How hard is it to collect on a judgement?
Asked by: Sally Davis DVM | Last update: July 1, 2025Score: 4.1/5 (18 votes)
Depending on the defendant's financial situation, it can be very difficult to collect a judgment. Some people do not work or have assets and are not able to pay judgments. Other defendants may have the money but refuse to pay it out of spite or for other reasons.
Can you negotiate a judgement?
Resolving your judgment debt by negotiating and paying less is often required before you can move on with financial goals. But you must be prepared to negotiate differently than if you were not sued, and know that you will often have to pay more to settle legal debts too. SHARE THIS VIDEO: Settling Judgment Debt...
How do you get around a judgement?
- Pay the debt or allow the debt collector to collect the money from you. If you don't pay the debt, the debt collector may try to collect the money. ...
- Negotiate to pay off the judgment under better terms. ...
- Ask the judge to set aside (cancel) the judgment.
What happens after a debt collector gets a judgement?
The court can also order you to pay the costs of collecting the debt, interest charges, or attorney fees. Important: Judgments give debt collectors much stronger tools to collect the debt from you, including wage or bank account garnishments, as well as putting on a lien on your home.
What happens if a defendant does not pay a judgment in PA?
If a debtor refuses to pay a judgment, and execution attempts have failed, creditors should be certain to revive the judgment every 5 years. If a judgment is not revived in 5 years, creditors may lose important rights in future attempts to collect the money owed. Judgments may be revived up to 20 years in Pennsylvania.
How to Collect on a Judgment
Will a judgement be removed once paid?
You paid the debt: Credit agencies will remove the judgment from your credit report if you can show that you did pay your debt on time. If you paid your debt after the judgment was established on your credit report, the agency won't remove the judgment. But it will mark your debt as paid, which is helpful.
What personal property can be seized in a judgement in Pennsylvania?
Can Personal Property Be Seized In A Pennsylvania Judgement? Judgments from Magisterial District Court and Court of Common Pleas. A plaintiff can seize tangible personal property which are items such as household furnishings, jewelry, and business and office equipment.
How long after a judgement can wages be garnished?
And even if the party being sued does respond, many times there is not much of a defense that can be made. 10 days following the judgment, the creditor becomes a judgment creditor and can begin the wage garnishment process.
Is a judgement a final decision?
A “Final Judgment” is the written pronouncement of the court that determines the rights of the parties. The Final Judgment ends the legal proceedings in that court and allows for appeal to a higher court. There are different types of judgments depending on the type of legal proceeding.
What happens when a creditor sues you?
If the court rules against you and orders you to pay the debt, the debt collector may be able to garnish — or take money from — your wages or bank account, or put a lien on your property, like your home.
Can a creditor take all the money in your bank account?
If you've been sued for an unpaid debt, the court may allow your creditors to directly withdraw funds from your bank account via a levy. With an account levy in place, you may be unable to access all your funds.
Can a judgement be dismissed?
There are only three ways in which a judgment can be made to go away: paying the debt, vacating the judgment or discharging the debt through bankruptcy.
What percentage should I ask a creditor to settle for after a judgement?
Take time to determine a realistic figure, but it should be 50% or higher. The last thing you want to do is ask a creditor to negotiate a settlement with you and still not be able to meet the terms of the new agreement because you didn't accurately assess your repayment capability.
Should I pay off a Judgement?
Paying The Judgment Creditor
You should make arrangements to pay the judgment immediately. If you do not pay, the creditor can start collecting the judgment right away. You can ask the judgment creditor to let you pay what you owe in weekly or monthly payments.
How often do debt collectors take you to court?
More frequently than most consumers probably realize. While precise statistics are difficult to come by, legal experts estimate that several million debt collection lawsuits get filed across the United States every single year.
How much will a debt collector settle for?
According to the American Association for Debt Resolution, the average settlement amount is 50.7% of the balance owed. So yes, if you owed a dollar, you'd get out of debt for fifty cents. But the average amount of debt enrolled is $4,500. That means you should still expect to pay a hefty sum to get out of debt.
Can a creditor get a judgement without me knowing?
If a creditor obtains a default judgment against you but you were never properly served, and never knew about the lawsuit, you may be able to get that judgment set aside and new a hearing date scheduled to dispute that debt.
What are three types of judgement?
Judgment is a court decision that settles a dispute between two parties by determining the rights and obligations of each party. Judgments are classified as in personam, in rem, or quasi in rem. Judgments are usually monetary, but can also be non-monetary, and are legally enforceable.
Does a judgement affect your credit?
Since judgments no longer appear on your credit report, they do notdirectly impact your credit score. However, financial choices and behaviors that lead to having a judgment on your report may indirectly affect your score. You may have outstanding balances, debts, collections and more.
What type of bank account cannot be garnished?
Bank accounts solely for government benefits
Federal law ensures that creditors cannot touch certain federal benefits, such as Social Security funds and veterans' benefits. If you're receiving these benefits, they would be exempt from garnishment.
What is the most they can garnish from your paycheck?
For most types of debts, including credit card bills and medical expenses, creditors can garnish up to 25% of your disposable income (what's left after taxes and other mandatory deductions), or the amount by which your weekly income exceeds 30 times the federal minimum wage, whichever is less.
What is the minimum amount I can pay a debt collector?
Also, policies vary among debt collection agencies. While one agency may accept 20% of the original amount owed, another may insist you pay at least 80% of the debt. Still others may not accept anything less than the total debt amount.
Can you purchase a home with a judgement?
You would have to pay the judgement off before closing on the mortgage loan, anyway. Your down payment, income and payment history matter more. Provide a receipt for the paid judgement with your mortgage application.
What are some items that typically cannot be seized to pay debts?
The following kinds of personal property are exempt from debt collection and cannot be seized: Household goods, like furniture, clothing, and appliances. Medical equipment, such as a wheelchair.
Can a judgement creditor take my car in PA?
Yes, a judgment creditor can levy personal property, including vehicles and the contents of a home. Levies of tangible property like this are not as common as bank levies, but it is sometimes used to try to force a settlement.