if i have a judgement against me for a debt, who do i pay, the defense attorney or the debt company

If you don't have a defense or counterclaim and the creditor can easily prove its case, then you'll lose. You'll then owe the judgment amount, have to pay your own attorney, and might have pay the creditor's attorneys' fees too. (In some types of cases, the losing party has to pay the other side's attorneys' fees).

Full Answer

Should I hire a lawyer to defend a debt?

April 21st, 2016. If you have a judgment against you, you might be thinking that you should just pay the judgment and get it released. And it’s true, that’s one way to handle it. You could contact the judgment creditor and work out terms to pay the judgment. But that may not be a good idea.

How can a credit card company get a debt judgment against you?

Jun 20, 2018 · By Howard Dvorkin, CPA. Free Debt Analysis. Contact us at (800)-810-0989. A reader knows he's in trouble for at least one credit card judgement. Probably three. 3 minute read. ask the expert, credit cards, debt, debt collections. Question: A few years ago, we found ourselves in a very tough financial situation.

Can a creditor get a judgement against you?

If you ignore a court action, it's likely that a judgment will be entered against you for the amount the creditor or debt collector claims you owe. Often the court also will award additional fees against you to cover collections costs, interest, and attorney fees. Judgments give debt collectors much stronger tools to collect the debt from you.

Does a judgment make it easier to pay off a debt?

Sep 02, 2020 · The debt is legally yours: If you do take action on the lawsuit but the court finds that you are legally obligated to the debt, the creditor can still file a judgment. This can happen even if you respond properly and appear in court. Generally, to overcome a lawsuit, you will need more than an inability to pay as a defense.

How do I defend myself in court for debt?

Takeaways on How to Effectively Defend Yourself in a Debt Collection LawsuitMake sure you respond to the Complaint and your response is timely filed.Review potential affirmative defenses that could apply to your case.Make the debt collector prove that they have the legal right to sue you.More items...•Sep 4, 2020

What happens if you have a Judgement against you in Florida?

A judgment lasts for up to 20 years. ... If a judgment is entered against you by a court, your wages or bank account may be taken from you to pay the judgment through legal proceedings called garnishment and attachment. Through a process called execution, a creditor can collect money owed under a judgment.

How do I settle a Judgement in Texas?

How to Settle a JudgmentFind the judgment creditor.Create a hardship letter.Negotiate.Write a Release of Judgment (RoJ)Transfer Money and Get Release of Judgment (RoJ) Signed.File Release of judgment (RoJ) in the correct county.May 20, 2017

How do you negotiate a Judgement settlement?

Here are 10 tips for negotiating with creditors and collection agencies.Stick to your story. ... Avoid drama. ... Ask questions. ... Take notes. ... Read (and save) your mail. ... Know what you can afford. ... Deal with creditors, not collectors. ... Get it in writing.More items...•Sep 13, 2019

Can a creditor garnish my bank account in Florida?

In Florida, bank account garnishment is authorized by Chapter 77 of the Florida Statutes. Specifically, under section 77.03, a judgment creditor can request that a court issue a writ of garnishment. Once issued, the creditor serves the bank with the garnishment.Feb 18, 2022

How long is a final judgment good for in Florida?

20 yearsIn Florida, a judgment lasts for 20 years. It can be renewed after the 20 year period, although this is rarely done. Judgments that are not recorded as liens, or are recorded as junior liens, are still valid judgments that can be executed against the debtor's property.Jul 31, 2020

Can you garnish wages in Texas for a Judgement?

In Texas, wage garnishment is prohibited by the Texas Constitution except for a few kinds of debt: child support, spousal support, student loans, or unpaid taxes. A debt collector cannot garnish your wages for ordinary debts. However, Texas does allow for a bank account to be frozen.Feb 3, 2022

Can you go to jail for debt in Texas?

You cannot be arrested or go to jail simply for being past-due on credit card debt or student loan debt, for instance. If you've failed to pay taxes or child support, however, you may have reason to be concerned.Feb 1, 2021

What happens if a defendant does not pay a judgment Texas?

If a defendant does not pay a judgment, the plaintiff can try to enforce the judgment by filing another lawsuit. For example, if the defendant owns several cars, the plaintiff can sue to have the car transferred to the plaintiff.

How much will creditors settle for?

Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.Jun 11, 2021

What is the statute of limitations on debt?

How Long Does the Statute of Limitations on Debt Last? The statute of limitations on debt typically falls within three to six years, although some periods are as long as 15 years. This period can vary based on where you live and what type of debt is involved.Feb 4, 2022

How can I get out of debt without paying?

Ask for a raise at work or move to a higher-paying job, if you can. Get a side-hustle. Start to sell valuable things, like furniture or expensive jewelry, to cover the outstanding debt. Ask for assistance: Contact your lenders and creditors and ask about lowering your monthly payment, interest rate or both.Sep 2, 2021

What happens if you ignore a lawsuit?

If you ignore the lawsuit, the court will enter an automatic judgment against you, known as a default judgment. 1 Of course, even if you file an answer to the lawsuit, you can still lose the case.

How long is a judgment valid?

Depending on your state, a judgment remains valid from 5 to 20 years or more. 5  6  That's a long time for a debt to follow you around. Furthermore, judgments show up on credit reports for up to seven years and may appear on background checks until the judgments expire, whichever is longer. 7 .

What is a judgment in a contract?

A judgment typically consists of the debt owed plus interest. The interest can accumulate from the time the judgment is recorded until the time it is paid in full. Other charges that may be levied are court fees, attorney fees, ...

What is a judgment on a property?

Under state law, a judgment is a lien on the property, which opens up a host of possibilities for creditors. 1 . If your state allows it, the judgment can file a levy with the court and your employer, instructing the employer to garnish a portion of your wages, to pay the creditor. Garnishments may also target bank accounts.

How to collect a judgment?

Judgments give debt collectors much stronger tools to collect the debt from you. Depending on your situation and your state’s laws, the creditor may be able to: 1 Garnish your wages 2 Place a lien against your property 3 Move to freeze or garnish all or part of the funds in your bank account

What happens if you ignore a lawsuit?

If you ignore a court action, it's likely that a judgment will be entered against you for the amount the creditor or debt collector claims you owe.

What is a judgment in a court case?

A judgment is a court order.

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

Can a judgment be changed?

A judgment is a court order. Only the court can change it. It's very difficult to get a judgment changed or set aside once the case is over. You have a much better chance to fight a collection in court if you defend the case than if you wait until a judgment is entered against you.

What happens if you don't hold up your end of the agreement?

Therefore, if you are not holding up your end of the agreement, the lender or creditor can sue you. If the lender or creditor is successful in the lawsuit, it can result in a judgment against you.

How does a creditor seize property?

Wages: One of the most common ways a creditor seizes property is through wage garnishment. In this case, the creditor will legally require your employer to hand over a certain percentage of your income each pay period. This is generally about 10 percent of your gross wages per pay period. This varies between states.

Who is Tayne Law Group?

Since 2001, Tayne Law Group has helped countless clients resolve their debts for a fraction of their original amount. Our in-depth knowledge of debt settlement and creditors has enabled us to develop a debt relief process that’s truly effective.

Can a judgment be filed against you?

A judgment could be filed against you in several ways: You fail to show up in court: If the creditor files a suit but you fail to appear in court or respond to the suit properly, the creditor will win the suit and therefore can file a judgment.

What is a judgment in court?

A judgment occurs when the creditor wins their case in court. It allows the creditor to pursue other ways to recoup the debt you owe, often including wage garnishment. A judgment also often includes interest, as well as other costs such as attorney’s fees. A judgment could be filed against you in several ways:

How long does a judgment last on a credit report?

But you may not know for sure if there’s a judgment against you. Judgments typically last 20 years, so it’s important to know if there’s one against you.

Can a creditor freeze your bank account?

Nonwage garnishment: In addition to wage garnishment, the creditor can freeze your bank account instead. Normally, you would have no warning when this happens. You may find out by trying to access your account and find the funds frozen. However, certain exemptions exist here as well.

How to sue a creditor for a debt?

When a creditor sues you to collect debt you haven't paid, you have three choices to deal with the lawsuit: 1 allow the creditor to obtain a judgment against you (called a "default judgment") 2 defend the lawsuit yourself, or 3 hire an attorney to represent you in the lawsuit.

What is a defense in a lawsuit?

A defense is a reason why you aren't liable for the debt or a reason why the creditor shouldn't be allowed to collect the debt. Here are some common defenses to creditor suits: the statute of limitations (the time period in which the creditor must bring the lawsuit) has run.

Can you keep your retirement account in bankruptcy?

If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.

What is a counterclaim?

A counterclaim is a claim that you have against the creditor. In most states, the counterclaim must relate to the transaction at issue in the creditor's lawsuit. For example, say the creditor sues you for nonpayment of a credit card debt.

Can a creditor get a judgment against you?

allow the creditor to obtain a judgment against you (called a "default judgment") defend the lawsuit yourself, or. hire an attorney to represent you in the lawsuit. Which option is best for you will depend on a number of factors.

What happens if you don't pay your credit card debt?

Defaulting on a Debt. If you don't pay your credit card debt or other debts, the creditors will pursue you to collect the money they’re owed. The immediate consequences of ignoring your debt payment obligations include higher interest rates and late fees.

How long does it take to respond to a lawsuit?

Depending on the state where you live and the type of lawsuit you’re facing, your time to respond to the lawsuit may be as little as 7 to 14 days. If you don't respond to the complaint within the time allowed, your creditor could obtain a default judgment against you.

Can a clerk give legal advice?

If it's necessary to go to the clerk's office, be forewarned that employees of the clerk's office can't give you legal advice. It's not a good idea to go to the clerk's office and ask how to answer a lawsuit. They usually won't help you.

What happens if a creditor is unable to collect?

If the original creditor is unable to collect from you, they will likely turn the debt over to a collection agency or they may sell it to a debt-buying firm. When a creditor assigns a debt to a collection agency, the agency will call you repeatedly and send letters threatening legal action.

Can a creditor sue you if you have already paid off your debt?

Of course, this is easy if you paid off the balance and have proof of that action. However, creditors rarely sue when the money has already been paid. That's not to say it never happens. It's more likely you will have an affirmative defense. These are defenses that can reduce or eliminate the amount that the creditor says that you owe. Examples of such defenses include a statute of limitations violation, identity theft, and violations of the FDCPA.

What happens if a debt collector fails to collect?

If the debt collectors fail to collect a debt, a law firm may be hired to sue you. The first notice you'll have that you've been sued is the receipt of the complaint from the plaintiff. The plaintiff is the first party listed in the heading of the complaint. The plaintiff is the party suing you.

Can a creditor take 25% of your income?

Federal law only allows the creditor to take 25% of your disposable earnings. If you're a low-income wage earner, the maximum percentage the creditor can take might be less than 25%. Judgment creditors can take some other forms of income as well. However, some income sources are exempt from garnishment.

What Happens After The Judgment Is entered?

See more on thebalance.com

A Judgment Can Be Good For 20 Years Or More

How A Creditor Can Use The Judgment

How Can You Avoid A Judgment?