California Debtor Topics: That Default Judgment Can Be Renewed by the Creditor
Few of us intend to ‘invest’ heavily in debt. The car payments that are delinquent, the mortgage that is overdue, and a collection of credit cards that are maxed out and late being paid are all usually symptoms of a major problem in our lives. You may be going through a difficult divorce or other emotional trauma that not only makes it hard to keep up with normal activities like budgeting and bill-paying but can also be enormously expensive in the end. You could have fallen sick or suffered a debilitating accident, or you may be having chronic health issues that have had a serious impact on your ability to make a living.
The creditors and debt collectors may be calling and writing, but if there is not an income available to pay the bills, everyone is out of luck. You never know whether or not—or when—you may be sued by a creditor, but if you are, act immediately by consulting with a skilled collections attorney from a firm like Fitzgerald & Campbell, APLC. Most likely, a private process server or sheriff will be responsible for delivering the summons and complaint to you. This should be reviewed by a legal professional not only so that you understand all the details of your case, but also so they can create a thorough reply for the court. Without a reply, and without your presence in court, a default judgment could be granted almost automatically. This leaves you vulnerable to wage garnishment of up to 25 percent of your disposable income. They may pursue other avenues of collection activity also, such as freezing your financial accounts.
If you consider yourself to be judgment proof right now, keep in mind that the default judgment is good for ten years. That means that for ten years, in order to avoid having the creditor collect, you could not be earning income from a job, have a checking account that could potentially be frozen, or own any property worthy of being seized and sold at a public auction. Beyond that, however, there is the very good chance that the creditor will renew the judgment for another ten years to continue trying to see the debt satisfied.
If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at email@example.com.
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Posted in: Judgments