Legal judgments can be unnerving and scary. This is the case with most things we have not experienced before. I hope you are not having to go through this process; however, in the event that you are, you should make sure that you understand the process in order to know what to expect during as well as after the process is complete.
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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