photo by Abogadong Bisdak
First things, first, I am not a attorney and I don’t know your state laws. However, I am confident that in every state a creditor has a right to collect their money depending on the type of debt were talking about. The creditor may attempt to collect this debt through litigation. As a consumer, the laws are drastically on your side in terms of debt. If you don’t believe me, check out the laws in India or some other countries around the globe.
A judgment is simply the official decision of a court at the completion of a lawsuit. It merely indicates that the court has resolved the issues brought before it in a lawsuit in favor of either the plaintiff or the defendant. It generally stipulates a monetary award to the winner. “Courtesy of Debt Kid“
The court will rule in the creditor’s favor if the creditor successfully convinces the judge that you owe the debt and are refusing to pay. Now there is such a thing as being judgement proof, which are people from whom a creditor cannot collect money, even when there is a court order stating there is a debt. What saddens me, is that there are some people out there that consider being “judgment proof” as an enviable position. So before you go out bragging to every creditor you talk to, make sure you meet these qualifications:
Traits for Being Judgment Proof:
- Collecting ONLY Social Security or government assistance.
- If the Statue of Limitations has run out. (However, this does not mean they will stop trying to collect, Trust me!)
- Your assets are not sufficient enough to satisfy the debt.
As always, their are numerous exceptions. Many states have homestead protection laws which can prevent creditors from putting a lien on your home, but again, best to be sure. The purpose of this post is to educate the next 19-year-old punk kid who thinks he is judgment proof to think twice. Also, just because you think you’re judgment proof now doesn’t mean you’ll be 5 years from now. Creditors will obtain judgments if they think you can pay in the future. When in doubt seek legal advice.
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