If you are dealing with overwhelming debt or you are being sued for debt, debt settlement may be an option to help you seek relief. If you are considering debt settlement, it is important that you understand what a stipulation agreement is and what it means when you sign it. Our New York debt relief attorneys explain what you need to know about a stipulation agreement below.
Stipulation Judgment & Debt Settlements
A stipulated judgment agreement is a contract debtors often sign when they settle debt with creditors. A stipulated judgment agreement can be beneficial to debtors who are seeking a last resort to settle their debt. A stipulated agreement can put an end to creditor harassment and collection efforts – whether it’s wage garnishments, bank levies, or liens. In exchange for stopping collection efforts from creditors, you would come to an agreement with creditors to pay off a portion of your debt in a specific period of time.
A stipulated judgment agreement has similar effects as a regular judgment, but the main difference is the debtor agrees to give up essential rights. For example, you would give up any defenses you have against creditors, such as the statute of limitations. You would also lose the right to appeal the judgment.
Benefits of Stipulation Judgment Agreement
One of the major benefits of signing a stipulation judgment is that it decreases the amount of debt you owe. Once you sign a stipulation agreement, you will need to start paying the agreed-upon amount. If you don’t pay the set amount within the agreed time frame, the creditor will be protected because they still have a judgment for the entire amount without going through a trial.
Have questions about debt settlement or stipulation judgment agreement, contact our New York debt relief attorneys today at (516) 217-4488 to schedule a consultation!