What happens if a collection agency gets a judgments against you?

Once a creditor gets a money judgment, they’ll be able to garnish your wages, levy your bank account, and even seize non-exempt property in an attempt to pay off the judgment. If you’re judgment-proof, state or federal law prohibits the judgment creditor from taking any of your income or property.

Can I settle a credit card Judgement?

A creditor may agree to settle the judgment for less than you owe. This typically happens when the creditor thinks you might file bankruptcy and wipe out the debt that way. Settling can be a win-win. The creditor gets at least partial payment for the debt — although it usually will require it as a lump sum.

What happens if you don’t pay a credit card Judgement?

If you do not pay the judgment within 30 days or file a Motion to Vacate the Judgment or Notice of Appeal the judgment creditor can “garnish” your wages. If you make an agreement, the withholding of your wages will stop or be changed to a smaller amount you agree on. This may also avoid a court hearing.

What can a creditor do with a Judgement?

Once the creditor has a money judgment, it can use various methods to collect on that judgment. It can garnish your wages, place a levy on your bank account, or place a lien against any real estate that you own. For a comprehensive guide to dealing with debt, get Nolo’s Solve Your Money Troubles.

How do you get a credit card lawsuit dismissed?

If the credit card company or debt collector does hand over the documents, we can sometimes get them to dismiss the case by pointing out errors in their paperwork. Your case can also be dismissed when the credit card company does not actively pursue their claim against you.

Can a credit card company get a judgment against you?

If the credit card company gets a judgment, it can use all sorts of collection methods against you to get paid. A credit card company can get a judgment against you in several ways after it has filed a lawsuit.

How much can a credit card company sue you for?

In my experience, if a credit card company went to the trouble to take you to court and get a judgment against you for unpaid bills, you owe at least $5,000. Any less, and it’s not really worth the trouble.

What happens at the end of a credit card lawsuit?

If the proceedings go forward, there will eventually be a trial date for which you must show up in court to argue your case and respond to the allegations against you before a judge. Other witnesses, such as employees of the credit card company, may also testify.

What happens if you ignore a judgment against you?

Before a person or a company to whom you owe money can win a judgment against you, they must first file a lawsuit in court. If you ignore the lawsuit, the court will enter an automatic judgment against you, known as a default judgment.