After working hard and obtaining a justified court judgment, the best-case scenario would involve a large, single payment made by the debtor. However, such easy and voluntary outcomes are not particularly common. Someone who has made concerted efforts to avoid financial responsibility for a debt may not have the liquid capital or current income necessary to pay what they owe all at once. Or they might just be looking to avoid liability or get what they consider a “deal”.
The consequences of a recent judgment might prompt them into additional attempts to avoid responsibility, such as leaving the state or quitting their job or moving and hiding their assets. Creditors can therefore potentially minimize the risk of additional collection hardship by trying to work with the debtor after securing the judgment.
Now that there is effectively a court order compelling them to pay, the debtor may feel grateful to a creditor for working with them to establish a payment plan. They may also be somewhat more likely to follow through on those obligations. If nothing else, putting together a payment plan that the debtor can reasonably follow is a way to show that the company has operated in good faith should it need to go back to court again for additional enforcement efforts.
Once someone has proven that they won’t abide by a payment plan even when there is a judgment in place, the courts may be more likely to work with a creditor seeking wage garnishment or other more aggressive collection efforts. A payment plan can also be a means of recouping some of the expenses involved in debt collection by assessing certain fees and costs in the agreement plan.
Judgment creditors should always explore every option to resolve outstanding debts and hold people responsible for their personal financial obligations.