What to do about a judgment that was awarded after a settlement was reached and paid in full?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about a judgment that was awarded after a settlement was reached and paid in full?
I got a summons in the mail that a judgment was being sought against me on a 2 year old debt. I immediately called the lawyer of the creditor, and we arranged a settlement that they accepted, and I paid. The monies were removed 3 weeks prior to the court date, and I was sent a letter saying that it was accepted as payment in full and no further legal action would be perused. Yesterday, I got a notice that the judgment was awarded for the full amount. Creditor says they will make it as if it never happened. What are my options?
Asked on December 10, 2010 under Bankruptcy Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The creditor cannot "make as if it never happened." If you have a settlement agreement between you and the creditor, that settlement is enforceable as any other contract would be; once you and they have agreed and they have accepted the payment, they are bound to the terms of the settlement. (Hopefully you have it in writing and can prove payment; otherwise, it could be difficult to establish that there was a settlement.) You need to let the court know that there was already a settlement in that case; you're best off getting a lawyer to help you, but if you can't afford one, call the judge's chambers and speak to his/her clerk, explaining the situation; the clerk should be able to point in the direction of the paperwork or procedure you need to do. You may even have grounds to countersue for fraud or misuse of the legal process.
Worst case, even if you can't prove the terms of the settlement or that it was fully binding (e.g. it had some hole in it that allowed the suit to go forward) as long as you can prove payment, the monies paid would be credited vs. anything you owe.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.