- Credit 101
- Teaching Tools
- Scores
- Life Stages
- Credit Mishaps
- Understanding Different Bankruptcy Chapters
- Your Credit Report After a Bankruptcy
- Understanding Judgments
- Inaccuracies on Your Credit Report
- Disputing Credit Report Errors
- Understanding Foreclosure
- The Foreclosure Process & What To Do Afterwards
- Understanding Identity Theft
- In the event of: The Death of a Spouse
- Rebuilding Your Credit
- Choosing a Reputable Credit Counselor
- Avoid the Downside of Credit Mismanagement
- What is a Credit Freeze
- Worksheets & Letters
- 6 Steps to Creating a Budget
- Household Budget: Wants vs Needs
- Personal Budget Template
- Understanding Amortization Schedules
- Loan Amortization Calculator
- Sample Opt-Out Letter
- Sample Dispute Letter
- Annual Credit Report Request Form
- Auto Loan Payment Calculator
- Back-to-School Budgeting
- Cost of Credit
- Emergency Fund
- How Much Car Can You Afford
- How Much House Can You Afford
- How Much Will College Cost
- How Much Will My Loan Cost
- How Will My Savings Grow
- Mortgage Payment
- Mortgage Refinancing
- Pay Down Debt or Invest
- Repaying Student Loans
- Retirement Fund
- Rework Your Budget
- Saving for a Goal
- Should I Consolidate My Debt
- Travel Budgeting
- Your Holiday Budget
- Buying a House
- 5 Steps to Buying a Home
- 5 C's of credit When Applying for a Loan
- What Score is Needed to Purchase a Home
- Using a Realtor
- Understanding Fixed Rate Mortgages
- Understanding FHA Loans
- Understanding VA Loans
- Understanding Interest Only Loans
- Understanding ARM Loans
- Understanding Combo Loans
- Understanding Streamline K Loans
- Understanding Bridge Loans
- Understanding HELOC (Home Equity Line of Credit)
- Understanding Reverse Mortgages
- Basic Mortgage Underwriting Principles
- Credit & Financial Law
- Home
Understanding Different Bankruptcy Chapters
Your Credit Report After a Bankruptcy
Inaccuracies on Your Credit Report
Disputing Credit Report Errors
The Foreclosure Process and What To Do Afterwards
In the event of: The Death of a Spouse
Understanding Judgements
A judgment is a court ordered lien, meaning that a creditor has proof that money is owed and the court is asked to help the creditor receive the money owed. It should be noted that the court charges a fee for helping the creditor receive owed money and that even though the court helps a creditor try to recover debt, it can not guarantee that the debtor will pay it.
When a creditor files for a judgment, the party usually does so in civil court. Once the judgment is filed, the debtor should receive notification that a judgment has been filed against him or her and has the right to be present at a hearing. If the debtor does not show up for the hearing, the judgment is usually automatically filed in default and the debtor is now legally required to pay off the debt.
It should be noted that if you receive a notification to appear in court due to a creditor filing a judgment, you should definitely appear and explain your situation. Sometimes a judgment is filed for credit card debt or another type of unsecured loan. Many times individuals stop paying a credit card because they have an issue or a mistake was made. If this is the case, you should definitely appear in court to explain the situation before a judgment is allowed by the court.
Once a judgment is filed, there are many ways in which a creditor can try to reclaim any debt owed from the individual or party. First off there is a bank levy. This means that any money that is being held in your checking or savings account can be confiscated. However, some types of income are exempt including social security, child support, welfare benefits, etc.
Another way the court can make the debtor repay a debt is by wage garnishment or court repayment plan. In a wage garnishment about 10% of your gross wages are removed by your employer and paid to the court (this amount varies in each state). In a court repayment plan, an individual or party pays the court on a set schedule for a set time period until the debt is repaid
