Legal Question in Real Estate Law in New Jersey

Re: Judgment Payoffs-NJ-unresponsive creditor

It would have helped some to have an idea of the amount of the debt. You have the situation sized up pretty well and an application to the court may be the only way to force resolution if the judgment creditor won't cooperate. But, I always look for solutions that have the potential to get leverage for my clients. So, here is a way that you might earn your fee if circumstances permit.

Prepare a Warrant of Satisfaction for the amount due. Form the document so that it is to be signed by the "Authorized Representative" of the judgment creditor. Then either you or your client show up personally at the offices of the judgment creditor with the document and with cash (US currency) to pay the judgment. It the creditor accepts and signs, you're home free. If not, make application to the court to have the judgment extinguished.

Many people don't realize that the teeth in the currency law is that a creditor cannot refuse cash in payment of a debt (subject to some limitations about payment in pennies, etc.). If a creditor refuses payment in the lawful currency of the United States, the debt is extinguished and cannot be further enforced in any court of the United States or in any State. That is the reason why people take unbacked paper money - they have to. I don't have a citation for you, but I am sure that you can find one. I did a while ago when I won a disagreement with a PJ over whether the court clerk had to accept cash for a filing fee on a motion. (I had left the check in my office.)

The sale of the debt to someone else is a private arrangemtnt and does not require you to make the payment that way. (Much to be said and cited on that issue.) So, if the creditor refuses the cash payment, go to court, but instead of paying the judgment into court, apply to have it extinguished and zeroed. Now, the parties on the other side (if any appear) have something to lose. You will either compromise to reduce the debt or it will be extinguished. Either way, you will earn your fee which you will, of course, have gotten in advance unless you like academic exercises.

See also: http://info.corbettlaw.net/lawguru.htm