What Are the Possible Ways to Settle a Credit Card Judgment?

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What Are the Possible Ways to Settle a Credit Card Judgment?

There are enough cases of credit card debts in Los Angeles. People have a surmounting amount to be paid as credit card loans. Most of these credit card loans are unsecured loans; which means the creditors cannot seize credit card owners’ assets if he/she fails to pay the loans. However, the creditor can take rescue and file a case against the debtor. Once he gets a judgment against the debtor, he can propel the debtor to respond in court and take steps to seize the debtor’s assets. For good advice on how to settle a credit card judgement, the debtor can connect to https://bankruptcy.recoverylawgroup.com/

There are three possible ways to settle a credit card judgment-

  1. Vacate the judgment

Vacate a judgment means filing a case in court against the creditor to dismiss the judgment. When a debtor files to vacate a judgment, the judgment stands null and void. For proposing to vacate a judgment the debtor will need a lawyer. A lawyer files a legal motion against the creditor to vacate the judgment. He can make the case strong by convincing the court that the client was not rightly served with the judgment.

The client can win the case and the judgment will be vacated. Apparently, the client is still liable to pay the creditors; because if the case stands true there is no way the client is excused. On top of that, the client will have to shell an extra sum as the lawyer’s fee. So, vacating the judgment may not be the best approach.

  1. Settle the judgment

The client can seek a unanimous settlement with the creditor.  The creditor usually settles for a lesser amount than the actual loan amount to arrive at a settlement. The client must seek a written document to avoid future complications. The lawyer can help the client retrieve a written settlement document to clear the case.

However, despite settling the judgment the client may have to bear with the judgment on his credit record for many years. This may not go well with the client’s reputation and may wish to avoid it. Hence, settling the judgment may not appeal to the client.

  1. Apply for bankruptcy

The creditor can file a chapter 7 bankruptcy case in the court. This will although save the settlement amount, but the lawyer’s fees need to be paid by the client. This again will damage the reputation of the client and will stay on his credit card record for more than 10 years.

Is there any other option?

There is one good option that will retain the reputation of the client as well as settle the judgment. The client can ask the creditor to vacate the judgment in good faith and dismiss the lawsuit. This way the client is clear off the record and is able to save his reputation. Apparently, the creditor’s lawyer may not be happy with the deal. The debtor can make some effort to convince the lawyer by offering an extra package to the creditor’s lawyer. The small amount will be like a drop in the ocean to save and secure the client’s reputation with an upgraded credit card report.

Things to keep in mind while settling a debt amount

The entire procedure of settling the debt must be covered well in a written document signed by both parties. Without the written document there will be no strong proof of settlement. Hence the client must agree on a written document before paying the money. Secondly, the client must take into notice that despite settlement the client is not excused of tax on the forgone debt amount. He may need to pay the tax against the actual debt amount. To understand more call on 888-297-6203.