A fixed judgment is a judicial decision. By signing the established judgment, a debtor is held responsible for payments and cannot be offered the courtesy of legal proceedings if he is in default of payment. If the debtor is not interested in making a fixed judgment, he can accept an order by consent – a voluntary order made between two parties interested in reaching an agreement on the payment of debts. Consent orders vary by state and jurisdiction. Have you ever wondered what the difference is between the different types of judgments mentioned by your lawyer? The simple answer is “absolutely nothing” except the path you took to get the verdict. Once entered, a judgment is a judgment. The real difference may well be the costs incurred by the creditor when he receives the judgment. A brief explanation of the different types might help you understand why some judgments cost more than others – and to a large extent, you have little control over which type will ultimately solve your case; Circumstances dictate the option(s). A debtor who accepts a particular judgment enters into a legally binding agreement with his creditor to pay a certain amount of money within a certain period of time.

In many cases, debtors find that a fixed judgment is advantageous when they agree to pay a debt, as creditors are sometimes willing to negotiate a reduced amount. You can also cancel late fees, interest charges, and even a portion of the principal balance to pay off the debt. Consent Judgment: The consent judgment is a companion to the confession of the judgment. The difference between the two is that a consent judgment is rendered after a complaint is filed, and its intention is that it be immediately filed as a judgment against the defendant. Most often, it is used as a way to control litigation costs when a defendant admits the debt but is unable to pay it at some point. As an admission of judgment, a consent judgment may be accompanied by a payment plan or a cessation and forbearance agreement – the creditor agrees not to execute the judgment for a certain period of time or as long as payments are made. A consent judgment is an active judgment and, as such, is associated as an interest in real estate belonging to the defendant, so that it can provide some security in the event of bankruptcy proceedings, provided that there is sufficient equity in the property and that more than 90 days have elapsed between the registration of the judgment and the filing of the application. Default judgment: A default judgment results from a defendant failing to respond to a complaint. In order to reach a default judgment, the action brought to initiate legal proceedings must be re-examined and have a certain amount. In the absence of a response, the court will render a default judgment on the amount claimed in the appeal, plus any interest or interest at the legal interest rate set in the underlying agreement from the date of default.

If a defendant contacts the court for an extension but does not file a response, there is a subset of this process that requires the party`s notification and gives that party 30 days to request a hearing. Note that courts do not like default judgments. The theory is that we should all have the right to be heard before a judgment is filed, so that setting aside a judgment in absentia, while not easy, is not as difficult as other forms of judgment. At the time of promulgation of a particular judgment, the conditions will be dealt with if one of the parties does not respect its agreement. In most cases, if a debtor fails to meet the payment schedule agreed in a particular judgment, it is liable for the entire original debt, including interest and fees, less amounts already repaid. Deciding whether or not to accept a verdict of approval is extremely important and could have a significant impact on your financial future. For example, suppose you accept a consent judgment in which you agree to pay the creditor a portion of what is due, but not the full amount. The composition is agreed, but the creditor then asks you to sign a consent judgment to settle the active recovery action.

If you agree with the consent judgment, you are actually asking that the judge presiding over the case make a judgment against you. There are several types of judgments that can be included in a collection action, including a “consent judgment”. This page provides valuable information on what to expect if or when a collection agency decides to take legal action to obtain the refund to an allegedly late account. An agreed judgment is usually a settlement agreement for an extended payment plan. Payment plans are usually 12 to 36 months. Eventually, John spoke to a lawyer who told him to make a deal with the company. Under the terms of the decision, John now pays a monthly amount of $100 and must pay the entire debt within 60 months. In addition to a judgment rendered by a court in the context of a trial, it is possible that the judgment is recorded by a pre-litigation application. In many cases, this is done through a summary judgment application. A request for a summary verdict can be filed by any party (which means you can also file this type of claim if there is evidence that the collection agency does not have sufficient evidence to prevail in court). At its core, an application for summary judgment is an argument that seeks to convince the judge that there are no substantive facts in dispute and, therefore, that a judgment should be registered without having to proceed to trial.

For example, that you have signed a legal loan agreement, that you have not made any payments, and that you have no defense as to why you are not paying. The creditor must also convince the judge that he is legally entitled to a judgment. If the judge agrees with the creditor, he can make a judgment against you without any legal proceedings taking place. The creditor should not win if essential (important) facts are disputed (e.g.B. if you claim you did not sign the agreement). Court Confession: The name says it all in many ways. The debtor acknowledges that the debt is due and therefore executes a judgment that may be registered by the creditor as a judgment against the debtor. In many cases, this form of judgment is used in conjunction with a payment plan.

The debtor cites the admission of the judgment as a “guarantee” so that if the debtor defaults on a payment plan, the creditor is not faced with a reduced balance that renders the request for full recovery economically ineffective. An admission of judgment can only be filed when there is no ongoing litigation, so if the sequence of events implies that the creditor files a claim, the agreement in support of the confession of judgment will usually involve voluntary dismissal without prejudice. The note or agreement that contains the conditions for filing the confession of judgment usually creates a new debt, although this does not necessarily have to be the case, but the use of the “without prejudice” form is an additional guarantee that the creditor retains all rights and remedies against the debtor. Note that the word “security” is in quotation marks at the top for a reason. Until the actual filing, the confession of judgment is not a judgment, and when a petition for bankruptcy is filed, the creditor is neither more nor less certain than he would have been without the confession of judgment. When a debt collection action is filed, it does not mean that the parties stop negotiating. It is quite common for debt collection cases to be resolved after a lawsuit has been filed, but before an actual process begins. If you reach an out-of-court settlement with the collection agency on a settlement after a lawsuit has been filed, you may need to accept a “consent judgment.” A contractual dispute arises when a party to the contract has a disagreement on one of the terms or definitions of the contract. For a contract to be valid, there must be a “Meeting of the Spirits”.

This means that all parties must have a solid understanding of each term of the contract and agree on the terms. .