Credit Card Lawsuit: Getting a Judgment Against You

Credit Card Lawsuit: Getting a Judgment Against You

If you are sued for unpaid credit card debt and you somehow lost the case, what are the things you need to do in order to pay the debt in question? The obvious answer is pay the judgment owner but what if you can’t afford to pay it all?

Apart from paying the due amount, you also need to know what state the judgment is lodged in, who the creditor is, what the creditor’s attitude is and what assets you have.

One of the most common ways to stop a judgment is filing for bankruptcy. Filing for bankruptcy will provide protection that blocks most judgments or encourage creditors to settle for pennies on the dollar. However, there are serious and lasting financial consequences to filing a bankruptcy so seek the advice of an attorney first to learn more about bankruptcy protection. Note that you cannot fake a bankruptcy claim because most creditors use pacer to check a person’s bankruptcy status.

If say, you do not want to file for bankruptcy protection, another way to get rid of a judgment is to wait for the creditor to recover their judgments. Most creditors do not bother collection the judgments or wait too long and judgments usually expire unless the owners review them so you can wait and see if your creditor will take action from the judgment they received.

If you lost the case by default and you were not served properly, you just might get the court to set aside the ruling but the chances are very slim and even when it is set aside, your creditor can easily file for a credit card lawsuit again. This time, you cannot claim the summons was not served properly.

Note that when it comes to enforcing judgment and settling the credit card lawsuit, your assets play an integral part of your creditor’s pursuit of the debt. If they know that you don’t have any non-exempt income or assets, recovering the debt is very slim. However, if they know that you have lots of assets and income, you can expect your creditor to apply all collection efforts in the book.

For less complications, you can always try to negotiate a settlement with the judgment owner. Many creditors are willing to forgive as much as 50% of the credit debt so sitting down and working on a deal should be considered.

There are times when even if the creditor is aware that the debtor have no ability to repay the debt or when the judgment is about to expire, they will refuse to compromise because they are holding a grudge against the debtor. If such is the case, it would be best to consult with a judgment broker who can find the right enforcer to buy the judgment from the creditor. This is so you can save money while also satisfying the judgment against. This might be a long shot and usually this will only work if your creditor is only a small company or is a person.

A judgment broker can help you in certain cases. For instance, when you try to contact the creditor politely and the creditor’s pride prevented them from settling the case. A judgment enforcer either may be a buyer or may offer to purchase the judgment for pennies on the dollar. Sometimes, the same creditor that refuses to settle with you might say yes to a third party judgment buyer. If a judgment broker makes a deal with a buyer, they could purchase the judgment and may satisfy your judgment at a discount for you. If the broker earns a profit, you could be saving a lot of money.

On the other hand, collection agencies and big credit card companies and banks tend to refuse third parties trying to buy their judgment so if you want to reach a settlement; you need to reach out to them directly or through their collection attorney or agency.

It’s important to get a court-stamped satisfaction of the judgment when you repay it. This court-stamped satisfaction of a judgment is a process that will require the documents to be calculated, filled out, and finally, notarized and stamped by the court where the credit card lawsuit judgment was ruled.

After you satisfied the judgment, you can file for a certified copy of the document along with a county recorder or send a copy of the judgment satisfaction to a credit reporting agency or to anyone that needs proof that you paid the amount due.

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