What Happens After a Judgement is Entered Against You?

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Today, we’re going to talk about the obligations and options if a Florida judgment has been entered against you.

Understanding the Court Judgment Process

The judgment process typically begins when a creditor files a lawsuit against a debtor in civil court. The creditor must serve the debtor with a summons and complaint, which outlines the amount of money owed and the reason for the lawsuit. The debtor has a certain amount of time to respond to the lawsuit, usually 20-30 days, depending on the state. If the debtor fails to respond, the creditor can request a default judgment, which is a judgment entered in favor of the creditor without a trial.

If the debtor responds to the lawsuit, the case will proceed to trial, where a judge or jury will hear evidence and make a decision. If the judge or jury rules in favor of the creditor, a judgment will be entered against the debtor. When a judge decides in favor of the creditor, it sets in motion legal actions that significantly impact the debtor’s financial situation. The judgment will outline the amount of money the debtor owes, as well as any interest or fees that must be paid.

The process of entering a court judgment against you typically involves the following steps: the creditor files a lawsuit, the debtor is served, and the court hears the case. Once the judgment filed against you, it alters your legal rights and obligations. If the court rules in favor of the creditor, the judgment will be entered, and the debtor will be legally obligated to pay the amount specified in the judgment.

What is a court judgment and how is it entered against you?

A court judgment is a formal decision made by a judge in a court of law, typically in a civil case, where one party is found liable for a debt or obligation. When a court judgment is entered against you, it means that the court has ruled in favor of the creditor or plaintiff, and you are now legally obligated to pay the debt or fulfill the obligation.

The process of entering a court judgment against you typically involves the following steps:

1. Lawsuit Filing: A creditor or plaintiff files a lawsuit against you in civil court.

2. Service of Process: You are served with a summons and complaint, which notifies you of the lawsuit and requires you to respond.

3. Failure to Respond: If you fail to respond or appear in court, the creditor or plaintiff may request a default judgment.

4. Court Decision: The court reviews the evidence and makes a decision, which is then entered into the public record as a court judgment.

Once a court judgment is entered against you, it can have serious consequences, including damage to your credit score, wage garnishment, and even the seizure of your assets. It’s crucial to respond promptly to any legal notices to avoid a default judgment and to seek legal advice if you are unsure of how to proceed.

Default Judgment

A default judgment is a type of court judgment that is entered against a defendant who fails to respond to a lawsuit or appear in court. When a default judgment is entered, the creditor or plaintiff is awarded the relief they sought in the lawsuit, without the need for a trial or further evidence.

What is a default judgment and how can it be challenged?

A default judgment is typically entered when a defendant fails to respond to a lawsuit within the required timeframe, usually 20-30 days. If you receive a default judgment, you may be able to challenge it by filing a motion to vacate the judgment. This motion must be filed within a certain timeframe, usually 30-60 days, and must be based on one of the following grounds:

1. Lack of Proper Notice: You did not receive proper notice of the lawsuit.

2. Improper Service: You were not properly served with the summons and complaint.

3. Valid Defense: You have a valid defense to the lawsuit.

4. Error in Judgment: The judgment was entered in error.

To challenge a default judgment, you will need to file a motion with the court and provide evidence to support your claim. It is recommended that you seek the advice of an attorney to help you navigate this process. Successfully vacating a default judgment can prevent the negative consequences associated with it, such as wage garnishment and damage to your credit report.

Consequences of a Judgment for the Judgment Creditor

A judgment can have serious consequences for a debtor. One of the most significant consequences is the impact on credit scores. A judgment can remain on a credit report for up to seven years, making it difficult for the debtor to obtain credit or loans. Judgments can appear on credit reports and affect one’s ability to secure credit in the future. Additionally, a judgment can lead to wage garnishment, where a portion of the debtor’s paycheck is withheld and sent directly to the creditor.

A court judgment can have serious consequences for your finances, including: a bank levy, where the creditor freezes the debtor’s bank account and takes the funds to satisfy the debt. Judgments affect credit scores, and understanding this relationship is crucial for financial recovery. A money judgment mandates a monetary award to a creditor and outlines the enforcement process and potential consequences. In some cases, a judgment can even lead to the seizure of personal property, such as a car or home. It’s essential for debtors to understand the consequences of a judgment and take steps to resolve the debt as quickly as possible.

What is the information that needs to be turned over after a judgment is entered?

When a judgment is entered, the losing party (known as Judgment Debtor) has on obligation to provide information about their finances. That process is called discovery and aid of execution. That process begins with a form commonly referred to as the Form 1.977, which is a reference to the Florida Rule of Civil Procedure Attachment, which provides the template form. The form requires disclosure of the Judgment Debtor’s assets, income, and where all that information is located.

Keep in mind, while providing and disclosing this information may be uncomfortable, it’s also part of the obligation, of having a judgment entered against you. You’re required to give that financial transparency. So while there is no debtor’s prison anymore, if the defendant fails to provide the information that they’re required to provide under those forms, then they can, in extreme circumstances, have executed on them a writ of bodily attachment, which in fact is an arrest warrant. So it is important that the response that information is given and that’s given truthfully and accurately.

The Deposition in Aid of Execution

Likewise, after judgment is entered, the judgment debtor may have to participate in a deposition in aid of execution. This is effectively like a recorded conversation with the party that has the judgment, now referred to as the judgment creditor, or their lawyer, where just like in the form we talked about, the judgment debtor’s required to give information about their financial wherewithal.

Again, this isn’t the most comfortable process, but it is something that is part of the lawful collection process. In addition to the informational disclosures, the party that’s received the judgment may take lawful steps to collect on the judgment itself. They can garnish wages, bank accounts, and they can levy physical assets and unprotected real estate, usually real estate that’s not your homestead.

Common Question about Garnishment:

Can my wages or bank account be garnished if they’re protected, if you have a protection like Social Security or head of household or some other protections to Florida consumer?

The answer is “kind of.” In most circumstances, asset protections or protections from garnishment are a reactive process, meaning the company that has the judgment usually will first ask for and execute on the garnishment. They will begin garnishing the wages or the bank account. And then after those assets have been frozen, the burden is then on the judgment debtor to file or request a claim of exemption or a notice to the court that the assets are protected, and then there’s a hearing on that request for protection. So while those protections are valid, there is a reactive process of imposing those protections.

What are your options after a garnishment has been entered?

There are a few different options. First, you can ask to set aside the judgment. While there is a burden to overcome an order to set aside a judgment, in other words, if the judge has already made a decision, the burden is on the party seeking to reevaluate that decision to change the decision. But it can be possible in some circumstances to set judgment aside. Generally, if this is something that you are considering doing, you’re going to want to work diligently because part of the requirements in order to set aside a judgment is that you work as quickly as you are able to, to ask the judgment to be set aside.

The second option would be to pay the judgment, particularly in full. Usually, payments can be made to the court clerk or arrangements can be made directly with company that has the judgment, but you can make payment on the judgment. Third option, in some instances, you may be able to settle on the judgment balance. So even though there may be a judgment for a full amount, most parties that hold judgments recognize that, just like in every other aspect of life, time is money, a bird in hand is worth two in a bush. And so there may be a willingness to reduce or make arrangements on the judgment in order to make it more accessible and often to resolve the judgment. Final option can be filing for bankruptcy, and while bankruptcy options vary on a number of circumstances, judgment generally can be discharged, absent a few exceptions.

How a judgment can affect your finances

A court judgment can have serious consequences for your finances, including:

1. Damage to Your Credit Score: A court judgment can significantly lower your credit score, making it harder to obtain credit or loans in the future. Judgments can remain on your credit report for up to seven years.

2. Wage Garnishment: A creditor or plaintiff may be able to garnish your wages to collect on the debt. This means a portion of your paycheck is withheld and sent directly to the creditor.

3. Bank Levy: A creditor or plaintiff may be able to freeze your bank account to collect on the debt. This can prevent you from accessing your funds until the debt is satisfied.

4. Asset Seizure: A creditor or plaintiff may be able to seize your assets, such as your home or car, to collect on the debt. This can include personal property and real estate that is not protected by exemptions.

It is essential to take immediate action if you receive a court judgment, as the consequences can be severe and long-lasting. Consulting with an attorney can help you understand your options and take the necessary steps to protect your financial well-being.

Resolving a Judgment through Wage Garnishment

There are several ways to resolve a judgment. One option is to pay the debt in full, which can help to avoid further collection efforts and improve credit scores. Another option is to negotiate a payment plan with the creditor, which can help to make the debt more manageable. Engaging with a debt collector to negotiate payment arrangements can also help manage the debt. It is important to engage with debt collectors to avoid further legal actions and judgments. When a court decides you owe money, it can lead to actions such as the enforcement of the judgment or the use of your property to settle the debt.

In some cases, a debtor may be able to file a motion to vacate the judgment, which can help to remove the judgment from their credit report. However, this option is typically only available if the debtor can show that the judgment was entered in error or that they were not properly served with the lawsuit.

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