How to Get and File a Satisfaction of Judgment

A money judgment is a court order that you (the judgment debtor) owe the party who sued you and won (the judgment creditor) a sum of money. If you pay the judgment, the law says you're entitled to a satisfaction of judgment—written confirmation that you've made good on the debt. In this article, we explain how you get that satisfaction.

In short: Once you've paid in full, it's usually up to the judgment creditor to provide or file a satisfaction of judgment. If they don't, you might be able to collect penalties or other damages. In some states, it's the court clerk's job to provide a satisfaction, either when you pay or if the judgment creditor can't or won't provide one.

After explaining what a satisfaction of judgment is—and why you want one—we cover what happens if the judgment creditor is supposed to supply a satisfaction of judgment but doesn't. First, we've provided a sample letter you can send to a creditor who ignores the law or drags their feet. Second, we've included a sample declaration you can use as proof of payment.

The Satisfaction of Judgment—and Why You Want One

A satisfaction of judgment is a written acknowledgment or recognition that a judgment debtor has paid the judgment creditor part or all of a money judgment. Think of it as a formal payment receipt.

Every state requires a satisfaction when you've paid a judgment in full, including all interest and court costs. In some states, if you pay part of the amount you owe—say, in periodic installments—you can get a partial satisfaction of judgment.

It's usually the judgment creditor's job to send you a satisfaction, or to file it with the court. But in some states, the court clerk is tasked with filing a satisfaction. As a general rule, a satisfaction is due anywhere from "immediately" or "on payment" to as long as 60 days after you pay. Check your state law for specifics.

Why Is a Satisfaction of Judgment a Big Deal?

Because a money judgment, in the eyes of the world (including other creditors and credit rating agencies), is no different than any other debt you haven't paid. As long as it hangs around on your credit report, a money judgment will damage your credit rating, making it more difficult and expensive for you to get a mortgage, a car loan, or even buy a new refrigerator on credit.

And the problems likely don't end with your credit rating. Sometimes a judgment creditor, in an attempt to force you to pay up, will file judgment liens against your real estate. Once it's recorded, a judgment lien puts the world on notice that your real estate is encumbered by this debt. You probably won't be able to sell or refinance the property unless you pay the judgment in full. A properly recorded satisfaction of judgment (see below) frees your property from the judgment lien.

How Do I Get a Satisfaction of Judgment?

A satisfaction of judgment starts with full payment of the amount you owe. Before you pay, make sure you've correctly computed the interest that's accrued on the judgment. State law typically provides the judgment interest rate. In addition, contact the court clerk to get an up-to-date accounting of all court costs you're obligated to pay.

Once you have the correct amount, a cashier's or certified check is the best way to pay. Contact the judgment creditor or their attorney for delivery instructions. If you send it by mail, use certified or registered mail and get a return receipt.

Get a Satisfaction From the Judgment Creditor

In most states, the law says that when you pay off a judgment, it's the judgment creditor's duty to either file a satisfaction of judgment or send you a satisfaction so you can file it. Unfortunately, lots of judgment creditors aren't aware of this obligation, or they ignore it. Should that happen, a polite but firm written reminder might help.

Here's a sample letter you modify to fit your circumstances.

May 14, 20XX

Mr. Judd M. Creditor

123 Main St.

Anytown, Anystate 11111

RE: Satisfaction of Judgment, Alpha County Small Claims Case No. 22-XXXX

Dear Mr. Creditor:

On August 22, 20XX, you were awarded a judgment against me in the amount of $2,211.75, plus interest and court costs. On December 29, 20XX, per your instructions, I sent to your last known address, by certified mail, a cashier's check in the amount of $2,525.00. This amount represented the principal amount of the judgment, $2,211.75, plus accrued interest of $208.25 and $105.00 in court costs. My bank tells me that this check was paid on January 2, 20XX.

Anystate Stat. Ann. § 312.135 says that "within 30 days of payment of a judgment, including all accrued interest and costs of the action, a judgment creditor shall cause to be filed with the clerk of the court a written, notarized satisfaction of judgment." In addition, Anystate Stat. Ann. § 312.137 provides that failure to file this satisfaction within 10 days after written demand shall cause the judgment creditor to be liable for a penalty of $200, plus the actual damages suffered by the judgment debtor.

More than 30 days have passed since the judgment was fully paid. This letter is my written demand that you immediately file a written and notarized satisfaction of judgment with the clerk of the Alpha County Small Claims Court. If satisfaction isn't filed within 10 days from your receipt of this letter, I'll have no choice but to hire legal counsel to pursue the remedies allowed to me by law.

Sincerely,

/signature/

John Doe

Get a Satisfaction From the Court or the Court Clerk

You might not be able to get a satisfaction from the judgment creditor. Maybe they died, or left town without a forwarding address. If that happens, state law probably says that the court or the court clerk can order that the judgment be shown as paid.

Of course, you'll need to prove payment. Check your state law to find out what form that proof must take. Chances are you'll need documents like these.

Payment documents. Provide a copy of your canceled check, or a copy of a cashier's check, money order, or payment receipt. It should be for the full amount of the judgment, plus interest and costs, and should be dated on or after the date of the judgment.

A statement under penalty of perjury. Prepare a written declaration, signed and notarized under penalty of perjury, that says:

• you paid the the judgment creditor the full amount of the judgment, plus interest and costs (attach proof of payment)
• you asked the judgment creditor, in writing, to provide or file a satisfaction of judgment (attach a copy of your written request), and
• The judgment creditor has failed or refused to provide the satisfaction.

Here's a sample declaration you can modify to fit your needs.

1. My name is John Doe.

2. On August 22, 20XX, a judgment against me in the amount of $2,211.75, plus interest and court costs, was awarded to Mr. Judd. M. Creditor in Alpha County Small Claims Court (Case No. 22-XXXX).

3. On December 29, 20XX, I paid Mr. Creditor, by cashier's check, the amount of $2,525.00. This amount represented the principal amount of the judgment ($2,211.75), plus accrued interest of $208.25 and $105.00 in court costs. My bank tells me that this check was paid on January 2, 20XX. I have attached as Exhibits 1 and 2 a copy of my canceled check to the bank, and the bank's canceled cashier's check. [If you paid the judgment in installments, indicate the date and amount of each payment. Attach proof of each installment payment.]

4. On May 14, 20XX, I sent, by certified mail to Mr. Creditor's last known address, a written demand that he file a satisfaction of judgment with the clerk of the Alpha County Small Claims Court. The letter was returned as undeliverable. A copy of the letter, with the attached return receipt, is attached as Exhibit 3.

5. I have no other way of contacting Mr. Creditor or of getting the satisfaction of judgment I'm entitled to under Anystate law.

I declare under penalty of perjury under Anystate law that the foregoing is true and correct.

DATED: June 24, 20XX.

/signature/

John Doe

On June 24, 20XX, appeared before me John Doe, who signed the foregoing declaration in my presence under penalty of perjury.

/signature/

Jane Roe

Notary Public in and for the State of Anystate.

DATED: June 24, 20XX

Where Should a Satisfaction of Judgment Be Filed?

At a minimum, a satisfaction of judgment should be filed with the court clerk's office for the court where the judgment against you originally was entered. But don't automatically stop there. There can be situations where the judgment gets recorded elsewhere—in other courts or offices. If that happens, you'll want to make sure a satisfaction of judgment is filed with those courts or offices, too.

Let's consider some examples.

The Judgment Was Recorded With More Than One Court

Suppose your state's main trial court is called the circuit court. The state also has a court of limited jurisdiction—a court with authority over smaller cases—called the district court. A judgment creditor got a judgment against you in district court.

Later, the judgment creditor decided to put a judgment lien on your real estate. But to do that, state law required the judgment creditor to record the judgment with the county circuit court. Now, the judgment against you is recorded in two courts: The district court where it was originally entered, and the county circuit court.

You should file a satisfaction of judgment with both courts.

The Judgment Was Recorded With Another County Office

Let's change the facts just a bit. Say a judgment creditor got a judgment against you in Alpha County circuit court, and decided to put a judgment lien on your Alpha County real estate. But to do that, state law required the creditor to record the judgment with the Alpha County recorder's office.

On these facts, you want to file a satisfaction with the Alpha County circuit court clerk and with the Alpha County recorder's office.

The Judgment Was Recorded in Another County

Let's expand on that last example. You also own real estate in Beta County. To put a judgment lien on your Beta County real estate, the judgment creditor recorded the judgment with the Beta County recorder's office. Now, in addition to recording satisfactions of judgment with the Alpha County circuit court clerk and county recorder's office, you should file a satisfaction with the Beta County recorder's office.

Whose Job Is It to File the Satisfactions?

The moral of the story: You might need to file satisfactions of judgment in several places. If the judgment creditor has recorded judgment liens against you or taken other steps to collect the debt, it's a near certainty that the judgment or an official record of it has been filed in other courts, offices, or counties.

It might be up to the judgment creditor to file satisfactions everywhere they filed or recorded their judgment. Or it might be up to you. Check your state law for details.

What's Next?

While it might take some legwork, getting a satisfaction of judgment shouldn't be difficult. If you live in a state where it's the judgment creditor's obligation to give you a satisfaction and they won't, check your state law. You probably can look to the court or the court clerk for relief.

If there's more involved or you run into roadblocks, think about getting help from a local attorney. They'll know what's required under state law and the local rules of practice, and can steer you in the right direction to get what you're after.