The Truth of Credit

The vast majority of judgments obtained by debt collectors are by default. That means the alleged debtor didn’t show up to court to contest the case. Unfortunately, I believe that debtors often don’t show up to contest a case because they feel that there is no use since the debt was once a legitimate debt. This is a mistake and results, in many judgments that never should have been. But that’s an issue for another day.

Sometimes a default judgment is obtained because the alleged debtor never actually became aware of the lawsuit. There are 3 ways in most states that you can be served:

• 1. Certified mail to your residence, place of business or employment;
• 2. Handing it to you in person
• 3. Leaving a copy at your home or where they live and serving your agent as provided by rule, statute or valid agreement

These are the only ways, “almost”, which a person can be served with a lawsuit that has been filed in state court.   I say almost because a recent unpublished appeals decision says that an individual can also be served by sending certified mail to their post office box.

The TRUTH is a judgment is one of the many weapons a creditor can use. They use these to recover money through garnished wages and liens. If and when you believe a “default” judgment has been placed you need to act fast. Most these can be removed but, after a year it can be almost impossible to do so.