Judgement question...

[FiledinMarch]

A family member of mine got sued. The court date was set for December 7th. A few days before the court date, the family member called the company hoping to set up some sort of payment plan. Supposedly it was agreed upon that the family member would pay $100 a month by automatic withdrawal until the amount was paid in full. The creditor said that unless the family member could pay the full amount, they would still get a judgement against them. Family couldn't pay full amount, said fine, was agreed to pay the $100 a month. Now , a few days after the court date they have received a paper in the mail saying the plaintiff appeard in court and the defendant failed to appear. It then says "IT IS THEREFORE ORDERED, DECREED AND ADJUDGED BY THE COURT THAT the plaintiff have and recover from the defendant the sum of $2050 , plus interest at the rate of 8% per annum. Judgement is to be paid in full within 30 days."

What happens if the balance is not paid within 30 days?? I know there's no such thing as debtors prison anymore, so would they garnish wages, attach bank accounts, what??

Thanks

[magyar123]

They most certainly will garnish wages and attach bank accounts.
"Family member" should have gotten something in writing regarding the $100 a month repayment agreement, specifying the payment dates.
I hope the above is a lesson for everyone - GET EVERYTHING IN WRITING, and/or RECORD THE PHONE CONVERSATION.

[FreshLikeADaisy]

That is a common trick when there is legal action; if you have contact with the opposing side or their attorneys, they'll say no, no, everything's fine, we'll take care of it, you don't have to show up or respond in any way. And of course when you don't present any defense, they have an automatic win.

The court date was set for December 7th.

You got Pearl Harbor'd.

[treehugger1]

Take a deep breath. Just because the creditor received the judgment, it does not mean that they will move directly toward garnishment or bank levy, although they do have that right. Give the creditor a call and ask about the payment arrangement. Do you have this in writing? Did you record the agreement over the phone? Be proactive in this case.

Since the judgment is out there, protect your bank accounts. Read other posts related to protecting what you can (direct deposits of paychecks, etc.)

[emoney]

You need the services of an attorney today. In most states judgments are not final for thirty days. So you or an attorney could file a motion to set aside the judgment, but you need to move ASAP.
regards,
emoney

[jp2861]

FiM..having a judgement in hand and being able to collect are two different stories. Don't let the judgement scare you just yet.

The first thing you need to check on are the statutes in your state that outline garnishments. Each state is different, so know the laws in YOUR state.

Whoever has this judgement really holds all the aces. These are sneaky folks so do your homework on them, and know what they can and can't do in your state.

[showboat]

I went down to the courthouse and filed a petition for installment payments, when one of my creditors got a judgement. Then they will set a court date, and you can tell the judge that you can pay $100 a month, and they can set up the payments throught the court.