What happens if a judgment is filed against you?

What happens if a judgment is filed against you?

The decision by the judge or jury – whether favorable or unfavorable – will be set out in a judgment. If a judgment has been issued against you in a collection case, your creditor becomes a secured creditor instead of an unsecured creditor. Secured creditors have more rights than unsecured creditors.

When does a creditor not need a judgment?

There are also instances where a creditor may not even need a judgment to start garnishing your bank accounts or paychecks. If you owe child support, back taxes, or student loans your creditors may not even need a judgment to collect those debts. Can I protest or stop these garnishments?

Can a judgment be discharged in a bankruptcy?

Also, a creditor can ask the court to declare additional debts nondischargeable, but only after the creditor files another lawsuit in the bankruptcy court called an adversary proceeding. If the judgment debt fits into one these categories, it will get discharged unless the creditor successfully objects:

How does bankruptcy stop creditor collection actions against you?

How Bankruptcy Stops Creditor Collection Actions Most people end up with a money judgment after a creditor files a lawsuit for an unpaid debt. If you fail to file an answer or you lose the case, the court will enter a judgment for the amount of the debt, plus other amounts, such as the attorneys’ fees and costs for bringing the suit.

Can a judgment be placed on your property?

A judgment creditor can also place a lien against any real estate that you own in the public record. This lien will encumber your property and will need to be paid before you can sell your real property.

How long can a judgment against you last?

The answer depends on where you live, since state laws differ. Some states limit collection efforts to five to seven years. Others allow creditors to pursue repayment for more than 20 years. With the right to renew a judgment over and over in many states, it may last indefinitely.

What can a judgment creditor do to you?

In most States, a judgment creditor can satisfy its judgment by garnishment against your bank account or your wages, although in some States (such as California), the judgment creditor must take additional steps to have the right to take your property away from you.

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