How Will a Creditor Judgement Know You Work
Is There a Judgment Against You? How to Check and What to Do
When you lot borrow money from a lender or creditor, you are legally obligated to repay it. Therefore, if yous are non property up your end of the understanding, the lender or creditor tin can sue you lot.
If the lender or creditor is successful in the lawsuit, information technology can result in a judgment against you. A judgment can take long-term impacts on your finances. Therefore, knowing how to check if you accept an outstanding judgment confronting you can help you understand what to do about information technology.
What is a Judgment?
A judgment occurs when the creditor wins their case in court. It allows the creditor to pursue other means to recoup the debt you owe, often including wage garnishment. A judgment also often includes interest, also as other costs such as attorney'southward fees. A judgment could exist filed confronting you in several means:
- You lot fail to show up in court: If the creditor files a conform but you fail to appear in court or respond to the adjust properly, the creditor volition win the suit and therefore tin can file a judgment.
- The debt is legally yours: If you do have action on the lawsuit but the court finds that you are legally obligated to the debt, the creditor can still file a judgment. This can happen even if y'all answer properly and appear in court. Mostly, to overcome a lawsuit, y'all will need more than an inability to pay as a defense.
What Can a Creditor Take When There is a Judgment Against Yous?
If a creditor is successful in obtaining a judgment confronting you lot, the creditor has some options as to the methods they take to recover the money owed. Sometimes, the creditor tin come for your belongings. Yet, some property is exempt, which can include your house, its furnishings, and your apparel. But non-exempt property is fair game for the creditor.
Some examples of property that tin can be included in a judgment are:
- Wages:Ane of the most common ways a creditor seizes property is through wage garnishment. In this case, the creditor will legally crave your employer to hand over a certain percentage of your income each pay menses. This is by and large about 10 pct of your gross wages per pay period. This varies between states. However, the creditor cannot collect more than than 25 percent of your weekly wages or the corporeality you lot earn that'due south more than thirty times the legal minimum wage — whichever is lesser. This is mandated by the Consumer Credit Protection Act.
- Nonwage garnishment: In addition to wage garnishment, the creditor tin freeze your banking concern account instead. Usually, you would have no warning when this happens. You may find out past trying to access your account and find the funds frozen. However, sure exemptions exist here also. Veterans benefits, unemployment, social security, and disability benefits cannot be garnished for private debt such as credit menu bills. However, these benefits can exist garnished for pension, child support, and some pupil loan debt.
- Property liens: A creditor can also identify a lien on your existent estate holdings. The creditor notifies lenders of the lien. Therefore, if you lot sell your property or try to transfer the property, you would need to satisfy the debt first. A lien against property tin can be automated in New York when a judgment is obtained in the county in which the judgment is recorded.
- Holding levies:Property levies can include your not-exempt personal belongings. Items like jewelry and other valuables tin can exist sold at an sale, with the proceeds going towards your debt. If the creditor issues a property levy, law enforcement could evidence up at your house and need your holding. This is called a "Writ of Execution."
How Tin Yous Check if There'due south a Judgment Against You?
While it's difficult for a judgment to be filed against you lot without you lot knowing, information technology's not impossible. A summons may be sent to y'all in the postal service or delivered to you in person. If you don't bear witness up in court in accordance with the summons, a default judgment will be entered against yous. Therefore, by intentionally not appearing in courtroom, yous tin presume there is a judgment against you. You tin can double-check if a judgment was filed by calling the courtroom on the summons. However, you will also be notified when a judgment is entered against you, which is done past mail service. Only, if you've changed addresses or accidentally disposed of these pieces of mail, you may not be aware of judgments. If this is the instance, collections activity or wage garnishment may be the offset time you lot learn of information technology.
It'south also important to note that you lot cannot cheque for a judgment past pulling your credit report. You would need to run a judgment search through a title company or check the county recorders role. You lot may see a debt with an attorney's part on your credit report. But you may not know for certain if there's a judgment against you lot. Judgments typically last 20 years, so it'south important to know if there's i against you.
What Tin can You Do If There'southward a Judgment Against You?
If you do take a judgment against you, there are simply three means to handle it:
1. Vacate it
If you appeared in court and the courtroom ruled confronting you, vacating the judgment is unlikely. However, if you did not go to court and received a default judgment, you lot may be able to challenge information technology, if yous were not properly notified of the summons and complaint. With the help of a lawyer, you can file a move to vacate the judgment. In doing and then, you'll need to explain to the judge why yous didn't announced in court. If your movement is successful, and so you are able to contest the case. A contested example oftentimes results in a more favorable settlement than a judgment. If you are already being garnished or started to pay towards the debt, you will likely exist less successful in trying to vacate the judgment.
ii. Satisfy it:
If y'all're not able to vacate the judgment, your next option is to satisfy it. This means you lot either complete the terms of the judgment (i.due east. through wage garnishment or holding lien) or come to a settlement. Creditors will oftentimes agree to settle the debt for less than y'all owe, depending on the circumstances. However, this often requires a lump-sum payment. Working with a financial chaser tin can exist incredibly beneficial in negotiating with creditors to come to a settlement. An attorney can also ensure the judgment is properly disposed of and doesn't become a problem for you lot in the time to come. Be sure to go all terms in a written agreement before yous begin paying.
3. Discharge it:
Your last resort can be to discharge the judgment in bankruptcy. However, bankruptcy tin take disastrous long-term effects on your finances. Therefore, satisfying or settling the judgment should be the option you pursue if possible. A creditor can try to fight that by filing a response in bankruptcy court. Depending on the kind of bankruptcy you lot file, you lot could be forced to pay back a substantial amount of the debt. Speaking with a financial attorney can help you lot empathize whether yous accept options other than bankruptcy.
The Bottom Line
A judgment can have a major impact on your life. A judgment could mean a loss of wages and property. And beyond that, it can cause difficulties in getting insurance, renting apartments, or even getting a job. A judgment tin also take other people'due south monies if you lot share an account. Therefore, it's in your best interest to avoid a judgment at all costs. If you're struggling to pay off your debt, a debt chaser can assist you lot avert ever reaching the point of being sued. And if yous are sued, ignoring the suit will only make things worse.
The team at Tayne Law Group, P.C. is here for you lot. Nosotros tailor our solutions to your specific situation and tin can help you navigate the catchy legal process. Phone call us for a free consultation at 866-890-7337 or make full out our curt contact form and nosotros'll get in touch!
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Source: https://attorney-newyork.com/2020/09/02/judgment-against-you/
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