accepting your private property (also known as"attachment"), placing a lien on your house or real estate land, performing a bank levy procedure, or taking a portion of your salary (also called wage garnishment").

What can you do if that happens? Here are your options after receiving a judgement against you and how to not pay a judgement:

Endeavour to vacate a judgement

File a claim of exemption

File for bankruptcy to discharge the debt

Settle with the judgement creditor

1. Try to Vacate a Judgement

Vacating a decision means asking the court to"set aside" the judgement. After the judge agrees to vacate the judgement, this will postpone the judgement creditor from collecting from you since that judgement will be lawfully void or invalid.

The creditor will no more have the ability to instantly implement collection activities until the after the judge issues a fresh judgement after a new trial date is set then how to not pay a judgement. But vacating a decision is only possible if the decision entered against you're a"default option".

• What Happens After the Judgement is Vacated?

Remember that vacating a judgement doesn't indicate that the litigation was dismissed or cancelled. What it means is that you want the judge to disregard the judgement because you weren't able to contest it in court. You're essentially asking the judge for a"do-over" however you need to present a valid excuse on why you should be allowed another trial.

Following a judgement is vacated, you have to attend the new trial and present your own defences or arguments against the criticism. There are several defences you could use such as identity theft in the event the debt isn't yours, an erroneous debt sum if you feel that the amount isn't right, or you can also assert that the debt is old (statute of limitations). If you are able to prove that the complaint is not valid, then the new conclusion could be in your favour.

If you believe that the lender has solid evidence against you, you could even settle the litigation at this point. This is your opportunity to negotiate with a lower payment amount because when you contest the situation, it's a lot more probable that the settlement will be favourable to you.

2. File a Claim of Exemption

In numerous Hollywood films, such as in The Wolf of Wall Street, we frequently see scenes where creditors grab away the personality's home, car, money, furniture, and other possessions. At a lot of these movies, the personality gets dramatically dirt poor, which is frightening.

In real life, but if your decision is for credit card debt, unsecured loans, or other consumer debt, then you do not have to worry about ending up in the roads or giving up all of your wages.

There are some land and money that the decision creditor isn't permitted to take from one to pay a civil conclusion. What is considered exempt will be contingent on the state law where the judgement is filed on how to not pay a judgement.

A number of the common exemptions are the following:

• Federal Benefits and Support Payments

Social Security Benefits

Retirement Benefits

Unemployment Benefits

Disability Benefits​

Veteran's Benefits

Life Insurance Benefits

Child Support / Spousal Payments

For these benefits to be considered exempt, they have to be directly deducted from the appropriate agency to your bank accounts. If you move the money yourself to another bank account, you may have to show that this money came from such benefits.

3. File for Bankruptcy to Discharge the Debt

In 2019, there were 772,646 bankruptcies filed in the United States. While filing for bankruptcy is an extreme movement, this is the only legal method that you erase your debt and how to avoid paying a civil judgement.

Consumer debts may be discharged through bankruptcy therefore if you're trying to find a way on the best way best to stop a judgement for credit card debt or payday loans, then this can be an option that you could consider.

However, there are particular judgements like child support, criminal penalties, restitution, and fines, student loans, or debt out of fraud that may not be discharged in bankruptcy.

4. Settle with the Judgement Creditor

This last option won't completely get you out of paying a decision. But, it might lower the amount which you will need to pay. By way of instance, instead of paying the full amount demanded by the lender at the criticism, you can negotiate and achieve a settlement that's both favourable to both parties. Most lenders accept to settle for a lesser amount instead of continuing to chase you to receive payment.

• How to Negotiate a Judgement Settlement?

When negotiating with a creditor, start at the bottom amount like 15-20% of the debt. Starting low will give you a lot of negotiating space and will obviously benefit you. As much as you can, try to escape from paying the exorbitant charges and interests that piled around the original debt. Creditors will often accept 50% or lower of the debt amount.

If you can't get the creditor to agree, sign that there's a chance of you filing for bankruptcy, whether you plan to or not. This can make it easier to convince the creditor to spend the amount you're offering rather than getting zero bucks.