Can I Settle Debt After a Judgment?

If you owe a significant amount of credit card debt, personal loan debt, or medical debt, you might have considered various options. For example, you might have considered the possibility of debt settlement. Or, you might have considered debt consolidation. In some instances, you might have wondered if bankruptcy is the only option available to you. If you are now in a situation where a creditor has sued you and obtained a judgment against you, it is important to understand your options. You may be wondering if it is now too late to try to settle your debt. It might not be too late, and an experienced Georgia debt settlement lawyer may be able to help you.

Settling a Debt After a Judgment is Possible 

Has a creditor already filed a lawsuit against you and won a judgment against you in court? You may be wondering if you can still attempt to negotiate a debt settlement agreement with the creditor. It will depend on the circumstances, but the answer might be yes.

While it can certainly be easier to reach a debt settlement agreement before a lawsuit and judgment, it is possible to settle a debt after a judgment. In short, a creditor might agree to this if it will be too difficult or expensive to try to enforce the judgment.

Limitation on Enforcing a Judgment Against a Debtor in Georgia

In what circumstances might a creditor be willing to settle a debt if they have already sued you and obtained a judgment? Generally speaking, it can be difficult for creditors who win judgments to collect on the judgment. While there are ways of doing this — such as wage garnishment, for example, or a lien — such processes can be time-consuming and only yield results over time. Furthermore, if a creditor wins a judgment against you and does not collect within 7 years, the judgment typically will not be enforced. Under Georgia Code Section 9-12-60, “a judgment shall become dormant and shall not be enforced…when seven years shall elapse after the rendition of the judgment…”

Collecting a judgment can be time-consuming and costly for creditors. It can also pose complications. If a creditor does not believe it is likely to be able to collect fully on the judgment, the creditor may be willing to settle the debt. However, as we noted above, if you can reach a debt settlement agreement before the creditor goes to court and wins a judgment against you, both parties will save time, energy, and expense.

Contact a Georgia Debt Settlement Attorney for Assistance

If you are struggling with debt and have debts that are currently delinquent or nearing delinquency, you may want to consider debt settlement. Debt settlement can be beneficial for debtors in many different circumstances and with various types of unsecured debt in Georgia. To find out more about your debt settlement options, you should get in touch with an experienced Georgia debt settlement attorney at Konn Law Firm LLC. We can speak with you today about debt settlement and the amount you might expect to pay. Contact us for more information.

Source:

law.justia.com/codes/georgia/2020/title-9/chapter-12/article-3/section-9-12-60/