Understanding Credit Judgments
A judgment occurs when you lose a lawsuit brought by a creditor. It's recorded on your credit report and can lead to wage garnishment or bank levies.
Legal Implications
Creditors can pursue various collection methods after obtaining a judgment. Know your state's limitations period for enforcing judgments.
Resolving Judgments
Negotiate payment plans, request judgment removal in exchange for payment, or consult an attorney about bankruptcy protection options.
Prevention and Protection
Respond to lawsuits promptly and consider consulting an attorney. Many creditors prefer settlement to the costs of pursuing collection.