In the field of debt collection and delinquencies, judgments and judgment risk factors are a very real concerns. Will a creditor sue and seek legal judgment against me? If he does, what type judgment might it be? What exactly is a judgment and what can I do about it? These are just some of the questions answered in this judgment article. But please note. The content of this article is for consumer knowledge of judgments and legal lawsuits only and it is assume the reader will act responsibly towards his/her debt.
RISK FACTORS
Collectors must abide by the their state's Statute of Limitations (SOL) for the amount of time to sue a debtor for payments. Therefore a consumer's first step is determine if the SOL for collecting a debt has past. If the SOL has not passed, the consumer must weigh the risk factor of a judgment against them when determining if they should pay a delinquent debt. A judgment could allow the creditor to garnish wages or hire an authority to come get your property. However, it is possible it may not be in the creditor's best interest to do so. Sometimes it is simply too much time and expense for a creditor to take action against you. But the possibility does exist.
As stated at Credit Info Center: "The risks of judgments, garnishments, and property seizures must be properly balanced against the likelihood that such drastic collection measures will ever happen. The risk, and the decision to take that risk, are entirely yours if you're in such a position."
DEFINITIONS
JUDGMENT - a decision issued by a court at the end of a lawsuit. If in the favor of the creditor it not only verifies the debt but can increase the debt by adding interest, court costs, collection fees, and attorney fees an may extend up to 20 years on a credit file. A decision in favor of the debtor makes the debt uncollectible and may include reimbursement of legal costs to the debtor.
JUDGMENT PROOF - a debtor has little or no property that a creditor can legally take to collect in the foreseeable future.
PRE-JUDGMENT ATTACHMENT - a legal procedure which lets an unsecured creditor tie up property before obtaining a court judgment.
DEFAULT JUDGMENT - If a consumer is sued and does not file papers in response to the lawsuit in the prescribed time limit, the plaintiff can ask the court to enter a judgment against the debtor and is an automatic loss of the case. A default judgement can be set aside but this is unusual and circumstances must be notable to justify such a turn.
LIEN - a lien is a notice that a creditor has attached property. The consumer cannot sell the property without paying off the creditor because the lien makes the "title" cloudy.
SECURED DEBT Property that is purchased using the property itself as collateral on the loan is considered secured. Credit cards are considered unsecured but tax debt is considered secured.
What can a creditor do?
Creditors from secured debts may be able to obtain a judgement for repossessions. Mortgagors can depose and landlords can evict. Garnishment or taking of wages is an option of any creditor. The decision to sue a debtor is usually based on the amount owed (usually over $500), the cost of getting it back, and whether there is a reasonable expectation that something can be collected.
If the matter can be sorted out with the person making the claim before it goes to court, it will be cheaper. If you lose in court, you risk having to pay the other side's costs. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you reach an agreement, you will need to submit an agreement as to judgement form in the court, which tells the court that there is no need to have the matter heard.
Some judgments can be fought by challenging their validity. For example default judgments at times can be reversed by claiming the debtor was never served or was ignorant of the facts. Before reversal, however, you must back up the claim with facts. Judgments which include selected stipulations can be reversed if the debtor can prove coercion or misrepresentation. Of course winning an appeal in a higher court can reverse a decision as well.
Payment of Judgments
Once a judgement has been issued, settlement may still be an option if the debtor and creditor can come to terms. This is often the case when dealing with a temporary judgement-proof debtor who will have assets freeing in the future. The creditor might want the debt cleared sooner and might be willing to settle.
Contrary to popular belief, a judgement can be removed from a credit file by the creditor. This requires a fair amount of work and therefore the creditor would have to be motivated to do so in some way.
Money - Financial Vagueness
Financial vagueness what is that is it a new kind of food you eat?
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
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