What does it mean for a credit card company to put a judgement against you, besides messing up your credit?

Question

I need to know besides messing up your credit, how this will effect me, I dont' have the money to go to court, and yet I don't want to be arrested. Any ideas?

Answer 1

The following applies generally in the United States, but it does vary by jurisdiction:

A judgment allows a creditor to obtain an a Writ of Execution. A Writ of Execution is a routine court Order by which the Court attempts to enforce the judgment that has been granted a plaintiff by authorizing a Constable or Sheriff a levy on the money or property belonging to the judgment debtor (Defendant).

Executions may be filed upon earnings (wages), business income, bank accounts, automobiles, homes, property, etc. as follows.

EARNINGS (WAGES) - The name and address of the employer must be known. If possible the Social Security Number of the person who's wages are being garnished should be shown.

BANK ACCOUNTS - Know the name of the bank, the branch address, and the account number.

BUSINESS INCOME - The name and address of the business must be known. Proof of an outstanding Judgment is required. Execution must specify money from a 'cash box' or 'cash drawer.'

AUTOMOBILES - The automobile description and location, and a printout listing the legal owner and any outstanding liens.

HOMES - Must provide the legal property description.

An Execution on Wages is in effect for 120 days. Wages are collected each payday for 120 days, unless the judgment is paid in full. If attaching property such as an auto or house, or for a money item such as the contents of a cash drawer or bank account, the execution is a one-time action, and must be Re-Filed until the judgment is paid in full or Satisfied.

The Court can order the examination of a judgment debtor for the purpose of ascertaining the debtor's assets. A judgment creditor, at any time after the judgment is entered, is entitled to an order from the judge of the court requiring the judgment debtor to appear and answer upon oath or affirmation concerning his property, before:

(a) The judge or a master appointed by him; or

(b) An attorney representing the judgment creditor,

at a time and place specified in the order.

If the judgment debtor is required to appear before any person other than a judge or master:

(a) His oath or affirmation must be administered by a notary public; and

(b) The proceedings must be transcribed by a court reporter or recorded electronically.

A judgment debtor who is regularly served with an order issued pursuant to this section, and who fails to appear at the time and place specified in the order, may be punished for contempt (ARRESTED AND THROWN IN JAIL) by the judge issuing the order.


IN OTHER WORDS, they will get the money that you think you don't have. And, if they decide to do an examination of judgment debtor and you don't show up, you can end up in jail!

The biggest mistake a debtor make is ignoring the debt, hoping that it will go away. Trust me, it won't. Talk to the credit card company! Explain your situation and work out payment arrangements. Don't just agree to pay unless you have the means and intent to do so, otherwise you will just piss somebody off and they will do everything they can to screw you.

If you truely don't have the money, you either; a) should file bankruptcy, or b) don't have anything to worry about except seven years of screwed up credit because they would get a dime from you anyway (but at least show up for the court hearings).

Good luck!

Answer 2

It means the court has reviewed the evidence and found that owe the credit card company money. The Judgment will haunt every credit/financial transaction that you attempt until you pay the Judgment.

You can contact an attorney and the attorney may be able to work a payment arrangment with the credit card company for payment on the Judgment.

Answer 3

If you get sued by a creditor, you will receive a summons to appear in court and a date for when the hearing will take place. It is really important to appear in court for this hearing or the creditor will get a default judgment. Your appearance in court may have the judge look favorably on you instead of granting the creditor’s requested amount. There is a greater likelihood for the creditor to work out a repayment plan with you if you attend the hearing or contact them before the hearing. However, if you can’t work it out and don’t appear, the creditor will get a default judgment. Inability to meet a debt obligation does not exempt you from not paying. The company has a right to go after easily liquidated assets such as stocks, CD’s or pension funds, although that may differ from state to state. A lien can be placed against any real estate making it impossible for you to sell your home until the judgment is paid. Quite often, companies use wage garnishment proceedings. A creditor can attempt to garnish your wages to pay off the judgment amount. Your employer is served an order to withhold a certain percentage of your pay, generally limited to 25% of gross wages.

Answer 4

First of all, nobody is coming to arrest you. The judgement is for legal purposes so that when other creditors, landlords, and utility companies deny you, they have legal proof that you are not credit-worthy enough to be trusted.

All this means is that you were successfully sued in court and that you are legally liable for the amount. When you originally borrow money on your credit card or use it to make purchases, technically its your word against theirs as to whether you actually owe the debt or not. So when you fail to pay the bill, the credit card company goes to court to sue you for the money. At that point you have the option of going to court to deny that you owe the debt if in fact that you are being wrongly accused of owing them money. More than likely they have plenty of evidence to suggest that you made and authorized these purchases, thus, making the debt legally valid.

It is not necessary to appear in court because if you do they are just going to ask whether or not you owe the money and then when you say "yes" the judge will determine that you are legally liable for the debt. If and when other creditors consider your credit worthiness, they can legally deny you credit because they have legal proof that you failed to pay a debt.

Answer 5

A judgment will allow the credit card company to (1) take your deposition to find out if you have any assets (2) garnish your bank account or a portion of your wages; (3) have the Sheriff levy on your assets (ie. sieze your car or anything else of value). (4) prevent you from acquiring or selling any interest in real estate for the period the judgment remains in effect -- which length of time depends on state law. Depending on the amount of the judgment the cc co. may do all or any of the above or just write off the debt & allow it to wreck your credit for the next 7 years.

Answer 6

you can not be arrested for failing to pay a credit card. A judgement against you is a formality. It allows the credit card company to assign your debt to a collection agency

Answer 7

You won't be arrested for a civil judgement. It will be put on your credit record, and won't be removed until you pay the debt. And even then, you have to request that it be removed.