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Can You Settle Judgements for Less?

admin April 4, 2022 0 Comments

How would you like to settle debts in a more organized and prompt manner? How would you like to get your issues sorted out more effectively and quickly without fronting more of your hard-earned money? Now that’s a wonderful start towards owning a debt-free life.

However, you’re being sued by the creditors, and you feel like everything is crashing down around you; don’t fret. You can still get help, and there’s still a chance that you might be able to settle judgements for less. Read this guide to learn what the possibilities are.

Are You Sued or Not?

Many people believe they’re getting sued when they get a call from the creditor’s attorney and start to panic. Well, this doesn’t necessarily mean you’re getting sued. Many creditors use these tactics to pressure the debtor into paying; it can be a bluff.

Your creditor will exhaust all the possible options to collect the money you owe before settling for less money. The reason for settling affects whether or not the creditor is willing to work out a settlement.

So if you’re being sued and you don’t have any income and savings, you can try negotiating a settlement before things go to court. Contact a debt settlement company like National Credit Help to negotiate things with your creditors and eliminate the need to fight to settle judgements for less if things go to court.

Is Statute of Limitation Possible?

Many debtors do not know this, but there’s a limit to the period after which the creditors cannot take matters into court called the statute of limitation. Different provinces have different time periods that vary between 2 and 10 years. Here’s a table outlining these windows:

Ontario 2 years
Alberta 2 years
Newfoundland and Labrador 2 years
Saskatchewan 2 years
Quebec 3 years
British Columbia 6 years
Manitoba 6 years
Nunavut 6 years
New Brunswick 6 years
North Western Territories 6 years
Yukon 6 years
Prince Edward Island 6 years
Nova Scotia 6 years

In some provinces and territories, the length of the statute of limitation can be extended to up to 10 years if a court judgment is passed before its initial expiry period.

Can I Settle judgements For Less If I Am Sued?

Let’s say your creditor acted fast and took matters to court before the statute of limitation’s window closes. If so, your creditor might be able to levy your bank accounts, place liens on your properties, or garnish your wages.

If this happens, you can still settle judgements for less hire a debt settlement company to negotiate with the creditors. Once you reach a settlement, file all necessary paperwork through an attorney to finalize everything in writing with all the terms clearly mentioned.

Creditors will also try to go for settlement even if they’ve sued you in court because they can face difficulties while collecting judgment and court costs if you’ve got more liabilities than assets.