Can I Avoid a Judgment?
A judgment is a legal remedy sought by a creditor in order to obtain payment of a debt. In case you don’t normally read the fine print when you apply for a credit card or take out a loan, you actually agree to this. Yep, you agree to be sued if you don’t make your payments.
Proving that the debt is legitimate is the creditor’s goal in a law suit to obtain payment. You should consider dealing quickly with any legal action if you do, in fact, owe the debt. Negotiating a settlement is often a creditor’s first choice, as opposed to following through with a legal action. If at all possible, offering a partial cash payment will help the negotiation process as creditors will see this as a show of good faith.
You will want to know if the statute of limitations is still in effect. If not, the debt is no longer legally collectible. However, it is important to understand that the payment of even a small amount will reinstate your obligation to pay.
If the matter is being handled by an attorney for the creditor, consider calling the attorney and making an offer. No matter what you decide to offer, the attorney is bound legally to discuss your offer with the creditor.
For many reasons, going to court should be avoided. In all instances, a settlement is better than ending up with a judgment. If a judgment is obtained by your creditor, it will then be shown on your credit report. A judgment can remain on your credit report for up to ten years.
It is important to SHOW UP if you cannot reach a settlement with your creditor and you end up in court. Some people make the mistake of not showing up which means that they automatically forfeit. This means that the creditor wins by default!
You will need to be ready to present a defense and work toward a resolution if you do appear in court. The judge and plaintiff creditor will respect the fact that you showed up and prepared for the hearing. Understand though that you will need to present a defense.
The creditor’s goal is to obtain a judgment against you. If he is successful, you will receive a court judgment which will give you 30 days to pay the debt. If, after 30 days, the debt is still unpaid, the creditor may have additional legal remedies open to him. One of these remedies may be to place a lien against your house or other property. If a lien is attached to your home, the debt will have to be paid in full before you can refinance or sell your home.
In addition, a creditor may be able to seize personal property you own. One other possible legal remedy might be garnishment of wages.
The result of a judgment on your credit score will be far-reaching. Besides a loss of borrowing power, other areas of your life can be adversely affected. For instance, your chances of promotion or a new job opportunity may not materialize! It is wise to avoid a judgment at all costs.
See Actual Lexington Law Customer Results at www.lexingtonlawreviews.com.
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