2007-01-25 09:54:41 · 7 answers · asked by miejmr 1 in Business & Finance ➔ Credit
I hate to say this, but letting someone get a judgment by default is about the dumbest thing a person can do. At a minimum you should have went to court and forced the creditor to PROVE it's your debt. Lots of time when the debt's been sold the new owner lacks vital paperwork required to prove it's yours in court. The new owners of the debt DEPEND on people not to show up so they can just get a default judgment.
The second thing you could have done in court is to challenge the debt under your state's statute of limitations. Many times old debt that's been sold is past the limit and no longer collectible. But once they have a judgment by default it no longer matters, you're back on the hook.
You need to work out a payment plan or file bankruptcy because my guess is that they'll be aggressive in trying to collect.
2007-01-25 10:09:22 · answer #1 · answered by Yak Rider 7 · 0⤊ 0⤋
Each state may have varying laws but yes, if they want to collect the money bad enough. They can have your bank account and paychecks garnished. Statutory interest is added to the judgment balance and you are subject to additional filing fees and costs for the garnishments if they file them. Try establishing a payment plan with the creditor and stick to it to avoid the balance going higher than it already is. You will also avoid future court dates.
2007-01-25 12:34:12 · answer #2 · answered by hehe 1 · 0⤊ 0⤋
The judgment will sit there until someone tries to collect. You either have to satisfy (pay) it or you have to go bankrupt.
2007-01-25 10:09:19 · answer #3 · answered by Pinky Lee 2 · 0⤊ 0⤋
Ignoring this debt has created a larger problem. You cannot ignore a court summons. If you cannot afford a lawyer one will be appointed. The longer you wait the larger the debt grows You could end up losing your house.
2016-05-23 23:42:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
they can attempt to levy your bank accounts, garnish wages, all sorts of bad stuff.
If they start trying that, better find a way to set up a payment plan or something.
2007-01-25 10:00:46 · answer #5 · answered by Anonymous · 1⤊ 0⤋
they will go after anything you own. if you do not own anything for them to take the judgement stays in place until you do.
2007-01-28 16:28:19 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
... And if they won't give you a payment plan, and want to levy your wages, you can always file BK.
2007-01-25 10:05:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋