An Agreed Judgment is usually a settlement agreement for an extended payment plan. Payment plans are usually 12 to 36 months.
Sometimes an agreed judgment is the only option if the creditor has produced enough evidence to likely win at trial and the consumer can only do a settlement with a long term payment plan.
Consumers are generally better off settling a lawsuit in a lump sum or fighting for a dismissal.
Discounted Agreed Judgments
It is common for creditors to settle with an agreed judgment for a reduced balance rather than the entire debt amount they are claiming. However, if you miss a single payment the entire amount will be due. The creditor may ask the Court to intervene once again if you miss a payment. So, it is crucial that you make all your payments on time.
Before you sign an agreed judgment, it is best to have a debt defense attorney take a look at it. If you have been served with a lawsuit and the creditor has sent you an agreed judgment to sign, contact our office for assistance. Our debt defense attorneys will go through the terms and conditions of the judgment with you and determine if it is the best fit for you. If not, we will help you renegotiate a better settlement with the creditor.