What Can I Do About a Judgment?

The last resort for a creditor to obtain payment from a debtor is to try to obtain a court judgment. You actually agree to this when you take out a loan or apply for a credit card. The fine print in the document states that you agree to be sued if you don’t make your payments each month.

The main goal in a creditor’s law suit is to prove that you actually owe the debt. It is smart, if you really do owe the debt, to attempt to resolve any pending legal action quickly. It is often that a creditor may prefer a settlement to continuing with a legal action. To show good faith, it is helpful if you can provide an up-front partial cash payment.

It is important to ascertain if the statute of limitations has already run. If so, the debt is uncollectible. You should note though that your legal obligation to pay the debt can be reinstated if you make even a small payment.

If an attorney is handling the matter for the creditor, call the attorney and make an offer. No matter how modest your offer may be, the attorney is ethically bound to discuss the offer with the creditor.

You should do what you can to avoid going to court. Also, keep in mind that a settlement is always better than a court judgment. If your creditor is able to obtain a judgment, your credit report will reflect the judgment and the entry can remain on your credit report for up to ten years.

It is important to SHOW UP if you cannot reach a settlement with your creditor and you end up in court. Some people make the mistake of not showing up which means that they automatically forfeit. This means that the creditor wins by default!

It is important to note that if you do appear, you should be prepared to present a defense and work toward a resolution of the matter. You will earn the respect of the judge and plaintiff creditor by doing so. This will require that you present a defense on your behalf.

You will receive a notice of judgment if the creditor is successful in his suit. The judgment will allow you 30 days in which to pay the debt in full. After the 30 days has run and if you still have not paid the debt, there are additional legal actions which the creditor may take. For instance, the creditor may be allowed to place a lien against your home or property. If a lien is placed against your home, the lien will have to be paid in full prior to the sale or refinance of your home.

In addition, a creditor may be able to seize personal property you own. One other possible legal remedy might be garnishment of wages.

A judgment obtained by a creditor will be noted on your credit report and will cause financial havoc. Other areas of your life may be affected by a court judgment as well. In some instances, a court judgment can affect whether you get that new job or if your bid for advancement in your current position is granted! You should do your best to avoid a court judgment.

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Judgment or Lien: Can My Creditor Take My House and Property for Non-Payment?

If you are worried that you may lose some of your assets due to a judgment or lien your creditor is filing or has threatened to file, you should be. You can definitely lose assets if a judgment is awarded to your creditor. Your creditor must go to court with the debt matter if the debt has gone a certain number of months without being paid. It is unfortunate that it will likely cost you in one way or another if the matter goes to court. The result reached in court will be unique, just as every person’s individual situation is unique.

Normally, you will have 30 days to respond once you receive judgment papers. The judgment papers will notify you that you are to appear in court to defend the debt matter. It is smart to spend these 30 days attempting to come to a settlement with the creditor.

If the creditor is successful in obtaining a judgment against you and depending upon your state’s laws, the creditor will have legal remedies against you. These may include seizure of assets, garnishment of wages, or possibly even placing a lien against your home or property. If a lien is placed against your home, this will mean that you cannot sell or borrow against the property until the lien has been paid.

It is important to note that a court-ordered judgment will cause your credit score to take a significant southward plunge. Also, a judgment may be reported for up to ten years on your credit report. A bankruptcy is the worst mark you can have on your credit report. A judgment follows closely on a bankruptcy’s heels. Considering the difficult times we are living in, an exceptional credit score is more important and necessary than ever before.

In the end, resolution to the debt issue is all the creditor wants. In light of this, creditors are often responsive to working out a resolution in order to avoid legal action. However, for this to take place, you and the creditor will need to communicate in order to hammer out the details.

You will likely wind up in court if you ignore your creditor’s request to negotiate a settlement. If this happens, you will be allowing the court the opportunity to rule against you as opposed to working with the creditor to reach an agreement that will be more beneficial to you. You should never allow a judgment to just happen!

If you feel you don’t want to tackle this situation alone, you can look into hiring an experienced credit attorney who can guide you through the process. It is always best to deal with debt matters head-on rather than opting for avoidance.

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