How to Negotiate a Judgement Settlement with a Debt Collector

How to Negotiate a Judgement Settlement with a Debt Collector

How to Negotiate a Judgement Settlement with a Debt Collector

If you receive a notice of judgement against you from an attorney, one option you have is to negotiate a judgement settlement. Negotiating to reduce a judgment against you will alleviate your financial burden significantly. A TN Debt Defense Lawyer from Fitzgerald & Campbell, APLC can make judgment attorneys think hard about how they wish to proceed, and we can often negotiate a better deal to save you even more money. Here are the basic steps to negotiate a judgement settlement with a debt collector.

Learn About the Debt

The first step you should take is to learn all you can about the judgment or debt in question. Debt collectors are required to provide you a copy of the judgment. Referring them to your Debt Defense Lawyer can stop the calls and letters while you gather the funds you need to create a settlement plan.

Be sure to verify the debt and check these important factors:

  • The identity of the creditor
  • The amount owed
  • The statute of limitations on the judgment (in TN this is ten years)

If you are unsure about where the judgment originated or is valid, contact a Tennessee Consumer Protection Attorney in Memphis from Fitzgerald & Campbell, APLC. They can perform deeper research and perhaps help you contest the judgment. Never pay a debt you are not sure you owe.

Create a Workable Debt Repayment Plan

Your Debt Defense Lawyer in Nashville can help you examine your finances and obligations to create a workable judgment settlement plan. Your debt settlement options should always seek to reduce the amount of debt you owe. If you are dealing with a debt collection company, remember how they operate. Some of these companies purchase your debt from a creditor for much less than you owe. This makes them more open to accepting a much smaller amount. After all, receiving some amount is better than you filing bankruptcy and them gaining nothing.

  1. Review your other debt priorities.
  2. Plan for unexpected expenses and emergencies.
  3. Decide on the total amount you can pay on this debt. Choose a lump sum or monthly payments – whichever option best fits your budget.
  4. Never offer to pay more than you can actually afford.

When Negotiating with a Judgment Attorney: Get a Lawyer!

A judgement against you may allow the debt collector to garnish your wages or undertake other collections action. Your goal is to prevent this and convince them to accept a lesser amount on your terms. This is best done by a lawyer who knows the law and can show the collection attorney they have risks to collection.

Your Debt Defense Attorney in Franklin can begin by explaining your circumstances that caused the difficulty in repaying the debt. The fact that an attorney is handling the negotiations lets the debt collector know you are serious about settling your case. They can negotiate for a lesser amount owed and reach a better deal before presenting any plan for repayment.

After reaching a tentative amount, your attorney can share your proposed repayment plan and its terms. They can also present reasons for accepting your plan. After all, you are negotiating in good faith; rejecting your offer could mean you file bankruptcy and pay them nothing – that is their worst fear.

Complete the Deal in Writing

Once a deal is reached, your Debt Defense Lawyer will draw up a written agreement to share with the debt collector that explains the terms and verifies their acceptance. Once this agreement is shared and signed, keep copies for your records. Be sure to comply with the terms of the judgement settlement agreement, whether that is a lump sum payment or monthly installments by a certain date.

Contact Us for Help with Negotiating a Judgement Settlement

If a debt judgment has been filed against you, the skilled debt defense attorneys at Fitzgerald & Campbell, APLC, can help you negotiate a judgment settlement in Tennessee to protect your assets and reputation and resist a wage garnishment. We can also help you create a debt settlement plan to eliminate debt on your terms. Contact us at 615-845-4595 or complete the contact form to request a consultation.


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