When a business (or party) owes money to another, negotiating a settlement is usually an option. This may happen either before, during, or following a lawsuit to get a judgment. Negotiated settlements can occur anytime, although often after settling, debtors do not come through to pay as they agreed to make. This article discusses 6 other things for a creditor think about as they read commercial contracts, settlement contracts, and occasionally stipulated judgments. My articles are my opinions and are not, a legal opinion. I am a judgment matchmaking expert, and not a lawyer. When you need legal advice or a strategy to use, you should contact a lawyer. A written settlement contract should clearly define all terms and remedies available should either party breach a contract. These are 6 additional topics creditors may consider in contracts resulting from settlement negotiations, to bring up with their attorney: 1) Make sure there's a firm deadline for the debtor to make their payment; and that contract for settlement becomes null and void for either non-payment, or if your debtor files for bankruptcy protection. When the debtor applies for bankruptcy protection, you may then wish that you had not ever signed a settlement agreement with them. I am not a lawyer, so please discuss any bankruptcy-related questions or issues with a bankruptcy lawyer. 2) Think about asking your debtor(s) to get their signature(s) notarized on the settlement contract. There's is rarely a legal need for a contract for settling to get signed in front of a notary public. However, doing this means that if a lawsuit is needed later, notarized documents are very often self-authenticating; that most often makes it easier to have the documents allowed as court evidence. Also, using a notary reduces the chance of any forgeries. 3) Make sure that you verify that every debtor, and that anyone else who should be signing; does sign. Depending on the situation, some examples might be the spouse of the debtor, their accountant, corporation officers, their attorney, etc. 4) When there are negotiations for settlement while there is an ongoing lawsuit situation, or for all contract settlement negotiation situation, consider arranging to "transform" that lawsuit or contract into a stipulated judgment; signed by a court judge. A stipulated lawsuit to get a stipulated judgment, with no competing sides; can be extremely cheap and relatively quick, and judgments are stronger and last longer than contract signatures. Transforming a contract for settlement into a court stipulated order/judgment, can simplify multiple transaction situations; and that court retains jurisdiction for the debtor, should there be a default. 5) Although it is unusual, occasionally negotiated settlement contracts remain confidential. Note that judgments are most often public records, however in certain cases of judgments which are stipulated; some of the details can remain out of the court's records. When there isn't any judgment, then strong privacy clauses can be added. 6) Many settlement contracts include clauses to release specific current or future claims. Insure that the rights claim releases are within your contract. Mark Shapiro of: http://www.JudgmentBuy.com - Your fastest and easiest free method of finding the right professional to recover or buy your judgment.
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