Repaying debt...payment plan.. after judgement

[jenra27]

Does anyone know if creditors do not garnish wages or not levy bank accounts if you make payment arrangements to pay back debt after summary judgement and actually pay the money each month if you give them no reason to? Thank for the help!!!!!!!!!!!

[frogger]

If you will set up a payment arrangement schedule with the holder of the judgment, also stating that garnishment will not occur provided you are making your payments as required, have it signed by both parties, then you are good.

You will then have a legal & binding document that gives you rights that are enforceable.

[catleg]

I strongly suspect that such a document gives THEM most of the rights, but it would keep them off your back as long as you're making payments. Normally in pre-judgment terms this is called a stipulated judgment; they might require you to agree to a wage garnishment and supply employer info as part of the terms of the agreement (I know I would if I was them).

[frogger]

I strongly suspect that such a document gives THEM most of the rights, but it would keep them off your back as long as you're making payments.

Exactly. As long as you're paying, it keeps the unexpected surprise of a bank account seizure or garnishment. This is best done post-judgment, because it saves them them extra legal fees and having to search for assets.

You're really not giving up any rights, because the judgment is already there. It just gives you stability with your finances.