Unfortunately, many people don't fully understand debt judgments and their far-reaching capabilities. Levied against a debtor after a ruling by a judge, a judgment opens up several avenues for creditors to collect the money owed to them. If you have a judgment against you, chances are that you've noticed it on your credit report. However, you might not fully understand how such a judgment can hurt you and your family financially.
What's more, judgments don't merely disappear the way collections do. Even after they disappear from your credit report, judgments lurk in the background, waiting to strike at the most inopportune time. If you have a judgment against you, following are three nasty ways it can hurt you:
1. You Can Lose Your Property
Judgments give creditors the right to seize or place liens against your current assets or any assets you hope to own in the future. This includes your home, your car, your recreational vehicles and anything else you own that has value. In some states, it's even possible for creditors to tag your vehicle and prevent you from driving it while they complete the legal requirements for seizing it. Without a vehicle, many people are unable to get to work, which could ruin them financially.
2. Your Money May be Redirected
If you're not currently paying money toward your judgment as agreed, the creditor may choose to garnish a portion of your wages. In many cases, garnishments can account for a huge portion of your paycheck. Additionally, creditors may freeze and/or levy your bank accounts. Without access to to their own money, many people have no choice but to pay off the debt to unfreeze their accounts.
3. Judgments Remain on Your Public Record
Judgments are public record. Even after they disappear from your credit report, they remain on your public record. Having a judgement on your record can adversely affect your chances of obtaining employment and may even make it difficult to secure housing. Judgments for defaulted debts are like black clouds that follow you everywhere, regardless of whether or not you did all you could do to resolve the situation.
If you are suffering through the consequences of a debt judgment, you can find relief through bankruptcy laws. However, bankruptcy is not always the best option in all cases. Therefore, it's a great idea to seek the advice of a bankruptcy attorney before deciding to file for bankruptcy. For more help, contact a professional such as Philip L. Burnett, Attorney At Law to learn more.
Share2 December 2014
While I took a few business classes in college, I left early to start my own business. I thought I had the knowledge I needed to become a great business owner and was eager to start my business. Soon, I had a new business that was actually performing pretty well in sales. Unfortunately, I hadn't taken any law courses in college, and I soon realized I made a few mistakes when starting my business that could cause me some legal trouble. Thankfully, a great business lawyer helped me correct my mistakes before I had any legal problems, but I then decided to take those business law courses. I want to help business owners and anyone else who would like to learn more about the law by starting a blog where I will share what I have learned and will continue to learn. I hope I can help you!