Hi,
The purpose of this blog entry is to take some of the mystery out of judgments. A creditor's last option in collecting a debt is very often done by obtaining a judgment. When a creditor obtains a judgment, it means that a court grants the creditor an order containing multiple remedies to collect an unpaid debt.
To obtain a judgment, a creditor must do the following:
1) Creditor files a lawsuit in the jurisdiction where the debtor lives for the amount of the debt.
2) The lawsuit must be served on the debtor. This is usually done by a process server. If the debtor is successful in avoiding the process server for a period of time, sometimes the creditor may obtain service through publication in a local paper.
3) In most states, the debtor has 21 days to respond in writing to the lawsuit.
4) If no response is given, a default judgment may be granted to the creditor by the court.
5) If, after service, the debtor disputes any part of the amount that the creditor is claiming, he or she may do so through the courts. The matter will be resolved through the courts before judgment may be entered.
Following are some of the remedies available to a creditor if a judgment is obtained against a debtor:
1) Any real property owned by the debtor in the county that the judgment is entered will automatically have a lien placed against it. The creditor also has the right to register the judgment in any county in the state in which the judgment was granted in which the debtor might own property.
2) The creditor may garnish the wages of the debtor.
3) The creditor may garnish the debtor's bank accounts.
4) The creditor may seize any assets that are free and clear of liens or encumbrances.
5) The creditor may have the debtor brought in for examination and deposed of any other assets.
6) If the debtor moves out of state, the creditor may register the judgment in the debtor's new state of residence and proceed against the debtor.
This list of actions is not all inclusive, but gives an idea of liabilities which a debtor may incur if a creditor is awarded a judgment.
Until the next time,
Alan
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About Me
- Alan from Olympic Debt Specialists, LLC
- Hi, My name is Alan. I had a career in the credit/debt field for 24 years. I have been on the side of banks, leasing companies, retail stores, credit card companies and various other businesses. Over the years of working in debt collections, I met many people. Each person had a different story, but some common denominators emerged. I decided to blog about them to help you, the individual or business in debt. How did we get into debt and how can we get out? I hope you enjoy my stories, and that they can be of benefit to you or someone close to you. I thought that since so many of us feel the stress and toll of debt on our health and relationships, now is the time to share information which might lighten the burden and help us break free from the culture of debt. You may write to me at olympicdebtspecialists@gmail.com. My business handles consumer debt and business accounts payable negotiation. http://olympicdebtspecialists.com/
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