How to Satisfy a Money Judgment

Jan 26, 2021


When a creditor takes you to court for an unpaid debt and wins, a money judgment is entered against you. A creditor gets a money judgment so they can collect on the unpaid debt with more authority. We will review the common ways to take care of money judgments. More importantly, we will discuss how to make sure the court record shows the money judgment has been satisfied.


If you have the funds available, pay the money judgment in full. Contact the creditor or the creditor’s attorney to find out the exact pay off amount. There may be additional costs added to the money judgment after it was issued such as court costs, service fees, and garnishment fees.


Creditors can force the payment of a money judgment by wage garnishment. Typically, a wage garnishment is 20% of your pay after taxes are removed and will last up to 13 weeks, but it can be renewed until the money judgment is paid in full. The cost of the garnishment will be added to the money judgment.


A Wisconsin Section 128 is a 100% repayment of your debt at 0% interest. It is a great way to stop wage garnishment and repay any money judgment and other unsecured debts over a three-year period with no interest. Find out more about a Wisconsin Section 128, here.


Once the judgment is paid in full by garnishment, Wisconsin Section 128, or just your cash payment; you will want to make sure the court record reflects it. The creditor or creditor’s attorney needs to send you a Satisfaction of Judgment that is signed and notarized by them acknowledging the money judgment was paid in full. It is your responsibility to file the Satisfaction of Judgment with the Clerk of Courts in the county the judgment was obtained in and pay the $5.00 filing fee. Many people are not aware of this and, even though they paid the money judgment in full, the record of the money judgment still exists.


Money Judgments can be included in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, however, the process to satisfy the money judgment is different. After you receive your bankruptcy discharge in federal court, a Satisfaction of Judgment Due to Bankruptcy and supporting documents need to be filed in state court. The bankruptcy takes care of the fact that money was owed. However, since the two courts do not communicate, additional paperwork needs to be filed. The forms can be found on the state website and filed in the county where the money judgment was obtained for a $5.00 filing fee.


In Wisconsin, money judgments can last 20 years and can collect interest. Money Judgments can affect your ability to qualify for a vehicle loan or a home loan. If you are looking for help to repay or wipe out your money judgments contact our office. At Pedersen Law Office, LLC we offer free consultations to discuss your personal circumstances and review the different debt relief options. Our law office serves the communities of Appleton, Kimberly, Kaukauna, Little Chute, Neenah, Menasha, Oshkosh, Green Bay, De Pere and their surrounding areas.

Category: Bankruptcy

Tag Cloud