Judgments

WHAT IF I HAVE A JUDGMENT FILED AGAINST ME?

Creditor lawsuits and financial judgments against you are major legal proceedings that can compel a person already struggling with mounting debt to seriously consider filing bankruptcy. Creditors who obtain judgments are able to garnish your wages for up to 25% of your disposable income and obtain access to readily available money in your personal bank accounts. A bankruptcy filing brings the relief of an “automatic stay”. Again, this suspends debt collector harassment, repossession efforts, pending lawsuits from creditors, foreclosure and wage garnishment. Most debts can be discharged unless they are “priority debts”.   

DOES DEBT GO AWAY AFTER A CERTAIN PERIOD OF TIME?

A judgment entered against you is collectable for up to 20 years. Credit card companies have five (5) years to sue for non-payment of the debt owed.  You cannot be threatened with collection of a debt beyond these time periods.  The time is calculated based upon your last payment made with the creditor.  So if you go 3 years without making a payment then make even a small payment, you will refresh the time period to the date of your last payment. Consult with the Gina Rosato Law Firm at (813) 463-8000.