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To have it removed, you must satisfy the requirements of your creditor.
Left unresolved, judgments and liens negatively affect your ability to secure credit or loans, and put a bad mark on your credit report for a long time.
You can change all that, depending on how you approach your creditor in the debt negotiation process.
It's never too late to try to reach an amicable agreement - even if court proceedings have already been initiated.
You can approach the creditor, either directly or through your lawyer, and made an offer at any time.
Start with an amount in the neighborhood of about 40% of your outstanding debt, which can become a starting point.
Many creditors are willing to settle debts for pennies on the dollar.
The time and cost involved in collecting on them can escalate quickly, plus at some point they can simply write them off.
So, they will often accept much less than the original amount if you show a willingness to negotiate.
The older your debt, the probability they will take less is even greater.
There is still time to negotiate, even if your wages are being garnished, or your assets seized.
As mentioned, administration of the entire process can be very expensive and time consuming, so most creditors want to have the matter over and done with as soon as possible.
If you're able to reach a settlement this late in the game, make sure you get proper dissolution - formal documentation that your entire debt has been satisfied.
Don't even bother trying to settle, if you are among the minority of individuals who are considered "judgment proof".
That means having so little assets or income that you're simply not worth pursuing.
Even so, it will be extremely hard to get credit or loans in the future if you habitually accumulate judgments.
No matter when you enter the process, the key to success is making sure you get written proof that you have satisfied the creditor's terms and any liens or judgments are formally discharged.
This tends not to be a high priority for the creditor and is often overlooked.
So you need to make sure they follow through.
Get everything in writing and keep copies at least four years.
Another priority at this time is to negotiate having any bad references removed from your credit report.
When dealing with an IRS lien, you want to make sure a Certificate of Release of Federal Tax Lien is filed on your behalf showing your debt is settled.
On request, the IRS will verify release of the liens to the Credit Bureaus.
Nobody wants to have to deal with liens and judgments.
However, being persistent and assertive throughout all stages of the negotiating process can help you achieve a more positive outcome.
Creditors want to put the matter behind them just as much as you do.
The peace of mind and debt relief you'll achieve will make your efforts well worth your while.
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