Whenever I hammer out a judgment payment agreement, there are many things that can become part of the payment arrangement. Here I am only going to mention one of the many things that can be negotiated into the final agreement. That one thing is the type of funds that I will expect my judgment debtor to pay with. This is not a subject that many judgment creditors give much thought to, but it deserves to be considered a bit. Therefore I will share a few of my own thoughts about the best types of funds to accept from my debtor in a judgment payment agreement.
There is more than one way, of course, to be paid. It goes without saying that any of us would gladly accept plain old hard cash, US currency, green portraits of dead presidents, folding money, or whatever other name by which it is known. Just make sure that the ink is dry when you receive it from your debtor (just kidding). I should never accept a cash payment without providing my debtor with a receipt.
My second preference would be to require my debtor to pay by means of some type of certified funds. A cashier’s check is really quite common. A cashier’s check or other certified check is guaranteed by the bank or institution that certifies that the check is as good as cash. They guarantee that they will honor the check when properly presented and endorsed. If I require my judgment debtor to provide payment by certified funds it may cost them a small fee to have the bank issue the check or order. If I have reason to suspect that my debtor might give me a check that might bounce, then I will require payment by certified funds.
I don’t draw any practical difference between a cashier’s check and a money order. Both are negotiable instruments that will protect me from having to deal with a rubber check. I am happy with either and will not quarrel with a debtor paying with them.
Both cash and certified funds will work for me 100% of the time. There are other methods of payment that I will agree to at times. Nevertheless, cash and certified funds are the two safest and easiest methods of payment for me to accept.
Later I’ll talk further about other payment methods that work for me. When in doubt, it is always good to specify cash or certified funds.
Good luck working out your post judgment payment agreement and don’t forget to insist on a method of payment that is easy, and protects you the best.
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