Consent judgment

What is consent judgment?

Also called a consent decree, a consent judgment is a court order to which all involved parties have agreed. A consent judgment is used to settle a lawsuit and must be approved by the court to be legally binding.

Deeper definition

Unlike a default judgment, a consent judgment is something that a defendant agrees to, rather than something the court issues against the defendant. It differs from judgments handed down by a judge or rendered by a jury.

A consent judgment is often used when someone has been sued for a debt but is unable to pay. He might agree to a consent judgment, in which a judgment is issued and he acknowledges the debt. In many cases, the defendant also agrees to a repayment plan or forbearance to pay at some point in the future.

A consent judgment might also serve as a compromise or settlement between the two parties. For example, a creditor might agree to accept less than the full amount of the debt, provided the defendant abides by a payment plan and fully pays the settlement amount. The creditor and debtor write up the agreement, and the judge signs it.

Consent judgment example

If a creditor sues someone for an unpaid debt, such as a medical bill, the defendant can fight it in court and deny the claim. However, if he can’t or doesn’t want to deny the debt, he may agree to a settlement as a way of keeping court costs and legal fees down and halt further legal action.

In this case, the creditor might agree to accept less than the total amount owed, such as 50 percent of the debt. If the defendant agrees to a consent judgment, he would admit to the debt owed and agree to the settlement amount with a payment plan. For example, he might pay a certain amount each month for three years until the agreed amount is paid and settled.

If you have a lot of debt, use these methods to get out debt for good and avoid court.

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