A Satisfaction of Judgment or Release and Satisfaction is a legal document that shows that the plaintiff has been paid all that he or she is owed, based upon the original judgment against the defendant. This legal document is important because it is not revocable; once it is signed and filed with the court, it cannot be changed. Judgment debtors are usually in a hurry to get this type of release so that the civil action stops adversely affecting their credit.
Importance of Release of Judgment
The release form is proof that the defendant paid what he or she owed to the plaintiff. Someone who has an unpaid judgment on his or her credit report may not be able to get a loan, purchase a home, receive new credit or rent an apartment. These decisions are often made off a review of the defendant’s credit, so adverse information can negatively impact the defendant’s chance of approval because the judgment can cause a lower credit score. Additionally, if a judgment debtor still owes money and does not have a release of the judgment, the plaintiff may continue collection efforts, such as seeking garnishment of wages or income, placing a lien on property or receiving funds from a business’ revenue.
Ability to Acquire a Release of Judgment
Normally, the defendant is only able to receive a release of judgment after he or she has paid off the amount of the judgment, including any interest and court costs. The plaintiff may send this document to the defendant once the final payment is received.
If a judgment debtor has not yet paid off the entire judgment amount, he or she may attempt to make other arrangements with the plaintiff. For example, he or she may offer to make a lump-sum payment rather than have the plaintiff wait for months or years to receive the funds. However, the plaintiff is the one responsible for completing the release form, so any such agreement should be discussed with legal counsel.
Procedural Process
If the plaintiff does not automatically send the judgment debtor a release and satisfaction document, the defendant should ask the plaintiff’s attorney to do so. The defendant should ask for a letter confirming that the entire amount of the judgment has been paid. He or she may do so by sending a demand letter to the plaintiff. The release and satisfaction form is filed with the court clerk and entered into the case record.
If the plaintiff does not provide a release and satisfaction form, he or she can petition the court for an order showing that the judgment has been satisfied and released. Finally, the judge will vacate the judgment and dismiss the action. A copy of the vacate order can be sent to credit bureaus to correct inaccurate information regarding an unpaid judgment. The vacate form demonstrates that the judgment debtor fulfilled his or her obligation.
Some jurisdictions permit the defendant to pursue the actual damages that he or she suffered from the plaintiff for failing to provide the required satisfaction of judgment if he or she had no just cause in not providing it upon request.
Evidence
If the judgment debtor is not able to receive a release and satisfaction of judgment form from the plaintiff, he or she may have to present evidence to show that he or she did satisfy the judgment. For example, he or she may provide a canceled check in which he or she shows the full balance paid in a lump-sum. Other evidence may include a ledger of payments, a letter in which the plaintiff acknowledges full receipt of the judgment or a notarized letter that states that the judgment debtor paid the judgment and asked for a release and satisfaction form from the plaintiff who refuses to comply or cannot be reached.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
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