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Default Judgments: Seven Years on Your Credit Report—But When Does that Start?

credit report
  • Oct 31 2019

If you’ve reached the point where a default judgment has been granted against you, it may have been a long hard road already, culminating in a process that seems even worse–and one that has been affecting your credit report too. When it comes to being in debt, however, you are not alone as the average household is in debt of about $137,000 (including a mortgage), and as far too many individuals and families live paycheck to paycheck, many are also in various stages of delinquency and default—including massive student loan debt.

While money mismanagement could be the reason for your current financial plight, chances are that spending on credit cards willy-nilly is not your problem, as tempting as it may be at times. And while everyone has trouble maintaining a household budget at one point or another, usually these issues can be reined in with tighter budgeting and often other measures—like a family meeting to discuss the need to reserve funds. If you are sick, however, or have been injured, the process of picking up the pieces financially may not be so easy.

The main reason most households are falling into financial distress, however, is because of medical debt. These debts can pile up rapidly, draining every account you have; in fact, you may find yourself considering filing for bankruptcy—and if you are eligible for Chapter 7, you could find your debts discharged within three to six months. This enables you to walk away with a clean slate and pursue greater financial success in the future.

If you are currently fending off creditors and debt collection agencies, however, you may be highly concerned that a collections lawsuit is on the way. This is the best time to consult with an experienced collections lawsuit attorney who can review your status, advise you of your options, and help if you need to file a reply or be defended in court.

If a default judgment has already been granted against you—and this usually occurs after a reply has not been generated for a collection lawsuit – you may find yourself under more financial stress than ever. The default judgment means that the creditor suddenly has even more power to see their death satisfied, and in numerous, uncomfortable ways. You may find that your employer is suddenly apprised of your financial issues too, being court ordered to garnish your wages up to 25 percent of your disposable income. You may also lose control of your checking account as a creditor has, completely by law, frozen your funds—or, law enforcement may arrive on the scene to seize assets and sell them at auction.

While the default judgment is good for ten years, it can be renewed for another ten. You may be judgment proof right now but consider what lies ahead in the next 20 years.

No matter what happens, the default judgment will be on your credit report for seven years. The clock starts ticking as soon as the judgment is granted against you. While this may come as a shock to some consumers, for others the credit report is already so devastated that one more mark against them is just a drop in the bucket. Whatever your concerns are, seek legal advice as soon as possible.

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! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at info@debtorprotectors.com.

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Posted in: Judgments