Resolving the Case by Agreement or Settlement & Enforcing a Settlement Agreement
What is a settlement?
A settlement is the term for when both parties in a lawsuit reach an agreement about how the issues will resolve. The parties need to file in writing what the terms of the settlement are so the judge can review it. Usually the judge will sign the settlement agreement and the case will be done. Parties can reach a settlement at any time before the judge makes a final decision about the issues in the case. Sometimes a settlement may be called a “stipulation” which is another word for agreement.
A settlement may involve:
- the Defendant agreeing to pay some or all of the debt,
- the Defendant having a payment plan to make payments over time,
- the Plaintiff forgiving some or all of the debt, interest, attorney fees or court costs,
- the Plaintiff dismissing the case, or
- other terms both parties agree about.
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What are the benefits of settling a case?
There may be reasons to settle even if the Plaintiff will not agree to reduce what you owe or even if you think you might win at trial.
- Sometimes people settle just to be done and move on in their life. Once you reach an agreement to settle the case and tell the court about it, the case is over.
- Sometimes people don't want to risk a bad outcome at a trial. Once you reach an agreement to settle the case and tell the court about it, you won't have a trial but will have the certainty of what the agreement says.
- If you work out a payment plan, you may not have to worry about the Plaintiff executing on the judgment. You would know when to make payments and plan your budget instead of worrying that the Plaintiff will take your property or money from your paycheck, PFD, or bank account when you don't expect it.
- A settlement might mean you owe the Plaintiff less or nothing in attorney fees. If you have a trial and lose, you may have to pay some of the Plaintiff's attorney fees, and those fees will be much higher if there is a trial.
- If you settle without a judgment being entered against you, there is less chance you will have negative impacts to your credit, or your ability to get a loan or find a job or housing.
You can state an offer to pay in the Answer or if you and the other side reach an agreement after you file the Answer, you can file:
- Debt Settlement Agreement & Order Dismissing Case, CIV-484 [Fill-In PDF]
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What is mediation?
The parties can hire a mediator to help them work through their dispute and to try to come to an agreement. You can read more about mediation.
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How do I let the other side know I want to settle?
You have a few options depending on when in the case you decide you want to settle:
- If it is early in the case and you haven't filed your Answer yet, fill out the “Offer to Pay” section in the Answer stating your offer.
- If it is after you filed your Answer, contact the other side by phone or in writing to discuss the matter and make an offer to settle.
- Ask the other side if they are willing to work with a mediator to try to reach an agreement.
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What do we file if we settle?
You need to write up your agreement and explain all of the terms. Both parties need to sign it as well as the judge. You or the other side can write up your agreement or use a court form:
- Debt Settlement Agreement & Order Dismissing Case, CIV-484 [Fill-In PDF]
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How do I fill out the Debt Settlement Agreement & Order Dismissing Case?
Caption: Fill out the caption by circling "District" and filling out the top part of the first page with the court location, party names, and case number exactly as it is filled in on the Complaint.
Fill out the numbered paragraphs:
- Total Payment. State the total amount you agree to pay.
- Payment Plan. Mark how you want to pay:
- Pay in full: State the date you will pay by.
- Payment plan: State how much you want to pay each month, the day of the month you want to pay by, and when you will make your first payment.
- PFD Funds: List the dollar amount or percentage of your PFD you agree to pay toward this debt. If something happens and your PFD is not enough to pay what you agreed to pay (for example, someone else collects some or all of your PFD), check whether you will give the Plaintiff all the funds you receive or list some other option.
- Other: Add any other payment agreement.
- Interest. Mark whether or not interest will accrue. If there will be interest, list the amount. Sometimes contracts list an interest amount. If not, you can read the Alaska pre- and post-judgment interest rate
.
- Plaintiff's Billing Address. List the address where the money will be sent. You may need to get this from the Plaintiff or leave it blank for the Plaintiff to fill in.
- Other. Write any other terms you want to be part of the agreement.
Fill out your contact information and sign the bottom of the last page. It is important that the court always have current contact information for you so you can be notified of orders or court hearings.
Be sure you understand and agree with the other paragraphs before signing the agreement. If both sides sign a settlement agreement that the judge accepts and signs, the case will be over. It is very difficult to ask for something different if you change your mind. You may cross things out or add things in the "other" section.
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What happens if the Defendant doesn't follow a Debt Settlement Agreement?
It depends on what the agreement says and whether the court issued a judgment against the Defendant as part of the Settlement Agreement.
- If there is a judgment against Defendant: The Plaintiff must take the steps listed in the agreement. This often means filing something, such as an affidavit, with the court stating that the Defendant is not following the agreement. Once the Plaintiff has taken any steps required by the agreement, the Plaintiff may execute on the judgment to take funds from the Defendant's paycheck, PFD, or bank account. You can read about both parties rights and options:
- Execution Procedure: Judgment Creditor Booklet, CIV-550
- Judgment Debtor Booklet, CIV-511
- If there is no Judgment against the Defendant: The Plaintiff may file a Motion & Affidavit to Reopen Case and ask for a judgment against the Defendant for the full amount due. If the court enters a judgment, the Plaintiff may execute on the judgment to take funds from the Defendant's paycheck, PFD, or bank account. You can read about both parties rights and options:
- Execution Procedure: Judgment Creditor Booklet, CIV-550
- Judgment Debtor Booklet, CIV-511
Having a judgment against you may impact your credit, or your ability to get a loan or find a job or housing.
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How do I fill out a Motion & Affidavit to Reopen Case if the Defendant is not following a Settlement Agreement and there is no judgment?
You can use these 2 documents:
- Motion & Affidavit to Reopen Case for Failure to Follow Settlement Agreement, CIV-490 [Fill-In PDF]
- Order on Motion to Reopen Case for Failure to Follow Settlement Agreement, CIV-492 [Fill-In PDF]
Caption: Fill out the caption by circling "District" and filling out the top part of the first page with the court location, party names, and case number exactly as it is filled in on the Complaint.
Name: Write your name on the line in the first paragraph.
Fill out the Affidavit (you can add pages if necessary):
- Write in the date the Court signed the Settlement Agreement.
- Give the details of how the Defendant did not follow your Settlement Agreement.
- Check the box if you want a hearing.
- Check the boxes for the documents you include.
Sign in front of a notary or a court clerk: Fill in your contact information. It is important that the court always have current contact information for you so you can be notified of orders or court hearings. This is an affidavit that you must sign in front of an official, such as a court clerk or notary public, showing your ID. The court clerks can notarize your signature for free, but make sure to bring your ID.
Fill out the Caption on the Order: Fill this out just like you did on the Motion. The court will fill out the rest of the order.
File and Serve your Opposition
Make 2 copies of the documents (so you have 2 copies and the original)
- Give 1 copy to the other party's attorney (or the other party if there is no attorney) by either first class U.S. mail or hand delivery. This is called service or serving the other side. Write when and how you served the Plaintiff at the bottom of the original Opposition in the Certificate of Service Section.
- Keep 1 copy for your records.
- File the original Motion in court.
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How do I oppose a Motion & Affidavit to Reopen Case?
If you have been following the Settlement Agreement and do not want the court to reopen the case, you can oppose the motion and file these 2 documents together:
- Opposition & Affidavit to Motion to Reopen Case for Failure to Follow Settlement Agreement, CIV-491 [Fill-In PDF]
- Order on Motion to Reopen Case for Failure to Follow Settlement Agreement, CIV-492 [Fill-In PDF]
Caption: Fill out the caption by circling "District" and filling out the top part of the first page with the court location, party names, and case number exactly as it is filled in on the Complaint.
Name: Write your name on the line in the first paragraph.
Fill out the Affidavit (you can add pages if necessary):
- Explain why you think the Plaintiff was wrong to state that you did not follow the Settlement Agreement.
- Check the box if you want a hearing.
- Check the boxes for the documents you include.
Mark the documents you included
Sign in front of a notary or a court clerk: Fill in your contact information. It is important that the court always have current contact information for you so you can be notified of orders or court hearings. This form is an affidavit that you must sign in front of an official, such as a court clerk or notary public, showing your ID. The court clerks can notarize your signature for free, but make sure to bring your ID.
Fill out the Caption on the Order: Fill this out just like you did on the Opposition. The court will fill out the rest of the order.
File and Serve your Opposition
Make 2 copies of the documents (so you have 2 copies and the original).
- Give 1 copy to the other party's attorney (or the other party if there is no attorney) by either first class U.S. mail or hand delivery. This is called service or serving the other side. Write when and how you served the Plaintiff at the bottom of the original Opposition in the Certificate of Service Section.
- Keep 1 copy for your records.
- File the original Opposition and Order in court within 13 days of the day it was mailed to you from the date in the postmark, or within 10 days if it was hand delivered. Count every day. If it ends up due on a Friday, Saturday, Sunday, or holiday, it is due the next day the court is open. Remember, the courts close at noon Fridays.
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How do I reply to an Opposition & Affidavit to Motion to Reopen Case?
You can address what is in the Opposition by filing:
- Reply to Response to Motion, CIV-815 [Fill-In PDF]
You have 8 days from the date the Opposition was mailed (or 5 if it was hand delivered) to file the Reply. The way you count days for a Reply is different than other documents. Only count weekdays that are not court holidays. If it ends up due on a Friday, Saturday, Sunday, or holiday, it is due the next day the court is open. Remember, the courts close at noon Fridays.
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Rev. 5 March 2019
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