Being issued a court judgment can be the most tormenting moment for one who is in debt. If you are facing a judgment, you may have been aware that you were in debt but did not realize the severity of that debt. The majority of credit card debt is considered unsecured. This means that it is not attached to any personal property like a car or home which can make it difficult for creditors to collect from debtors. A court judgment can change that in an instant. With this in hand, creditors can freeze your bank account, garnish wages, and even repossess your belongings.
A court judgment is the court deciding that you owe a specified amount of money. This decision authorizes the judgment creditor to take the necessary legal action to seize that amount. The court judgment can also be accompanied by a court-approved interest rate, usually falling somewhere between the 5 to 10 percent range. This interest will continue to accrue until you pay the amount owed in full.
This may come as severely distressing news but one of the worst decisions you can make is to ignore a court judgment. Whether you address it or not, you still owe a debt and judgment creditors will stop at nothing until that debt is collected with interest. A court judgment may seem like the quintessential element but there is still more that can be done. Consider these options for responding to a court judgment.
Argue the Decision
A large majority of debt judgments are made before the debtor has had the opportunity defend themselves in court. These one-sided judgments are can be retracted, providing the debtor with the opportunity to acquire a debt settlement attorney and argue their case. A debt settlement attorney can appear in court on your behalf and poke holes in the case presented by the creditor. This can result in your debt being lowered or completely erased if the creditor lacks the necessary documentation.
Settle Your Debt
The process of tracking down an individual to pay their debts can be time-consuming and is of no benefit to the creditor. They are likely to settle the debt in court if you have ready funds. In many cases the debt amount is lowered as you paying your debt outright relieves them of having to take further legal action.
Individuals with few assets and minimal income may be considered judgment-proof as they are legally exempt from collections. This does not mean that you can simply ignore a court judgment because you believe you are judgment-proof. There are many steps that must be taken to determine if your wages and assets are protected from being seized. It is suggested that you seek the status of judgment-proof prior to notification of a court judgment.
Benveniste Law Offices can provide you with the legal representation necessary to effectively respond to a court judgment. We are the non-bankruptcy attorneys of Illinois and can represent you in court to negotiate your debt with judgment creditors. Take the first step in freeing yourself from the grasps of debt and contact us today at 1-800-497-5358 to speak with an Illinois debt settlement attorney.