What is a Satisfaction of Judgment?
A Satisfaction of Judgment is a simple but important form that is filed after a judgment is paid. It is basically a way to tell the world that the debtor has paid off the debt in full. This is a form that should be filed as a matter of course after a judgment has been paid, but in some cases the creditor forgets to do so. For the benefit of all parties, this form should always be filed in a timely manner.
Judgment Marketplace draws sellers who are having trouble collecting on judgments, as well as buyers who are interested in judgments as investors. Yet, at some point, many judgments are eventually paid. This is not only a relief to the creditor (or to the person who has purchased the judgment on JM0, but it has legal and financial implications for the debtor as well.
When a judgment is paid in full, the creditor is obligated to acknowledge this by filing a Satisfaction of Judgment form with the court. This is an important legal step, as it provides a public declaration that the debt has been paid. If any liens have been placed on the property of the debtor, these liens should now be removed. The Satisfaction of Judgment is also important for the credit rating of the debtor. Credit rating agencies are informed of this.
For these reasons, a debtor who has paid his or her judgment should be sure that a Satisfaction of Judgment has in fact been filed. If this hasn’t been done, a letter should be sent to the creditor. If the creditor still doesn’t file the document, the debtor may be able to recover any damages suffered as a result of this.
If the debtor has difficulty locating the creditor and needs this form to repair their credit, it’s possible to get it from the county clerk as long as you are able to produce the proper documentation.
Satisfaction of Judgment: Important For Both Debtors and Creditors
From the point of view of the creditor, it’s important to file this form in order to avoid the possibility of having to pay damages in the future.
A Satisfaction of Judgment form is not difficult to find or fill out. It can be picked up at any county court.