Credit card judgments acknowledge that a debt is outstanding and spells out the way in which the debt may be recovered. This often takes place when a credit card cardholder has missed monthly paments and has not made an effort to work with the credit card provider to bring the account current.
Idealistically speaking, before getting to this point, it would be best to contact the card provider so things do not get out of hand. Credit card providers are often willing to work with a cardholder to either arrange a payment plan or to arrange for a pay off in full for a reduced debt amount.
If a credit card provider feels it will get nowhere with you regarding your credit card debt, it may sell your debt to a collection agency. If so, you will then have to negotiate with the collection agency as the credit card provider has removed itself from the equation. Most collection agencies do not want to file a law suit against you as it is time-consuming and costly. They would much rather work with you to settle the debt, either through a lump sum payment or by arranging monthly payments.
If your debt does come before a judge for a credit card judgment, you have the right to appear before the judge and plead your case. If the debt is not yours or if the seizing of the assets would mean serious difficulties for you, the judge may take this into consideration. However, this is viewed on a case-by-case basis.
It is good to know that not all assets may be seized and the judge will ascertain which assets may be used to recover the debt. It is also possible that money may be taken from your bank account, your wages may be garnished (depending upon state law), and a lien may be placed on your real property.
As you can imagine, a credit card judgment will adversely affect your credit score. This judgment will likely mean that you will be denied for most credit products for which you apply and, if not, you will be offered exorbitant annual percentage rates (APRs) and monthly and annual fees. Also, this credit card judgment can remain on your credit report for up to seven years.
As if this wasn\’t enough, this credit card judgment can also affect your chances of future employment or advancement in your current job. Also, searching for reasonable rates on home and car insurance may be affected.
Once the credit card judgment has been issued, do your best to pay the credit card debt off as quicikly as you can. Keep in mind that you can contact the credit reporting agencies after the debt has been paid in full to request that the debt be removed altogether or, at the very least, be revised to a \”paid\” status.
Can Lexington Law Firm Really Fix Bad Credit? See What They Did at www.lexingtonlawreviews.com