Judgment or Lien: How Can I Keep My House and Property?

If you are worried that you may lose some of your assets due to a judgment or lien your creditor is filing or has threatened to file, you should be. You can definitely lose assets if a judgment is awarded to your creditor. Your creditor must go to court with the debt matter if the debt has gone a certain number of months without being paid. It is unfortunate that it will likely cost you in one way or another if the matter goes to court. The result reached in court will be unique, just as every person’s individual situation is unique.

Normally, you will have 30 days to respond once you receive judgment papers. The judgment papers will notify you that you are to appear in court to defend the debt matter. It is smart to spend these 30 days attempting to come to a settlement with the creditor.

If a judgment is obtained against you and depending upon the laws of your state, the creditor will be able to use specific legal remedies to obtain payment. Wage garnishment, property seizure, and possibly a lien against your property or home are some options which may be available to the creditor. You will not be able to sell your home or borrow against it until the debt is fully paid if a lien is placed against your home.

It is important to note that a court-ordered judgment will cause your credit score to take a significant southward plunge. Also, a judgment may be reported for up to ten years on your credit report. A bankruptcy is the worst mark you can have on your credit report. A judgment follows closely on a bankruptcy’s heels. Considering the difficult times we are living in, an exceptional credit score is more important and necessary than ever before.

The bottom line is that your creditor just wants to be paid. Because of this, often creditors are willing to accept significantly reduced offers just to settle the debt. It may also be possible to arrange for a payment plan so the creditor does not have to follow through with a legal action. However, to do so, you will need to communicate with the creditor and negotiate the details.

If you ignore your creditor’s request to negotiate a settlement or a payment plan, you may very well wind up in court, allowing the court the opportunity to rule against you. Judgments should be avoided at all costs!

A seasoned credit attorney can help you with this process. Negotiating with the creditor may be less stressful if you have a credit attorney who can guide the process along. Ignoring your debt issues is counter-productive. It is best to meet them head-on!

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