If a creditor seeks to file a judgment against you you’ll want to know what that means and what to do. Below we discuss judgments and what to do if you are facing one. Better yet, contact a phoenix chapter 7 bankruptcy lawyer to help you with your debt before a creditor files a judgment against you.
What is a Judgment?
A judgment is a decision issued by the court stating that a creditor has won a lawsuit and is entitled to a certain amount of money. In this case, the creditor would be entitled to the money that a debtor owes them. But before a judgment can even be issued, a lawsuit must be filed against a debtor. This means that creditor will take the debtor to court. If the debtor does not respond to the summons to court, then the court will issue a judgment in favor of the creditor looking to collect. The judgment is then filed with the court, and thus becomes part of public record.
The judgment is considered a lien against any property the debtor owns and also appears on his or her credit report. When a judgment is issued against a debtor, the creditor can satisfy its judgment by freezing the debtor’s bank account and also garnishing wages.
Once the judgment has been entered and finalized, a debtor is no longer able to fight it. That’s why it is encouraged that a debtor contact a bankruptcy attorney like a phoenix chapter 7 bankruptcy lawyer once he or she has received notice of a judgment. If a judgment has been entered, then a court has agreed the debtor owes money and the debtor will need to do one of the following:
- pay the balance due in full,
- contact the creditor to work out a way to settle the debt or come up with a payment plan,
- allow the creditor to seize assets as payment for the debt,
- repay the debt involuntarily through wage garnishment;
- file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 or Chapter 13 is a way to discharge debt.
Working with a Bankruptcy Attorney
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix chapter 7 bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
668 N. 44th St., Ste 320, Phoenix, AZ 85008