A judgment is a legal remedy sought by a creditor in order to obtain payment of a debt. In case you don't normally read the fine print when you apply for a credit card or take out a loan, you actually agree to this. Yep, you agree to be sued if you don't make your payments.
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 your creditor has referred your matter to an attorney, go ahead and make an offer to the attorney. The attorney is ethically bound to pass your offer on to the creditor, no matter how modest your offer may be!
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.
If you cannot reach a settlement with your creditor and are forced to go to court, SHOW UP! Many people are overwhelmed by the process and make the mistake of not going. If you do not show up, you automatically forfeit the case and the creditor wins!
You will need to be ready to present a defense and work toward a resolution if you do appear in court. The judge and plaintiff creditor will respect the fact that you showed up and prepared for the hearing. Understand though that you will need to present a defense.
When a creditor obtains a judgment, you will receive a notice of judgment which will give you 30 days in which to pay the debt. Once the 30 days have passed, if you have not paid the debt in full, the creditor may take certain actions to collect the debt, such as placing a lien against your house or other property. If a lien is placed on your home, the lien will have to be paid off prior to your home being sold or refinanced, or before you can take equity in your home.
The garnishment of wages is another legal remedy which is allowed in some states. Additionally, sometimes creditors are allowed to seize personal property to collect the debt.
If a judgment is added to your credit report, the effect is devastating. In addition to loss of borrowing power, other issues will surface. For example, that great new job offer may not happen! Try to avoid a judgment if at all possible. - 31377
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 your creditor has referred your matter to an attorney, go ahead and make an offer to the attorney. The attorney is ethically bound to pass your offer on to the creditor, no matter how modest your offer may be!
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.
If you cannot reach a settlement with your creditor and are forced to go to court, SHOW UP! Many people are overwhelmed by the process and make the mistake of not going. If you do not show up, you automatically forfeit the case and the creditor wins!
You will need to be ready to present a defense and work toward a resolution if you do appear in court. The judge and plaintiff creditor will respect the fact that you showed up and prepared for the hearing. Understand though that you will need to present a defense.
When a creditor obtains a judgment, you will receive a notice of judgment which will give you 30 days in which to pay the debt. Once the 30 days have passed, if you have not paid the debt in full, the creditor may take certain actions to collect the debt, such as placing a lien against your house or other property. If a lien is placed on your home, the lien will have to be paid off prior to your home being sold or refinanced, or before you can take equity in your home.
The garnishment of wages is another legal remedy which is allowed in some states. Additionally, sometimes creditors are allowed to seize personal property to collect the debt.
If a judgment is added to your credit report, the effect is devastating. In addition to loss of borrowing power, other issues will surface. For example, that great new job offer may not happen! Try to avoid a judgment if at all possible. - 31377
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Woman Did This to Raise Credit Score 177 Points by Hiring Lexington Law. True story - See Proof at www.lexingtonlawreviews.com.
