How to Remove a Judgement against Your Name
A judgment is a document that confirms a judge’s decision in a lawsuit. If the judgment is against you, the lawsuit didn’t go your way – the judge ruled for the person or entity that sued you. This person is called the plaintiff and is often a creditor. A judgement, with respect to an individual’s credit history, is a court order obtained by the lender which goes on the credit report. The court order is for the borrower to make the due payments and also empowers the lender to take action against the individual so as to recoup their money. When a lender moves the court to get the judgement in South Africa and the court gives it then the judgement goes .
Having a judgment filed against you brings with it a new level of debt collection. Thankfully, there are some things you can do to ease the pain. A judgment is nothing more than a decision by a court that has been entered into the public record.
In order for that decision to againet made, someone must file a lawsuit. When you go past due on a debt, the creditor calls and sends letters in an attempt to convince you to pay. When all else fails, the matter is turned kudgement to a lawyer. That lawyer files a lawsuit and gets a judgment against you for the judgenent purpose of getting you to make payments.
The judgment becomes a matter of public record, and is indexed with the clerk of the court. It shows up on your credit report as well as on any background checks. The judgment is considered a lien against your property, including any real estate that you have, in the state in which the judgment is filed. In other words, a judgment filed in California has no bearing upon property located in New York unless the creditor takes the California judgment to a New York court and has it filed there againsr well.
If a judgment has been issued against you, the creditor can satisfy its judgment by freezing your bank account and taking a portion of your wages.
Procedures differ from state to state. For example, in New York the creditor needs to get in touch with an enforcement officer such as a Marshal or Sheriff. Once that happens, he or she can serve a restraining notice on the bank, or on some other person or business that owes money to the judgment debtor, and eventually take the money.
If you are employed, the enforcement officer can garnish take a portion of your salary to satisfy the judgment. The creditor has claimed that you owe money, and a court has agreed. That said, here are some options for you to consider:. The judgment creditor can take steps against you to make your life even more difficult. Having all the information you need about your options makes all the difference. If you do fight and lose the lawsuit, a judgment will be entered. Now onto the nuts and bolts.
The most common ways you may find out that there judgejent outstanding judgments against you are: letter in the mail or phone call from the collection attorneys; garnishee notice from your payroll department; freeze on your bank account; or routine check of your credit report.
Eventually, it what is ad network mediation to a collection agency. That said, here are some options for you to consider: pay the balance due in full; work with the creditor to settle the debt or work out an agreeable payment plan; allow the creditor to seize your assets in payment of the debt; repay the debt involuntarily through a wage garnishee; file for Chapter 7 or Chapter 13 bankruptcy as a means of discharging or repaying the debt depending on your situation.
That only makes it worse.
What It Means to Have a Judgment Filed Against You (and What to Do About It)
Aug 29, · A judgment against a home buyer or home seller automatically attaches as a lien against their real property. The title insurance company will always run all . Jan 04, · The judgment becomes a matter of public record, and is indexed with the clerk of the court. It shows up on your credit report as well as on any background checks. The judgment is considered a lien against your property, including any real estate that you have, in the state in which the judgment is filed. In other words, a judgment filed in California has no bearing upon property located in New York unless the creditor takes the California judgment . Mar 23, · 1) Credit Bureau Adverse credit information has a validity time of 3 - 5 years, wherein it will reflect behind your name. Default(no judgment has been passed) - 3 yearsJudgement(judgment has been passed in court) - 5 years.
When you receive a judgement from the court in relation to a debt collection lawsuit, you might think that you do not have any choice but to follow the judgement. Many people also have this misguided belief that the creditor can strip them of everything they own, just like what happens in the movies.
There are certain exemptions depending on the state where the judgement is filed. There are measures that you can do in case you are unable to pay the amount that was awarded to the creditor. This article will explore the different courses of action available to you if you want to know how to get out of paying a judgement.
This decision will be entered into the public record and the winning party can use this judgement as a legal tool to collect the debt you owe. When the judge agrees to vacate the judgement, this will delay the judgement creditor from collecting from you because that judgement will be legally void or invalid. The creditor will no longer have the ability to immediately execute collection activities until after the judge issues a new judgement after a new trial date is set. A default judgement is a decision issued by the court or a judge if one party fails to respond to a court-ordered action like failing to show up for the hearing or not answering the summons from the court.
If you ignore the lawsuit or if you do not answer a summons from the court within the deadline given to you, what usually happens is that the judge issues a judgement in favour of the compliant party, in this case, the creditor, and this default judgement could empower the creditor to collect money from you even if the debt may be inaccurate, not yours, or has passed the statute of limitations.
What do you need to do if a default judgement is entered against you? While there are online resources that could help you do this yourself, it is advisable to seek the help of a lawyer to correctly do this process. You have to make sure that you file the motion to vacate the judgement within the timeframe allowable. The deadline is usually 30 days from the date the court mailed you the judgement but it is best to check your local state laws.
When requesting for the judgement to be vacated, you have to present a valid reason why you were not present during the hearing. All of these factors could affect your motion and can help you in getting the court to vacate the judgement. When you are successful in vacating a judgement, not only does this buy you time from paying what the creditor demanded, but also gives you the power to fight or renegotiate the complaint.
Keep in mind that vacating a judgement does not mean the lawsuit was dismissed or cancelled. What it means is that you want the judge to disregard the judgement because you were not able to contest it in court. After a judgement is vacated, you have to attend the new trial and present your defences or arguments against the complaint.
There are several defences that you could use like identity theft if the debt is not yours, an inaccurate debt amount if you believe that the amount is wrong, or you can also argue that the debt is old statute of limitations. If you are able to prove that the complaint is not valid, then the new judgement could be in your favour. If you believe that the creditor has strong evidence against you, you can also settle the lawsuit at this point.
This is your opportunity to negotiate a lower payment amount because when you contest the case, it is much more likely that the settlement will be favourable to you. In a lot of these films, the character becomes dramatically dirt poor, which can be scary. There is some property and money that the judgement creditor is not allowed to take from you to pay a civil judgement.
What is considered exempt will depend on the state law where the judgement is filed. For these benefits to be considered exempt, they have to be directly deposited by the relevant agency to your bank account. If you transfer the money yourself to a separate bank account, you would have to prove that this money came from these benefits. You can have your primary residence exempted by listing it as your homestead to get a homestead exemption.
A homestead exemption will generally provide you legal protection from unsecured creditors from removing you from your house. You have to check the Homestead Laws in your state how this works for you. It is also possible to file exemptions on vehicles, personal possessions, and property used for trade or business but only up to a certain amount.
In terms of your wages, the creditor can only garnish or take a portion of your salary. They cannot take all of it. The percentage of what they can take will depend on how much your disposable earnings are. In some cases, it is also possible that all of your income will be exempt from garnishment if you do not earn enough or do not reach the minimum amount set by the law in your state.
What this means is that all of your income and property cannot be taken or garnished from you because they are all considered exempt. You have to consult with a lawyer to see if you qualify as a judgement proof debtor.
When you are judgement proof, it means that the creditor cannot collect from you legally. They can still continue to call you and annoy you to try and collect from you but you can ask them to stop by giving them a letter stating that you are judgement proof. If your situation changes such as getting a higher-paying job or maybe getting an inheritance or property, your status as being judgement proof will change and depending on the judgement, it is possible for the creditor to still collect from you.
It is the responsibility of the creditor to collect from you, and not the courts. When you receive a judgement indicating that you have to pay up, you will receive a notice of garnishment or attachment from the judgement creditor. You usually have 10 days from the time this notice is mailed to you to file a claim of exemption. Check your local state laws on the exact days you may have to file your claim. Filing a claim of exemption secures the exempt income and property.
This saves you the hassle of trying to recover your money or property. Even if your income or property is considered exempt, there are still certain cases when these can still be taken from you. The following situations are some examples:. In , there were , bankruptcies filed in the United States. While filing for bankruptcy is an extreme move, this is the only legal way for you to erase your debt and avoid paying a judgement altogether.
However, there are certain judgements like child support, criminal penalties, restitution, and fines, student loans, or debt from fraud that cannot be discharged in bankruptcy. This last option will not completely get you out of paying a judgement. However, it could lower the amount that you need to pay. For example, instead of paying the full amount demanded by the creditor in the complaint, you can negotiate and reach a settlement that is favourable to both parties.
Most creditors accept to settle for a lower amount rather than continuing to chase you to get payment. Starting low will give you a lot of negotiating room and will obviously benefit you.
As much as you can, try to get out of paying the exorbitant fees and interests that piled up over the original debt. If you cannot get the creditor to agree, hint that there is a possibility of you filing for bankruptcy, whether you plan to or not. This is a document signed by the creditor that payment was received. Do not pay any amount until you get a written agreement from the creditor that the amount you agree on will be the final amount, no more and no less.
You do not want to find yourself six months from now getting harassed again by the same creditor saying that you did not pay enough. If a judgement is entered against you, you still have ways on how to contest it if you want to delay, avoid, or settle debt collection.
Depending on your individual circumstances, you can explore the options listed above to achieve this. Consulting a lawyer who is familiar with debt collection lawsuits in your state is the best recourse to know where you stand. If you being the defendant, have paid the plantif over the amount you owed them, do they owe you a refund? Your email address will not be published.
Skip to content When you receive a judgement from the court in relation to a debt collection lawsuit, you might think that you do not have any choice but to follow the judgement. What can you do if this happens? Here are your options after receiving a judgement against you: Attempt to vacate a judgement File a claim of exemption File for bankruptcy to discharge the debt Settle with the judgement creditor 1. What is a Default Judgement? How to Vacate a Judgement? Were you not aware of the complaint?
Did you not know that there was an ongoing case against you? Was the debt not yours? Did the summons get lost in the mail? Were you not served properly?
How long after the judgement was served did you discover that there was a judgement against you? Were you not able to attend the hearing because of an emergency or a medical condition? What Happens After the Judgement is Vacated? Homestead and Property Exemption You can have your primary residence exempted by listing it as your homestead to get a homestead exemption. Wage Garnishment Exemption In terms of your wages, the creditor can only garnish or take a portion of your salary.
How to File a Claim of Exemption? The following situations are some examples: If the judgement is for child support If there is a bankruptcy order that directs that the property should be taken Exemptions may not be available for certain tax liens If the debt originated from the purchase, improvement or loan on that property, then it cannot be exempt.
For example, if you bought a car or a house and cannot continue paying the monthly instalments, you cannot file a claim of exemption on that particular house or car.
Settle with the Judgement Creditor This last option will not completely get you out of paying a judgement. How to Negotiate a Judgement Settlement? Stopping Creditors From Collecting Judgement If a judgement is entered against you, you still have ways on how to contest it if you want to delay, avoid, or settle debt collection. Leave a Comment Cancel Reply Your email address will not be published.
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