Judgments Are Designed to Give the Creditor Many Years to Collect
Consumers around the US find themselves in growing, and often concerning, debt. This is nothing new, and is almost expected, from the mortgage to the car payments to the department store credit cards and so much more. Our credit scores are based on how well we can pay back lenders of any size though—and while this may be considered the American way, sometimes the situation can go seriously downhill! You may have found yourself in a financial decline so devastating that it results in charged-off credit card accounts, defaults on student loans, collection lawsuits, and one or more ensuing default judgments.
The default judgment occurs after a collections lawsuit— and usually one that has been ignored; in fact most collections lawsuits are completely ignored and the creditors go on to see default judgments granted against defendants quickly. If you are in such a situation now, you may be seeing your finances go from bad to worse. With the default judgment in hand after being granted by the courts, the creditor is empowered to work with your employer in seeing that your wages are garnished, and in some cases, up to 25 percent of your disposable income. If that is not effective they can freeze your bank accounts and drain them until the debt has been satisfied, or local law-enforcement may arrive to seize valuable assets and then sell them off at public auction.
In terms of a default judgment, it is possible that you could get off scot-free if you are unemployed, which is common in times of financial distress for many consumers and borrowers. You may be considered judgment-proof for a time, having sold off all your assets to pay other bills. Checking accounts and savings accounts may have been closed, and there may be nowhere for a creditor to turn to satisfy their debt now. Remember though: default judgments in California are good for ten years. And after that, they can be renewed for another ten. That gives creditors at least 20 years to work on seeing the debt satisfied, and during the interim they can take aggressive action, making your life very uncomfortable.
If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like 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