In point of fact, a judgment is the final effort of a creditor to collect a debt owed. Prior to reaching this point, many things have likely transpired. To begin with, you have entered into an agreement with a creditor to purchase an item and pay for the item at a later date, normally through installment payments. Or, alternately, you may have purchased an item using a credit card and, subsequently, owe the credit card company for the funds, or credit, fronted for the purchase of the item.

So, at this point, you have purchased your item and taken it home to enjoy. Unfortunately, the week following your purchase, you are laid off from work due to the economy! You, of course, are confident that you will be able to find another job quickly. However, after four months of diligently searching, it becomes evident that you were mistaken. Now, you have creditors calling constantly and are receiving what seems to be a barrage of daily written demands from those same creditors for payment.

Normally, a creditor will contact you when you fall behind on payments and try to determine the cause and make arrangements with you to bring the payments current. The economy is so poor right now that he may initially be sympathetic and understanding. As time continues, however, he may become less inclined to sympathy and more insistent upon cold, hard cash. As it takes time and money to try to chase down debt owed, your creditor may become even less sympathetic and file a judgment proceeding against you in order to attempt to obtain payment. (It is important to note at this point that when you entered the agreement to purchase the item or when you entered the agreement with the credit card company to pay for any debt you incurred using the credit card, you probably signed a written agreement which contained a clause allowing the creditor or credit card company to initiate a legal action against you in the event that you defaulted on your payments.) By initiating this legal action, your creditor will attempt to prove that the debt was incurred by you and that you do, in fact, owe the sum due. By doing this, he will be able to obtain a “judgment” against you.

Anxiety is a good word to express how many people feel when served with legal papers. To not show up at the hearing is a thought which many people contemplate. However, it is best to let this be a fleeting thought and to not dwell on it. Not showing up at the hearing is tantamount to just giving in to your creditor. If you appear, at least you will be able to present your side of the matter. Otherwise, by not appearing, you allow your creditor to win by default and you wind up where you were to begin with, owing the debt to the creditor.

If the case does make it to court and you end up losing, your creditor will be granted a judgment against you for the amount of the debt and you will be served with a Notice of Judgment. This Notice of Judgment will allow you 30 days to pay the debt in full. If the debt is not paid within 30 days, the creditor will be able to take certain actions against you in order to collect the outstanding debt. Some of the legal remedies which the creditor may be able to utilize include garnishment of wages, liens against real property, and seizure of assets.

Your credit score will take a nose-dive if your creditor is successful in obtaining a judgment against you! It is best to contact your creditor early on and try to work out a payment plan. Remember, the only one hurt in a judgment proceeding is YOU!

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Anytime prior to going to court, you can attempt to settle the debt with your creditor. From a credit perspective, it is always better not to have a judgment appear on your credit report. Any agreement you come to with your creditor should be in the form of a written agreement containing both of your signatures. Be sure that a clause is included in this agreement which states that all negative entries pertaining to the judgment are to be erased from your credit report. It is usually detrimental to have a judge settle the dispute rather than coming to an agreement with your creditor on your own.

If you are unable to reach a settlement with your creditor, do not be intimidated by a court appearance! By planning and preparing yourself, you can go forward confidently. It would be smart to use the services of a knowledgeable and seasoned consumer attorney if you hope to have the judgment dismissed.

If you lose in court, is it possible to remove the judgment from your credit history? A judgment will remain on your credit report for 12-20 years and are sometimes renewable. A paid judgment will remain on your credit report for seven years from the date paid!

The Fair Credit Reporting Act (FCRA) allows you the legal right to challenge any erroneous information contained on your credit report. This includes items such as public records and judgments. Questions regarding the accuracy of a negative item can sometimes be cleared up by mailing a dispute letter to the credit reporting agencies.

Time-consuming systems which are hardly error free are normally used by credit agencies and courthouses. This often means that disputes are settled in the debtor’s favor. The more common credit card and automobile loan disputes are verified by automated electronic systems. However, judgments are verified by humans working in courthouses.

As governmental employees are often over-worked, it is often the case that the judgment cannot be verified within the specified time frame. When this happens, the credit reporting agency is forced to remove the entry from your credit report.

If you are thinking of repairing your credit, you should be aware that there are several different laws which have been enacted in order to help consumers in this endeavor. The Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act, and Fair and Accurate Credit Transactions Act are examples of legislation which promote consumer rights. To repair your credit or eliminate negative judgment entries, you should familiarize yourself with all of the current consumer legislation or engage a seasoned and knowledgeable consumer credit attorney.

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