Judgments! How do they affect you? What can you do to get rid of them? How much do they really cost you? You owe a creditor some money. You can’t pay! You just don’t have the cash and there is nothing left in your budget. You tell the creditors, but they just want their money! This is how it usually starts out. You have every intention of paying your bills, but you just can’t for one reason, or another. The creditor decides to take its debt collection process a step further and starts a lawsuit against you. In most cases, there is nothing to defend. You know you owe the money. The bottom line: the creditor gets a judgment against you. In California, the entry of a judgment against you can cause a creditor to put a lien on all real property you have in the County where the judgment is recorded with the county recorder. The judgment lien is like having a creditor get an additional mortgage against your property. Worse, assuming there is some value in your real property above the mortgages, the creditor may well be able to put your real property up for sale at public auction. Judgment creditors can also garnish your wages and levy your bank accounts.. The judgment lien is like having a creditor get an additional mortgage against your property. Worse, assuming there is some value in your real property above the mortgages, the creditor may well be able to put your real property up for sale at public auction. This would be a tough way to lose your home.
To make things worse, the judgment gets bigger and bigger because the creditor has a right to interest as long as the judgment is left unpaid. Then adding insult to injury the creditor can also come after other things you own, like your money in the bank and possibly other personal property. Most creditors must give you a right to claim certain “exemptions”. Exemptions are categories of property that, up to certain limits, the creditor cannot take, but only if you claim them. If you are like most people, by the time you need to claim these exemptions, you are so dazed, confused, and use to ignoring everything, you don’t even fill out the paperwork to claim your exemptions. That’s not good at all, because not doing so gives the creditor the right to come after almost everything you have, except for money in retirement accounts (other than IRA’s) and maybe your wages, depending upon the laws of the State you live in. Even wages are not protected from certain creditors, for instance, (1) An ex-spouse is coming after you for payment of alimony or child support, (2) The State and Federal government for back taxes, or (3) Student loan lenders for overdue student loans.
The Creditor is awarded the judgment for whatever amount of money is owed, plus in many cases attorney fees and costs. Lets say it’s $2,000.00 as an example. What does this mean? Well! First, it means that the Creditor can take the money out of your checking account, if he can find your bank account. Here’s an example. You have just put your paycheck in your checking account. It was $800.00. Let’s say the creditor knows where you bank and has already requested that the bank collect any money that gets deposited into your accounts. In this example, it would be $2,000. The $800 would be gone! If you have any money in a savings account, it will also be gone. The judgment also goes on your credit report and in most cases that means no more credit. It also has some negative effects when you’re working a job with a security clearance. It’s embarrassing! It’s also something that can be taken care of using Federal Bankruptcy Laws! You can stop these negative effects of judgments fast! If need be, in the case of a “non-dischargeable” debt, and using Chapter 13, you can claim the right to pay it, up to 60 months in most cases. Over 60 months, your payment on this debt would be less than $10 per week. That assumes you have to pay it at all. Many judgments especially with respect to unsecured debts never have to be paid back. It just depends on the facts of your particular situation. Every thing you think is hopeless has a solution if you ask the right attorney! Forghany Law, P.C. can give you straight answers to tough questions. They can also start the process to take that monkey off your back on the first visit! Make the call now!
Stop getting pushed around, feeling angry and losing sleep!
Take some positive action now! You’ll feel better!