I Agreed to a Stipulated Judgment But What Did I Just Agree To? – Maggie

“Dear Steve,

I fell on hard times and fell really behind on my Capital one card. I was served papers and contacted the attorney who is representing capital one. I agreed to a stipulated judgment in the amount of 100.00 per month (I will be paying much more than this.) I haven’t received the papers in the mail yet but the woman told me over the phone “out clients require us to take a judgment against you but we will not act on that judgment unless you default on your payments.”

By saying that they will take a judgment against me but not act on it what exactly does that mean? I thought a stipulated judgment was to avoid the actual judgment. I am really confused and would greatly appreciate your help


Dear Maggie,

A stipulated judgment is an agreement between the debtor and creditor. They typically include a repayment plan both parties agree to and if the debtor misses a payment the creditor can take the admission of guilt in the stipulated judgment and file it with the court to then go for a wage garnishment or some other process allowed in your state.

A stipulated judgment is a judgment, but they are typically not recorded at the court house unless there is a payment default.

It seems the direct question to ask the lawyers office is if they plan to file the stipulated judgment with the court.

The benefit of the stipulated judgment is that you and the creditor have come to a repayment agreement without further legal action.

A stipulated judgment is a legal process and procedure. I strongly suggest that if you have any questions or concerns about the stipulated judgment the lawyer is asking you to sign that you find a local attorney who is licensed in your state.

Please post your responses and follow-up messages to me on this in the comments section below.


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Damon Day - Pro Debt Coach

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Steve Rhode

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