6 Things to Know if a Judgement is Entered Against You
It is common for a person who is considering bankruptcy to be served with a money judgment. This can be a frightening, confusing situation. At California Bankruptcy Relief we want you to move forward with as much confidence as possible. Read on to learn six things you should know about being in this position. Then contact us at (888) 748-0025 for a free bankruptcy consultation.
1. A Creditor Can Work to Recover Money in a Variety of Ways
Once a creditor wins a judgment, they can levy your bank account. They can garnish your wages. If you run a business, they can install a receiver that collects debt before you get paid. The creditor can require that you go to court to testify about all your assets and where they are.
2. A Judgment Will Show Up in the Public Records Portion of Your Credit Report
While the judgment will not show up on the portion of your credit report you may be most familiar with, it will show up on the public records area. This is actually worse because it will tell creditors that there is a company out there that has the legal right to garnish wages and assets, which can prevent you from paying other creditors.
3. Ignoring a Judgment is Not a Valid Option
Can you ignore a judgment filed against you? Yes, but you will face consequences. Unless you file a written answer with the court in question, or show up to defend yourself, then the judgment will be entered without you being able to give your side of the story. All that is required is that you are served notice that you are being used. If you choose not to act, then the plaintiff will win.
4. Your Options to Appeal a Judgment Are Limited
Yes, you can appeal a judgment – but only in very specific circumstances. For example, if there was an error of law then you may have grounds for an appeal. However, you cannot appeal decisions the court or a jury made based on factual determination and you are not able to introduce new evidence.
5. Judgments Can Be Wiped Out in Bankruptcy Proceedings
It is a common misconception that when a debt gets to the point of being a judgment, it cannot be wiped out in a bankruptcy. This is false. If the debt could have been wiped out in a bankruptcy then the debt behind the judgment can be as well. Note that there are some debts that can’t be wiped out of a bankruptcy, such as certain taxes and student loans.
6. A Bankruptcy Attorney Can Help You Fight Judgments
Even if you are not sure if you are going to file for bankruptcy, it is always worth it to contact California Bankruptcy Relief at (888) 748-0025. We are happy to start with a free legal consultation during which we can offer some solutions to the financial dilemma you are facing.