Times are tough right now and sometimes we would like to pay our debts but just simply can’t. While it would be nice to call the creditor and explain your situation, the fact of the matter is, they are still going to expect the money that you owe them. Unfortunately, creditors aren’t always willing to understand your situation. Once you do not pay, they have the right to sue for the money, which is called a “judgment”.
At times there can be some misunderstanding as to what exactly a judgment is. A judgment is what results when you are sued and either don’t respond to the lawsuit or lose the lawsuit. The judge, in finding in favor of the creditor, will award a judgment on their behalf.
Below is a brief timeline on how a lawsuit turns into a judgment:
A lawsuit (complaint) is served from the sheriffs’ department or some other servicing organization. That’s where the common phrase, “you’ve been served” comes from.
From the date that the lawsuit is served, you have 30 days to give a WRITTEN response. You must include a copy to the people who are suing, and have it filed with the courts stating that you are contesting the amount. They will stamp it. Make 3 copies; one for you, one that the court is going to keep, and the other will be sent to the attorneys handling the judgment. Doing this will extend the amount of time
The courts will set a hearing date. You will get a DEFAULT JUDGMENT for not showing up to the hearing. This will basically state that you owe the money. If you do show up to the hearing, unless you can prove that you do not owe the debt the courts will likely rule against you and issue a judgment.
Next will be a RIGHT TO HAVE EXEMPTIONS DESIGNATED. This is just a fancy way to tell you that your creditors are about to try to come take your property. You will have a chance to list all personal property that you wish to protect and you’ll have to use certain types of exemptions to protect your property. If you fill the right to have exemptions designated document out incorrectly you run the risk of losing your property.
After this they will get a WRIT OF EXECUTION which will state that the sheriff will be coming to get the goods that were not exempted.
To protect yourself and your property, you can either pay the amount that is owed (plus the interest that has occurred over time) or file bankruptcy. By filing bankruptcy, you are protected by an “automatic stay” which will stop the creditors from collecting from you or pursuing the judgment further. If the judgment has already been placed against you, you can still file a bankruptcy to get rid of it, but you will need to discuss with your attorney, your further actions. Many times, if you own a home, a judgment automatically puts a lien on your home, and although the bankruptcy will take care of the debt that you owe, separate motions will need to be filed to remove the lien from your property.
The bottom line is you will want to explore the option of bankruptcy before you have a judgment against you if at all possible. If you already have a judgment against you, you will want to contact a bankruptcy attorney immediately to see what options you have to ensure that your property is protected.
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I have a judgement and can not locate the people that file it they are no longer in business can I get a vacate of judgement
James,
You could certainly try but if the company went out of business then they likely sold their accounts receivables, etc. to another company for pennies on the dollar. If they did sue you then the law firm that represented the company is probably still in business and should be able to assist you as well. Good luck!
The person who owes the money ($5000) to me because of property damage, sold her property around $560,000, twelve days after the incident. Can I still mentioned that to judge the day of hearing and claim that money?
Unless you had filed a lawsuit or judgment against them or can prove they were fraudulent in some way I don’t think you can do a whole lot. Technically, they had property worth $560,000 and after selling it they should have had $560,000 in cash. So there should be an equal exchange in assets. Therefore, you could try to collect against that.
I’m worried about being sued at the moment. The good news is that we are an LLC with virtually no tangible assets. We have intellectual assets but the value of that is obviously subject to interpretation.
If these guys actually sue us and win (lets say $10,000). Then would declaring bankruptcy do us any good?
Would they just come and get our tables and chairs worth like $500? I really don’t care about that stuff, I just care about our intangible value (or trademark and our website) which is worth protecting for me, but probably worth nothing to them.
It wouldn’t make sense for your business to file a bankruptcy because the business would not receive a discharge. If they get a judgment against your business they could come after any assets within that business. Of course, as you stated, what would be the value of your IP in someone else’s hands? Probably not a lot. Therefore, I would probably look at just riding it out. Good luck!
I filed for bankruptcy, the person I owed money to wants to place a judgment on me AFTER I have already filed for bankruptcy. I think my lawyer is trying to squeeze me out of more money, because he says the judgement is going to be an issue for me. However I don’t think it will be because I filed for bankruptcy. Doesn’t the bankruptcy take care of my lawsuit, therefore rendering any possibilities of a judgement null and void?
The filing of the bankruptcy enacts an automatic stay and stops lawsuits. However, someone could sue you within the bankruptcy through an adversary proceeding if they think what you owe them is non-dischargeable for one reason or another.
If a judgment is put against my husband and he left me two 1/2 years ago the house is my house had it before we got married can they try and take things from me?
If the judgment was just against your husband and the house was just in your name or if you own it tenancy by the entirety with your husband then they can’t attach a lien to it. However, if it was against both of you then they can or if it is just against him and you guys are now divorced and own the house jointly by tenants in common then they could try to foreclose on the house if there was enough equity.
I have a judgement against me for about 11000 dollars for mostly medical bills can I claim bankruptcy on that
Absolutely. As long as you weren’t fraudulent or just had a bunch of cosmetic surgery right before filing then it is likely dischargeable in a bankruptcy.
I lost a judgement for a life insurance policy. Can I file bankruptcy for that and our house mortgage is only in my husband name can they put lien on it
You could likely file a bankruptcy if you owe that debt. The name on the mortgage is far less important than whose names are on the deed to the property. The bankruptcy would create an automatic stay that would stop an ongoing lawsuit.
An ex owe’s me over $600.00 and I have a signed agreement that he would began paying me back in February of this year. He has yet to do say then he tells me he has filed for bankruptcy. Can I still go forth with a judgement for him to repay me?
You would need to get an attorney who can represent you but the automatic stay that is created when a bankruptcy is filed probably prevents you from successfully going after him. It also depends on the type of bankruptcy he filed but you may be able to file a proof of claim and get some money back if he is paying anything into the bankruptcy (like a Chapter 13 bankruptcy).
I have no assets and I am in $80,000 debt. I am worried I am about to be sued. If they charge me with failure to adhere to traffic light will I be able to dismiss any potential civil liability with bankruptcy?
Most civil penalties are discharged in bankruptcy. There are some exceptions so make sure you speak with an experienced bankruptcy attorney.