Harris-Courage & Grady, PLLC
What to Do if You Have a Judgment Filed Against You
In Order to Have a Judgment Filed Against You, a Creditor Must First File a Lawsuit to Collect on Debts.
- If you receive notice that a creditor has filed a lawsuit against you, call an attorney immediately.
- The easiest way for a creditor get a judgment against you is for you to do nothing when you are sued.
- The creditor has from 10-20 years to collect on the judgment, so it will be with you for a very long time.
A judgment creditor can garnish your wages, freeze your bank account and take other assets from you by using the local sheriff’s office.
In addition, a judgment is automatically a lien on your home and other real property. Real property refers to any other buildings or lands that you may own.
What Does a Judgment Lien Mean?
- If you try to sell your home or refinance it, you will need to pay off the lien first.
- If the lien makes it so you owe more on the house than the house is worth, you may not be able to sell it at all.
- It is also possible that if you have enough equity in your home to cover the judgment, the judgment creditor can require the sheriff to sell your home to pay off the judgment.
What Can You Do?
- File bankruptcy.
- Although the bankruptcy alone will not get rid of the judgment lien, we can file a separate action inside the bankruptcy to get rid of the judgment lien in most cases.
- This additional legal action requires some additional cost, but it is absolutely worth it to get that lien off your home.
We would be happy to answer your questions about your unique situation. Please call us.