Is this statement true?

[DYLAN150]

If the creditor wins this Default Judgement then a judge can order to repay the loan. Often times the court will determine a schedule and amount for which you will have to repay the loan based on your current circumstances.

I live in Washington State and was wondering if this is true.

[SunshineGal]

It sounds like you might be talking about a stipulated agreement where you agree to pay x amount per month to avoid the summary judgment. In the event you default on the payments, the judge then issues a default judgment.

[HHM]

First, where did you hear that statement?

As for it's truth, I suppose it depends on state law. However, I agree with SunshineGal, generally, the court will want the plaintiff and defendant to work out some sort of payment arrangement and then formalize that agreement as a stipulated judgement. The only state that has a formal debt workout program is Wisconsin. Every other state simply allows the plaintiff to get a judgment and then exercise whatever collection rights the plaintiff chooses.

[DYLAN150]

( I read it on line) Thanks, you answered my question. As you can tell, I really have no knowledge of the court systems at all, unless it is Divorce court.

[99lawdog99]

all a default judgment is, is a judgment that was granted because the party didn't respond. It becomes a lien on property and must be satisfied if anything is sold. It also allows a company to obtain a garnishment of wages (if your state allows for such since some states don't for unsecured debt) or allows them to take bank accounts. Once the judgment is obtained the attorney usually sends out discovery to see what is avaiable to attach and go after. You will receive of any attempt to obtain a wage execution or ganishment. By federal law they are only allowed to garnish 55% of your pay plus another 10% for arrears.
I don't understand why people allow default judgments to be entered against them. All they have to do is show up in court and almost all creditors will allow you to work out a payment plan instead of getting a judgment. They rather have the payments than a piece of paper they have to try an execute on.

[shark66]

all a default judgment is, is a judgment that was granted because the party didn't respond. It becomes a lien on property and must be satisfied if anything is sold. It also allows a company to obtain a garnishment of wages (if your state allows for such since some states don't for unsecured debt) or allows them to take bank accounts. Once the judgment is obtained the attorney usually sends out discovery to see what is avaiable to attach and go after. You will receive of any attempt to obtain a wage execution or ganishment. By federal law they are only allowed to garnish 55% of your pay plus another 10% for arrears.
I don't understand why people allow default judgments to be entered against them. All they have to do is show up in court and almost all creditors will allow you to work out a payment plan instead of getting a judgment. They rather have the payments than a piece of paper they have to try an execute on.

No. You've got quite a few things wrong here.

The absolute maximum that can be garnished is 25% of one's wages, and not in all states. This does not apply to IRS liens or alimony/child support, but does apply to any judgment that one would get from a creditor in court. Pennsylvania, BTW, is one of the states that do not allow wage garnishment.

And there's not always property that a lien can be attached to...many significant differences and variations between various states and districts...

There's nothing wrong in allowing a judgment if one is collection proof, IMO. Why would a person in that status make any type of deal knowing that a creditor has nowhere to collect from? Discovery? Maybe in 1 out of 500 cases. And even then - what? If you own nothing that can be sold quickly to satisfy the lien, they're back to square one...

Furthermore, if one is getting close to filing BK, a judgment or two or seven really don't change much of anything, they just have to be vacated after one's discharge...

Good luck.

[99lawdog99]

ok I stand corrected, as most of my ganishments were for child support. i have personally gotten 65% of a persons pay. Yes i agree Pa doesn't allow for garnishments thats why I indicated it's based on your state.

As for allowing a judgment to go against you, the basic idea is why allow it to go forward even if you are judgment proof. It hangs over your head for 20 years and can be renewed. It is much better to work out a deal even if it's pennies each month. I have worked out deals where people pay back 5.00 a month towards a signifigant debt. At that rate anyone can afford it. Again to me, thats much better than having a judgment hanging over you for the rest of your life. Also if you are sure you are going to file bk then I guess it doesn't matter.

Just my thoughts