You can attempt to settle a judgment yourself and save legal fees. If you choose to do so here is a general process you can use to settle a judgment.
Find the judgment creditor
Sometimes this is the most difficult part of the process. A copy of the judgment will need to be obtained from public records or court records in the county that it was filed. You can then contact the attorney that represented the creditor in court. The attorney may or may not be able to help settle the judgment. Usually if the attorney can not help you they can give advice on who to contact next. Sometimes the creditors that took the judgment are out of business, have declared bankruptcy, or sold the debt. You will have to find the entity that owns the judgment now and document how they own it.
Create a hardship letter
A hardship letter needs to document the reasons why the judgment creditor should reduce the amount that they are owed. A good hardship letter should be able to provide details of a job loss, divorce, medical issues, or any other event out of the ordinary that inhibits your ability to pay the full amount due.
Negotiate
A judgment creditor has all the power in a settlement negotiation. Until the client agrees to pay a price that judgment creditor wants, they will not sign off on the release of judgment. A good hardship statement and correct documentation may persuade the creditor to reduce the amount of money they are demanding. The perfect settlement price is what a client is willing to pay and what the judgment creditor is willing to accept.
Write a Release of Judgment (RoJ)
This is the document that after signing will be sent to the court and recorded in public records proving that the judgment is released. If this is not written correctly or signed off appropriately, then it may be invalid.
Transfer Money and Get Release of Judgment (RoJ) Signed
It is imperative that you make sure that if you send money to a judgment creditor, they will release the judgment as agreed. If they do not then you may have to take more expensive
File Release of judgment (RoJ) in the correct county
The settlement process is not complete until you file an original copy of the release of judgment inside the county that the judgment was taken. Most counties charge a small fee to file documents into the public record.
If you think that you may need help during the judgment settlement process, please give us a call at (214) 506-2500 | email cs@txclf.com | Online Judgment Settlement
Continue Reading
Today, we’re releasing our third Snapshot of Complaints Received from Servicemembers, Veterans and their Families. The report details the data and trends from consumer complaints we’ve received from members of the military community since July 2011.
Here are just a few highlights:
- Debt collection complaints have continued to rise since our last report, and now make up 39 percent of total complaints. It is our largest category of complaints from the military community.
- Credit reporting remains a top category of concern. 72 percent of these complaints are about incorrect information on credit reports. This remains a significant issue for the military community, one that we highlighted earlier this year.
- Student loans are another concern. 49 percent of these complaints are about problems dealing with a lender or servicer. In these complaints, we continue to see long-standing trends, such as servicemembers complaining about not being provided their Servicemembers Civil Relief Act rights.
This year our report also highlights our outreach efforts that allowed us to connect with thousands of members of the military community, as well as three of our enforcement actions that recovered millions of dollars for affected consumers, primarily servicemembers, veterans, and their families. These figures represent the positive impact of the work we continue to do on behalf of those who serve.
Problems with account services
Basic account servicing stands out as a significant area of concern for servicemembers. Most consumers can call their financial institution, visit a branch, or connect online to try and get the help they need to maintain their account. Unfortunately, for military personnel and their families, the realities of military life, including deployments, frequent moves, and a high operational tempo, can sometimes make access to those services extremely challenging.
We found that servicemembers were often subject to a variety of account maintenance or penalty fees, as well as account-access restrictions, which were triggered due to aspects of their military service.
These problems raise concerns that financial institutions may not have a true understanding of the servicing needs of their military customers and may lack proper procedures and protections for them. Detailed examples of servicemember experiences can be found in Section II of the report.
Check out the snapshot to learn more.
We’re listening
As always, if you have a problem with a consumer financial product that you can’t resolve on your own; or if you know someone in that situation, please remember that you can submit a complaint online or by calling (855) 411-2372. We make your voice heard.
