Consequences of a Credit Card Judgment Against You

Unfortunately, credit card judgment have long lasting consequences. For instance, a credit card judgment can tank your credit rating and stay on your credit report for approximately seven years. This means that the judgment will make it harder to rent an apartment or buy a home in the future. In addition, the judgment means that you've defaulted on your credit card accounts. Thus, the judgment will make it harder to obtain other credit cards or other types of credit. If you do manage to obtain a credit, you may have a higher interest rate.

You May Not Obtain the Job You Want

Some employers such as banks, use credit reports when considering if you are the best candidate for a job with them. However, a credit card judgment can take you out of the running for the job you're seeking.

You May Not Keep Your Wages

A major consequence, if you're working is that the credit card company that obtain the judgment will garnish your wages. The only documentation the company needs is a writ of garnishment issued by the local court that granted the original garnishment. Once the writ reaches your employer up to 25 percent of your wages are subtracted from your check every week, two weeks or money--essentially whenever you are paid. The garnishment will continue until the judgment is satisfied.

The Money In Your Bank Account Can Be Seized

If the credit card company doesn't go after your wages, you still have to worry. The company can obtain a writ of garnishment to garnish your bank account. This means that the money in your checking or savings account is frozen and then sent to the credit card company as payment. Let's say you have a $400 in the bank, but your credit card judgment is for $1000. The money in your bank account will deducted from $1000. You'll still owe the remaining balance.

Seek Legal Help

If you're facing a credit card judgment, then contact a lawyer. The lawyer will the consequences and what you can do about it. For instance, you may be eligible for wage garnishment exemptions or bankruptcy. Also, your lawyer may advise you to work with the credit card company to set up payment arrangements. If the company accepts, then it may not pursue wage garnishment against you.

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