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Can i settle a debt after a court judgement?

Conyers, GA |

My debt was bought and sold a few times. Now an attorneys office has it. I paid every month as agreed till my mother got ill and i had to travel out to tare care of her. There was an error done on my family leave causing me to lose my job. I am still unemployed. They tried garnishing my account but got nothing because i was unemployed and flat broke. They have added a lot of fees and the balance is bigger than my initial balance. Its been a year and a half and i would like to settle it. Is it possible?

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Attorney answers 4

Best Answer

It's possible you can settle this debt, but settlement means that both sides come to an agreement. Right now, the plaintiff is attempting to get money from you. You currently aren't working and flat broke, so they can't get anything from you. However, at some point in the future, you'll be working again.

If you could get some amount of money, you can call them and explain you aren't working, have no source of income, but you'd like to resolve this by paying them however much money you can afford in exchange for settling the action.

If they don't agree to your proposal, you should consider filing chapter 7 bankruptcy. Filing chapter 7 costs money, but many attorneys will work with you on payment options.

Hope this helps!


Yes, if the debt collector is willing.


Settling a judgment is difficult because the amount is determined, has interest accruing, and serves as a lien against your property. However, if the creditor agreed, it could be possible to make arrangements on how to make payment, and in rare cases maybe they would agree to release the lien for a lower amount.


This sounds like a credit card debt or other unsecured debt like a personal loan. The answer is yes, settlement is always possible even after judgment. However settlement is based on whatever the current balance on the judgment is as of the time settlement is made. Judgments include post-judgment interest from the time the judgment was entered. Court costs, attorneys fees, and any pre-judgment interest all get added into the amount sought in the complaint.

Most credit card companies will settle for 50% to 80% of the balance, but you have some factors in your favor in that you do not work so your wages cannot be garnished and there were no assets that could be seized or money from your bank account levied. Also, I have had better luck in resolving judgments years after they were entered - usually the creditors are willing to make better deals years later because they are desperate to get funds. Also. the best time to settle is between the the 15th and 30th of the month if you want to get better deals.

The more you can pay in a lump sum the better the settlement percentage will be. If you want to make payments, the creditor may want the full sum. If the debt is with a credit union or some type of private business, then it may be difficult to settle that kind of debt.