I lost my case. How do I (the debtor) pay the other party (the creditor)?
Updated: Apr 27
If you lost the judgment on your case, that makes you the judgment debtor. The other party, who won the case, is now your creditor, meaning you owe them money. Paying your judgment promptly will minimize any interest that may accrue on the judgment (interest is extra money you will pay on top of the base judgment amount, and it may increase if you do not pay quickly).
Here are the 3 ways you can pay your judgment:
1. Pay directly to the creditor in a lump sum
2. Pay directly to the court in a lump sum
3. Pay in payments to the creditor
Pay to the creditor in a lump sum
If you choose to pay directly to the creditor, be sure you get proof of payment, like a receipt. Once you've paid the creditor, remind the creditor that they must fill out a “satisfaction of judgment” form to let the court know that the judgment has been satisfied. If there were any liens placed against your property, be sure to request that the creditor remove those liens as well.
We suggest that you double-check with the court that both have been satisfied 15 days after you pay the judgment. If the satisfaction of judgment has not been filed, you have two options:
Send a formal letter requesting the creditor to file the acknowledgment of satisfaction of judgment to the court or you will sue the creditor for damages plus $50.
Declare to the court that you have satisfied the judgment, and prove it with the receipt of the judgment payment.
Pay to court in a lump sum
You can choose to pay the judgment directly to the court instead of to the creditor, though this will require you to pay a court processing fee. The benefit in doing this is that you can get proof of payment directly from the court, and the court will indicate that your judgment has been satisfied. You must pay the principal amount of the judgment, as well as any costs and any interest accrued on the judgment.
Pay in payments to the creditor
If you are unable to pay the creditor or the court the whole amount at once, and wish to make partial payments over time, you can arrange a payment plan directly with the creditor or request it with the court.
If you choose to set up a payment plan directly with the creditor, be sure to get all the details in writing, including (but not limited to): due dates, grace periods, interest, where to send payment, what form of payment, and who the payments should be made to. Be sure to keep a record of all the payments you make, in case disputes arise in the future.
You can also request a payment plan from the court. The benefit of doing this is that the interest will stop accruing until the entire judgment is paid off. You will need to file a request to make payments, and submit a form stating your financial situation. Once the form has been filed, the creditor has 10 days to respond. If they don't respond in that time, then the request will be granted.
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