Credit card judgments confirm that a debt is owed and the steps which may be taken to recover the amount owed. Garnishment of wages, seizing of assets, and placing liens against real property are examples of the “steps” which may be taken.
A judgment of this type normally follows months of repeated attempts to collect the debt. It is best to do everything possible to keep this from happening and this article will give you ideas to consider if you feel you may be facing a credit card judgment.
If you are behind on your monthly credit card payments, you will likely receive a multitude of letters and phone calls from the credit card provider requesting that you bring your account current. Once this happens, the credit card provider will request that you pay the balance in full or make arrangements for a payment plan. If you decide to ignore these calls and letters, your account may be charged-off.
If you make no effort to work with the credit card provider, your account may be sold to a collection agency who will most likely purchase your debt for cents on the dollar, normally for as little as 8 cents to 12 cents per dollar of debt purchased. The collection agency will attempt to collect the debt from you by yet again requesting either a lump sum or monthly payments. Your credit score will be damaged yet again if the credit card provider sells your debt to a collection agency.
Filing legal actions is something which collection agencies would prefer not to do. Legal actions are costly and time-consuming. Additionally, the amount of your debt is quite likely a small amount to the collection agency since it only paid cents on the dollar for the debt purchased. The collection agency will attempt to collect the debt from you and, if it cannot, it may very well sell the debt to another collection agency. This means, of course, that the process will begin all over again.
If you do not work with the second collection agency to clear up the account, this collection agency may decide to take you to court to recover payment. At this point, you may be looking at a credit card judgment. You have a legal right to plead your case. If you are able to prove that the debt is not yours or that you are a victim of extenuating circumstances, the judge may alter the judgment.
On the other hand, if you are unable to prove that there are extenuating circumstances or that the debt is not yours, a court judgment, issued by the judge, will explain the ways in which the debt owing may be recovered. Some examples of possible recovery methods include (depending upon state law) wage garnishment, seizing assets, taking money from your bank account, and filing liens against your real property.
You should consider working with the credit card provider and collection agencies to get the debt paid. This will lessen the damage to your credit score. If you can come to an agreement with the credit card provider or collection agency, you will be able to dodge a credit card judgment.
NCO Ruined my Life. What I Did to Get Revenge. www.myncodebt.com
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